Agenda — Desert Hot Springs City Council, October 6, 2026 (part 1 of 6)

City of Desert Hot Springs
AGENDA

REGULAR MEETING OF THE CITY COUNCIL
and the City Council Serving as the Successor Agency to the Former Redevelopment Agency Board
Tuesday, October 6, 2026
4:30 PM - Closed Session
5:30 PM - Presentations
6:00 PM - Regular Session
Council Chambers/City Hall
11-999 Palm Drive
Desert Hot Springs, California, 92240

Public Participation Options

City Council meetings are held in person, but you can watch the meeting via live stream or participate through the following options below:

Live Stream: YouTube | City Website
Via Email: Send your comments by email to [email protected]. Emails received by 2:00 PM the day of the meeting will be part of the record and distributed to the City Council. Emails received after 2:00 PM, during or after the meeting, will be distributed as soon as practicable and retained for the record.

In-Person Public Comment:
• General Public Comment (Non-Agenda Items) – Upon arrival, please complete a speaker card and submit to the City Clerk.
• Agenda Items – Speaker cards are not necessary to complete if you are speaking on an agenda item.

Online Public Comment: Virtual participation is conducted via Zoom. Use the raise hand feature to request to speak. Meeting online link: https://us02web.zoom.us/j/82878637372 Page
CLOSED SESSION - 4:30 P.M.

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS

Page 1 of 800 ends

At this time, item(s) on the Closed Session agenda may be discussed during Public Comments. PLEASE STATE YOUR NAME FOR THE RECORD.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: (Louis Diaferio v. City of Desert Hot Springs, Case No.

CVPS2500583)

2. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Wealthy Ventures, Inc. v. City of Desert Hot Springs et al, Riverside Superior Court case number CVPS2606056

3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8:

Property: 65311 San Jacinto Lane
Agency Negotiator: Doria Wilms, City Manager
Jennifer Mizrahi, City Attorney
Negotiating Parties: Edrick Pineda
Under Negotiation: Price and Terms

4. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION (Paragraph (2) of subdivision (d) of Section 54956.9)
There is a significant exposure to litigation based on the receipt of what appears to be a claim pursuant to the Government Claims Act or some other written communication from a potential plaintiff threatening litigation, which claim or communication is available for public inspection pursuant to Section 54957.5 of the Government Code.

5. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (one potential case)
RECESS
PRESENTATIONS - 5:30 P.M.

Hunger Action Month Presentation
Coachella Valley Conservation Commission (CVCC) - Upper Mission Creek & Big Morongo Canyon Conservation Area Update Proclamation for National Code Enforcement Officer Appreciation Week
REGULAR SESSION - 6:00 P.M.

CALL TO ORDER

ROLL CALL

INVOCATION

PLEDGE OF ALLEGIANCE

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CITY ATTORNEY REPORT ON CLOSED SESSION

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

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

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

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

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

CITY MANAGER REPORT

MAYOR AND COUNCIL MEMBER REPORTS

CONFLICT OF INTEREST & LEVINE ACT DISCLOSURES
PUBLIC HEARINGS:

6. Rental Registration Program Fees
Michael Miller, Code Compliance Officer
Recommendation:
1) Staff Report;
2) Entertain questions of Staff from City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;
6) Take public testimony of those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, Adopting the New User Fees Related to Rental Registration Permits and the Nexus Study Prepared Therefor.

Staff Report - SR-26-189 - Pdf
9 - 29

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ADMINISTRATIVE CALENDAR:

7. Approval of WE ARE ONE Sculpture and Site Improvements at Reflection Park
Roberta Crncic, Recreation and Community Services Director Recommendation:

Approve the purchase and installation of the WE ARE ONE sculpture by local artist Bijan Masoumpanah, including associated site improvements at Reflection Park, for a total project amount not to exceed $42,600.00 from the Art in Public Places Fund.

Staff Report - SR-26-213 - Pdf
31 - 38

8. Discussion Item: Public Records Act Requests
Scott Matas, Mayor
Recommendation:

Consider placement of an item on a future agenda to provide direction to staff concerning public records requests.

Staff Report - SR-26-219 - Pdf
39 - 43
CONSENT CALENDAR:

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

9. Visit Greater Palm Springs (VGPS) Approval and Adoption of the Third Amended and Restated Joint Powers Agreement That Amends the Purpose and Powers of the Joint Powers Authority (JPA) Jocelyn Kane, Economic Development Manager
Recommendation:

The JPA Executive Committee of VGPS recommends approval of amendments to the purpose and powers of its existing JPA Agreement, in the form of the Third Amended and Restated Joint Powers Agreement.

These amendments would allow VGPS’ members the option to develop a Tourism Improvement District or Infrastructure District, in collaboration with VGPS, to further the goal of construction of a sports complex in the Coachella Valley.

Staff Report - SR-26-209 - Pdf
45 - 71

10. Proposed Public Facilities and Improvements Bonds
Geoffrey Buchheim, Administrative Services Director
Recommendation:
1) Adopt a resolution of the City Council authorizing the City Manager and Administrative Services Director to engage a finance team for the issuance of proposed 2026 lease revenue bonds in the amount of $7.5 73 - 83

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million to finance capital improvement projects and for the acquisition of property; and
2) Adopt a resolution of the City Council authorizing reimbursement of City expenses for acquisition and improvement project costs from the bond proceeds.

Staff Report - SR-26-218 - Pdf

11. Second Reading and Adoption of An Ordinance to Rezone Land Designated Commercial Business Park (C-BP) Zoning Along Highway 62 Between North Indian Canyon Drive and Interstate 10 and North of Pierson Boulevard to the Commercial Highway (C-H) Zone (Zoning Amendment 26-1)
Jerryl Soriano, City Clerk
Recommendation:

Approve second reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs to rezone land designated Commercial Business Park (C-BP) Zoning along Highway 62 between North Indian Canyon Drive and Interstate 10 and North of Pierson Boulevard to Commercial Highway (C-H)."
Staff Report - SR-26-215 - Pdf
85 - 126

12. Award Professional Services Agreement for On-Call Engineering Services
Elias Garcia, City Engineer
Recommendation:
1) Approve the selection of Omnis, NV5, AET, Kimley Horn, and Albert Webb to provide On-Call Engineering Services to the City of Desert Hot Springs;
2) Authorize the City Manager to draft and execute separate Professional Services Agreements with any additional substantive changes approved by the City Manager, between the City of Desert Hot Springs and Omnis, NV5, AET, Kimley Horn, and Albert Webb, each for a term of three (3) years and an annual not-to-exceed amount of $150,000.00 per agreement, subject to final review and approval as to form by the City Attorney; and
3) Authorize the City Manager or designee to execute individual task orders and other documents necessary to implement the agreements, subject to the annual not-to-exceed amount, availability of funds, and applicable City purchasing requirements.

Staff Report - SR-26-217 - Pdf
127 - 319

13. Transportation Uniform Mitigation Fee (TUMF) Inflation Adjustment for Calendar Year 2027
Patricia Villagomez, Planning Manager
Recommendation:
321 - 331

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Adopt a Resolution of the City Council adjusting the Transportation Uniform Mitigation Fee (TUMF) pursuant to Coachella Valley Association of Government's request for Calendar Year 2027.

Staff Report - SR-26-216 - Pdf

14. Annual Utility Users Tax Report
Geoffrey Buchheim, Administrative Services Director
Recommendation: Receive and file
Staff Report - SR-26-214 - Pdf
333 - 334

15. Payment Register and City Council Expenditures for the Period of June 1, 2026 to June 30, 2026
Sheila Hruby, Senior Accountant
Recommendation:

Receive and file.

Staff Report - SR-26-198 - Pdf
335 - 481

16. Payment Register and City Council Expenditures for the Period of July 1, 2026 to July 31, 2026
Sheila Hruby, Senior Accountant
Recommendation:

Receive and file.

Staff Report - SR-26-199 - Pdf
483 - 673

17. Payment Register and City Council Expenditures for the Period of August 1, 2026 to August 31, 2026
Sheila Hruby, Senior Accountant
Recommendation:

Receive and file.

Staff Report - SR-26-200 - Pdf
675 - 774

18. Treasurer’s Report as of May 2026
Sheila Hruby, Senior Accountant
Recommendation:

Receive and file.

Staff Report - SR-26-201 - Pdf
775 - 781

19. Treasurer’s Report as of June 2026
Sheila Hruby, Senior Accountant
Recommendation:

Receive and file.

Staff Report - SR-26-202 - Pdf
783 - 789

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20. Treasurer’s Report as of July 2026
Sheila Hruby, Senior Accountant
Recommendation:

Receive and file.

Staff Report - SR-26-203 - Pdf
791 - 800

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

ADJOURN

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

October 8 Public Safety Commission 6:00 p.m.

October 13 Planning Commission 6:00 p.m.

October 20 City Council Regular Meeting 6:00 p.m.
________________________________________________________________________________

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

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

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

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

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SR-26-189
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 6, 2026
Department: Code & Cannabis Compliance
Prepared by: Michael Miller, Code Compliance Officer
Subject: Rental Registration Program Fees
RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;
6) Take public testimony of those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, Adopting the New User Fees Related to Rental Registration Permits and the Nexus Study Prepared Therefor.

BACKGROUND:

The California Constitution allows municipalities to recover reasonable costs borne from providing certain services to certain individuals. The City is permitted to charge fees based on “costs reasonably borne” by the City. However, the fees may not exceed the costs of providing the service. “Costs reasonably borne” is intended to include all appropriations by an entity for the appropriate costs for the continuation of the service over time. This includes ongoing expenses such as operating costs and an allocation for overhead and administration. The types of costs include salaries and wages; employee fringe benefits; maintenance and operations costs; overhead costs; general City and department and/or divisional overhead costs. Without corresponding user fees, these services would be funded by tax revenues. In June 2020, the City adopted its current user fee schedule based on the User Fee Study completed in April 2020.

DISCUSSION:

On July 7, 2026, City Council adopted and approved the Rental Registration Program ordinance, adding Chapter 5.58 to Title 5 of the Desert Hot Springs Municipal Code. Per this new regulation, several fees are required to recover some of the City cost of operating the program. As part of operating this program, there are going to be fees that apply to the registration permit Application, registration permit Self-Certification, registration enforcement Appeals, and existing registration permit Modifications. Each of these operations are different in scope, require different levels of staff time in review and inspection, and as a result have different recommended fee schedules.

Item Number: 6.

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SR-26-189
Below is the assessments of staff time and cost associated with each operation in administering the program. Staff is recommending to City Council that a fee schedule is adopted to recover only a small portion of the City's actual cost to operate these services. This partial recovery aims to promote compliance and alleviate the financial burden on property owners, reflecting the City Council's primary focus on successfully launching the program and ensuring compliance. ___________________________________________________________________________ Rental Registration Staff Costs Assessment
Position
Fully
Burdened
Hourly Rate
Hours Per
Year
Registrations
Per Year
Hours Per
Registration
Annual Staff
Cost
Code
Compliance
Officer
$ 140.16 2,000 1,300 1.538461538 $280,320.00
Management
Analyst $ 174.58 400 1,300 0.307692308 $ 69,832.00
Administrative
Assistant $ 94.88 800 1,300 0.615384615 $ 75,904.00
Compliance
Manager $ 265.65 80 1,300 0.061538462 $ 21,252.00
(Percentages for Fringe Benefits, Maintenance & Operations Costs, and Overhead Costs are per the Fully Allocated Hourly Rate Detail Report calculated as part of the user fee study in August 2020)
Total Staff costs per each property registration
Total Annual Staff
Costs = $447,308.00
Estimated # of
registrations each year = 1,300
Total Staff cost per
each registration = $344.08
(There are an estimated 6500 Rental properties in the city, and all are expected to be inspected at least once over the next 5 years. 6500 / 5 = 1300 inspections each year)
Staff Cost per each additional unit inspected (Multi-Family Residential) Multi-Unit Properties Fully Burdened
Hourly Rate Hours per unit Cost per each additional unit Code Officer Time 140.16 0.5 $70.08
Proposed Registration Fee Schedule - Percentage of Recovered Costs Per Property (or APN) $100.00 29.06%
Per additional unit inspected
(10 or more units) $5.00 7.13%
Staff recommends that the City Council implement a partially recovered fee of $100.00 per property or APN plus $5.00 per additional unit inspected (properties with 10 or more units) for cost recovery.

Item Number: 6.

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SR-26-189
_________________________________________________________________________ Self-Certification Staff Costs Assessment
Position
Fully
Burdened
Hourly Rate
Hours Per
Year
Registrations
Per Year
Hours Per
Registration
Annual Staff
Cost
Management
Analyst $174.58 325 650 0.5 $56,738.50
Administrative
Assistant $94.88 600 650 1 $61,672.00
(Percentages for Fringe Benefits, Maintenance & Operations Costs, and Overhead Costs are per the Fully Allocated Hourly Rate Detail Report calculated as part of the user fee study in August 2020)
Total Staff Costs per Self-Certification
Total Annual Staff Costs = $118,410.50
Estimated # of SelfCertifications each year = 650
Total Staff Costs per SelfCertification = $182.17
Staff Cost per each additional unit reviewed
Multi-Unit Properties Fully Burdened
Hourly Rates Hours Per Unit
Costs per each
additional unit
reviewed (10+ units)
Admin Assistant Time 94.88 0.1 $9.49
Proposed Self-Certification Fee Schedule - Percentage of Recovered Costs Per Self-Certification $60.00 32.94%
Per each additional unit (10 or
more units) $1.00 10.54%
___________________________________________________________________________ Appeal Fee Staff Costs Assessment
Position Staff Time - In Hours Fully Burdened
Hourly Rate Total Cost
Compliance Manager 0.5 265.65 $ 132.83
Compliance
Management Analyst 1 174.58 $ 174.58
Administrative
Assistant 1 94.887 $ 94.88
Compliance Officer I 4 140.16 $ 560.64
Item Number: 6.

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SR-26-189
Total $ 962.93
Total Cost of Appeal in Staff Time $ 962.93
Recommended Cost of Appeal Fee $ 150.00
Recovery % of Cost 15.58%
___________________________________________________________________________ Permit Modification Fee Cost Assessment
Position Staff Time - In Hours Fully Burdened Hourly
Rate Total Cost
Administrative Assistant 0.2 94.88 $ 18.98
Compliance Officer I 0.2 140.16 $ 28.03
Total $ 47.01
Total Cost of Modification in
Staff Time $ 47.01
Recommended Cost of
Modification Fee $ 10.00
Recovery % of Cost 21.27%
FISCAL IMPACT:

As these are new fees, the fiscal impact will be an increase in user fee revenues for the City.

Currently the City has an estimated 6,500 rental properties which will generate over $650,000 in cost recovery over a 5 year period for the application fee. Of the 6,500 properties, it is anticipated that 650 will qualify and complete annual registration renewals by Self-Certification, which will contribute an estimated $39,000 in cost recovery each year.

The Appeal and Permit Modification fees increase in revenue will be nominal, operating at a cost recovery percentage of 16% and 21% respectively. The amount of revenue will be dependent on the number of appeals and permit modifications which cannot be determined at this time.

STRATEGIC ALIGNMENT:

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

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

ATTACHMENTS:
1) Resolution - LTR Application Fee and Nexus
Item Number: 6.

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SR-26-189
2) Resolution - LTR Self-Certification Fee and Nexus
3) Resolution - LTR Appeal and Permit Modification Fee
4) Rental Registration Nexus
5) Self-Certification Nexus
6) Appeal Fee Nexus
7) Permit Modification Nexus
Item Number: 6.

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RESOLUTION NO. 2026-_______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

DESERT HOT SPRINGS, COUNTY OF RIVERSIDE, STATE

OF CALIFORNIA, ADOPTING APPLICATION FEES
RELATED TO THE “RENTAL REGISTRATION PROGRAM”

AND THE NEXUS STUDY PREPARED THEREFOR
WHEREAS, the City Council of the City of Desert Hot Springs has adopted Municipal Code Ordinance. 5.58 “Rental Registration Program” to Title 5 “Business licenses and Regulations of the Desert Hot Springs Municipal Code (“DHSMC”), and, WHEREAS, the Rental Registration Program is intended to promote compliance with applicable health, safety, housing, building, electrical, mechanical, plumbing, fire, and property-maintenance requirements; and
WHEREAS, Desert Hot Springs Municipal Code Section 5.58.040.C authorizes the City Council to establish fees for registration, inspection, reinspection, and related Program services by resolution; and
WHEREAS, the fees established by this Resolution are intended to recover a portion of the City’s reasonable costs of administering and enforcing the Program, including application processing, database management, notices, inspections, compliance monitoring, and related administrative services; and WHEREAS, the proposed fee will cover approximately 29-percent of the operating cost and that the implementation and administration of the program, and the fee and cost recovery level, is necessary and in the public interest to encourage inspections and registration; and
WHEREAS, the City Council has considered the staff report, any applicable fee study or cost-recovery analysis, public testimony, and all other information presented at the public meeting for this Resolution.

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

Section 1. Findings
The foregoing recitals are true and correct and are incorporated into this Resolution by this reference.

The City Council finds that the fees established by this Resolution do not exceed the reasonable estimated cost of providing the respective Program services for which each fee is charged.

Item Number: 6.

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Section 2. Acceptance of Fee Study
The City Council hereby accepts the Rental Registration Program Fee and CostRecovery Study attached as Exhibit A and incorporated into this Resolution by this reference.

Section 3. Adoption of Fee Schedule
The City Council hereby adopts the Rental Registration Program Fee Schedule attached as Exhibit B and incorporated into this Resolution by this reference.

The fees listed in Exhibit B apply to all properties and rental units subject to the Program, unless exempt under the DHSMC or other applicable law.

Section 4. Payment Requirement
All applicable Program fees must be paid when a registration application or renewal application is submitted, unless otherwise specified in Exhibit A or approved in writing by the City Manager/Compliance Manager/Designee.

No initial inspection, renewal inspection, reinspection, registration approval, or renewal approval shall be scheduled or finalized until all applicable fees have been paid.

Section 5. Use of Revenue
Revenue collected under this Resolution shall be used solely to recover the City’s reasonable costs of administering and enforcing the Rental Registration and Inspection Program, including registration processing, inspections, reinspection, compliance activities, notices, data management, customer service, and related administrative costs.

The fees are regulatory fees and are not intended to generate revenue beyond the reasonable cost of providing Program services.

Section 6. Nonrefundable Fees
Unless otherwise required by law or expressly authorized by the City Manager or designee, fees paid under this Resolution are non-refundable, including fees associated with an application that is withdrawn, denied, incomplete, abandoned, or otherwise not approved.

Section 7. Future Fee Adjustments
Item Number: 6.

Page 15 of 800 ends

The City Council may amend the fees established by this Resolution by a subsequent resolution, following any notice, hearing, cost-analysis, or other procedure required by applicable law.

Section 8. Effective Date
This Resolution shall take effect on October 6, 2026, and the fees established by this Resolution shall apply to Program applications and services submitted, scheduled, or provided on or after that date.

Section 9. Severability
If any section, subsection, sentence, clause, phrase, or portion of this Resolution is held invalid or unenforceable by a court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this Resolution. The City Council declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, and portion of it irrespective of the fact that any one or more portions may be declared invalid or unenforceable.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Desert Hot Springs, California, on this 6 day of October 2026, by the following vote:

AYES:

NAYES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_______________________________ ______________________________ Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
_______________________________
Jennifer Mizrahi, City Attorney
Item Number: 6.

Page 16 of 800 ends

Exhibit A
Exhibit B
Position
Fully Burdened
Hourly Rate
Hours
Per Year
Registrations
Per Year
Hours Per
Registration
Annual Staff
Cost
Code
Compliance
Officer $ 140.16 2000 1300 1.538461538 $ 280,320.00
Management
Analyst $ 174.58 400 1300 0.307692308 $ 69.832.00
Administrative
Assistant $ 94.88 800 1300 0.615384615 $ 75,904.00
Compliance
Manager $ 265.65 80 1300 0.061538452 $ 21,252.00
Total annual staff cost $ 447,3089.00
Estimated # of Rental Properties = 6500
Estimated # of registrations completed per year = 1300
Total Annual Staff Cost / Estimated Registrations
Completed each year.
= Total Staff costs per
each property
registration
$447,308.00 / 1300 = $344.08
Multi-Unit Properties
Fully Burdened
Hourly Rate
Hours per
unit Cost per each additional Unit
Code Officer Inspect. Time 140.16 0.5 $ 70.08
Proposed Fee
Schedule Percentage of Recovered Costs
Per APN $100.00 29.06%
Per additional unit (properties
with 10 or more units). $5.00 7.13%
Item Number: 6.

Page 17 of 800 ends

RESOLUTION NO. 2026-_______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

DESERT HOT SPRINGS, COUNTY OF RIVERSIDE, STATE

OF CALIFORNIA, ADOPTING RENTAL REGISTRATION

SELF-CERTIFICATION APPLICATION FEES RELATED TO
THE “RENTAL REGISTRATION PROGRAM” AND THE

NEXUS STUDY PREPARED THEREFOR
WHEREAS, the City Council of the City of Desert Hot Springs has adopted Municipal Code Ordinance. 5.58 “Rental Registration Program” to Title 5 “Business licenses and Regulations of the Desert Hot Springs Municipal Code (“DHSMC”), and, WHEREAS, the Residential Rental Registration Program is intended to promote compliance with applicable health, safety, housing, building, electrical, mechanical, plumbing, fire, and property-maintenance requirements; and WHEREAS, Desert Hot Springs Municipal Code Section 5.58.040.C authorizes the City Council to establish fees for registration, review, and related Self-certification services by resolution; and
WHEREAS, the fees established by this Resolution are intended to recover a portion of the City’s reasonable costs of administering and enforcing the Rental Registration Self-Certification, including application processing, review, database management, notices, compliance monitoring, and related administrative services; and WHEREAS, the proposed fee will cover approximately 33-percent of the operating cost and that the implementation and administration of the program, and the fee and cost recovery level, is necessary and in the public interest to encourage inspections and registration; and
WHEREAS, the City Council has considered the staff report, any applicable fee study or cost-recovery analysis, public testimony, and all other information presented at the public meeting for this Resolution.

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

Section 1. Findings
The foregoing recitals are true and correct and are incorporated into this Resolution by this reference.

The City Council finds that the fees established by this Resolution do not exceed the reasonable estimated cost of providing the respective Self-Certification services for which each fee is charged.

Item Number: 6.

Page 18 of 800 ends

Section 2. Acceptance of Fee Study
The City Council hereby accepts the Rental Registration Self-Certification Fee and Cost-Recovery Study attached as Exhibit A and incorporated into this Resolution by this reference.

Section 3. Adoption of Fee Schedule
The City Council hereby adopts the Rental Registration Self-Certification Fee Schedule attached as Exhibit B and incorporated into this Resolution by this reference.

The fees listed in Exhibit B apply to all properties and rental units subject to the Program, unless exempt under the DHSMC or other applicable law.

No registration approval, or renewal approval shall be scheduled or finalized until all applicable fees have been paid.

Section 5. Use of Revenue
Revenue collected under this Resolution shall be used solely to recover the City’s reasonable costs of administering and enforcing the Rental Registration SelfCertification, including registration processing, review, notices, data management, customer service, and related administrative costs.

