CITY COUNCIL
Meeting Agenda
Thursday, May 16, 2024
1:30 PM
City Hall Council Chamber
44950 Eldorado Drive, Indian Wells, CA 92210
Welcome to a meeting of the Indian Wells City Council.
Public Comments: Members of the Public who wish to speak should fill out a blue slip and submit it to the City Clerk, comments are limited to 3 minutes. In accordance with State Law, remarks during public comment are to be limited to subjects within the City's jurisdiction.
Notification: If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (ADA) please contact the City Clerk at 760-346-2489, 48 hours prior to the meeting.
Please turn off all communication devices (phones) or put them on non-audible mode (vibrate) during Council proceedings. All documents for public review are available for public inspection at City Hall reception, 44-950 Eldorado Drive, Indian Wells during normal business hours.
Pages
A. CONVENE THE INDIAN WELLS CITY COUNCIL, PLEDGE OF
ALLEGIANCE AND ROLL CALL
MAYOR GREG SANDERS
MAYOR PRO TEM BRUCE WHITMAN
COUNCIL MEMBER TY PEABODY
COUNCIL MEMBER DANA REED
COUNCIL MEMBER DONNA GRIFFITH
B. APPROVAL OF THE FINAL AGENDA
C. PROCLAMATIONS AND PRESENTATIONS
C.1 Public Works Week Proclamation
C.2 Lift to Rise Presentation by Senior Policy Analyst Jessika Pollard C.3 Palm Springs Airport Commission Update by City Representative Robert Berriman
D. PUBLIC COMMENTS
Members of the Public who wish to speak on consent items OR items not listed on the agenda may do so at this time. Public Comments are limited to 3 minutes. Speakers will be alerted when their time is up and are then to return to their seats and no further comments will be permitted.
Please note that while the City Council values your comments, the Council cannot respond nor take action on matters not listed on the agenda until the matter may appear on the forthcoming agenda.
E. CITY MANAGER'S REPORTS
The City Manager or Department Heads may make brief
announcements, informal comments, or brief the Council on items of interest.
F. CITY ATTORNEY REPORTS AND COMMENTS
Council Agenda- May 16, 2024
G. CONSENT CALENDAR
All matters listed on the Consent Calendar are considered to be routine and will be approved by one motion. Reading of text of Ordinances is waived and Ordinances are adopted as second reading, by title only. There will be no separate discussion of these items unless members of the Council request specific items be removed from the Consent Calendar for separate discussion and action.
G.1 Visit Greater Palm Springs (VGPS) Joint Powers Agreement Amendment
14 Council APPROVES Joint Powers Agreement Amendment with Visit Greater Palm Springs to add economic development diversity recruitment, guidelines for adding new municipalities (City of Coachella), and contribution schedule for Joint Powers Authority Members.
G.2 2024 City Council Strategic Planning Session 72
RECOMMENDED ACTIONS:
Council RECEIVES and FILES the action items from the 2024 City Council Strategic Planning Session.
G.3 Sponsorship Request for the 3rd Annual Mama’s House Event and Desert Bar Association Event
75 RECOMMENDED ACTIONS:
Council APPROVES sponsorship request for the 3rd Annual Mama’s House event held on May 11, 2024, at the Indian Wells Country Club and SELECTS the level sponsorship of $1,500; and
APPROVES sponsorship request for the Annual Desert Bar event held on May 11, 2024, at the Indian Wells Country Club and SELECTS the level sponsorship in the amount of $1,300; and
AUTHORIZES the attendance of Council Members at the event.
Council Agenda- May 16, 2024
G.4 Approval of Protective Netting Along the Southern Edge of the Driving Range
77 RECOMMENDED ACTIONS:
Council APPROVES the Installation of protective netting along the southern edge of the Driving Range.
G.5 Adoption of Proposed City of Indian Wells Goals and Policies Concerning the Use of the Mello-Roos Community Facilities Act of 1982 to Finance Public Facilities and Services
81 RECOMMENDED ACTIONS:
Council ADOPTS Resolution Approving Goals and Policies Concerning the Use of the Mello-Roos Community Facilities Act of 1982 to Finance Public Facilities and Services; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15060 and 15378.
G.6 Proceedings to Form Proposed Community Facilities District No. 2024-1 (Public Safety)
96 RECOMMENDED ACTIONS:
Council ADOPTS Resolution of Intention with Respect to Formation of Proposed City of Indian Wells Community Facilities District No. 2024-1 (Public Safety); and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15060 and 15378.
Council Agenda- May 16, 2024
G.7 Proceedings to Establish Future Annexation to Proposed Community Facilities District No. 2024-1 (Public Safety)
116
RECOMMENDED ACTIONS:
Council ADOPTS Resolution Intention to Annex Territory in the Future to Community Facilities District No. 2024-1 (Public Safety) of the City of Indian Wells, County of Riverside, State of California; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15060 and 15378.
G.8 Resolution Approving Tentative Parcel Map No. 38976 to Subdivide an Existing 1.06 Acre Residential Lot into Three Located within The Vintage Club at 74465 Palo Verde Drive (APN: 625-530-080) 136
RECOMMENDED ACTIONS:
Council FINDS the project exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15315, Minor Land Divisions; and
ADOPTS Resolution approving Tentative Parcel Map No. 38976 for the subdivision of an existing 1.06-acre residential lot into three separate residential parcels located within The Vintage Club at 74465 Palo Verde Drive.
H. PUBLIC HEARINGS
For each of the items listed under PUBLIC HEARING ITEMS, the public will be provided an opportunity to speak. After a staff report is provided, the Mayor will open the public hearing. At that time the applicant will be allowed five (5) minutes to make a presentation on the case. Members of the public will then be allowed three (3) minutes each to speak, unless there are a number of person’s wishing to speak and then the Mayor will allow only two (2) minutes, to accommodate for more persons. After all persons have spoken, the applicant will be allowed three minutes to summarize or rebut any public testimony. The Mayor will then close the public hearing portion of the hearing and deliberate the matter.
Council Agenda- May 16, 2024
H.1 Annual Levy and Engineer’s Report for the Indian WellsStreet Lighting District No. 2000-1
153
RECOMMENDED ACTIONS:
Council OPENS the Public Hearing, takes any public testimony, CLOSES the Public Hearing; and
ADOPTS Resolution approving the annual levy and ordering the levy and