The fees are regulatory fees and are not intended to generate revenue beyond the reasonable cost of providing Self-Certification services.

Section 7. Future Fee Adjustments
The City Council may amend the fees established by this Resolution by a subsequent resolution, following any notice, hearing, cost-analysis, or other procedure required by applicable law.

Item Number: 6.

Page 19 of 800 ends

Section 8. Effective Date
This Resolution shall take effect on September 15, 2026, and the fees established by this Resolution shall apply to Self-Certification applications and services submitted, scheduled, or provided on or after that date.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Desert Hot Springs, California, on this 6 day of October 2026, by the following vote:

AYES:

NAYES:

ABSENT:

ABSTAIN:

Page 20 of 800 ends

Exhibit A
Exhibit B
Position
Fully Burdened
Hourly Rate
Hours
Per Year
Registrations
Per Year
Hours Per
Registration
Annual Staff
Cost
Management
Analyst $ 174.58 325 650 0.5 $ 56,738.50
Administrative
Assistant $ 94.88 650 650 1 $ 61,672.00
Total annual staff cost $ 118,410.50
Estimated # of Rental Properties = 6500
Estimated # of registrations completed per year = 650
Total Annual Staff Cost / Estimated Registrations
Completed each year.
= Total Staff costs per
each property
registration
$118,410.50 / 650 = $182.17
Multi-Unit Properties
Fully Burdened
Hourly Rate
Hours per
unit Cost per each additional Unit
Admin Assistant Review Time 94.88 0.1 $ 9.49
Proposed Fee
Schedule Percentage of Recovered Costs
Per APN $60.00 32.94%
Per additional unit (properties
with 10 or more units). $1.00 10.54%
Item Number: 6.

Page 21 of 800 ends

RESOLUTION NO. 2026-_______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

DESERT HOT SPRINGS, COUNTY OF RIVERSIDE, STATE
OF CALIFORNIA, ADOPTING APPEAL and PERMIT
MODIFICATION FEES RELATED TO THE “RENTAL
REGISTRATION PROGRAM” AND THE NEXUS STUDY

PREPARED THEREFOR
WHEREAS, the City Council of the City of Desert Hot Springs has adopted Municipal Code Ordinance. 5.58 “Rental Registration Program” to Title 5 “Business licenses and Regulations of the Desert Hot Springs Municipal Code (“DHSMC”), and, WHEREAS, the Residential Rental Registration Program is intended to promote compliance with applicable health, safety, housing, building, electrical, mechanical, plumbing, fire, and property-maintenance requirements; and WHEREAS, Desert Hot Springs Municipal Code Section 5.58.040.C authorizes the City Council to establish fees for registration, inspection, reinspection, and related Program services by resolution; and
WHEREAS, the Appeal Fee established by this Resolution is intended to recover a portion of the City’s reasonable costs of preparing and attending a administrative appeal hearing related to a Rental Registration Permit Denial, Rental Registration Permit Summary Suspension, or Rental Registration Permit Revocation; and:

WHEREAS, the Modification Fee established by this Resolution is intended to recover a portion of the City’s reasonable costs of making modifications to an existing Rental Registration, and:

WHEREAS, the proposed fees will cover approximately 16 to 20-percent of the operating cost and that the implementation and administration of the administrative hearing, and the fee and cost recovery level, is necessary and in the public interest to support property owners and managers engagement and compliance with the established ordinance; and
WHEREAS, the City Council has considered the staff report, any applicable fee study or cost-recovery analysis, public testimony, and all other information presented at the public meeting for this Resolution.

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

Section 1. Findings
Item Number: 6.

Page 22 of 800 ends

The foregoing recitals are true and correct and are incorporated into this Resolution by this reference.

The City Council finds that the fees established by this Resolution do not exceed the reasonable estimated cost of providing the respective Program services for which each fee is charged.

Section 2. Adoption of Fees
The City Council hereby adopts the Rental Registration Appeal Fee and Permit Modification Fee study attached as Exhibit A and incorporated into this Resolution by this reference.

The fees established in Exhibit A shall apply to all properties and rental units subject to the Program, unless otherwise exempt under the Desert Hot Springs Municipal Code or other applicable law.

Section 3. Payment Requirement
All applicable Program fees must be paid when a registration application or renewal application is submitted, unless otherwise specified in Exhibit A or approved in writing by the City Manager/Compliance Manager /designee.

No initial inspection, renewal inspection, reinspection, registration approval, or renewal approval shall be scheduled or finalized until all applicable fees have been paid.

Section 4. Use of Revenue
Revenue collected under this Resolution shall be used solely to recover the City’s reasonable costs of administering and enforcing the Residential Rental Registration and Inspection Program, including registration processing, inspections, reinspection, compliance activities, notices, data management, customer service, and related administrative costs.

The fees are regulatory fees and are not intended to generate revenue beyond the reasonable cost of providing Program services.

Section 5. Nonrefundable Fees
Unless otherwise required by law or expressly authorized by the City Manager or designee, fees paid under this Resolution are non-refundable, including fees associated with an application that is withdrawn, denied, incomplete, abandoned, or otherwise not approved.

Section 6. Future Fee Adjustments
Item Number: 6.

Page 23 of 800 ends

The City Council may amend the fees established by this Resolution by a subsequent resolution, following any notice, hearing, cost-analysis, or other procedure required by applicable law.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Desert Hot Springs, California, on this 6 day of Ocotber, 2026, by the following vote:

AYES:

NAYES:

ABSENT:

ABSTAIN:

Page 24 of 800 ends

EXHIBIT A
Fully Burdened Hourly Rate Calculation Fringe Benefits
Maintenance &
Operations Cost
Overhead
Costs
Position
Salary Hourly
Rate 46.72% 18.68% 173.23% Total
Compliance Manager $78.45 $36.65 $14.65 $135.90 $ 265.65 Management Analyst $51.56 $24.09 $9.63 $89.31 $ 174.58
Admin Assistant $28.02 $13.09 $5.23 $48.54 $ 94.88
Compliance Officer I $41.39 $19.34 $7.73 $71.70 $ 140.16 Total Cost of Appeal in Staff Time $ 962.93
Recommended Cost of Appeal Fee $ 150.00
Recovery % of Cost 15.58%
Appeal Fee Total Cost Assessment
Position Staff Time - In Hours
Fully Burdened
Hourly Rate Total Cost
Compliance Manager 0.5 265.65 $ 132.83
Compliance Management Analyst 1 174.58 $ 174.58
Administrative Assistant 1 94.88 $ 94.88
Compliance Officer I 4 140.16 $ 560.64
Total $ 962.93
Permit Modification Fee Cost Assessment
Position Staff Time - In Hours
Fully Burdened
Hourly Rate Total Cost
Administrative Assistant 0.2 94.88 $ 18.98
Compliance Officer I 0.2 140.16 $ 28.03
Total $ 47.01
Total Cost of Modification in Staff Time $ 47.01
Recommended Cost of Modification Fee $ 10.00
Recovery % of Cost 21.27%
Item Number: 6.

Page 25 of 800 ends

Nexus Study: Rental Registration Fee
Position Fully Burdened Hourly Rate Hours Per Year Registrations Per Year Hours Per Registration Annual Staff Cost Code Compliance Officer $ 140.16 2000 1300 1.538461538 $ 280,320.00 Management Analyst $ 174.58 400 1300 0.307692308 $ 69,832.00 Administrative Assistant $ 94.88 800 1300 0.615384615 $ 75,904.00 Compliance Manager $ 265.65 80 1300 0.061538462 $ 21,252.00 Total annual staff cost $ 447,308.00
Estimated # of Rental Properties 6500
Estimated # of registrations completed per year 1300 Total Staff costs per each property registration $ 344.08 Multi Unit Properties
Fully Burdened Hourly Rate Hours per unit
Cost per each
additional Unit
Code Officer Inspection Time 140.16 0.5 $ 70.08
Proposed Fee Schedule Percentage of Recovered Costs
Per APN $100.00 29.06%
Per additional unit (properties with 10 or more units). $5.00 7.13% Fully Burdened Hourly Rate Calculation Fringe Benefits
Maintenance & Operations
Cost Overhead Costs
Position Salary Hourly Rate 46.72% 18.68% 173.23% Total Compliance Manager 78.45 36.65 14.65 135.9 $ 265.65
Management Anaylst 51.56 24.09 9.63 89.31 $ 174.58
Admin Assistant 28.02 13.09 5.23 48.54 $ 94.88
Compliance Officer I 41.39 19.34 7.73 71.7 $ 140.16
(Percentages for Fringe Benefits,
Maintenance & Operations Costs, and
Overhead Costs are per the Fully
Allocated Hourly Rate Detail Report
calculated as part of the user fee study
in August 2020)
Staff recommends that the City
Council implement a partially
recovered fee for cost recovery.

This partial recovery aims to
promote compliance and
alleviate the financial burden on
property owners, reflecting the
City Council's primary focus on
successfully launching the
program and ensuring
compliance.

Item Number: 6.

Page 26 of 800 ends

Nexus Study: Rental Registration Self-Certification Fee Position Fully Burdened Hourly Rate Hours Per Year Registrations Per Year Hours Per Registration Annual Staff Cost Management Analyst $ 174.58 325 650 0.5 $ 56,738.50
Administrative Assistant $ 94.88 650 650 1 $ 61,672.00
Total annual staff cost $ 118,410.50
Estimated # of Rental Properties 6500
Estimated # of Self-Certifications completed per year 650 Total Staff costs per each property registration $ 182.17 Multi Unit Properties Fully Burdened Hourly Rate Hours per unit Cost per each additional
Unit reviewed
Admin Assistant Review Time 94.88 0.1 $ 9.49
Proposed Fee Schedule Percentage of Recovered Costs
Per APN $60.00 32.94%
Per additional unit (properties with 10 or more units). $1.00 10.54% Fully Burdened Hourly Rate Calculation Fringe Benefits
Maintenance & Operations
Cost Overhead Costs
Position Salary Hourly Rate 46.72% 18.68% 173.23% Total Management Anaylst 51.56 24.09 9.63 89.31 $ 174.58
Admin Assistant 28.02 13.09 5.23 48.54 $ 94.88
118,410.50
Staff recommends that the City
Council implement a partially
recovered fee for cost recovery.

Item Number: 6.

Page 27 of 800 ends

Rental Registration Program Appeal Fees
Fully Burdened Hourly Rate Calculation Fringe Benefits
Maintenance &
Operations Cost Overhead Costs
Position Salary Hourly Rate 46.72% 18.68% 173.23% Total Compliance Manager 78.45 36.65 14.65 135.9 $ 265.65
Management Anaylst 51.56 24.09 9.63 89.31 $ 174.58
Admin Assistant 28.02 13.09 5.23 48.54 $ 94.88
Compliance Officer I 41.39 19.34 7.73 71.7 $ 140.16
(Percentages for Fringe Benefits,
Maintenance & Operations Costs,
and Overhead Costs are per the
Fully Allocated Hourly Rate Detail
Report calculated as part of the user
fee study in August 2020)
Position Staff Time - In Hours
Fully Burdened
Hourly Rate Total Cost
Compliance Manager 0.5 265.65 $ 132.83
Compliance Management Analyst 1 174.58 $ 174.58
Administrative Assistant 1 94.88 $ 94.88
Compliance Officer I 4 140.16 $ 560.64
Total $ 962.93
Total Cost of Appeal in Staff Time $ 962.93
Recommended Cost of Appeal Fee $ 150.00
Recovery % of Cost 15.58%
Item Number: 6.

Page 28 of 800 ends

Rental Registration Permit Modification Fee
Fully Burdened Hourly Rate Calculation Fringe Benefits
Maintenance &
Operations Cost
Overhead
Costs
Position Salary Hourly Rate 46.72% 18.68% 173.23% Total Admin Assistant 28.02 13.09 5.23 48.54 $ 94.88
Compliance Officer I 41.39 19.34 7.73 71.7 $ 140.16
(Percentages for Fringe
Benefits, Maintenance &
Operations Costs, and
Overhead Costs are per the
Fully Allocated Hourly Rate
Detail Report calculated as
part of the user fee study in
August 2020)
Position Staff Time - In Hours
Fully Burdened
Hourly Rate Total Cost
Administrative Assistant 0.2 94.88 $ 18.98
Compliance Officer I 0.2 140.16 $ 28.03
Total $ 47.01
Total Cost of Modification in Staff Time $ 47.01
Recommended Cost of Modification Fee $ 10.00
Recovery % of Cost 21.27%
Item Number: 6.

Page 29 of 800 ends

Page 30 of 800 ends

SR-26-213
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 6, 2026
Department: City Manager
Prepared by: Roberta Crncic, Recreation and Community Services Director Subject: Approval of WE ARE ONE Sculpture and Site Improvements at Reflection Park.

RECOMMENDATION:

BACKGROUND:

The City of Desert Hot Springs continues to support public art that improves community spaces, reflects the character of the community, and expands residents’ access to arts and culture.

Reflection Park provides an ideal location for a permanent public art installation that will complement the park and create a unique focal point for residents and visitors.

Bijan Masoumpanah is a local Desert Hot Springs artist with an established connection to the community. He previously created the Cabot Yerxa sculpture located in front of City Hall. His experience creating public art for the City makes the proposed sculpture a meaningful addition to Reflection Park.

DISCUSSION:

The proposed WE ARE ONE sculpture is a permanent outdoor artwork fabricated from three quarter inch Cor-Ten weathering steel. Cor-Ten steel is designed to develop a stable, protective patina over time, providing a distinctive appearance while making the material well suited for an outdoor installation.

The artist’s proposal for the sculpture is $18,000.00. In addition to the sculpture, the project includes construction of a reinforced concrete pedestal and base, desert landscaping and irrigation, and four solar lights around the base. The estimated cost for these site improvements and installation is $24,600.00, bringing the total project cost to an amount not to exceed $42,600.00.

These improvements will provide a secure foundation for the sculpture, improve visibility at night, and help integrate the artwork into the overall design of Reflection Park.

Item Number: 7.

Page 31 of 800 ends

SR-26-213
The installation of WE ARE ONE will further the City’s efforts to incorporate public art into community spaces and add another permanent piece to the City’s growing public art collection.

FISCAL IMPACT:

The total project cost is not to exceed $42,600.00, consisting of $18,000.00 for the sculpture and $24,600.00 for the construction and site improvements necessary for installation. Funding for the project will come from the Art in Public Places Fund.

STRATEGIC ALIGNMENT:

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

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

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) Invoice
2) Reflection Park Estimate
3) Reflection Park Rendering
4) WeAreOne Dimensions
5) WeAreOne Rendering
Item Number: 7.

Page 32 of 800 ends

Bi' an
— asoumpanah l N V O l C
—, Desert Hot Springs, CA 92240 —
wwwstudiobijancom
To: , , Dona WIlms
11999 Palm Drive
Desert Hot Springs CA 92240 Date: 8. 6. 26
Qty Description Unit Total
RE:WE AREONE Sculpture (See Attached File) $18,000.00
This Sculpture is a 0.75” rustic metal called Cor-Ten that only rust very little.

Depending on a location that you decide, it would be best to stand on a Pedestal that could be concrete or marble etc.

Iworked with a local fabrication company named F3 online.

Thisfabrication company has produced many of the local
art installations including Coachella Music Festival.

Total: $18,000.00
Item Number: 7.

Page 33 of 800 ends

Reflection Park Art In Public Places - Construction Estimate Item Description QTY QTY Unit Unit Price Total
2 PCC Reinforced Concrete Base5'x'5'x5' 14 CY $ 1,200.00 $16,800.00 3 Landscape and Irrigation Perimiter 1 LS $ 5,000.00 $ 5,000.00 4 Solar Lighting In Base 4 EA $ 700.00 $ 2,800.00
5 Sculpture 1 1 EA $18,000.00 $18,000.00
Total $42,600.00
Item Number: 7.

Page 34 of 800 ends

_
21"
~< 20.25"
31x conen
Item Number: 7.

Page 35 of 800 ends

Item Number: 7.

Page 36 of 800 ends

Item Number: 7.

Page 37 of 800 ends

Item Number: 7.

Page 38 of 800 ends

SR-26-219
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 6, 2026
Department: City Council
Prepared by: Scott Matas, Mayor
Subject: Discussion Item: Public Records Act Requests
RECOMMENDATION:

Consider placement of an item on a future agenda to provide direction to staff concerning public records requests.

BACKGROUND:

Resolution 2019-004 (Exhibit 1) sets forth the “Policy” for placing items on an agenda by the Mayor or two (2) Council Members.

In accordance with the Policy, the City Council, during the discussion, shall consider whether to place the item on a subsequent agenda for “action” upon a majority vote of the City Council.

This item is sponsored by Mayor Matas.

DISCUSSION:

The discussion concerns the impacts to City operations while maintaining transparency.

FISCAL IMPACT:

None.

ATTACHMENTS:
1) Resolution 2019-004 Policy for Placing Items on Agenda 2) Public Records Requests Summary
Item Number: 8.

Page 39 of 800 ends

RESOLUTION NO. 2019-004

A RESOLUTION OF THE OF THE CITY COUNCIL OF THE CITYOF DESERT

HOT SPRINGS ADOPTING A POLICY FOR CITY COUNCILMEMBERS,

INCLUDINGTHE MAYOR, PLACING ITEMS ON THE AGENDA
WHEREAS, the City of Desert Hot Springs (the “City”)is a charter city and a political subdivision of the State of California; and
WHEREAS, the City Council has adopted a document titled “City of Desert Hot Springs City Council and Commissions Meeting Guidelines and Procedures” (“Meeting Guidelines and Procedures”); and
WHEREAS, the Meeting Guidelines and Procedures provides a skeletal outline of how items get placed on the agenda; and
WHEREAS, this Policy for City Councilmembers, Including the Mayor, Placing Items on the Agenda (“Subject Policy”) is intended to set forth the procedures for placing items on the agenda and to provide clarity in this regard, notwithstanding the Meeting Guidelines and Procedures; and
WHEREAS, the Subject Policy willprovide clear direction to staff as to when action items come before the City Council, as requested by the mayor or councilmembers; and WHEREAS, this Subject Policy is for the betterment of the public health, safety and welfare inasmuch as it promotes a more transparent government.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS AS FOLLOWS:

Section 1. RECITALS.

That the recitals set forth above are true and correct.

Section 2. ADOPTION OF A POLICY FOR CITYCOUNCILMEMBERS, INCLUDING

THE MAYOR, PLACING ITEMSON THE AGENDA
Solely withrespect to placing future items on the agenda by councilmembers or the mayor, the city manager is authorized and directed to do so as follows:
(1) by direction of the mayor;
(2) by direction of two city councilmembers
Councilmembers wishing to place items on a future agenda shall submit requests to the city manager at least ten (10) days before the council meeting. The items shall be placed on the agenda for discussion purposes only, and not as action items. The item shall identify the mayor or councilmembers making the request and contain a brief description of the subject matter. The city council, during the discussion item, willconsider whether to direct staff to place an item on a future agenda for action. Upon direction of a majority of the city council present, staff willprepare a staff report and other documents as may be needed for any future action item.

Item Number: 8.

Page 40 of 800 ends

This policy does not affect urgency items, which are those limitedsituations where an item requires immediate action, and the need to take immediate action came to the attention of the councilmember subsequent to the distributionof the agenda.

Section 3. SEVERABILITY.

That the City Councildeclares that, should any provision, section, paragraph, sentence or word of this Resolution or the Policy attached hereto be rendered or declared invalidby any ?nal court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution and Policy as hereby adopted shall remain in fullforce and effect.

Section 4. REPEAL OF CONFLICTINGPROVISIONS.

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

Section 5. EFFECTIVE DATE.

That this Resolution shall take effect immediately upon its adoption.

Section 6. CERTIFICATION.

That the City Clerk shall certify to the passage and adoption of this Resolution, enter the same in the book for original resolutions of the City, and make a minute of passage and adoption thereof in the records of the proceedings of the City Council, in the minutes of the meeting at which this Resolution is passed and adopted.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting duly held on the 15th day of January, 2019, by the following vote:

AYES: 4 — Betts; Gardner; Zavala; and Mayor Matas.

NAYS: 1 — Pye.

ABSENT: None.

ABSTAIN: None.
[SIGNATURES FOLLOWON THE NEXTPAGE]
Item Number: 8.

Page 41 of 800 ends

ATTEST: APPROVED:
//
J rryl oriano, CItyfZI?< Scott Matas, Mayor
APPROVED AS TO FORM:
1/ *
Jennifer A.‘K/IfVw'\,\.G’1ty Attorney
Item Number: 8.

Page 42 of 800 ends

Public Records Requests
• 2026 YTD Requests 760
• 2026 Total Forecasted 993
• 2025 Requests 434
• 2024 Requests 356
• 2023 Requests 322
Top Requestors 2026:
1) 289 (81% of all open requests, 2,200 estimated staff hours to date) 2) 21
Item Number: 8.

Page 43 of 800 ends

Page 44 of 800 ends

SR-26-209
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 6, 2026
Department: Economic Development
Prepared by: Jocelyn Kane, Economic Development Manager Subject: Visit Greater Palm Springs (VGPS) Approval and Adoption of the Third Amended and Restated Joint Powers Agreement That Amends the Purpose and Powers of the Joint Powers Authority (JPA)
RECOMMENDATION:

The JPA Executive Committee of VGPS recommends approval of amendments to the purpose and powers of its existing JPA Agreement, in the form of the Third Amended and Restated Joint Powers Agreement. These amendments would allow VGPS’ members the option to develop a Tourism Improvement District or Infrastructure District, in collaboration with VGPS, to further the goal of construction of a sports complex in the Coachella Valley.

BACKGROUND:

A. Visit Greater Palm Springs and the Operative JPA Agreement.

Visit Greater Palm Springs (“VGPS”) is a Joint Powers Authority operating under the Joint Exercise of Powers Act (California Government Code §§6500 et seq.) The JPA Executive Committee serves as the governing body of VGPS. The JPA Executive Committee adopted the Joint Powers Agreement (“Amended and Restated Agreement”) on January 20, 2016 (“JPA Agreement”). The current operative JPA Agreement for VGPS is the Second Amended and Restated Joint Powers Agreement (the “Second Amended JPA Agreement”), that was approved on June 14, 2024. The members of VGPS are as follows: Desert Hot Springs, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio and Coachella (“Member Cities”), and the County of Riverside.

B. Vision of a Sport Complex in the Coachella Valley.

VGPS previously commissioned a series of feasibility studies for a potential regional amateur sports complex in the Coachella Valley. The results of the studies made it clear that a thoughtfully designed indoor facility could fill a critical gap in both our tourism economy and our community recreation infrastructure. Beyond the numbers, this project offers a major step forward in regional quality of life, keeping local athletes closer to home, creating new opportunities for youth development, and supporting wellness, recreation, and community pride. A regional amateur sports complex can generate meaningful economic impact, help retain local talent, and support a more resilient and diversified, year-round economy. By taking the lead, the region can establish itself as a premier destination for sports and tourism, while fueling development across retail, hospitality, and entertainment.

Item Number: 9.

Page 45 of 800 ends

SR-26-209
C. Approval of Amendments to the JPA in the Form of Third Amended and Restated Joint Powers Agreement.

In order to further the vision of such a sports complex in the Coachella Valley, it was determined that the the existing Second Amended JPA Agreement had to be amended to broaden its purpose and powers to enable such. Therefore, Resolution No. JPA 2026-003, was proposed and approved at the June 26, 2026, joint JPA Executive Committee and VGPS Board of Directors meeting. That Resolution included amendments to the Second Amended JPA Agreement, in the form of the Third Amended and Restated Joint Powers Agreement. Those amendments would allow member cities the option to develop a Tourism Improvement District or Infrastructure District, in collaboration with VGPS, to develop such a sports complex.

In particular, the proposed amendments include revisions to the “Purpose” of the Second Amended and Restated JPA (see, Section 3, p. 3), and the “Powers” of that agreement (see, Section 16, p. 8), as indicated below:

Section 3. Purpose
The purpose of VGPS is to benefit all JPA Members and their constituents by jointly:
(a) Marketing, attracting, encouraging, promoting, and doing such other things as might be necessary to enhance, to the greatest extent possible all aspects of the hospitality, convention, and tourism industry in the Coachella Valley and to maximize visitations from national and international markets;
(b) Doing such other things to drive, advance and support initiatives to strengthen and diversify all aspects of the regional economy of the Coachella Valley; and (c) Developing, fostering and facilitating Coachella Valley destination-enhancing improvements and infrastructure including, but not limited to, sports complexes, entertainment venues, and meeting facilities, either directly and/or forging dynamic public-private partnerships.

Page 46 of 800 ends

SR-26-209
(e) The power to acquire by purchase, grant, gift, lease or other lawful means any real property or any personal property that may be necessary or proper to carry out the purposes and intent of the JPA;
(f) The power to hold any real property or any personal property that may be necessary or proper to carry out the purposes and intent of the JPA;
(g) The power to sell, lease or otherwise dispose of any real or personal property including exchanging equivalent properties if it is deemed to be in the best interests of the JPA; (h) The power to donate any surplus real or personal property to any public agency or nonprofit organization;
(i) The power to incur debts, liabilities or obligations, including without limitation the power to borrow money, give security therefore, and purchase on contract; (j) The power to raise revenue for any public purpose consistent with the JPA’s purposes, as set forth in this Agreement, through any legal and appropriate means including assessments which may be established and levied pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code §36500 et seq., the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq., and any other applicable provisions of California law authorizing the formation of assessment, benefit, or financing districts as referenced in Section 16(l);
(k) The power to form, renew, and modify improvement districts including all Lodging Establishments, as defined in Section 1, pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code §36500 et seq., and the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq., as well as any other applicable provisions of California law authorizing the formation of assessment, benefit, or financing districts, which authorizes joint powers agencies to establish, modify and renew parking and business improvement areas and property and business improvement districts for the purpose of tourism promotion, destination marketing, economic development, and the financing, development, operation, and maintenance of public and private improvements, facilities, and infrastructure, including sports, entertainment, meeting, cultural, and related uses. Approval of this Agreement by the JPA Members constitutes consent to:
(i) the formation of the Greater Palm Springs Convention & Visitors Bureau Tourism Marketing District adopted pursuant to Ordinance No. 2013-001, including all proceedings and actions previously taken by the VGPS in connection with formation of the said district (“2013 TMD”); and
(ii) the formation of the Greater Palm Springs Tourism Business Improvement District pursuant to Resolution No. 2016-004 and to levy an assessment of three percent (3%) on Convention Hotels;
(iii) the renewal of the Greater Palm Springs Tourism Business Improvement District pursuant to Ordinance No. 2020-005 (“2021 TBID”) and to levy an assessment of three percent (3%) on Convention Hotels and one percent (1%) on vacation rentals; Item Number: 9.

Page 47 of 800 ends

SR-26-209
(l) The power to form these districts, as discussed in the prior section, Section 16(l), and incorporated herein by this reference, shall extend to the ability to establish such districts on a regional basis or within defined subareas of the JPA’s territorial boundaries (“Regional Districts”) that include only those JPA Members in those Regional Districts. Those Regional Districts may, or may not, include all JPA Members depending on the makeup and reach of the Regional District. For any Regional District that does not include all JPA Members within its boundary, the formation, rate, and management district plan shall be subject to approval by the legislative bodies of only the JPA Members in those Regional Districts and may be approved by a majority vote of those JPA Members’ legislative bodies, within those Regional Districts, consistent with applicable law. Incidental to this power to form these Regional Districts will be the power to plan, finance, develop, construct, acquire, operate, and maintain tourism-related infrastructure and facilities, including but not limited to sports complexes, entertainment venues, meeting facilities, and other visitor-serving improvements, either directly or in partnership with public or private entities;
(m) The power to adopt rules, regulations, resolutions and ordinances that may be necessary or proper to carry out the purposes and intent of the JPA; (n) The power to enforce rules, regulations, resolutions and ordinances for the administration, maintenance and operation of the JPA;
(o) The power to enter into joint powers agreements pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the Government Code; (p) The power to provide insurance pursuant to section 989 of the Government Code et seq.; (q) The power to sue and be sued in the name of the JPA; (r) The power to conduct certain activities of the JPA in any state or territory of the United States of America or in any foreign country, related to growing and diversifying the economy through promoting and marketing all aspects of the hospitality, convention and tourism industry in the Coachella Valley for the purpose of attracting visitors, groups, meetings, conventions and new businesses from national and international markets, as permitted pursuant to Government Code section 37110;
(s) The power to travel domestically and internationally that is necessary or proper to carrying out the purposes and intent of the JPA;
(t) The power to provide staff and resource support, financial assistance and subsidies to other public agencies, non-profit organizations and the private sector for purposes consistent with the purpose and intent of the JPA;
(u) The power to lobby on behalf of tourism and economic development; (v) The power to form a non-profit corporation or other affiliated non-profit entities for the purpose of promoting and enhancing all aspects of the tourism and economic development industry; and Item Number: 9.

Page 48 of 800 ends

SR-26-209
(w) The power to take any and all actions necessary for, or incidental to, the powers expressed or implied by this Agreement and all applicable laws.

CONCLUSION
Based on the above, then, the JPA Executive Committee recommends that the JPA Member Cities, and Riverside County, adopt and approve the Third Amended and Restated Joint Powers Agreement, as outlined above.

FISCAL IMPACT:

None.

ATTACHMENTS:
1) VGPS 3rd Amended and Restated JPA Agreement
Item Number: 9.

Page 49 of 800 ends

1 VISIT GREATER PALM SPRINGS

JOINT POWERS AGREEMENT
(“Third Amended and Restated Agreement”)
A California Joint Powers Authority
Created Pursuant to California Government Code Section 6500 et seq. _________________, 2026
Item Number: 9.

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TABLE OF CONTENTS
RECITALS........................................................................................................................... 1 AGREEMENT..................................................................................................................... 2 Section 1 Definitions ....................................................................................... 2 Section 2 Incorporation of Recitals ................................................................. 3 Section 3 Purpose ............................................................................................ 3 Section 4 Name................................................................................................ 3 Section 5 Second Amended and Restated Agreement Superseded ................ 4 Section 6 Termination...................................................................................... 4 Section 7 JPA Members.................................................................................. 4 Section 8 Additional Members........................................................................ 4 Section 9 Governing Body............................................................................... 5 Section 10 JPA Executive Committee – Powers and Duties............................. 5 Section 11 Territorial Boundaries...................................................................... 6 Section 12 Contributions ................................................................................... 6 Section 13 Withdrawal ...................................................................................... 7 Section 14 Expulsion......................................................................................... 8 Section 15 Separate Entity................................................................................. 8 Section 16 Powers of the JPA............................................................................ 8 Section 17 Power to Invest .............................................................................. 11 Section 18 Bonding ......................................................................................... 11 Section 19 Treasurer and Auditor – Designations........................................... 11 Section 20 Treasurer – Duties and Responsibilities......................................... 11 Item Number: 9.

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ii
Section 21 Independent Audit ......................................................................... 12 Section 22 Auditor’s Duties ............................................................................ 12 Section 23 Attorney’s Fees.............................................................................. 12 Section 24 Voting............................................................................................ 12 Section 25 Severability .................................................................................... 12 Section 26 Waiver ........................................................................................... 13 Section 27 Amendments.................................................................................. 13 Section 28 Ambiguities or Uncertainties......................................................... 13 Section 29 Applicable Law.............................................................................. 13 Section 30 Venue............................................................................................. 13 Section 31 Notices........................................................................................... 13 Section 32 Counterparts................................................................................... 14 Section 33 Privileges and Immunities ............................................................. 14

EXHIBIT A
Territorial Boundaries.......................................................................................................... 18 Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 1 This Third Amended and Restated Joint Powers Agreement (this “Agreement”) is entered into by and between the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, each an independent municipal corporation located in the County of Riverside, State of California, and the County of Riverside, a political subdivision of the State of California, pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the California Government Code. The Joint Powers Authority is known as “Visit Greater Palm Springs” (“VGPS”). The parties to this Agreement are individually referred to herein as “JPA Member” and collectively as “JPA Members.”

RECITALS
WHEREAS, pursuant to the Joint Exercise of Powers Act, if authorized by their legislative or other governing bodies, two or more public agencies which include, but are not limited to, a county or city, may jointly exercise any power common to the contracting parties via a Joint Powers Agreement creating a Joint Powers Authority (“JPA”); and WHEREAS, the JPA Members entered into the original joint powers agreement on February 8, 1989, to jointly encourage, promote, and to do such other things as might be necessary to enhance, to the greatest extent possible, all aspects of the hospitality, convention and tourism industry in the Coachella Valley and to attract visitors from a world- wide market, all to the benefit of the member organizations and their citizens via the exercise of all the expressed and implied powers the JPA Members have in common; and WHEREAS, it is intended by the JPA Members that this Agreement shall be amendatory of the Second Amended and Restated Joint Powers Agreement, dated June 14, 2024, including any subsequent amendments (“Second Amended and Restated Agreement”), and shall restate, amend and supersede the Second Amended and Restated Agreement in its entirety as of the Effective Date; and
WHEREAS, on or about _____________, 2026, it was determined by the VGPS President and Chief Executive Officer and his staff that at least two thirds of the entire VGPS Executive Committee and all of the JPA Members voted to amend the purpose and powers of JPA as set forth below, among additional provisions as stated herein; and WHEREAS, on or about _____________, 2026, it was determined by the VGPS President and Chief Executive Officer and his staff that at least two thirds of the entire VGPS Executive Committee and all of the JPA Members voted to approve for adoption and execution this Third Amended and Restated Joint Powers Agreement.

NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, and intending to be legally bound hereby, the JPA Members hereby covenant and agree as follows:

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 2 AGREEMENT
Section 1. Definitions
The following words, terms and phrases shall have the following meanings:
“Additional JPA Members” shall mean qualified municipalities that may be added as members of JPA as described in Section 8.
“Board of Directors” shall mean the Board of Directors of the Greater Palm Springs Business Alliance (“GPSBA”) comprised of persons associated with the local hospitality industry for the purposes described in Section 10.
“Convention Hotel” shall mean a hotel, motel or similar property with 50 rooms or greater.
“Joint Exercise of Powers Act” shall mean California Government Code sections 6500-6536.
“JPA” shall mean the Joint Powers Authority and may also be referred to herein as VGPS.
“JPA Executive Committee” shall mean the JPA’s governing body formed for the purposes and having the powers and duties set forth in Section 10. “JPA Member” shall mean a municipality that is party to this Agreement. “JPA Members” shall mean, collectively, the municipalities that have entered into this Agreement.
“JPA Member Contributions” shall mean the annual contribution amounts duly established pursuant to Section 12.
“Lodging Establishments” shall mean any structure, which is occupied or intended or designed for use or occupancy by transients, including but not limited to hotel, resort, motel, inn and individually owned structures; single family homes, duplexes, triplexes, mobile homes, public or private clubs, campgrounds, mobile homes or house trailers at fixed locations, or other like structure or portion thereof and dwelling utilized for short term rental and subject to local transient occupancy tax.
“Partner” shall mean a non-governmental entity whose business and activities are directly related to the convention or tourism industry and the purposes ofthis Agreement. “President and Chief Executive Officer” shall mean the individual employed by VGPS, who is responsible for professionally supervising, managing, and administering VGPS’s dayto- day affairs as described in paragraph (e) of Section 10 and elsewhere in this Agreement.

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 3 “TBID” shall mean Tourism Business Improvement District assessment. “Technical Advisory Committee” or “TAC” shall mean the committee which may be appointed by a majority vote of VGPS’s JPA Executive Committee for the purposes described in paragraph (d) of Section 10.
“Treasurer” shall mean the individual appointed by VGPS’s JPA Executive Committee to serve the functions described at Section 19 and may be the same individual appointed as Auditor.
“VGPS Fiscal Year” shall mean the period commencing July 1 of every year and ending June 30 of the following calendar year.
“Visit Greater Palm Springs” or “VGPS” shall mean the Joint Powers Authority formed by the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, and the County of Riverside.

Section 2. Incorporation of Recitals
The foregoing recitals are incorporated into this Agreement by this reference as though fully set forth herein.

Section 4. Name
The name of the JPA shall be “Visit Greater Palm Springs” (“VGPS”) or such other name that may be changed at any time by a resolution approved and adopted by a two-thirds vote of the entire JPA Executive Committee.

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 4 Section 5. Second Amended and Restated Agreement Superseded - Effective Date
It is intended by the JPA Members that this Agreement shall be amendatory of the Second Amended and Restated Agreement and shall restate, amend and supersede the Second Amended and Restated Agreement. Upon its Effective Date, this Agreement shall govern the relationship of the JPA Members. This Agreement shall become effective on the date this Agreement is approved by a two-thirds vote of the entire membership of the JPA Executive Committee and a two-thirds vote of the JPA Members’ legislative bodies (“Effective Date”).

Section 6. Termination
(a) This Agreement may be terminated by unanimous vote of all the JPA Members’ legislative bodies provided, however, the foregoing shall not be construed as limiting the rights of a JPA Member to withdraw its membership in the JPA, and thus terminate this Agreement with respect to such withdrawing JPA Member as described in Section 13; and (b) Pursuant to section 6512 of the Government Code, upon termination of this Agreement and dissolution of the JPA, any surplus money on hand with the JPA shall be returned to the JPA Members’ treasuries in proportion to the JPA Member Contributions made by the respective JPA Member to the JPA.
(c) Upon termination of this Agreement and dissolution of the JPA, all of the resources of the JPA shall be used in an effort to ensure that 100% of the pension liability is funded. Pursuant to Government Code section 6508.2, any remaining obligations of the JPA pension plan and other post-employment benefit liabilities shall be assumed by JPA Members.

The JPA will maintain a policy of funding its pension liability at a minimum of 85% and will promptly notify JPA Members at any time this threshold is not met.

Section 7. JPA Members
The members of the JPA shall consist of the parties to this Agreement which include the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, and the County of Riverside.

Section 8. Additional Members
Additional JPA Members that qualify to join a joint powers authority under the Joint Exercise of Powers Act may be added as JPA Members at any time by a two-thirds vote of the of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies in compliance with all applicable provisions of the Joint Exercise of Powers Act and all other applicable laws.

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 5 Section 9. Governing Body
(a) The governing body of the JPA shall be known as the JPA Executive Committee and it shall be comprised of: (i) a duly elected or appointed council member of each city JPA Member; and (ii) a member ofthe Riverside County Board of Supervisors. (b) Only those members of the JPA Executive Committee, whose agencies pay the JPA Member Contributions, as set forth in this Agreement, shall be entitled to vote.

Section 10. JPA Executive Committee - Powers and Duties The JPA Executive Committee, consistent with this Agreement and all applicable laws, shall exercise all the powers and perform all duties necessary to conduct the business ofthe JPA, either directly or by delegation of its authority, as the JPA Executive Committee deems appropriate, which shall include but not be limited to the following:
(a) Adopt bylaws or rules of procedure to provide for the organization and administration of the JPA, as the JPA Executive Committee deems appropriate by a majority vote of the JPA Executive Committee;
(b) Approve and adopt a budget for the JPA prior to the commencement of the JPA’s subsequent fiscal year, the term of which shall be set by a majority vote of the JPA Executive Committee;
(c) Delegate authority to manage destination activities and the daily operations of VGPS to GPSBA, including but not limited to strategic development, marketing, travel trade, public relations, human resources and group sales, and employ an individual who shall serve as the President and Chief Executive Officer of the JPA, who shall be responsible for professionally supervising, managing and administering the day-to-day affairs of the JPA, hire and fire JPA employees, retain consultants and independent contractors and perform such other functions as needed. Termination of the President & Chief Executive Officer will require a majority vote of the JPA Executive Committee and GPSBA Board of Directors. The Board of Directors of the GPSBA shall consist of any number of persons associated with the local hospitality industry, which may include, but not be limited to, those who own, manage, govern or serve in senior staff positions for Lodging Establishments or businesses, eateries, public and private regional sports facilities, public and private museums, public and private convention and conference facilities, commercial air transport facilities, commercial ground transportation businesses, plus any other persons from any other industry deemed appropriate. The GPSBA shall manage the destination operations of VGPS, and shall be governed by bylaws, as amended from time to time.

Activities other than tourism related activities, such as but not limited to economic diversification efforts, shall remain the responsibility of the JPA and shall be governed by the JPA Members and/or their assignee(s) as determined by the JPA Executive Committee. (d) Appoint from time to time, if deemed necessary by a majority vote of the JPA Executive Committee, a Technical Advisory Committee (TAC) consisting of a staff member Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 6 employed by each JPA Member as designated by the respective JPA Executive Committee member, for purposes of advising the JPA Executive Committee on any technical issues of the JPA that the JPA Executive Committee may need advice on; (e) Retain an individual licensed to practice law in the State of California who shall serve as General Legal Counsel for the JPA and who shall assist the JPA with any legal assistance as may be requested by the JPA Executive Committee or President/Chief Executive Officer or their authorized designees; and
(f) Create any committees, sub-committees, and advisory committees, as deemed necessary by a majority vote of the JPA Executive Committee, to advance and/or achieve the purposes set forth in this Agreement.
(g) Pursuant to Section 6509 of the Government Code, the powers set forth in this Agreementshall be subject to the restrictions upon the manner of exercising such similar powers as are imposed on the City ofRancho Mirage in the exercise ofsimilar powers.

Section 11. Territorial Boundaries
The JPA’s territorial boundaries include the lands situated within the unincorporated areas of the Coachella Valley situated in the County of Riverside and the lands situated within the jurisdictional boundaries of the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Springs, Palm Desert and Rancho Mirage, as depicted in Exhibit A of this Agreement. The territorial boundaries of the VGPS may only be changed by a two-thirds vote of the JPA Executive Committee and a unanimous vote ofthe JPA Members’ legislative bodies.

Section 12. Contributions
(a) Initial Membership Fee. Each new JPA Member shall pay to the JPA a one-(1) time entry fee and operation fee calculated as follows:
(i) Entry Fee: The “Entry Fee” shall be calculated by multiplying the new JPA Member’s current fiscal year’s gross revenue estimate by .55%. (ii) Operation Fee: The “Operation Fee” shall be calculated by multiplying the Entry Fee by 15.62%.

The sum of the Entry Fee and the Operation Fee is due within thirty (30) days of a new JPA Member joining the JPA.
(b) Annual Contribution. Each JPA Member shall pay to the JPA (i) the greater of $35,000 each year, or (ii) the applicable contribution amounts as set forth in the formula below, which may only be modified by a two-thirds vote of the entire JPA Executive Committee and a unanimous vote ofthe JPA Members’ legislative bodies. JPA Members’ legislative bodies shall, at a minimum, make quarterly payments of the annual contribution to VGPS.

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 7 A contribution from each ofthe JPA Members is a funding mechanism equal to:
.0015 x Gross Room Rental Revenue for Lodging Establishments excluding Convention Hotels, and
.0035 x Gross Room Rental Revenue for Convention Hotels (c) The Gross Room Rental Revenue described herein shall not include any transient occupancy tax rebate incentives provided by the JPA Members.

Section 13. Withdrawal
Any Party may withdraw as a JPA Member and the obligations under this Agreement subject to the following conditions:
(a) The withdrawing JPA Member’s legislative body submits a duly adopted resolution to the JPA Executive Committee providing Notice ofWithdrawal. (b) The effective date of withdrawal shall always be the last day of the VGPS’s Fiscal Year.
(c) All JPA Member Contributions must be paid in full by the withdrawing JPA Member through the end of the current VGPS Fiscal Year of the year when the withdrawing JPA Member provides its Notice ofWithdrawal as well as the following VGPS Fiscal Year. (d) After giving notice of withdrawal, a withdrawing JPA Member shall not have voting privileges on the JPA Executive Committee except for operating budget items through the effective date of withdrawal.
(e) A withdrawing JPA Member may again become a party to this Agreement on condition that it pays to the treasury of the VGPS an amount equal to all JPA Member Contributions which the withdrawing JPA Member would have been required to pay if it had not withdrawn from participation.
(f) Partners within the territorial boundaries of the VGPS may remain active Partners as long as their respective government entity is a JPA Member and during the period of their JPA Member’s withdrawal from the Joint Powers Agreement. (g) In the event of withdrawal by a JPA Member, the JPA shall continue to be entitled to the full amount of the TBID unless and until the TBID expires without renewal or is disestablished pursuant to the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq. The withdrawing JPA Member shall continue to be responsible for collecting the TBID on a monthly basis (including any delinquencies, penalties and interest) from each assessed business and forwarding the same to the JPA.

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 8 Section 14. Expulsion
A JPA Member may be expelled or suspended by a two-thirds (2/3) vote of the VGPS Executive Committee for an event of breach of this Agreement or the Bylaws, as amended from time to time, as determined by the remaining members of the JPA Executive Committee. The procedures for hearing and notice of expulsion and suspension shall be set forth in the bylaws of the JPA Executive Committee.

Section 15. Separate Entity
Except for termination as provided in Section 6 of this Agreement, pursuant to section 6507 of the Government Code, this JPA shall at all times be an independent public entity separate from the parties to this Agreement, and the debts, liabilities and obligations of the JPA shall be its sole responsibility and shall not become the debts, liabilities, or obligations of any one JPA Member except that any JPA Member may separately contract for, or assume responsibility for specific debts, liabilities, or obligations of the JPA.

Section 16. Powers of the JPA
Pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the California Government Code, this JPA shall have the authority to exercise any power common to the contracting parties, including without limitation any of the following:
(a) The power to make, enter into and perform all necessary contracts; (b) The power to engage necessary employees, to define their qualifications and duties and to provide a schedule of compensation for performance of their duties; (c) The power to retain agents, independent contractors and consultants, including without limitation the power to engage legal counsel and other professional services; (d) The power to acquire, construct, manage, maintain or operate any building, works or improvements;
(e) The power to acquire by purchase, grant, gift, lease or other lawful means any real property or any personal property that may be necessary or proper to carry out the purposes and intent of the JPA;
(f) The power to hold any real property or any personal property that may be necessary or proper to carry out the purposes and intent of the JPA; (g) The power to sell, lease or otherwise dispose of any real or personal property including exchanging equivalent properties if it is deemed to be in the best interests of the JPA; (h) The power to donate any surplus real or personal property to any public agency or nonprofit organization;
Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 9 (i) The power to incur debts, liabilities or obligations, including without limitation the power to borrow money, give security therefore, and purchase on contract; (j) The power to raise revenue for any public purpose consistent with the JPA’s purposes, as set forth in this Agreement, through any legal and appropriate means including assessments which may be established and levied pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code §36500 et seq., the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq., and any other applicable provisions of California law authorizing the formation of assessment, benefit, or financing districts as referenced in Section 16(l); (k) The power to form, renew, and modify improvement districts including all Lodging Establishments, as defined in Section 1, pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code §36500 et seq., and the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq., as well as any other applicable provisions of California law authorizing the formation of assessment, benefit, or financing districts, which authorizes joint powers agencies to establish, modify and renew parking and business improvement areas and property and business improvement districts for the purpose of tourism promotion, destination marketing, economic development, and the financing, development, operation, and maintenance of public and private improvements, facilities, and infrastructure, including sports, entertainment, meeting, cultural, and related uses. Approval of this Agreement by the JPA Members constitutes consent to:
(i) the formation of the Greater Palm Springs Convention & Visitors Bureau Tourism Marketing District adopted pursuant to Ordinance No. 2013-001, including all proceedings and actions previously taken by the VGPS in connection with formation of the said district (“2013 TMD”); and
(ii) the formation of the Greater Palm Springs Tourism Business Improvement District pursuant to Resolution No. 2016-004 and to levy an assessment of three percent (3%) on Convention Hotels;
(iii) the renewal of the Greater Palm Springs Tourism Business Improvement District pursuant to Ordinance No. 2020-005 (“2021 TBID”) and to levy an assessment of three percent (3%) on Convention Hotels and one percent (1%) on vacation rentals; (l) The power to form these districts, as discussed in the prior section, Section 16(l), and incorporated herein by this reference, shall extend to the ability to establish such districts on a regional basis or within defined subareas of the JPA’s territorial boundaries (“Regional Districts”) that include only those JPA Members in those Regional Districts. Those Regional Districts may, or may not, include all JPA Members depending on the makeup and reach of the Regional District. For any Regional District that does not include all JPA Members within its boundary, the formation, rate, and management district plan shall be subject to approval by the legislative bodies of only the JPA Members in those Regional Districts and may be approved by a majority vote of those JPA Members’ legislative bodies, within those Regional Districts, consistent with applicable law. Incidental to this power to form these Regional Districts will be the power to plan, finance, develop, construct, acquire, operate, and maintain tourism-related Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 10 infrastructure and facilities, including but not limited to sports complexes, entertainment venues, meeting facilities, and other visitor-serving improvements, either directly or in partnership with public or private entities;
(m) The power to adopt rules, regulations, resolutions and ordinances that may be necessary or proper to carry out the purposes and intent of the JPA; (n) The power to enforce rules, regulations, resolutions and ordinances for the administration, maintenance and operation of the JPA;
(o) The power to enter into joint powers agreements pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the Government Code; (p) The power to provide insurance pursuant to section 989 of the Government Code et seq.;
(q) The power to sue and be sued in the name of the JPA; (r) The power to conduct certain activities of the JPA in any state or territory of the United States of America or in any foreign country, related to growing and diversifying the economy through promoting and marketing all aspects of the hospitality, convention and tourism industry in the Coachella Valley for the purpose of attracting visitors, groups, meetings, conventions and new businesses from national and international markets, as permitted pursuant to Government Code section 37110;
(s) The power to travel domestically and internationally that is necessary or proper in carrying out the purposes and intent of the JPA;
(t) The power to provide staff and resource support, financial assistance and subsidies to other public agencies, non-profit organizations and the private sector for purposes consistent with the purpose and intent of the JPA;
(u) The power to lobby on behalf of tourism and economic development; (v) The power to form a non-profit corporation or other affiliated non-profit entities for the purpose of promoting and enhancing all aspects of the tourism and economic development industry; and
(w) The power to take any and all actions necessary for, or incidental to, the powers expressed or implied by this Agreement and all applicable laws.

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 11 Section 17. Power to Invest
Pursuant to Government Code section 6509.5, the JPA shall have the power to invest any money in its treasury pursuant to the provisions set forth in Government Code section 6505.5 that is not required for the immediate necessities of the JPA, as the JPA may determine from time to time is advisable, in the same manner and upon the same conditions as local agencies pursuant to Government Code section 53601.

Section 18. Bonding
Pursuant to Government Code section 6505.1, individuals occupying the following positions shall file an official bond in an amount deemed sufficient by the JPA Executive Committee:
(a) President/Chief Executive Officer;
(d) Director of Finance; and
(e) Treasurer.

Section 19. Treasurer and Auditor - Designations
Pursuant to Government Code section 6505.6, the JPA Executive Committee shall designate by resolution an officer or employee of the JPA to fill the functions of Treasurer and Auditor of the JPA, and the JPA Executive Committee may appoint one qualified person to serve as both Treasurer and Auditor or two qualified persons to serve as each separately.

Section 20. Treasurer - Duties and Responsibilities
Pursuant to section 6505.5 Government Code, the Treasurer shall do all of the following:
(a) Receive and receipt (account) for all money of the JPA and place it in the treasury of the Treasurer so designated to the credit of the JPA; (b) Be responsible, upon his or her official bond, for the safekeeping and disbursement of all JPA money so held by the Treasurer; (c) Pay when due, out of the money of the JPA held by the Treasurer, all sums payable on outstanding bonds and coupons of the JPA;
(d) Pay any other sums due from the JPA from JPA money, or any portion thereof, only upon warrants of the public officer performing the functions of auditor or controller who has been designated by this Agreement; and
(e) Verify and report in writing no less than five (5) times per year to the President/Chief Executive Officer, the JPA Executive Committee and to all Parties financial statement of activities for the year.

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 12 Section 21. Independent Audit
Pursuant to section 6505.6 of the Government Code, the Treasurer shall cause an independent audit to be made by a certified public accountant or public accountant, in compliance with section 6505 of the Government Code.

Section 22. Auditor’s Duties
The Auditor shall perform the following duties:
(a) Review and recommend to the JPA Executive Committee accounting procedures and policies governing the JPA;
(b) Review and approve all demands listed on the Warrant Registers prior to submittal to the JPA Executive Committee;
(c) Review payroll registers at least monthly;
(d) Review all financial reports being submitted to the JPA Executive Committee and make the JPA Executive Committee aware of any discrepancies or potential problems in the reports;
(e) Review investments made by the President or Treasurer; (f) Review the audit report prepared by a Certified Public Accounting firm prior to finalization of the report and submittal to the JPA Executive Committee; and (g) Assist staff in the selection of the Certified Public Accounting firm.

Section 23. Attorney’s Fees
In the event litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing party in such litigation or other proceeding shall be entitled to an award of its actual and reasonable attorney's fees, costs and expenses incurred in the proceeding.

Section 24. Voting
Each JPA Member shall have an equal vote. A motion considered by the JPA Executive Committee shall require a majority of votes cast (more than half) to pass such motion. In the event of a tie vote, such motion before the JPA Executive Committee shall be deemed defeated.

Section 25. Severability
If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions, if any, of this Agreement shall continue in full force and effect, unless enforcement of this Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 13 Agreement as so invalidated would be unreasonable or grossly inequitable under all the circumstances or would frustrate the purposes of this Agreement.

Section 26. Waiver
All waivers must be in writing to be effective or binding upon the waiving Party, and no waiver shall be implied from any omission by a Party to take any action.

Section 27. Amendments
This Agreement may be amended from time to time by a two-thirds vote of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies in compliance with all applicable provisions of the Joint Exercise of Powers Act and all other applicable laws.

Section 28. Ambiguities or Uncertainties
The JPA Members have mutually negotiated the terms and conditions of this Agreement and each JPA Member received independent legal advice from its attorneys with respect to the advisability of executing this Agreement and the meaning of the provisions contained herein.

As such, this Agreement is a product of the joint drafting efforts of all JPA Members and none of the JPA Members shall be deemed to have solely or independently prepared or framed this Agreement. Therefore, any ambiguities or uncertainties are not to be construed against or in favor of any JPA Member.

Section 29. Applicable Law
This Agreement shall be construed and enforced in accordance with the laws of the State of California.

Section 30. Venue
In the event that suit is brought by any party to this Agreement, the parties agree that venue shall be exclusively vested in the State courts of the County of Riverside, California or where appropriate, in the United States District Court, Southern District of California, Riverside, California.

Section 31. Notices
Any notice or communication required hereunder between the JPA and the JPA Members shall be in writing and may be given either personally or by registered mail, returnreceipt requested. Notice, whether given by registered mail or personal delivery, shall be deemed to have been given and received on the actual receipt by any of the addresses designated below as the party to whom notices are to be sent. Any party hereto may at any time, upon written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth below:

Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 14 City of Cathedral City
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
Attention: City Manager
City of Coachella
53990 Enterprise Way
Coachella, CA 92236
Attention: City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Attention: City Manager
City of Indian Wells
44950 Eldorado Drive
Indian Wells, CA 92210
Attention: City Manager
City of Indio
100 Civic Center Mall
Indio, CA 92201
Attention: City Manager
City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Attention: City Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
Attention: City Manager
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Manager
City of Rancho Mirage
69825 Highway 111
Rancho Mirage, CA 92270
Attention: City Manager
County of Riverside
County Administration Center
4080 Lemon Street
Riverside, California 92501
Attention: County Clerk
Section 32. Counterparts
This Agreement may be executed in duplicate counterpart originals, each of which is deemed to be an original, and all of which when taken together shall constitute one and the same instrument.

Section 33. Privileges and Immunities
Pursuant to section 6513 of the Government Code, all of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, workmen’s compensation, and other benefits which apply to the activity of officers, agents or employees of any the Parties when performing their respective functions within the territorial limits of their respective public agencies, shall apply to them to the same degree and extent while engaged in the performance of any of their functions and duties performed extraterritorially under the provisions of this Agreement. [SIGNATURES APPEAR ON THE FOLLOWING PAGES]
Item Number: 9.

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Joint Powers Agreement - Third Amended and Restated Agreement 15 IN WITNESS WHEREOF, the duly authorized representatives of the JPA Members have each executed this Agreement.

CITY OF CATHEDRAL CITY
_________________________________
Raymond Gregory, Mayor
Dated: ___________________________
_________________________________
Andrew “Andy” Firestine, City Manager
ATTEST:
_________________________________
Chrstina Burton, City Clerk
APPROVED AS TO FORM:
________________________________
Eric S. Vail, City Attorney

CITY OF COACHELLA
_________________________________
Dr. Frank Figueroa, Mayor
Dated: ___________________________
_________________________________
Gustavo Romo, City Manager
ATTEST:
_________________________________
Angela M. Zepeda, City Clerk
APPROVED AS TO FORM:
________________________________
Ryan Guiboa, City Attorney

CITY OF DESERT HOT SPRINGS
_________________________________
Scott Matas, Mayor
Dated: ___________________________
_________________________________
Doria Wilms, City Manager
ATTEST:
_________________________________
Jerryl Soriano, CMC, City Clerk
APPROVED AS TO FORM:
________________________________
Jennifer Mizrahi, City Attorney

CITY OF INDIAN WELLS
_________________________________
Dr. Toper Taylor, Mayor
Dated: ___________________________
_________________________________
Christopher Freeland, City Manager
ATTEST:
_________________________________
Angelica Avila, City Clerk
APPROVED AS TO FORM:
________________________________
Todd Leishman, City Attorney
Item Number: 9.

Page 67 of 800 ends

VISIT GREATER PALM SPRINGS
Joint Powers Agreement - Third Amended and Restated Agreement 16 CITY OF INDIO
_________________________________
Elaine Holmes, Mayor
Dated: ___________________________
_________________________________
Jonathan Nicks, City Manager
ATTEST:
_________________________________
Cynthia Hernandez, City Clerk
APPROVED AS TO FORM:
________________________________
Steven P. Graham, City Attorney

CITY OF LA QUINTA
_________________________________
Linda Evans, Mayor
Dated: ___________________________
_________________________________
Jon McMillen, City Manager
ATTEST:
_________________________________
Monika Redeva, City Clerk
APPROVED AS TO FORM:
________________________________
William H. Ihrke, City Attorney

CITY OF PALM DESERT
_________________________________
Evan Trubee, Mayor
Dated: ___________________________
_________________________________
Chris Escobedo, City Manager
ATTEST:
_________________________________
Anthony Mejia, City Clerk
APPROVED AS TO FORM:
________________________________
Isra Shah, City Attorney

CITY OF PALM SPRINGS
_________________________________
Naomi Soto, Mayor
Dated: ___________________________
_________________________________
Scott Stiles, City Manager
ATTEST:
_________________________________
Brenda Pree, City Clerk
APPROVED AS TO FORM:
________________________________
Jeffrey Ballinger, City Attorney
Item Number: 9.

Page 68 of 800 ends

VISIT GREATER PALM SPRINGS
Joint Powers Agreement - Third Amended and Restated Agreement 17 CITY OF RANCHO MIRAGE
_________________________________
Lynn Mallotto, Mayor
Dated: ___________________________
_________________________________
Isaiah Hagerman, City Manager
ATTEST:
_________________________________
Kristie Ramos, City Clerk
APPROVED AS TO FORM:
________________________________
Colin D. Kirkpatrick, City Attorney

COUNTY OF RIVERSIDE
____________________________________
Karen Spiegel, Chairman
____________________________________
Jeff Van Wagenen, County Executive
Manager
ATTEST:
____________________________________
Kimberly A. Rector, Clerk of the Board
APPROVED AS TO FORM:
____________________________________
Minh Tran, County Counsel
Item Number: 9.

Page 69 of 800 ends

VISIT GREATER PALM SPRINGS
Joint Powers Agreement - Third Amended and Restated Agreement 18 EXHIBIT A

TERRITORIAL BOUNDARIES
Item Number: 9.

Page 70 of 800 ends

Item Number: 9.

Page 71 of 800 ends

Page 72 of 800 ends

SR-26-218
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To:

Date: October 6, 2026
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Proposed Public Facilities and Improvements Bonds RECOMMENDATION:
1) Adopt a resolution of the City Council authorizing the City Manager and Administrative Services Director to engage a finance team for the issuance of proposed 2026 lease revenue bonds in the amount of $7.5 million to finance capital improvement projects and for the acquisition of property; and 2) Adopt a resolution of the City Council authorizing reimbursement of City expenses for acquisition and improvement project costs from the bond proceeds.

BACKGROUND:

Animal Control
The City operates two animal control facilities, one on Hacienda Avenue and the other (the Sanctuary) on North Indian Canyon Drive in unincorporated North Palm Springs. Both are older facilities with only outdoor kennels and the Sanctuary is located outside of the city limits and the City’s sphere of influence. Since both are older facilities, they require significant repair and maintenance costs and need extensive improvements. In addition, there is additional staff time required due to the travel needed between the two facilities. There have been OSHA concerns at the Sanctuary and the outdoor kennels are not healthy for the animals during the summer months.

Public Works
As the City continues to grow and develop, the need for equipment and supplies for Public Works increases. The current Public Works Corp Yard is in need of improvements including new buildings for offices and storage space. With the construction of Eagles Sports Park next to the Corp Yard, it will be losing space for equipment and supplies. The City has already needed to move some equipment to a vacant lot it owns in the industrial area.

Streets and Roads Improvements
In 2012, the City issued bonds to build and improve streets throughout the city. While the City has continued maintaining the streets, many streets began to need significant repairs due to age. Most require slurry sealing but funds to do so have been limited. The City Council created a Streets Subcommittee to come up with solutions for the issue of road maintenance.

Other Facilities
In 2021, the City issued bonds for facilities improvement and to construct a new fire station and Police Department Annex building. Due to significant increases in construction costs, the proceeds from the Item Number: 10.

Page 73 of 800 ends

SR-26-218
bonds were no longer sufficient to complete all the projects. Several projects were scaled back and some were not completed. While other funding sources were utilized when possible, there is still a need for additional funding.

DISCUSSION:

To assist with these issues, City staff recommends issuing $7.5 million in lease revenue bonds to be used as follows:

Purchase a former cultivation facility in the industrial area to house Animal Control and Public Works.

Several improvements will need to be made, such as adding kennels, offices, and updating the heating and air conditioning. This will enable the City to house animals indoors during the summer and provide ample space for Public Works equipment and supplies. By combining the Animal Control facilities, the City could achieve operational cost savings up to $300,000 which would be offset by the costs of operating the new facility. The estimated cost of purchase and improvements would be $4 million.

The Streets Subcommittee brought several suggestions before City Council regarding funding for streets improvements. One of them was to issue bonds to do slurry seal and other improvements to streets throughout the City. The proceeds from the proposed bonds would enable the City to start city-wide slurry seal and develop an annual maintenance plan. The estimated cost would be $2.5 million.

The remaining $1 million would be used to cover the shortfall in funding from the 2021 Bonds for the Police Department Annex Building as well as other facilities improvements that are needed.

The actions before the Council tonight are not the bond authorization itself. The Reimbursement Resolution preserves the City’s ability to reimburse itself for Project costs paid before the bonds are issued. The Financing Team Resolution assembles the working group that will size the issue, prepare documents, and return with an authorization package, including the good-faith estimates required by Government Code section 5852.1. Staff recommends engaging the services of Urban Futures, Inc as municipal advisor in connection with the proposed financing, Stradling, Yocca, Carlson & Rauth LLP., as bond and disclosure counsel, and Stiffel, Nicolaus & Company, Inc. as underwriters for the proposed financing. All fees and expenses payable will be contingent on and payable from the proceeds of the proposed bonds. Those costs are estimated to be about $285,000. The City has worked with these firms on past successful bond issuances. Staff also recommends the approval of a reimbursement resolution in order for the City to reimburse its costs of acquisition and improvements for the facilities from the bond proceeds, before and after the issuance of the proposed bonds.

The Reimbursement Resolution states an official intent at a reasonably expected maximum principal amount of $9,000,000, which covers the estimated par amount, costs of issuance, the debt service reserve, and market movement between now and pricing. The $9,000,000 figure is not additional project authority. Final par, delivery date, and the project fund amount will be set at pricing and brought back with the authorizing resolutions.

Staff expects the Project to qualify for tax-exempt financing as a governmental-purpose facility. Bond counsel will confirm use of proceeds, including any management contract or private-business use at the animal control or public works facility, before the authorization hearing. If a component cannot be financed on a tax-exempt basis, that component would be reduced, deferred, or financed with a taxable series.

Item Number: 10.

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SR-26-218
FISCAL IMPACT:

The annual debt service of the $7.5 million in proposed bonds is estimated to be $540,000. For the remainder of FY26-27, the debt service cost is estimated to be $270,000 which can be covered by the fund balance available in the Debt Service Fund. Starting with FY27-28, the General Fund will need to contribute up to $540,000 annually for the debt service payments. However, as the Utility Users Tax revenue increases, the General Fund will need to contribute less. It is anticipated that the Utility Users Tax revenue committed to the Debt Service Fund will be able to cover the entire annual debt service for the proposed bonds in 3 to 4 years.

STRATEGIC ALIGNMENT:

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

Goal 9: Animal Care and Control
Provide exceptionally high levels of customer service to the city residents while ensuring the highest levels of humane treatment of all animals in the care of the city’s Animal Care and Control.

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

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

ATTACHMENTS:
1) Reimbursement Resolution City of Desert Hot Springs
2) Resolution re Financing Team - City of Desert Hot Springs 2026 LRB 3) DHS 2026 LRBs Schedule
Item Number: 10.

Page 75 of 800 ends

4929-4952-1838v2/200812-0006

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS REGARDING INTENTION TO ISSUE TAX-EXEMPT

OBLIGATIONS
WHEREAS, the City of Desert Hot Springs (the “City”) is a municipal corporation and general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California; and
WHEREAS, the City desires to finance the costs of acquiring, constructing, upgrading, repairing and/or equipping certain public facilities and improvements for the benefit of the City, as provided in Exhibit A attached hereto and incorporated herein (the “Project”); and WHEREAS, the City intends to finance the acquiring, constructing, upgrading, repairing and/or equipping of the Project or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the “Obligations”); and
WHEREAS, the City desires to pay certain costs with respect to the Project from available moneys of the City, including but not limited to reserves held by the City, prior to the issuance of the Obligations and to reimburse the City for such costs from a portion of the proceeds of the sale of the Obligations;

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

SECTION 1. Each of the above recitals is true and correct.

SECTION 2. The City reasonably expects, and hereby states its intention, to reimburse itself for Project costs incurred prior to the issuance of the Obligations with proceeds of the Obligations. Exhibit A describes either the general character, type, purpose and function of the Project.

SECTION 3. The reasonably expected maximum principal amount of the Obligations that is anticipated to be used for such reimbursement is $9,000,000.

SECTION 4. Except as described in Section 8 below, this resolution is being adopted not later than 60 days after the payment of the original expenditures (the “Expenditures Date or Dates”).

SECTION 5. Except as described in Section 8 below, the expected date of issue of the Obligations will be within 18 months of the later of: (a) the Expenditure Date or Dates; or (b) the date that the Project is placed in service; provided that the reimbursement may not be made more than three years after the Expenditure Date or Dates.

SECTION 6. Proceeds of the Obligations to be used to reimburse the City for Project costs are not expected to be used, within one year of reimbursement, directly or indirectly to pay debt service with respect to any obligation (other than to pay current debt service coming due within the next succeeding one year period on any tax-exempt obligation of the City (other than the Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the City or any entity related in any manner to the City, or to Item Number: 10.

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2 4929-4952-1838v2/200812-0006
reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner.

SECTION 7. This Resolution is consistent with the budgetary and financial circumstances of the City as of the date hereof. No moneys from sources other than the Obligations are, or are reasonably expected to be, reserved, allocated on a long-term basis or otherwise set aside by the City (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this City Council is not aware of the previous adoption of official intents by the City that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.

SECTION 8. The limitations that are described in Sections 4 and 5 above do not apply to: (a) costs of issuance of the Obligations; (b) an amount not in excess of the lesser of $100,000 or five percent (5%) of the proceeds of the Obligations; or (c) any preliminary expenditures, such as architectural, engineering, surveying, soil testing, and similar costs other than land acquisition, site preparation, and similar costs incident to commencement of construction, not in excess of twenty percent (20%) of the aggregate issue price of the Obligations that finances the Project for which the preliminary expenditures were incurred.

SECTION 9. This resolution is adopted as official action of the City in order to comply with Treasury Regulation § 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of City expenditures incurred prior to the date of issue of the Obligations, is part of the City’s official proceedings, and will be available for inspection by the general public at the main administrative office of the City.

SECTION 10. This Resolution shall take effect immediately upon its adoption.

Passed and Adopted on this 13th day of October, 2026.
_____________________________
Scott Matas, Mayor
Attest:
_____________________________
Jerryl Soriano, CMC
City Clerk
Item Number: 10.

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3 4929-4952-1838v2/200812-0006

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF DESERT HOT SPRINGS )
I, Jerryl Soriano, CMC, City Clerk of the City of Desert Hot Springs, California, do hereby certify that Resolution No. 2026-______ was adopted by the City Council of the City of Desert Hot Springs, California, at the Regular meeting of October 6, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Jerryl Soriano, CMC
City Clerk
Item Number: 10.

Page 78 of 800 ends

4929-4952-1838v2/200812-0006

EXHIBIT A

PROJECT DESCRIPTION
The project consists of animal control and public works facilities, street and road improvements and other City facilities included in the City’s capital plan.

Item Number: 10.

Page 79 of 800 ends

4932-0230-8051v2/200812-0008

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS APPROVING ENGAGEMENT OF PROFESSIONAL

SERVICES FOR PROPOSED LEASE REVENUE BOND FINANCING
WHEREAS, the City of Desert Hot Springs (the “City”) is a municipal corporation and general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California; and
WHEREAS, the City desires to finance the costs of acquiring, constructing, upgrading, repairing and/or equipping certain public facilities and improvements for the benefit of the City, (the “Proposed Financing”) through the issuance of lease revenue bonds by the Desert Hot Springs Public Financing Authority; and
WHEREAS, the City desires to engage certain professionals in connection with the Proposed Financing;

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

SECTION 1. Each of the above recitals is true and correct.

SECTION 2. The City Council hereby approves the engagement of the firm of Urban Futures, Inc. to act as municipal advisor to the City in connection with the Proposed Financing.

Stradling, Yocca, Carlson & Rauth LLP, is hereby retained by the City as bond counsel and disclosure counsel (“Bond Counsel”) in connection with the Proposed Financing. Stifel, Nicolaus & Company, Incorporated is hereby appointed as underwriter for the Proposed Financing. Each of the City Manager and the Administrative Services Director is hereby authorized to enter into contracts, or to amend existing contracts, with each of said firms in order to provide services with respect to the Proposed Financing. All fees and expenses payable to such firms shall be contingent upon and be payable only from proceeds of the Proposed Financing.

SECTION 3. This Resolution shall take effect immediately upon its adoption.

Passed and Adopted on this 13th day of October, 2026.
_____________________________
Scott Matas, Mayor
Attest:
_____________________________
Jerryl Soriano, CMC
City Clerk
Item Number: 10.

Page 80 of 800 ends

4932-0230-8051v2/200812-0008 2

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Jerryl Soriano, CMC
City Clerk
Item Number: 10.

Page 81 of 800 ends

Desert Hot Springs Public Financing Authority
Series 2026 Lease Revenue Bonds

FINANCING SCHEDULE
(as of October 2, 2026)
Date Action Responsible Party
Thurs, Oct 1 Submit staff report and City Council Resolution to Approve Financing Team
I
Week of Oct 5 Check-in call to discuss financing plan and schedule at TBD
All
Tues, Oct 6 City Council Meeting to Approve Financing Team I Thurs, Oct 8 Distribute 1st draft of legal documents and POS information request
BC/DC
Wed, Oct 14 Conference call to discuss 1st draft of legal documents and information needed for POS at TBD
All
Wed, Oct 21 City to distribute requested information for POS I Wed, Oct 28 Distribute draft of POS
Distribute draft of BPA
BC/DC
UWC
Tues, Nov 3 Distribute draft of credit presentation
Conference call to discuss legal/financing documents
and schedule at TBD
UW
All
Mon, Nov 9 Distribute revised drafts of POS and legal documents Distribute credit material and presentation to S&P
BC/DC
UW
Tues, Nov 10 Submit staff report, legal documents, POS and BPA for City Council Meeting

I/MA/BC/DC/UWC
Tues, Nov 17 City Council / PFA Meeting to Approve Financing Documents and Authorize Bond Sale

I/MA/BC
Wed, Nov 18 Due diligence call at TBD
Receive credit rating
All

UW/MA/I
Fri, Nov 20 Post POS DC
Thurs, Nov 26 Thanksgiving Holiday
Mon, Nov 30
Tues, Dec 1
Pre-pricing
Pricing

I/UW/MA
Tues, Dec 8 Post final OS DC
Thurs, Dec 10 Closing All
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Holidays highlighted in yellow
Item Number: 10.

Page 82 of 800 ends

Desert Hot Springs Public Financing Authority
Series 2026 Lease Revenue Bonds

FINANCING SCHEDULE
(as of October 2, 2026)
Date Action Responsible Party
Financing Team
I – Issuer (Desert Hot Springs PFA)
MA – Municipal Advisor (Urban Futures)
BC/DC – Bond/Disclosure Counsel (Stradling)
UW – Underwriter (Stifel)
UWC – Underwriter’s Counsel ( )
T—Trustee (Wilmington)
City Council Meets every 1st and 3rd Tuesday of the
month
September 2026
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Holidays highlighted in yellow
Item Number: 10.

Page 83 of 800 ends

Page 84 of 800 ends

SR-26-215
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 6, 2026
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance to Rezone Land Designated Commercial Business Park (C-BP) Zoning Along Highway 62 Between North Indian Canyon Drive and Interstate 10 and North of Pierson Boulevard to the Commercial Highway (C-H) Zone (Zoning Amendment 26-1)
RECOMMENDATION:

The ordinance was introduced for first reading on September 15, 2026.

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

FISCAL IMPACT:

There are no costs associated with the rezoning.

ENVIRONMENTAL ANALYSIS:

This action is exempt under the California Environmental Quality Act pursuant to Title 14 California Code of Regulations Section 15061(b)(3), "Common Sense Exemption." Projects proposed for development in this area would be subject to CEQA at the time of development.

STRATEGIC ALIGNMENT:

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

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

ATTACHMENTS:
1) Staff Report from September 15, 2026
Item Number: 11.

Page 85 of 800 ends

SR-26-215
2) Ordinance
3) Exhibit A - Current Zoning
4) Exhibit B - Proposed Zoning
5) URGENCY Interim Ordinance Extension Moratorium HWY 62 6) Table 17.12.01 to URGENCY Interim Moratorium
7) Section 65858(e) Report to the Extension Ordinance
8) 2025-2027 City of Desert Hot Springs Strategic Plan
Item Number: 11.

Page 86 of 800 ends

SR-26-177
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: September 15, 2026
Department: Community Development
Prepared by: Patricia Villagomez, Planning Manager
Subject: Zoning Amendment 26-1. An Ordinance to Rezone Land Designated Commercial Business Park (C-BP) Zoning Along Highway 62 Between North Indian Canyon Drive and Interstate 10 and North of Pierson Boulevard to the Commercial Highway (C-H) Zone.

RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor
5) Take public testimony from those in opposition;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion; and
9) Introduce for first reading and by title only: "An ordinance to rezone land designated Commercial Business Park (C-BP) Zoning along Highway 62 between North Indian Canyon Drive and Interstate 10 and North of Pierson Boulevard to Commercial Highway (C-H)." BACKGROUND:

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

On June 3, 2025, the City Council approved a Strategic Plan envisioning the promotion of tourism through the development of new businesses along Highway 62, north of the Interstate 10 freeway and south of North Indian Canyon Drive (“HWY 62 Corridor”) and north of Pierson Boulevard. To achieve the goal of making HWY 62 the “Tourism Gateway” for the City, the Strategic Plan calls for “[i]ntense and focused efforts to identify strategically important sites/properties, property owners and capital partners to attract and retain commercial development along the HWY 62”. Efforts to promote tourism are important for the economic well-being of the City, its residents and visitors. The HWY 62 Corridor will play a critical role in bringing tourists to shop, dine, socialize, and experience the offerings of the City. HWY 62 is also designated a scenic corridor by the State of California.

Item Number: 11.

Page 87 of 800 ends

SR-26-177
The City Council anticipated that some people or entities may be seeking to establish uses that are not compatible with the vision that the City Council has for the HWY 62 Corridor given the Commercial-Business Park zoning designation. If certain uses were permitted to be established in the HWY 62 Corridor without appropriate regulation, such uses might conflict with the Strategic Plan goals or conflict with surrounding uses. Under the C-BP zoning, such uses that could conflict include data centers, light manufacturing, and warehouses.

In response, on October 21, 2025, the City Council adopted the underlying ordinance titled, “Urgency Interim Ordinance Of The City Council Of The City Of Desert Hot Springs Adopting A Moratorium On The Issuance Of Any License, Permit, Or Entitlement That Is A Use Other Than The Ones Listed In This Ordinance For Any Business Located In The Commercial Business Park (C-BP) Zoning District Along Highway 62 Between North Indian Canyon Drive And Interstate 10” (“Underlying Ordinance”).

On November 4, 2025, the City Council held a duly noticed public hearing on the Underlying Ordinance that extended it 22 months and 15 days from November 4, 2025. The moratorium gave City staff time to analyze the current zoning, examine alternatives, and recommend appropriate zoning, uses, regulations, and development standards for the HWY 62 Corridor.

Therefore, the City drafted the proposed Ordinance to change the zoning. On August 11th, 2026, in a Regular Meeting the Planning Commission made a recommendation to the City Council to approve the Ordinance.

DISCUSSION:

ANALYSIS
The Commercial - Business Park (C-BP) zoning district at HWY 62 encompasses a total of 231.3 aces. Of that total, approximately 152.5 acres are on the west side of HWY 62 and 78.8 acres are on the east side of HWY 62. The area is bounded by Residential Medium (R-M) zoning on the west and east side, Specific Plan designations to the north, and unincorporated county area to the south. The large, master-planned community of Skyborne lies to the east and is under development. Other large residential developments such as Highland Falls to the west have their entitlements but remain undeveloped. Caltrans plans to install a traffic signal at HWY 62 and Pierson Boulevard and the engineering for the signal is underway.

The General Plan designation for the area is "Commercial" in the General Plan Land Use Map. The Zoning designation of Commercial- Business Park (C-BP) is one of five commercial zones allowed in the Commercial Land Use designation. Commercial Highway (C-H) is another designated zoning district that includes freeway oriented uses such as lodging, fuel stations, restaurants, and retail but excludes uses like data centers, light manufacturing, and warehouses. A C-H zoning designation is more consistent with the City's Strategic Plan, and it is more consistent with other highway frontage zoning at Palm Drive and Indian Canyon along the I-10 whereby the C-H zoning is adjacent to the freeway. For these reasons, Staff is recommending the area be rezoned from C-BP to C-H.

The drivers for how much Commercial Highway uses the market will support is dependent on the amount of residential that exists in the area to support it, how much traffic traverses HWY 62 (either commuter or tourist traffic to and from the hi-desert), and the draw of tourists destinations within Desert Hot Spring such as the hotels, spas, resorts, and downtown. Longer term, the area would be a good candidate for a Specific Plan which could introduce more mixed-use development including residential.

Item Number: 11.

Page 88 of 800 ends

SR-26-177
Notices of the potential rezoning action were mailed via certified mail to all the affected property owners and surrounding properties on June 11, 2026, which was prior to the Planning Commission recommendation on this Project. The project was noticed to neighboring property owners within a 300-foot radius of the project site Wednesday, August 26th, 2026, and was also advertised in the Desert Star Weekly, noticing requirements
The Planning Commission held its hearing in August and recommended to the City Council that it adopt the Ordinance to rezone the area currently designated Commercial Business Park (C-BP) in the Zoning Map to Commercial Highway (C-H) at HWY 62 and Pierson Boulevard. The area included in the rezoning is depicted on the following exhibits: Attachment 2: Current Zoning and Attachment 3:

Proposed Zoning.

FISCAL IMPACT:

There is no costs associated with the rezoning.

ENVIRONMENTAL ANALYSIS:

OPTIONAL:

Zoning Ordinance Amendment Findings:

1. That the proposed amendment is internally consistent with the General Plan; The proposed Ordinance which changes the zoning is internally consistent with the General Plan in that the General Plan Land Use designation for the area is Commercial and the CommercialHighway Zoning Districts is one of five allowable zoning districts permitted in the Commercial General Plan Land Use designation. Staff Recommends this finding.

2. That the proposed Ordinance which changes the zoning would not be detrimental to the public interest, health, safety, convenience, or welfare of the City; The rezoning would not be detrimental to the public interest, health, safety, convenience, or welfare of the City as the Commercial-Highway Zoning District is less intensive than the Commercial-Business Park zoning. Staff recommends this finding.

STRATEGIC ALIGNMENT:

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

ATTACHMENTS:
1) Ordinance
Item Number: 11.

Page 89 of 800 ends

SR-26-177
2) Exhibit A - Current Zoning
3) Exhibit B - Proposed Zoning
4) URGENCY Interim Ordinance Extension Moratorium HWY 62 5) Table 17.12.01 to URGENCY Interim Moratorium
6) Section 65858(e) Report to the Extension Ordinance
7) 2025-2027 City of Desert Hot Springs Strategic Plan
Item Number: 11.

Page 90 of 800 ends

ORDINANCE NO. _____

AN ORDINANCE TO REZONE LAND DESIGNATED

COMMERCIAL BUSINESS PARK (C-BP) ZONING ALONG
HIGHWAY 62 BETWEEN NORTH INDIAN CANYON DRIVE AND
INTERSTATE 10 AND NORTH OF PIERSON BOULEVARD TO

THE COMMERCIAL HIGHWAY (C-H) ZONE
WHEREAS, the City of Desert Hot Springs (“City”) has a responsibility to plan and regulate the use of property within the City’s jurisdictional boundaries; and WHEREAS, pursuant to the authority granted to the City by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City’s police power; and WHEREAS, on June 3, 2025, the City Council approved a Strategic Plan envisioning the promotion of tourism through the development of new businesses along Highway 62, north of the Interstate 10 freeway and south of North Indian Canyon Drive (“HWY 62 Corridor”) and north of Pierson Boulevard; and WHEREAS, to achieve the goal of making HWY 62 the “Tourism Gateway” for the City, the Strategic Plan calls for “[i]ntense and focused efforts to identify strategically important sites/properties, property owners and capital partners to attract and retain commercial development along the HWY 62”; and
WHEREAS, efforts to promote tourism are important for the economic well-being of the City, its residents and visitors; and
WHEREAS, the HWY 62 Corridor will play a critical role in bringing tourists to shop, dine, socialize, and share in the collective experience of living in the City; and WHEREAS, HWY 62 is also designated a scenic corridor by the State of California; and
WHEREAS, the City Council anticipated that some people or entities may be seeking to establish uses that are not compatible with the vision that the City Council has for the HWY 62 Corridor given the Commercial-Business Park zoning designation; and
WHEREAS, if certain uses were permitted to be established in the HWY 62 Corridor without appropriate regulation, such uses might conflict the Strategic Plan Item Number: 11.

Page 91 of 800 ends

goals or conflict with surrounding uses. Under the C-BP zoning, such uses that could conflict include data centers, light manufacturing, and warehouses; and WHEREAS, in response, on October 21, 2025, the City Council adopted an ordinance titled, “Urgency Interim Ordinance Of The City Council Of The City Of Desert Hot Springs Adopting A Moratorium On The Issuance Of Any License, Permit, Or Entitlement That Is A Use Other Than The Ones Listed In This Ordinance For Any Business Located In The Commercial Business Park (C-BP) Zoning District Along Highway 62 Between North Indian Canyon Drive And Interstate 10”, and ultimately adopted an extension thereto; and
WHEREAS, this gave City staff time to analyze the current zoning, examine alternatives, and recommend appropriate zoning, uses, regulations, and development standards for the HWY 62 Corridor; and
WHEREAS, pursuant to the reasons in the Staff Report accompanying this Ordinance, as well as the findings herein, Council hereby adopts this Ordinance amending the Zoning Map to rezone the area currently designated Commercial Business Park (C-BP) in the Zoning Map to Commercial Highway (C-H) at HWY 62 and Pierson Boulevard; and
WHEREAS, the City Council finds this Ordinance is for the convenience and general welfare of the City; and
WHEREAS, the proposed adoption of this Ordinance is compatible with the general objectives of the General Plan, in that the subject uses and standards conform goals, policies and standards of the General Plan; and WHEREAS, the City’s Planning Commission held a public hearing on August 11, 2026, considered this Ordinance, and made a positive recommendation to the City Council; and
WHEREAS, on September 15th, 2026, the City Council concluded a duly noticed public hearing and considered this Ordinance.

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

Section 1. RECITALS.

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

Section 2. EVIDENCE
That the City Council has considered all of the evidence submitted into the Item Number: 11.

Page 92 of 800 ends

administrative record, which includes, but is not limited to, the following:
(a) The City’s Municipal Code and its General Plan, including updates; (b) The documents that consist of the proposed Ordinance; (c) All of the environmental documents;
(d) Testimony and/or comments from all persons including the applicant and its representatives submitted to the City in both written and oral form at, or prior to, the public hearing conducted at the Planning Commission; (e) Planning Commission’s recommendation; and
(f) Public comments, both written and oral, received and/or submitted at, or prior to the City Council’s consideration of this Ordinance.

Section 3. AMENDING THE ZONING MAP FROM “RESIDENTIAL HIGH (RH)” TO “RESIDENTIAL MEDIUM (R-M)” “ZONING MAP” “Zoning Map” shall be amended as follows:

Item Number: 11.

Page 93 of 800 ends

Item Number: 11.

Page 94 of 800 ends

Section 4. ENVIRONMENTAL FINDINGS
This proposed Ordinance is exempt under the California Environmental Quality Act pursuant to Title 14 California Code of Regulations Section 15061(b)(3), "Common Sense Exemption." Projects proposed for development in this area would be subject to CEQA at the time of development.

Section 5. GENERAL PLAN CONSISTENCY FINDINGS
The City Council finds the Zoning Map Amendment will be compatible with the general objectives of the General Plan, in that the subject uses would be conditionally permitted in residential land use districts, similar to other permitted and conditionally permitted uses, and in that the use will be subject to strict review and conditions.

Section 6. GENERAL FINDINGS
IN addition to the findings in this Ordinance, and the findings in the Staff Report, the City Council finds this Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare of the City.

Section 7. SEVERABILITY
The City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.

Section 8. AMENDING OF BAIL SCHEDULE
The City Attorney’s Office is hereby directed to determine whether this Ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 9. EXECUTION AND CERTIFICATION
The City Clerk is directed to do all things necessary to cause the execution of this Ordinance immediately upon its adoption and shall thereafter certify to the passage of this Ordinance and cause the same to be published according to law.

Section 10. EFFECTIVE DATE
This ordinance shall take effect thirty (30) days after its second reading by the City Council.

Item Number: 11.

Page 95 of 800 ends

[END OF PAGE]
Item Number: 11.

Page 96 of 800 ends

The foregoing Ordinance was approved and adopted at a meeting of the City Council held on ______________________, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

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

Jennifer A. Mizrahi,
City Attorney
C:\Users\JMizrahi\Desktop\Drafts\DHS\136. Draft Zoning Ordinance for Hwy 62 MAP ONLY.docx Item Number: 11.

Page 97 of 800 ends

Exhibit A
Current Zoning
HWY 62 at Pierson Boulevard
Item Number: 11.

Page 98 of 800 ends

Exhibit B
Proposed Zoning
HWY 62 at Pierson Boulevard
Item Number: 11.

Page 99 of 800 ends

ORDINANCE NO. ___

AN EXTENSION OF URGENCY INTERIM ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF DESERT HOT SPRINGS ADOPTING A

MORATORIUM ON THE ISSUANCE OF ANY LICENSE, PERMIT, OR

ENTITLEMENT THAT IS A USE OTHER THAN THE ONES LISTED IN THIS

ORDINANCE FOR ANY BUSINESS LOCATED IN THE COMMERCIAL
BUSINESS PARK (C-BP) ZONING DISTRICT ALONG HIGHWAY 62
BETWEEN NORTH INDIAN CANYON DRIVE AND INTERSTATE 10
WHEREAS, pursuant to the authority granted the City of Desert Hot Springs (“City”) by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City’s police power; and WHEREAS, the City Council approved a Strategic Plan envisioning the promotion of tourism through the development of new business along Highway 62, north of the Interstate 10 freeway and south of North Indian Canyon Road (“HWY 62 Corridor”); and WHEREAS, to the achieve the goal of making HWY 62 the “Tourism Gateway” for the City, the Strategic Plan calls for the “[i]ntense and focused efforts to identify strategically important sites/properties, property owners and capital partners to attract and retain commercial development along the HWY 62”; and
WHEREAS, efforts to promote tourism are important for the economic well-being of the City, its residents and visitors; and
WHEREAS, the HWY 62 Corridor will play a critical role in bringing tourists to shop, socialize, and share in the collective experience of living in the City; and WHEREAS, in the process of such rehabilitation and revitalization, the City needs time to examine the uses it deems appropriate for the HWY 62 Corridor to achieve economic prosperity; and
WHEREAS, properties along the HWY 62 Corridor include large parcels zoned Commercial Business Park (C-BP); and
WHEREAS, several people and business entities have expressed an interest in applying for entitlements, permits and licenses within the HWY 62 Corridor, and some uses expressed may be inappropriate to achieve the City’s goals of promoting tourism and economic prosperity; and
WHEREAS, although there are several uses allowed within the City’s Commercial Business Park (C-BP) zoning district, certain uses are currently allowed within Commercial Business Park (C-BP) zoning districtmay not be suited for the HWY 62 Corridor, or portions Item Number: 11.

Page 100 of 800 ends

thereof, because HWY 62 is a prominent welcoming area for all City residents and visitors since it is within close proximity to both the Interstate 10 and Highway 62; and WHEREAS, the City Council anticipates that some people or entities may be seeking to establish uses that are not compatible with the vision that the City Council has for HWY 62 Corridor before a non-urgency ordinance would become effective; and WHEREAS, if certain uses were permitted to be established in the HWY 62 Corridor without appropriate regulation, such uses might be established in areas that could conflict the Strategic Plan goals (which was made available for review by the City Council by the office of the City Clerk and a copy of which was made available for review), conflict with surrounding uses, or be detrimental to the public health, safety and welfare; and if such uses were allowed to proceed as allowed under the current zoning, such uses could conflict with, and defeat the purpose of the City Council objectives to promote tourism and economic development; and WHEREAS, City staff needs time to develop appropriate zoning regulations, uses, and development standards for the HWY 62 Corridor; and
WHEREAS, the local police power includes broad authority to determine, for purposes of public health, safety, and welfare, the appropriate uses of land within a local jurisdiction's borders; and
WHEREAS, the City Council desires, on an urgency basis, to temporarily allow only certain businesses within the HWY 62 Corridor; and
WHEREAS, pursuant to Government Code Section 65858(d), ten days prior to the expiration of this interim ordinance or any extension, the City Council shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of this ordinance (“65858(d) Report”); and
WHEREAS, on October 21, 2025, the City Council adopted the underlying ordinance titled, “Urgency Interim Ordinance Of The City Council Of The City Of Desert Hot Springs Adopting A Moratorium On The Issuance Of Any License, Permit, Or Entitlement That Is A Use Other Than The Ones Listed In This Ordinance For Any Business Located In The Commercial Business Park (C-BP) Zoning District Along Highway 62 Between North Indian Canyon Drive And Interstate 10” (“Underlying Ordinance”); and
WHEREAS, the Underlying Ordinance is set to expire 45 days from October 21, 2025; and
WHEREAS, on November 4, 2025, the City Council held a duly noticed public hearing on this current Ordinance which would extend the Underlying Ordinance 22 months and 15 days from November 4, 2025; and
WHEREAS, the City Council deems it necessary to extend the adopted ordinance by 22 months and 15 days; and
WHEREAS, California Government Code Section 65858 provides the statutory authority and time limits for interim ordinances prohibiting any uses which may be in conflict with a contemplated general plan, specific plan or a zoning proposal which the City plans to consider, study or intends to study within a reasonable time; and Item Number: 11.

Page 101 of 800 ends

WHEREAS, Government Code section 36937 provides that the City may adopt an ordinance that takes effective immediately when adopted for the immediate preservation of the public peace, health or safety, providing the ordinance contains a declaration of the facts constituting the urgency, and is passed by a four-fifths vote of the city council.

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

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

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

Section 3. FINDINGS
That based on the foregoing recitals and evidence, the City Council finds as follows:
(a) The recitals of this ordinance are hereby incorporated in this Section as findings. (b) State law protects local licensing practices, zoning ordinances, and other local actions taken pursuant to the City’s constitutional police power. (c) The local police power includes broad authority to determine, for purposes of public health, safety, and welfare, the appropriate uses of land within a local jurisdiction's borders. (d) The City needs to properly plan and develop the zoning, uses, regulations, and development standards that will be within the HWY 62 Corridor.

Section 4. CONCLUSIONS
That based on the foregoing recitals, evidence and findings, the City Council concludes as follows:
(a) It is necessary to temporarily suspend the processing of any application or approval of any permit, entitlement or license, for any kind business in the HWY 62 Corridor and marked by a cross-out in Exhibit A (attached hereto and incorporated herein) to allow adequate time for the City to consider, study, and enact regulations for the HWY 62 Corridor, so that the City Council can properly consider the best uses and proper development standards for the HWY 62 Corridor.
(b) A temporary moratorium will provide the City with time to consider, study, draft, and adopt proper zoning, uses, development standards and regulations regarding the HWY 62 Corridor in a manner that are consistent with the General Plan and Municipal Code, compatible with surrounding neighborhoods, and in the best interests of the residents of the City.

Section 5. INTERIM MORATORIUM IMPOSED
Item Number: 11.

Page 102 of 800 ends

For a period of 22 months and 15 days from November 4, 2025, commencing on the date of adoption of this Ordinance, no use permit, variance, building permit, or any other entitlement for use shall be accepted, processed, approved or issued for the establishment or operation of, and no person shall otherwise establish, a use that is not specifically enumerated in Exhibit A of this Ordinance within the HWY 62 Corridor.

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

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

Section 8. ENVIRONMENTAL FINDINGS
The City Council finds that adoption of this urgency interim ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Title 14 California Code of Regulations section 15061, subsection (b)(3), in that the proposed ordinance involves a proactive measure to prohibit certain uses within the HWY 62 Corridor and does not have the potential to significantly impact the environment.

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

Section 10. AMENDING OF BAIL SCHEDULE

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

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

Section 12. EXPIRATION
Item Number: 11.

Page 103 of 800 ends

Unless extended in accordance with California Government Code Section 65858, this ordinance shall be of no further force or effect after 22 months and 15 days from the date of its adoption.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 11.

Page 104 of 800 ends

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

Ayes:

Noes:

Abstain:

Absent:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________________
Jennifer Mizrahi, City Attorney
Item Number: 11.

Page 105 of 800 ends

PIERSON
BLVD
H
WY
62 Moratorium Area
Legend
Item Number: 11.

Page 106 of 800 ends

Chapter 17.12 COMMERCIAL DISTRICTS
§ 17.12.020 Permitted uses.

A. Table 17.12.01 lists the uses permitted in each of the Commercial and Visitor-Serving Districts utilizing the following key:
"P" Use is permitted by right. (A Development Permit may be required for a new use or structure or expa "A" Use is accessory to an established primary use.
"AUP" Use requires an Administrative Use Permit.
"CUP" Use requires a Conditional Use Permit.
"TUP" Use requires a Temporary Use Permit.
"—" Use is prohibited.

B. Land uses listed in Table 17.12.01 use definitions from the North American Industry Classification System (NAICS) unless otherwise defined specifically by this title. The individual land uses permitted in each of the Mixed-Use Districts are grouped in Table 17.14.01 using the major land use categories of Commercial, Industrial, Institutional, Residential and Other.

TABLE 17.12.01

PERMITTED USES - COMMERCIAL AND VISITOR SERVING DISTRICTS

COMMERCIAL DISTRICTS

USE C-N C-G C-D C-H C-BP CODE SECTION

BUSINESS, FINANCIAL, AND PROFESSIONAL OFFICE
Automated Teller Machines
(ATMs) — Drive-Up

AUP AUP AUP AUP AUP
Business Support Services P P P P P
Check Cashing and/or
Payday Loans
— CUP — — —
Financial Institutions and
Related Services (without
drive-through facilities)

P P P P P
Financial Institutions and
Related Services (with drivethrough facilities)
AUP P — P P
Office, Business and
Professional

P P P P P

EATING AND DRINKING ESTABLISHMENTS
Bars, Lounges, Nightclubs,
and Tasting Rooms*
— CUP CUP CUP CUP 17.12.190
Food Preparation/Catering
(no on-site sales or service)

AUP P P P P
Food Preparation/Catering
(with on-site sales or service)

AUP P P P P
Restaurant — Full or Limited
Service, Serving Alcohol*
AUP AUP AUP AUP AUP 17.12.190
Restaurant — Full or Limited
Service, No Alcohol Sales

P P P P P
Item Number: 11.

Page 107 of 800 ends

TABLE 17.12.01

PERMITTED USES - COMMERCIAL AND VISITOR SERVING DISTRICTS

COMMERCIAL DISTRICTS

USE C-N C-G C-D C-H C-BP CODE SECTION
Restaurant with DriveThrough Facilities*P P — P P 17.12.230 Snack Bar A A A A A
Mobile Food Vending Vehicle
Parks
— AUP AUP AUP AUP 17.12.360
Mobile Food Vending Vehicle
Parks — Ancillary
— AUP AUP AUP AUP 17.12.360

INDUSTRY, MANUFACTURING AND PROCESSING, AND WAREHOUSING Brewery, Winery, or Distillery — CUP CUP CUP CUP
Data Centers — — — — P
Hazardous Waste Facilities — — — — —
Food Processing — — — — AUP
Furniture and Fixtures
Manufacturing, Cabinet
Shops, and Woodworking
Shops (wholesale sales only)
— — — — P
Laboratory — Medical,
Analytical, Research, Testing
— — — — AUP
Laundries and Dry-Cleaning
Plants
— — — — —
Manufacturing — Heavy — — — — —
Manufacturing — Light — — — — CUP
Recycling
Small Collection Facility* — AUP — AUP AUP 17.12.290
Large Collection Facility* — CUP — CUP CUP 17.12.290
Light Processing* — — — — — 17.12.290
Heavy Processing* — — — — — 17.12.290
Reverse Vending Machine A A A A A
Research and Development — — — — P
Storage — Outdoor — — — — CUP
Warehouse, Wholesaling and
Distribution
— — — — CUP

LODGING
Hotel and Motel (without spa) — CUP CUP P CUP
Spa Resort — — CUP CUP CUP
Emergency Shelter/Low
Barrier Navigation Center
— — — — CUP
Camping/Glamping — — — — —

MARIJUANA/CANNABIS USES
Marijuana/Cannabis
Nonstorefront Retail
— — — — CUP1,2 1 In Industrial Cannabis
Overlay Zone, marijuana
Item Number: 11.

Page 108 of 800 ends

TABLE 17.12.01

PERMITTED USES - COMMERCIAL AND VISITOR SERVING DISTRICTS

COMMERCIAL DISTRICTS

USE C-N C-G C-D C-H C-BP CODE SECTION
Marijuana/Cannabis
Distribution
— — — — CUP1,2
Marijuana/Cannabis
Cultivation
— — — — CUP1,2
Marijuana/Cannabis Lounge CUP CUP CUP CUP CUP
Marijuana/Cannabis Hotel
Facilities
CUP CUP — CUP CUP
Marijuana/Cannabis
Manufacturing
— — — — CUP1
use cannot be a stand-alone
use and must in center with
other retail/commercial
uses.
2 In Overlay Zone use
Ch. 17.180 as default
regulations.

Marijuana/Cannabis
Storefront Retail
CUP CUP CUP CUP CUP 17.180.040
Marijuana/Cannabis Testing
Facilities
P P P P P 17.180.070

MEDICAL-RELATED AND CARE USES
Ambulance Fleet — AUP AUP — AUP
Clinic and Urgent Care — AUP AUP AUP AUP
Day Care Center* CUP CUP — — — 17.12.220
Therapy and Rehabilitation
Facilities

P CUP P AUP P
Hospital — CUP CUP CUP CUP
Office, Medical and Dental
Office

P P P P P
Residential Care Facilities
(commercial assisted living,
nursing home)
CUP CUP CUP — —

PUBLIC AND ASSEMBLY USES
Cultural Institutions AUP P P P P
Event Facility, Event Center,
Event Venue
— P AUP AUP AUP
Public Assembly Facilities — CUP CUP CUP CUP
Religious Assembly Facilities — CUP CUP CUP CUP
Schools, Private CUP CUP CUP — CUP
Trade and Vocational
Schools
— CUP CUP P P
Tutoring and Education
Centers

P P P P P

RECREATION AND ENTERTAINMENT
Art Gallery P P P P P
Arcade/Electronic Game
Center

CUP AUP AUP AUP AUP
Item Number: 11.

Page 109 of 800 ends

TABLE 17.12.01

PERMITTED USES - COMMERCIAL AND VISITOR SERVING DISTRICTS

COMMERCIAL DISTRICTS

USE C-N C-G C-D C-H C-BP CODE SECTION
Commercial Recreation —
Indoors

CUP P P P P
Commercial Recreation —
Outdoors

CUP CUP CUP CUP CUP
Entertainment, Indoor
(motion picture theaters,
performance theatres, dance
halls and similar)

AUP AUP AUP P P
Health/Fitness Facilities
Health/Fitness Facilities —
Small

AUP P P P P
Health/Fitness Facilities —
Large

CUP AUP CUP AUP AUP

RESIDENTIAL USES
Accessory Dwelling Unit — — — — —
Dwelling, Multifamily* — — AUP — — 17.12.280
Dwelling, Single-Family* — — — — — 17.12.330
Live/Work Unit* — — P — — 17.12.340
Home Occupations — — — —
Single Room Occupancy
(SRO)*
— — — — —
Supportive Housing (senior
citizens/congregate care
housing)*
CUP AUP CUP — — 17.08.260
Transitional Housing — — — — —

RETAIL USES
Alcohol Beverage Sales
For Off-Site Consumption* CUP CUP CUP CUP CUP 17.12.190 For On-Site or Off-Site
Consumption, in Conjunction
with an Allowed Use*
— CUP CUP CUP CUP 17.12.190
Building Materials and
Services, Indoor
— P P P P
Building Materials and
Services, Outdoor
— CUP — P AUP
Convenience Store with
Alcohol Sales*
CUP CUP CUP CUP CUP 17.12.190 17.12.210
Convenience Store, No
Alcohol Sales*
AUP P AUP P P 17.12.210
Farmers' Market TUP TUP TUP TUP TUP
Grocery Store P P P P P
Indoor Retail Concessions* — P P P P 17.12.240
Item Number: 11.

Page 110 of 800 ends

TABLE 17.12.01

PERMITTED USES - COMMERCIAL AND VISITOR SERVING DISTRICTS

COMMERCIAL DISTRICTS

USE C-N C-G C-D C-H C-BP CODE SECTION
Mini-Mall (Strip mall)* — P — P P 17.12.270
Nurseries and Garden
Centers
— P AUP P P
Outdoor Temporary and/or
Seasonal Sales

TUP TUP TUP TUP TUP
Recreational Equipment
Rentals — Indoor Only

P P P P P
Retail Sales — General P P P P P
Retail Sales — Restricted
(firearm and ammunition
stores, pawn shops, and
jewelry/gold exchanges)
— CUP CUP CUP CUP
Vehicle Sales and Rental* — CUP — CUP CUP 17.12.200
Large Vehicle, Construction,
and Heavy Equipment Sales,
Service, and Rental
— CUP — — CUP

SERVICE USES
Animal Care, Services
Animal Boarding/Kennels,
Grooming

AUP P AUP P P
Veterinary Services, Large
Animal
— P — P P
Veterinary Services, Small
Animal

AUP P P P P
Funeral Parlors and
Interment Services
— AUP CUP — AUP
Instructional Services P P P P P
Maintenance and Repair
Services — Indoor

P P P P P
Moving Companies, Storage
Allowed
— — — — AUP
Personal Services, General P P P P P
Personal Services, Restricted
(massage establishments,
day spa with massage)

CUP CUP CUP CUP CUP
Recording Studio — AUP AUP AUP P
Social Service Facilities — P — P P
Storage
Personal — CUP — — CUP 17.16.080
Outdoor Recreational Vehicle
Storage
— — — — CUP
Vehicle Repair and Services
Service/Fueling Station* CUP CUP — AUP CUP 17.12.310
Item Number: 11.

Page 111 of 800 ends

TABLE 17.12.01

PERMITTED USES - COMMERCIAL AND VISITOR SERVING DISTRICTS

COMMERCIAL DISTRICTS

USE C-N C-G C-D C-H C-BP CODE SECTION
Vehicle Washing/Detailing A AUP AUP AUP AUP
Vehicle Service, Minor — AUP — P P
Vehicle Service, Major — — — CUP

TRANSPORTATION, COMMUNICATION, AND INFRASTRUCTURE USES
Car Sharing — Parking AUP AUP AUP AUP AUP
Parking Facility — Temporary TUP TUP TUP TUP TUP
Utility Facilities — Staffed — AUP AUP AUP AUP
Utility Facility — Unstaffed AUP AUP — AUP AUP
Vehicle Charging Stations —
Commercial

AUP P P P P
Vehicle Storage — — — — CUP
Wireless Telecommunication
Facilities — Minor

AUP AUP AUP AUP AUP
Wireless Telecommunication
Facilities — Major

CUP CUP CUP CUP CUP
Wireless Telecommunication
Facilities, Satellite Dish
Antenna

P P P P P

OTHER USES
Caretaker Quarters — A — — A
Donation Boxes — Outdoors — — — — CUP
Other Drive-Through or
Drive-Up Facilities
AUP AUP — AUP AUP
Vending Machine A A A A A
Note:
*Specific standards apply.
(Prior code § 159.06.020; Ord. 524 § 5, 2010; Ord. 610 5-2-17; Ord. 712 6-2-20; Ord. 727 1-19-21; Ord. 728 1-19- 21; Ord. 762 6-21-22; Ord. 793, 11/7/2023)
Item Number: 11.

Page 112 of 800 ends

EXHIBIT A
GOVERNMENT CODE SECTION 65858(d) REPORT
Public report regarding the status of the City of Desert Hot Springs an

EXTENSION OF THE URGENCY INTERIM ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF DESERT HOT SPRINGS ADOPTING A MORATORIUM ON THE

ISSUANCE OF ANY LICENSE, PERMIT, OR ENTITLEMENT THAT IS A USE OTHER

THAN THE ONES LISTED IN THIS ORDINANCE FOR ANY BUSINESS LOCATED IN

THE COMMERCIAL BUSINESS PARK (C-BP) ZONING DISTRICT ALONG HIGHWAY 62 BETWEEN NORTH INDIAN CANYON DRIVE AND INTERSTATE 10 On October 21, 2025, the City Council of the City of Desert Hot Springs adopted Interim Urgency Ordinance No. _____ (“Underlying Ordinance”). That Underlying Ordinance initiated a 45-day moratorium on certain uses for any business located in the area along Highway 62, north of the Interstate 10 freeway and south of North Indian Canyon Road (“HWY 62 Corridor”).

The City desires that the HWY 62 Corridor area is being used in a manner consistent with the Strategic Plan, which envisions the promotion of tourism through the development of new business. Accordingly, the City needs to study the land uses for the HWY 62 Corridor in order ensure that the uses comply with the vision of the City Council. The Underlying Ordinance was enacted to ensure protection of the public health, safety and welfare related to the use and long-term goals of the City in reference to the HWY 61 Corridor. Pursuant to Government Code Section 65858(d), the City prepared this report to describe the measures taken to alleviate the conditions that led to the adoption of the Underlying Ordinance.

RESEARCH
Staff has been engaged in preparation of analyzing the uses in the HWY 62 Corridor to ensure compliance with the Strategic Plan, including research and analysis related to potential commercial, tourism, and mixed-use uses in the HWY 62 Corridor. City Council expressed a desire to limit the uses as in the Underlying Ordinance, preserving the HWY 62 Corridor for future tourism promotion, which may include mixed-use, and general commercial uses, in compliance with the General Plan. During the research associated with these efforts, staff and the environmental consulting firm will be evaluating the environmental impacts that changes in land-use designation(s), uses and development standards during this time. Further, the uses as amended mentioned in the Underlying Ordinance are not being approved within the HWY 62 Corridor, until such time that the City Council can review, deliberate, and consider the long-term goals, polices, outlook for the area in question and adopt new zoning regulations and development standards to accomplish that goal. Moreover, new legislation from the State of California such as AB 98 provides restrictions on certain uses like logistics and warehouses near residential areas. The Commercial - Business Park (CB-P) zoning in the HWY 62 Corridor is surrounded by Residential Medium (RM) zoning.

The Underlying Ordinance was adopted to allow staff sufficient time to conduct research, prepare environmental studies and reports, conduct zoning analysis, traffics analysis, etc. in review and preparation of the potential impacts on HWY 62 Corridor.

The interim prohibition adopted by the City Council on October 21, 2025, will expire on Item Number: 11.

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December 5, 2025. Since it is infeasible for the studies and decisions to take place prior to then, it is recommended that the City Council extend the Underlying Ordinance for an additional Twenty Two months and Fifteen days. Consistent with California Government Code Section 65858(c), the City Council finds that there is a current and immediate threat to the public health, safety, or welfare, and the approval of additional permits or entitlements for commercial those uses mentioned in the Underlying Ordinance would increase that threat to public health, safety, or welfare.

Item Number: 11.

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1 STRATEGIC PLAN
2025 – 2027
Item Number: 11.

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2 STRATEGIC PLAN
To build on the City of Desert Hot Springs's achievements, the 2025-2027 Strategic Plan sets forth strategic goals and actionable items to guide budget preparation, performance, program evaluation, and resource allocation. Developed in collaboration with the City Council, staff, and community members, this plan aims to address the needs of our growing city through deliberate and measurable steps for the efficient execution of its goals. Staff will provide regular updates on implementing this plan over the next two years.

VISION
The City of Desert Hot Springs is a world-class
health and wellness destination based
upon its famous miracle waters, unique
desert ecosystem, spectacular mountain
views, and natural environment.

MISSION
City of Desert Hot Springs’ public servants
are committed to maintaining fiscally
responsible operations. They achieve this by
implementing streamlined processes that
maximize efficiency and reduce
unnecessary government bureaucracy. At
the same time, they provide exceptional
levels of customer service and
professionalism to enhance the quality of
life and promote growth and prosperity for
our residents and businesses
ETHICS
City officials and employees uphold the
highest levels of ethics, personal integrity
and honesty in all interactions to maintain
public trust and confidence.

CORE VALUES
Fiscal Responsibility, Exceptional Customer
Service, Efficiency and Elimination of
Bureaucracy, Collaboration, Honesty and
Integrity, Community Engagement and
Involvement, Trust and Transparency.

Item Number: 11.

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3 GOALS AND AREAS OF FOCUS

FREEWAY COORIDOR
Take urgent and intentional steps to improve
infrastructure and attract high-quality
development along the city’s freeway corridors,
focusing on the highest and best use of land
and zoning designations.

HOTEL/SPA ZONE
Double Transient Occupancy Tax in 10 years.

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

PUBLIC SAFETY – STAFFING & COMMUNITY

POLICING
Enhance the quality of life for our residents and
staff by establishing appropriate law
enforcement staffing levels and implementing
community policing initiatives.

PUBLIC SAFETY – QUALITY OF LIFE
Balance the needs of the unhoused with the
quality-of-life needs of the overall community.

COMMUNITY BEAUTIFICATION
Focused execution of beautification efforts citywide via enforcement measures and the abatement of illegal dumping.

COMMUNITY PARKS
Provide maintenance and strategic upgrades
at existing parks while pursuing creative ways to
expand park offerings via pockets parks and
securing grant funding to plan for and build out
parks in the Parks Master Plan.

COMMUNITY SERVICES, ENGAGEMENT &

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.

ANIMAL CARE AND CONTROL
Provide exceptionally high levels of customer
service to the city residents while ensuring the
highest levels of humane treatment of all
animals in the care of the city’s Animal Care
and Control.

STREET/ROAD INFRASTRUCTURE
Intense focus on fiscal and operational needs to
ensure the city can meet the growing demands
of the community by maintaining existing
street/road infrastructure while planning for
long-term growth and development.

FINANCIAL & OPERATIONS
Continue to provide fiscally sound operations
via the ongoing evaluation of city processes
and operational needs to maximize efficiency,
streamline processes and cut bureaucracy,
when possible, to deliver outstanding customer
service and professionalism in all interactions
with residents and the public.

Item Number: 11.

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4 ACTION ITEMS
Area of Focus #1 – FREEWAY COORIDOR
GOAL: Take urgent and intentional steps to improve infrastructure and attract high quality development along the city’s freeway corridors, focusing on the highest and best use of land and zoning designations.

Action Items:
a. 1-10 and Indian, 1-10 and Palm Drive and HWY 62
i. Take all steps necessary with CVWD, MSWD and other partners and agencies to strongly advocate for the execution of a Shared Service Agreement between CVWD and MSWD for sewer services to kick start development along the 1-10 corridor and Palm Drive from Dillon to the 1-10.
ii. Prioritize additional hotel, and commercial development along the 1-10 and Indian corridor to serve anticipated workforce in the industrial area. iii. 1-10 and Palm Drive – Intense and focused efforts to identify strategically important sites/properties, property owners and capital partners to attract and retain commercial development along the 1-10 and Palm Drive corridor once service agreement is in place with the water agencies.
iv. HWY 62 – Tourism Gateway into the City.

1. Coordinate with CalTrans to install City of Desert Hot Springs Signage along HWY frontage of HWY 62

2. Intense and focused efforts to identify strategically important sites/properties, property owners and capital partners to attract and retain commercial development along the HWY 62 corridor

3. Installation of an entry monument sign on Pierson Blvd. near HWY 62 Area of Focus #2 – HOTEL/SPA ZONE
GOAL: Double Transient Occupancy Tax in 10 years.

Action Items:
a. Focused and deliberate efforts to attract Hotel developers and entrepreneurs to the City of Desert Hot Springs via attendance at events, trade shows and conferences. b. Explore the hiring of a Tourism Development Liaison on contract to kick start these efforts for the City’s attendance at these events.
c. Evaluate the STVR regulations via the City Council Subcommittee to determine if any changes are necessary.
d. Preservation of the “Spa Zone”
Item Number: 11.

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5 i. Explore alternate zoning/Miracle Hill Oasis overlay to prohibit development of anything other than hotel/restaurants in a very segmented section of the existing spa zone where the hottest mineral waters are located, while preserving the existing “Spa Zone” which allows for both housing and hotel development. ii. Evaluate the existing Spa Revitalization TOT Incentives via the City Council Subcommittee to better attract hotel developers and entrepreneurs to develop ground up construction of hotels or revitalize existing hotels. iii. Explore signage and focused beautification efforts of the Spa Zone to enhance the tourist experience in the City.
iv. Focused Tourism Advertising, Marketing and Promotion

1. Intense marketing of “Miracle Hill Oasis” as a destination in collaboration with the hoteliers via the city’s contract with JNS Next and Visit Greater Palm Springs.

2. Partner with Hoteliers to incorporate “Miracle Hill Oasis” brand into their Hotel/Spa experience. Example: Miracle Hill Oasis robes, eye masks, swag, update spa/hot water maps, maps of the murals, hiking trail maps, restaurant maps directing tourists to “The Downtown District”. Branding should be everywhere in the spa zone in collaboration with the existing hoteliers.

3. Explore programs and collaborations with partners and agencies to capitalize on opportunities for those seeking Health and Wellness experiences via hiking and the city’s proximity to Sand to Snow National Monument, Joshua Tree National Park and the city’s Hot Mineral and Drinking Water.

4. Refresh branding with JNS Next to better reflect “Desert Hot Springs – Miracle Hill Oasis” as a unique Health and Wellness destination in the valley, while still partnering with Visit Greater Palm Springs as a regional partner.

Area of Focus #3 – DOWNTOWN DISTRICT
GOAL: 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.

Action Items:
a. Activate downtown events, in a phased approach, focusing on the West-Cactus segment, for residents and tourists, as a means of bringing foot traffic to existing business and spurring other economic development activities.
i. Activate temporary Event Spaces in the Downtown, while the City executes on the larger plan of executing streetscapes, placemaking, road diets and permanent event space in the downtown.

Item Number: 11.

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6 ii. Submit the up to $15 million-dollar AHSC Grant application for Downtown Street Scape, Road Diet, Permanent Event Space, Placemaking and Transit HUB project in collaboration with Abode Affordable Housing Developer.
iii. Activate a Monthly Concert series via a contract with Take 5 Entertainment. Staff will work to incorporate downtown businesses while activating non-competing Food Trucks and other local vendors during this event.
iv. Evaluation and reimagining of Friday Nights on Pierson. Explore name, frequency, location in the downtown, and feasibility of its long term success. v. Continue to work with The Palm Springs Cultural Center to facilitate a Certified Farmers Market on Sunday mornings in the downtown area. b. Downtown Art and Murals
i. Work with Known Gallery to execute Phase two of the Downtown Art and Mural Project, capitalizing on the initial internationally known artists via intense advertising and promotion in conjunction with Known Gallery/The Seventh Letter/The Mural Supply Co.
v. Encourage and implement Art Walks, Cultural Events and Paint Nights in the downtown.
vi. Engage the youth and local artists to participate in the continued incorporation of Art and Culture in the Downtown.
c. Downtown Beautification
i. Institute a more aggressive Vacant Property Registration Program to encourage rental of vacant commercial properties in the downtown and other city locations. ii. Downtown Sign Program – Initiate a downtown signage program. iii. Initiate Downtown Small Business Grant program for signage, façade and landscaping assistance to beautify downtown and activate spaces for EcDev initiatives and purposes.
iv. Collaborate with vacant parcel owners to clean lots, clear/grub and lay ground cover in Public Right of Way to provide clean, esthetically pleasing areas ready for EcDev opportunities.
v. Initiate Downtown Branding/Social Media to create “The Downtown District” as a destination.

1. Partner with downtown small business stakeholders and the community to name the downtown.

2. Partner with downtown small businesses to incorporate “The Downtown District” brand in their storefronts. Example: create posters and maps of the murals and hang in EVERY business in the downtown.

Downtown branded trash cans, benches, handouts. Downtown branding should be everywhere in the downtown area in
collaboration with the existing businesses.

3. Visible Banners, signage, and temp screenings where needed to create esthetically pleasing spaces in the downtown.

II. Encourage the activation of parking lots and vacant parcels by landowners to create esthetically pleasing spaces downtown.

Item Number: 11.

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7 Area of Focus #4 – PUBLIC SAFETY- STAFFING AND COMMUNITY

POLICING
GOAL: Enhance the quality of life for our residents and staff by establishing appropriate law enforcement staffing levels and implementing community policing initiatives.

Action Items:
a. Implement a police recruitment and over hiring process to always ensure proper staffing levels.
b. Conduct a P.O.S.T. Evaluation to ensure the proper operational structure for the Police Department and hire accordingly.
c. Establish a Council policy on Police Staffing levels based on P.O.S.T. recommendation. d. Organize, train and cultivate a culture in the Police Department to facilitate Community Policing.
e. Commitment to complete the Public Safety Annex Complex, which includes exploring grants to fund the improvements that are necessary at Fire Station 37 that were removed due to construction costs.
f. Work with CalFire to explore the continued programming and utilization of the Medic Squad in perpetuity.
g. Enhance traffic enforcement and control along main corridors of the city, utilizing the Motor Officer as much as possible in these efforts.
h. Balance Social Media efforts highlighting both information on significant events AND at minimum two positive police stories or press releases per week.

Area of Focus #5 – PUBLIC SAFETY – QUALITY OF LIFE
GOAL: Balance the needs of the unhoused with the quality-of-life needs and concerns of the broader community.

Action Items:
a. Continue with dedicated team comprised of Law Enforcement, Code Enforcement, and SWAG to provide resources and services to the unhoused population while continuing to enforce a zero-tolerance policy for any criminal activity. b. Continue to work with property owners to institute and enforce 602 No Trespassing letters and abate encampments in collaboration with private property owners and in the public right of way per ordinance.

Item Number: 11.

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8 c. Explore ERF Funding with CVAG, Riverside County and CVCC so long as the efforts and other agencies align with and are not in contradiction to the City’s efforts to provide services and address homelessness.

Area of Focus #6 – COMMUNITY BEAUTIFICATION
GOAL: Focused execution of beautification efforts city-wide via enforcement measures and the abatement of illegal dumping.

Action Items:
a. Intense education to residents on programs available via Desert Valley Disposal and other partner agencies to abate illegal dumping.
b. Continue to partner with Desert Valley Disposal on illegal dumping program which is instituted now in the DVD Franchise Agreement.
i. Work with DVD to institute a SFR and multi-family fee to abate the long-standing issue of illegal dumping that occurs following the turnover of renters in SFR and multi-family units in the City.
ii. Advertise steep fines for illegal dumping (signage at frequent illegal dumping sites, educational billboards, information on bulky item pick-up dates in City newsletter/magazine)
iii. Strict enforcement for offenders of illegal dumping. c. Continue Code Enforcement measures in the main corridor of the City to ensure businesses, shopping centers and vacant property owners are abiding by the Municipal Code.
d. Facilitate quarterly meetings with shopping center owners and property managers to establish strong working relationships to progress the city’s goals and vision. e. Institute a Rental Registration Program to abate long standing issues with substandard living conditions of rental properties caused by absentee/irresponsible property owners.

Area of Focus #7 – COMMUNITY PARKS
GOAL: 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.

Action Items:
a. Parks Master Plan – Identify next 4 parks from the Parks Master Plan i. Secure funding and develop plans for identified parks to ensure shovel ready projects to aggressively pursue grant funding.
b. Pocket Parks – institute pocket park program in existing LMD’s/DAD’s c. Wardman Park – Old Boys and Girls Club – pursue grant funding for batting cages/rehabilitation of the building.

Item Number: 11.

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9 i. Secure temp screening around fencing to hide drained pool. ii. Install new bleachers at the Little League Field
Area of Focus #8 – COMMUNITY SERVICES, ENGAGEMENT AND

QUALITY OF LIFE
GOAL: 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.

Action Items:
a. Complete pool repairs at the John Furbee Aquatic Center and the installation of the Splash Pad following the 2025 swim season.
b. Explore funding mechanisms as a means of transitioning the John Furbee Aquatic Center to year-round swim commencing with the 2026 swim season. c. Expand Veteran services in the City of Desert Hot Springs via a lease agreement with Riverside County Veteran Services to relocate their Coachella Valley offices to the Lozano Center.
d. Expand youth activities and services at the Health and Wellness Center e. Explore funding and provide options to the City Council for the expansion of Senior Center services at the Old Library on the Senior Center campus. i. Give notice to entities utilizing space on the Senior Center campus to maximize space on the complex for Senior Services.
ii. Create a non-profit to better facilitate funding opportunities for Senior Services, Recreation activities, including Little League and youth sports and the animal sanctuary.
f. Provide intense Community engagement and outreach to the residents of Desert Hot Springs, with particular focus on “humanizing” City Hall as a means of encouraging pride, engagement and participation with city initiatives and goals. g. Conduct Education Events, Informational Townhalls and opportunities for engagement to bring City information to the residents.
h. Provide Civics Academy twice a year to the residents of Desert Hot Springs. i. Focused efforts to Improve the City’s Regional Image i. Establish better relationships with regional partners and media. ii. Increase staff participation and engagement regionally. iii. Ensure the City is proactively telling “its story” rather than allowing the City to be defined by outdated stigma and history.

Area of Focus #9 – ANIMAL CARE AND CONTROL
Item Number: 11.

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10 GOAL: Provide exceptionally high levels of customer service to the city residents while ensuring the highest levels of humane treatment of all animals in the care of the city’s Animal Care and Control.

Action Items:
a. Maintain adequate staffing levels of Animal Control Officers and Kennel Technicians. b. Hire an Administrative Assistant for Animal Care and Control c. Conduct trainings at all staff levels, including management, to improve customer service to the residents and partners of the City of Desert Hot Springs. d. Create and incorporate an aggressive adoption program to improve capacity and quality of life for the animals in the care of animal care and control. e. Build out a strong volunteer program and empower them to assist with dog walking, socialization and general care of the animals at Animal Care and Control. f. Explore strategic partnership with Greater Palm Springs Animal Allies for the Animal Sanctuary, similar to the Animal Hospital.
g. Provide intense and comprehensive education and information to the residents via social media.
h. Facilitate partnerships with regional organizations to facilitate affordable immunization and spay and neuter clinics for the residents of Desert Hot Springs.

Area of Focus #10 – STREET/ROAD INFRASTRUCTURE
GOAL: Intense focus on fiscal and operational needs to ensure the city can meet the growing demands of the community by maintaining existing street/road infrastructure while planning for long-term growth and development.

Action Items:
a. Develop a more comprehensive street repaving program, focusing on most severe streets. b. Prioritize routine repairs of potholes in a proactive manner. c. Indian/Little Morongo-20th Avenue Road Infrastructure i. Plan for alternate paths of ingress/egress around the industrial area. ii. Explore funding mechanisms including EIFD’s, Bonds and Grants to plan for and execute infrastructure improvements that will be necessary to keep pace with the anticipated growth of the Indian/Little Morongo-20th Ave industrial zone. d. Plan for alternate freeway access at Little Morongo, via the submittal of an application for a new on-ramp at Little Morongo and the 1-10.
e. Continue to collaborate with Caltrans on the Stop Light at HWY 62 and Pierson to ensure project stays on track and is completed as planned and promised by CalTrans. f. Prioritize funding to install the Stop Light at Palm Drive and Park Lane. g. Plan for creative alternative paths of travel to relieve traffic on Palm Drive and Indian Canyon. (Example: Explore funding mechanism to pave Little Morongo to Varner/20th/Freeway)
Item Number: 11.

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11 Area of Focus #11 – FINANCIAL AND OPERATIONS
GOAL: Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and professionalism in all interactions with residents and the public.

Action Items:
a. Explore the potential and feasibility of adjusting some City Hall operations to a Monday through Friday public schedule, with a continued commitment to supporting the 4/10 work schedule for staff.
b. Ensure staff is providing “exceptionally high levels of customer service” in all interactions, embodying the “we don’t operate government as usual” culture the city has become synonymous with.
c. Facilitate biennial Strategic Planning Sessions with the community, City Council and Staff. d. Add a “Strategic Plan Integration” section to each Agenda item to track all Council Actions and how they align with the Strategic Plan.
e. Institute internal Employee Performance evaluations to align with measurable goals and benchmarks based on Strategic Planning goals and priorities. f. Update the City’s internal Procurement Process and continue instituting best practices. g. Explore Planet Bid (or something similar) for all RFP/RFQ listings to ensure listings are spread far and wide resulting in a more competitive bidding process for all City projects. h. Establish an employee recognition program quarterly, with the winner of the annual Rotary Big Heart Award being selected from the pool of “Employee of the Quarter” recipients. i. Re-Establish and refresh the City’s L.E.A.D Program to promote an internal collaborative culture that spans across departments and discourages departmental silos. j. Review and update Compensation and Benefits Profile document for Non-Represented Employees and Department Heads.
k. Ensure city-wide and department specific mandated safety training programs are followed and expanded upon to ensure staff safety and to mitigate risks. l. Continue 10-year Financial Forecasting with updates to the City Council. m. Conduct finance policy reviews and update every 5 years. n. Work toward applying for the Audited Financial Reporting Award through GFOA. o. Create an Unfunded Liability policy and establish a plan to fund the unfunded pension trust account via PARS commencing in the FY 27 budget cycle.
p. Currently, the city can fund two months of operational expenses via emergency reserve fund balance. Create a policy to fund two months’ worth of operational expenses via the unassigned fund balance as per GFOA recommendations.

Item Number: 11.

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12 Item Number: 11.

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SR-26-217
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 6, 2026
Department: Public Works
Prepared by: Elias Garcia, City Engineer
Subject: Award Professional Services Agreement for On-Call Engineering Services RECOMMENDATION:
1) Approve the selection of Omnis, NV5, AET, Kimley Horn, and Albert Webb to provide On-Call Engineering Services to the City of Desert Hot Springs; 2) Authorize the City Manager to draft and execute separate Professional Services Agreements with any additional substantive changes approved by the City Manager, between the City of Desert Hot Springs and Omnis, NV5, AET, Kimley Horn, and Albert Webb, each for a term of three (3) years and an annual not-to-exceed amount of $150,000.00 per agreement, subject to final review and approval as to form by the City Attorney; and
3) Authorize the City Manager or designee to execute individual task orders and other documents necessary to implement the agreements, subject to the annual not-to-exceed amount, availability of funds, and applicable City purchasing requirements.

BACKGROUND:

The City of Desert Hot Springs Public Works and Engineering Department regularly requires professional engineering services to support the planning, design, review, construction, and delivery of City Capital Improvement Projects and other municipal engineering activities. Certain assignments may be limited in scope, require specialized expertise, or require a rapid response, making a separate project-specific Request for Proposals process impractical.

To establish a pool of qualified engineering consultants available to provide professional services on an as-needed basis, the City issued a Request for Proposals (“RFP”) for On-Call Engineering Services on September 15, 2026. Sealed proposals were due to the City by 2:00 p.m. on September 28, 2026.

The RFP anticipated the selection of multiple qualified consultants and the execution of separate oncall Professional Services Agreements with each selected consultant. The number of consultants to be selected was not predetermined and was to be based upon the qualifications of the firms submitting proposals and the needs of the City.

The scope of services includes a broad range of professional engineering services, including civil engineering and capital improvement project design, traffic and transportation engineering, land surveying, preparation of conceptual plans and exhibits, preliminary engineering cost estimates and Item Number: 12.

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SR-26-217
grant-support materials, engineering analysis and review, construction support, and preparation of plans, specifications, and estimates (“PS&E”).

Each selected consultant will provide services only as requested by the City through individual task orders or written authorizations. The RFP established an annual not-to-exceed amount of $150,000.00 for each agreement and an anticipated agreement term of three (3) years. The award of an agreement does not guarantee any minimum amount of work or compensation.

DISCUSSION:

In response to the RFP, the City received twelve (12) proposals from qualified engineering consulting firms. Engineering staff completed a review and evaluation of each proposal in accordance with the selection criteria established in the RFP.

The proposals were independently evaluated by three evaluators based upon the following criteria established in the RFP:

Evaluation Criteria Weight
Staffing Capabilities 30%
Approach to Work 30%
Past Performance Record 35%
Exceptions and Deviations from the City’s Standard
Professional Services Agreement 5%
Total 100%
The criteria considered each firm's demonstrated technical competence, qualifications and availability of proposed personnel, resources available to perform requested services, knowledge of applicable municipal engineering requirements, proposed approach to the work, experience completing services of similar complexity and scale for the City and other public agencies, past performance and references, and any exceptions or deviations from the City's standard Professional Services Agreement. These criteria are consistent with Section V of the RFP.

Each evaluator independently scored the proposals, and the three individual evaluation scores were averaged to establish the final score and ranking for each consultant. The results of the evaluation are summarized below:

Rank Consultant Final Score
1 Omnis 99.0
2 NV5 96.3
3 AET (Traffic) 94.3
4 Kimley Horn 93.7
5 Albert Webb 93.3
6 TKE 91.0
7 Lin 88.7
8 GHD 88.3
9 Advantec 87.3
10 Altum Gr 87.3
11 IDS 87.3
12 ERSC 83.3
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SR-26-217
Based upon the completed qualifications-based evaluation, Omnis, NV5, AET, Kimley Horn, and Albert Webb received the five highest overall scores.

The RFP expressly reserved the City's right to select one or more consultants for award based upon proposal rankings, qualifications, and the City's needs. Staff determined that selection of the five highest-ranked firms will provide the City with a qualified pool of consultants possessing the professional resources, technical capabilities, experience, and capacity necessary to support the City's anticipated engineering needs.

Establishing multiple on-call agreements will allow the City to utilize the expertise and availability of the selected consultants based upon the particular requirements of individual assignments.

Assignments may vary by engineering discipline, project complexity, schedule, staffing requirements, and other project-specific considerations.

Prior to commencing an assignment, the selected consultant will be required to provide the City with a proposed scope of work and fee based upon its approved hourly rate schedule. Each task order will establish the specific scope of services, deliverables, schedule, and not-to-exceed amount for the assignment. Work beyond the authorized scope or task-order amount may not be performed without prior written authorization from the City.

The award of the proposed Professional Services Agreements does not guarantee any minimum amount of work to any of the selected consultants. Individual assignments will be authorized by the City on an as-needed basis and subject to the availability of funding for the applicable project or service.

Accordingly, staff recommends that the City Council approve the selection of Omnis, NV5, AET, Kimley Horn, and Albert Webb and authorize the City Manager to execute separate Professional Services Agreements with each consultant for a three-year term and an annual not-to-exceed amount of $150,000.00 per agreement
FISCAL IMPACT:

Approval of the proposed Professional Services Agreements does not result in an immediate expenditure of City funds and does not guarantee any minimum amount of compensation to the selected consultants.

Each Professional Services Agreement will have an annual not-to-exceed amount of $150,000.00, resulting in a combined maximum annual contractual capacity of $750,000.00 among the five agreements. This amount represents the maximum contractual capacity of the agreements and does not constitute a commitment or guarantee that the City will expend $750,000.00 annually.

Services will be authorized only on an as-needed basis through individual task orders or written authorizations. Actual expenditures will depend upon the engineering services requested by the City and will be charged to the appropriate approved Capital Improvement Program project, departmental budget, grant, or other available funding source.

No task order will be authorized unless sufficient funding has been appropriated and is available for the applicable assignment.

Item Number: 12.

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SR-26-217
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 6: Community Beautification
Focused execution of beautification efforts city-wide via enforcement measures and the abatement of illegal dumping.

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

ATTACHMENTS:
1) RFP On-Call Engineering Services
2) Proposal Evaluation Tabulation
3) Omnis
4) NV5
5) AET
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SR-26-217
6) KimleyHorn
7) A. WEBB
8) Professional Services Agreement Draft
Item Number: 12.

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On-Call Engineering Services Page 1 of 14 City of Desert Hot Springs

CITY OF DESERT HOT SPRINGS

STATE OF CALIFORNIA

REQUEST FOR PROPOSALS (RFP)
FOR

ON-CALL ENGINEERING SERVICES
The City Clerk of the City of Desert Hot Springs, California will receive at the Office of the City Clerk, City Hall, 11999 Palm Drive, Desert Hot Springs, CA 92240 until 2:00PM, September 28, 2026 sealed proposals for the performance of the described services.

Published
September 15, 2026
Item Number: 12.

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On-Call Engineering Services Page 2 of 14 City of Desert Hot Springs

TABLE OF CONTENTS
On-Call Engineering Services
I. GENERAL DESCRIPTION AND INTRODUCTION........................................................................................................ 3 II. PROJECT BACKGROUND ............................................................................................................................................... 3 III. SCOPE OF SERVICES....................................................................................................................................................... 4 IV. SUBMISSION REQUIREMENTS...................................................................................................................................... 5 V. SELECTION CRITERIA .................................................................................................................................................... 7 VI. SELECTION PROCESS ..................................................................................................................................................... 7 VII. SUBMISSION DEADLINE ................................................................................................................................................ 8 VIII. REQUEST FOR ADDITIONAL INFORMATION ............................................................................................................ 8 IX. TAXES AND LICENSES ................................................................................................................................................... 9 X. PAYMENT TO CONSULTANT ........................................................................................................................................ 9 XI. INSURANCE ...................................................................................................................................................................... 9 XII. TERMINATION, RIGHTS, AND OPTIONS FOR CONVENIENCE OF THE CITY..................................................... 12 XIII. INDEPENDENT CONTRACTOR.................................................................................................................................... 13 XIV. CONTRACT...................................................................................................................................................................... 13 XV. GENERAL CONDITIONS ............................................................................................................................................... 13 XVI. PREVAILING WAGES .................................................................................................................................................... 14 PROPOSAL ACKNOWLEDGEMENT FORM................................................................................................................. Exhibit A SAMPLE PROFESSIONAL SERVICES AGREEMENT ................................................................................................. Exhibit B Item Number: 12.

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On-Call Engineering Services Page 3 of 14 City of Desert Hot Springs I. GENERAL DESCRIPTION AND INTRODUCTION
The City of Desert Hot Springs (“City”) is requesting proposals from qualified consultants to provide On-Call Engineering Services.

The City anticipates selecting multiple qualified Consultants through this solicitation and entering into separate on-call Professional Services Agreements with each selected Consultant. The number of Consultants selected will be determined by the City based upon the qualifications of the firms submitting proposals and the needs of the City.

Proposals must conform to the requirements of this Request for Proposal (RFP) and proposals must be submitted in a sealed envelope to the Department of Public Works and Engineering no later than 2:00 p.m. on Monday, September 28, 2026. The consultant contract is anticipated to be awarded at an October City Council meeting. The City reserves the right to waive any irregularity in any proposal, or to reject any proposal that does not comply with this RFP. The City, using the criteria set forth herein, will select the most qualified Consultants.

Each selected Consultant will be required to enter into a separate agreement with the City, which will include the requirements of this RFP, as well as other requirements to be specified at a later date.

By submitting a proposal, the Consultant agrees to all of the terms of this RFP.

Please direct any questions regarding this RFP to Elias Garcia, City Engineer, via email at [email protected], by the deadline specified in Section VIII, Requests for Additional Information.

II. PROJECT BACKGROUND
The City of Desert Hot Springs is located in the Coachella Valley in Riverside County, California.

The City encompasses approximately 30 square miles and is comprised of residential, commercial, industrial, and public properties, as well as significant areas of undeveloped land experiencing continued growth and development.

The activities and operations of the City regularly require professional engineering services that must be performed by California State licensed engineers and other qualified professionals. These services may include civil, traffic, transportation, drainage, utility, development, surveying, and construction-related engineering support. Certain assignments may be limited in scope, require specialized expertise, or require a rapid response, making the traditional project-specific “RFPProposal-Award” process impractical. Accordingly, the City may utilize qualified on-call engineering consultants to provide professional services on an as-needed basis.

The selected Consultants shall provide professional engineering services as needed throughout the duration of individual task orders or assignments issued by the City. All work performed shall comply with applicable codes, regulations, standards, and requirements.

Item Number: 12.

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On-Call Engineering Services Page 4 of 14 City of Desert Hot Springs III. SCOPE OF SERVICES
The selected Consultants shall perform engineering and administrative services as necessary to complete individual assignments authorized by the City. Services may include, but are not necessarily limited to, the items noted below. Additional services may be authorized by the City as necessary for individual assignments.

1. Engineering Design for City Capital Improvement Projects, and other City projects.

Examples include, but are not limited to:
a. Street Rehabilitation Project Design
b. City Park Design and Upgrade
c. Minor City Building Facilities Improvements
d. Minor grading and drainage for City Facilities
e. Preliminary estimates for projects to assist the City in scoping and budgeting f. Storm Drain Rehabilitation and/or Installation, generally following the recommendations of the City’s Master Drainage Plan, its updates, and applicable Riverside County Flood Control and Water Conservation District standards and requirements.
g. Peer-reviews of reports and studies submitted to the City by other Engineering firms h. Provide engineering drafting services to the City at a reasonable rate i. Coordination with designs teams including architects, structural engineers, geotechnical engineers, etc.

2. Traffic and Transportation Engineering. Examples include, but are not limited to:
a. Studies and analyses
b. Traffic signal design, modification, and operational analysis c. Signing and striping plans
d. Pedestrian and bicycle facility design and improvements e. Traffic control plans and work zone traffic control review f. Traffic signal timing and coordination
g. Review of traffic impact studies and transportation studies submitted to the City h. Parking and circulation studies
i. Traffic data collection and analysis
j. Coordination with Caltrans, Riverside County, CVAG, and other agencies as applicable
k. Other traffic and transportation engineering services as directed by the City Engineer

3. Land Surveying Services. Examples include, but are not limited to: topographic surveys, boundary and right-of-way surveys, construction staking, monumentation, preparation of legal descriptions and plats, record research, and other surveying and mapping services as directed by the City Engineer.

4. Perform engineering design services, either under the direct supervision of the City Engineer or independently.

5. Prepare conceptual plans, exhibits, sketches, maps, and other preliminary engineering drawings as directed by the City, including materials necessary to support project scoping, Item Number: 12.

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On-Call Engineering Services Page 5 of 14 City of Desert Hot Springs planning, budgeting, grant applications, and funding requests.

6. Prepare conceptual and preliminary engineering cost estimates as directed by the City, including estimates necessary to support project scoping, budgeting, grant applications, and funding requests.

7. Perform engineering analysis review as directed by the City

8. Construction Support. Examples include, but are not limited to:
a. Bidding Support
b. Response to RFIs and technical assistance
c. Submittal Reviews
d. Construction Management
e. On-site inspections
f. Attendance at meetings with City staff, consultants, contractors, regulatory agencies, utility agencies, and other project stakeholders, as required.

9. Preparation of plans, specifications, and estimates (PS&E)

10. All services shall be performed in accordance with applicable local, State, Federal, and City laws, regulations, ordinances, standards, and requirements, including, but not limited to, the Subdivision Map Act and the Professional Engineers Act.

COMPENSATION and LENGTH OF AGREEMENT
Each selected Consultant will be offered a contract with an annual NOT-TO-EXCEED amount of $150,000.00 (One Hundred and Fifty Thousand Dollars and no cents). Services will be authorized by the City on an as-needed basis through individual task orders or written authorizations and will be applied against the overall annual not-to-exceed amount. The award of an agreement does not guarantee any minimum amount of work or compensation. The anticipated duration of the agreement will be three (3) years.

IV. SUBMISSION REQUIREMENTS
Proposals and all other information and documents submitted in response to this RFP are subject to the California Public Records Act, which generally mandates the disclosure of documents in the possession of the City upon the request of any person, unless the content of the document falls within a specific exemption category.

Three (3) copies of the Proposal must be submitted containing the following elements:
• Proposers must submit three (3) bound copies of their proposal to the City for review. • 8‐1/2" x 11" sheet sizes should be used for the text, with 11" x 17" sheet sizes for any fold‐ out drawings.
• The proposal shall be limited to twenty-five (25) pages. Resumes for proposed personnel, tabs, and cover/back pages will not be counted towards the page limit. • Proposals should be concise and specific to the services requested in this RFP.

LETTER OF TRANSMITTAL
A Letter of Transmittal shall be addressed to Elias Garcia, P.E., T.E., City Engineer, and, at a Item Number: 12.

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On-Call Engineering Services Page 6 of 14 City of Desert Hot Springs minimum, must contain the following information:
• Identification of the proposing Consultant who will have contractual responsibility with the City. Identification shall include the legal name of the company, corporate address, telephone number, and email address of the contact person identified during the period of proposal evaluation.
• A statement representing that the Consultant has thoroughly examined and become familiar with the work required in this RFP and is capable of performing quality work to achieve the objectives of the City.
• Acknowledgement of receipt of all addenda, if any.
• A statement to the effect that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal.
• Signature of the official authorized to bind Consultant to the terms of the proposal. • Signed statement attesting that all information submitted with the proposal is true and correct.

WRITTEN PROPOSAL
The Proposal shall consist of the following sections:

1. Letter of Transmittal. Contents of the Letter of Transmittal listed above.

2. Firm Structure and History. Including the firm’s experience managing projects similar in magnitude and scope, key personnel and structure (organization chart), credentials, background, and ownership of the firm.

3. Key personnel. List qualifications of personnel with resumes and a breakdown of responsibilities. The Firm’s project manager, who will be responsible for coordinating services under the on-call agreement, must be identified. The City must approve changes to key personnel identified in the proposal subsequent to award of the agreement. Resumes must be submitted for key personnel proposed to perform services under the agreement.

4. A narrative briefly describing the proposed approach using general descriptions for the activities.

5. A list of proposed sub-consultants, sub-contractors, suppliers, and manufacturers, including their qualifications pertinent to this project.

6. A client reference list from previous City / Government Agency projects of similar scope and magnitude. List should include key personnel-contacts and their position with the agency.

7. A Fee Schedule of the Consultant’s Hourly / Standard Rates.

8. Evidence of compliance with City insurance requirements.

9. Exceptions and Deviations. Contractor shall state any exceptions or deviations from the requirements of this RFP, segregating “technical” exceptions from “contractual” exceptions. Where the Consultant wishes to propose alternative approaches to meeting the City’s technical or contractual requirements, these shall be thoroughly explained. If the Consultant has no exceptions or deviations to the contract requirements set forth in EXHIBIT B, “Sample Professional Services Agreement,” the Consultant shall so state in its proposal.

10. Proposal Acknowledgement Form. Contractor shall complete and submit EXHIBIT A, “Proposal Acknowledgement Form.” Failure to submit this signed form will result in the disqualification of the Consultant’s proposal.

Item Number: 12.

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On-Call Engineering Services Page 7 of 14 City of Desert Hot Springs V. SELECTION CRITERIA
Submitted proposals will be evaluated based on the following factors, but may not be limited to just these factors:

Criteria Approximate
Weight
Staffing Capabilities / Technical Competence. Demonstrated technical competence in the engineering disciplines applicable to the Scope of Services; availability and qualifications of proposed personnel; resources available to perform requested services; and knowledge of applicable laws, regulations, codes, standards, and requirements governing municipal public works and engineering projects.
30%
Approach to Work. Methodology to be implemented to address and coordinate the various elements within the program. 30%
Past Performance Record. Experience in completion of services of similar complexity and scale for the City of Desert Hot Springs and other public agencies is desirable. Efficiency and timeliness in completion of program requirements.
35%
Exceptions and deviations from the City’s standard Professional Services Agreement. 5% VI. SELECTION PROCESS
Per California law, the procurement of Professional Services must be selected on the basis of qualifications, or Qualifications Based Selection (QBS) in accordance with Public Law 92-582.

The procurement of Professional Services can be one-time or multi-year. Professional services contracts have provisions for specific terms, compensation amounts, and scopes of services.

The City reserves the right to conduct interviews with the highest-ranked Consultants, if deemed necessary, following evaluation of the written proposals. The number of Consultants invited to participate in interviews shall be determined by the City based upon proposal rankings and the City’s needs. The City reserves the right to select one or more Consultants for award based upon proposal rankings, qualifications, and the City’s needs.

Each proposal will be reviewed to determine if it meets the submittal requirements contained within this RFP. Failure to meet the requirements of this RFP may be cause for rejection of the proposal. The city may reject any proposal if it is conditional, incomplete, or contains irregularities. The City may waive an immaterial deviation in a proposal, but this shall in no way modify the proposal document or excuse the Consultant from compliance with the contract requirements if the Consultant is awarded the contract.

Each selected Consultant shall, within ten (10) days after being notified, enter into a contract with the City in accordance with the requirements of this RFP and shall furnish all required documents necessary to enter into said contract. Failure of a selected Consultant to execute the contract within the ten (10)-day period shall be just cause for the City to proceed with another qualified Consultant.

Item Number: 12.

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On-Call Engineering Services Page 8 of 14 City of Desert Hot Springs VII. SUBMISSION DEADLINE
In order to be considered, the Consultant must submit three (3) copies of the Service Proposal to the following office:

City of Desert Hot Springs
Public Works & Engineering Department
11999 Palm Drive
Desert Hot Springs, CA 92240
Attention: Elias Garcia, City Engineer
The proposal outer envelope shall be labeled:

PROPOSAL FOR ON-CALL ENGINEERING SERVICES
The proposal must be received at the office listed above no later than the date and time listed on the cover.

There is no expressed or implied obligation for the City to reimburse firms for any expenses incurred in preparing proposals in response to this request.

Materials submitted by respondents are subject to public inspection under the California Public Records Act (Government Code Sec. 7920.000 et seq.). Any language purporting to render the entire proposal confidential or proprietary will be ineffective and disregarded.

The City reserves the right to retain all proposals submitted, and to use any idea in a proposal, regardless of whether the proposal was selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in the RFP, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the selected firm.

All property rights, including publication rights of all reports produced by the selected firm in connection with services performed under this agreement, shall be vested in the City.

VIII. REQUESTS FOR ADDITIONAL INFORMATION
All questions and/or inquiries regarding this RFP shall be directed to:

Elias Garcia, City Engineer
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Email: [email protected]
All questions and/or inquiries shall be submitted no later than Monday, September 21, 2026. Any addenda issued by the City in response to questions or clarifications regarding this RFP are anticipated to be issued by Wednesday, September 23, 2026. Consultants shall verify receipt of any addenda issued by the City. Any addenda issued shall become part of this RFP, and acknowledgement of addenda shall be included in the Proposal Acknowledgement Form.

Item Number: 12.

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On-Call Engineering Services Page 9 of 14 City of Desert Hot Springs IX. TAXES AND LICENSES
All taxes, licenses, registrations, and certifications required to perform the services, including, but not limited to, a City of Desert Hot Springs Business License and applicable professional licenses, shall be obtained and maintained at the sole expense of the Consultant.

X. PAYMENT TO CONSULTANT
Services will be authorized on an as-needed basis through individual task orders. Prior to commencing an assignment, the Consultant shall provide the City with a scope of work and fee proposal based upon the approved hourly rate schedule. Each task order shall establish a not-toexceed amount unless otherwise authorized by the City in writing.

The City will pay the Consultant for work completed as authorized under the applicable task order.

Progress payments shall be based on services performed as identified in the applicable task order.

Monthly invoices will specifically identify job title, person-hours, and costs incurred by each task.

Sub-categorization of task is permitted to better define the task for payment.

Reimbursement costs such as mileage, printing, telephone, photographs, postage and delivery, are to be included in the “Not-to-Exceed Fixed Fee.”
All tasks including labor and reimbursable costs such as mileage, printing, telephone, photographs, postage, and delivery shall be supporting documentation presented at the time payment is requested.

The City will pay the Consultant for all acceptable services rendered in accordance with the “Agreement for Professional Consultant Services.”
Work beyond the scope or not-to-exceed amount of an authorized task order shall not be performed without prior written authorization from the City.

Payment will be based on hourly rate for work completed associated with each applicable task as identified in the consultant’s proposal.

XI. INSURANCE
a. Policies. Contractor, at Contractor’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Contractor shall maintain Worker’s Compensation Insurance and Employers’ Liability Insurance for its employees in accordance with the laws of the State of California, of an amount not less than one million dollars ($1,000,000) per accident and for Employers’ Liability Insurance in amounts not less than $1,000,000 each accident for bodily injury by accident, $1,000,000 policy limit for bodily injury by disease, and $1,000,000 each employee for bodily injury by Item Number: 12.

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On-Call Engineering Services Page 10 of 14 City of Desert Hot Springs disease. In addition, Contractor shall require each subcontractor to similarly maintain Worker’s Compensation Insurance and Employers’ Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. If any class of employees employed by Contractor pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City.

This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor agrees to waive its statutory immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Services to do the same. (2) General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.

Contractor shall provide insurance on an occurrence, not claims-made basis. Contractor acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof. (3) Automobile Liability Coverage. Contractor shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Contractor arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate.

As an alternative, Contractor shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Contractor were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Contractor shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Contractor’s Services, whether such Services are performed by Contractor or by its employees, subcontractors, or sub-contractors, to the extent such persons other than Contractor are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim, and two million dollars ($2,000,000) in the aggregate.

Item Number: 12.

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On-Call Engineering Services Page 11 of 14 City of Desert Hot Springs b. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing an A.M. Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
(1) Except as otherwise provided by law, the City, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such work or operations. (2) This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents.
(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 self-insured 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 Item Number: 12.

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On-Call Engineering Services Page 12 of 14 City of Desert Hot Springs 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 the additional insured requirements set forth herein. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that coverage is provided in conformity with the requirements of this Section.
f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement has been eliminated.
g. Failure to Obtain Coverages. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is 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.

XII. TERMINATION, RIGHTS, AND OPTIONS FOR CONVENIENCE OF THE CITY The City reserves the right to terminate the Professional Services Agreement in accordance with the termination provisions contained in the Agreement. All finished or unfinished drawings, maps, documents, field notes, and other materials produced and procured by the Consultant under the said aforementioned Agreement is, at the option of the City, City property and shall be delivered to the City by the Consultant within ten (10) working days from the date of such termination. The City will reimburse the Consultant for all acceptable work performed as set forth in the executed Agreement.

The City reserves the right to:
• Make the selection based on its sole discretion;
• Issue subsequent RFP;
• Postpone opening proposals or selection for any reason; • Remedy errors in the RFP or in the RFP process;
Item Number: 12.

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On-Call Engineering Services Page 13 of 14 City of Desert Hot Springs • Modify the Scope of Services in the RFP;
• Approve or disapprove the use of particular subcontractors; • Negotiate with any, all or none of the proposers;
• Accept other than the lowest offer;
• Waive informalities and irregularities in proposals;
• Request additional information or clarification;
• Request revisions during negotiations;
• Invite any consultant of its choosing to assist with the evaluation of proposal responses or to provide the City with a second opinion
• Enter into an agreement with another proposer in the event the originally selected proposer defaults or fails to execute an agreement with the City in a timely manner.

XIII. INDEPENDENT CONTRACTOR
The Contractor’s relationship to the City in the performance of the Contractor’s services for this project is that of an independent contractor. The personnel performing said services shall at all times be under the Contractor’s exclusive direction and control and shall be employees of the Contractor, not employees of the City. The Contractor shall pay all wages, salaries, and other amounts due its employees in connection with the performance of said work, and shall be responsible for all employee reports and obligations, including, but not limited to, Social Security, income tax withholding, unemployment compensation, and Workers’ Compensation.

XIV. CONTRACT
The Contract includes the Professional Services Agreement, the City’s RFP, the Contractor’s Proposal, and Exhibits.

The Political Reform Act and the City’s Conflict of Interest Code require that consultants be considered as potential filers of Statements of Economic Interest. Consultants, as defined by Section 18701, may be required to file an Economic Interest Statement (Form 700) within thirty (30) days of signing a Consultant Agreement with the City, on an annual basis thereafter while the contract remains in effect, and within thirty (30) days of completion of the contract.

XV. GENERAL CONDITIONS
Pre-contractual expenses are defined as expenses incurred by the Consultant in: (1) preparing the proposal; (2) submitting the proposal to the City; (3) presenting during the selection interview; (4) negotiating with the City on any matter related to the proposal; (5) any other expenses incurred by the Consultant prior to an executed Agreement, and (6) attendance of City Council for Award of Contract.

The City shall not, in any event, be liable for any pre-contractual expenses incurred by the Contractor. Services shall not commence until the Professional Services Agreement has been executed by the City.

When applicable to an authorized task order, the Consultant shall be responsible for coordinating Item Number: 12.

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On-Call Engineering Services Page 14 of 14 City of Desert Hot Springs Underground Service Alert notifications and providing appropriate traffic control associated with its field activities, as required.

The City reserves the right to withdraw this RFP at any time without prior notice. Further, the City makes no representations that any Agreement will be awarded to any Consultant responding to this RFP. The City expressly reserves the right to postpone reviewing the proposals for its own convenience and to reject any and all proposals responding to this RFP without indicating any reasons for such rejection(s). Any agreements awarded through this RFP will be made to the Consultants who, in the opinion of the City, are best qualified to provide the requested services.

XVI. PREVAILING WAGES
Certain labor categories under this project are subject to prevailing wages as identified in the State of California Labor Code commencing in Section 1770 et. seq. These labor categories when employed for any work on or in the execution of a “Public Works” project require payment of prevailing wages including but not limited to, testing, potholing and non-design work.

Item Number: 12.

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EXHIBIT A

PROPOSAL ACKNOWLEDGEMENT FORM

ON-CALL ENGINEERING SERVICES
The undersigned, on behalf of the Consultant identified below, acknowledges and certifies that:

1. The Consultant has reviewed and understands the requirements of the Request for Proposals for On-Call Engineering Services and agrees to comply with the requirements thereof.

2. The Consultant acknowledges receipt of all addenda issued by the City, if any:

Addendum No(s).: __________________________________________ ☐ No addenda were issued.

3. The Consultant has reviewed the insurance requirements contained in the RFP and, if selected, agrees to provide the required insurance certificates and endorsements prior to commencement of services.

4. The proposal submitted by the Consultant is genuine and has not been prepared or submitted through collusion, fraud, or other unlawful agreement with another proposer.

5. The undersigned is authorized to submit the proposal and bind the Consultant to the representations made therein.

Consultant/Firm Name: ________________________________________ Authorized Representative: _____________________________________ Title: ___________________________________________________________ Signature: ______________________________________________________ Date: ___________________________________________________________ Item Number: 12.

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND
_______________________________
This Professional Services Agreement (“Agreement”) is made and entered into this _____ day of ___________, 20____, 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 ___________________________, a ________________________, 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 ________________________________ (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 as-directed 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 use by the Contractor (including equipment, software licenses and third party service contracts) are provided on an “as is, Item Number: 12.

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where is” basis, and the City does not provide the Contractor any representations or warranties regarding such assets.

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

Section 4. COMPENSATION
The City agrees to pay Contractor for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Contractor agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, an amount not to exceed _____________________________ Dollars and ___________ Cents ($_____.___)
Section 5. METHOD OF PAYMENT
a. Contractor shall submit invoices to the City, not more often than once a month, describing the work performed. Contractor’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. The City shall pay Contractor no later than thirty (30) days after approval of the invoice by City staff provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement, that the number of hours of service set forth in the invoice reflect the amount of time ordinarily expended for such service by members of the profession currently practicing in the same locality under similar conditions, and that all expenses, rates and other information set forth in the invoice are consistent with the terms and conditions of this Agreement. Review and approval of invoice by City staff will occur within thirty (30) calendar days of receipt of invoice via email.
b. The Contractor shall submit invoices under this Agreement to:

City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Section 6. EXTRA WORK
Item Number: 12.

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At any time during the term of this Agreement, the City may request that Contractor perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Contractor shall not perform Extra Work without written authorization from the City.

Section 7. TERMINATION
This Agreement may be terminated by the City Manager, in his/her sole discretion, immediately for cause. Either party may terminate this Agreement without cause upon twenty-four hours (24) hours written notice of termination to the other party. Upon termination, Contractor shall be entitled to compensation for services performed up to the effective date of termination, provided that Contractor shall have satisfied all its obligations under this Agreement through and including the effective date of termination and is not otherwise in breach of this Agreement. For clarification, the City Manager in his/her sole discretion shall have the power to terminate this Agreement with or without cause in accordance with this Section.

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

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without prior written consent of the City, be used by Contractor for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Contractor will make all reasonable efforts to keep such information confidential and to limit access only to those who require it for performance, Nothing furnished to Contractor that is otherwise known to Contractor, is generally known in the industry, or has become known to the related industry shall be deemed confidential.

b. Contractor shall not use the City’s insignia or photographs relating to Contractor’s Services, or any publicity pertaining to the Contractor’s Services under this Item Number: 12.

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

Section 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 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 Item Number: 12.

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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.
(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.

Item Number: 12.

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(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.”
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
Item Number: 12.

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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
(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 Item Number: 12.

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

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

Section 17. INDEMNIFICATION
a. Contractor shall defend, indemnify and hold harmless the City, its officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs, expenses and attorneys’ fees in connection therewith), arising out of this Item Number: 12.

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

Section 18. INSURANCE REQUIREMENTS
a. Policies. Contractor, at Contractor’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Contractor shall maintain Worker’s Compensation Insurance and Employers’ Liability Insurance for its employees in accordance with the laws of the State of California, of an amount not less than one million dollars ($1,000,000) per accident and for Employers’ Liability Insurance in amounts not less than $1,000,000 each accident for bodily injury by accident, $1,000,000 policy limit for bodily injury by disease, and $1,000,000 each employee for bodily injury by disease. In addition, Contractor shall require each subcontractor to similarly maintain Worker’s Compensation Insurance and Employers’ Liability Insurance in accordance with Item Number: 12.

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the laws of the State of California for all of the subcontractor’s employees. If any class of employees employed by Contractor pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor agrees to waive its statutory immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Services to do the same. (2) General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Contractor shall provide insurance on an occurrence, not claims-made basis.

Contractor acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period.

The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof. (3) Automobile Liability Coverage. Contractor shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Contractor arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Contractor shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Contractor were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Contractor shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Contractor’s Services, whether such Services are performed by Contractor or by its employees, subcontractors, or subContractors, 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.

Item Number: 12.

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b. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing an A.M. Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
(1) Except as otherwise provided by law, the City, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such work or operations.
(2) This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents. (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.

Item Number: 12.

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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 the additional insured requirements set forth herein. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that coverage is provided in conformity with the requirements of this Section.
f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement has been eliminated. g. Failure to Obtain Coverages. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is 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
Item Number: 12.

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To Contractor: ________________________
________________________
________________________
________________________
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 Item Number: 12.

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any other work product prepared by Contractor pursuant to this Agreement; c. Retain a different Contractor to complete the Services that are not finished by Contractor.

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

Item Number: 12.

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b. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. c. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.

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

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

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

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

Section 30. PROHIBITED INTERESTS
Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to Item Number: 12.

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Desert Hot Springs City CouncilOctober 6, 2026

Desert Hot Springs City Council
October 6, 2026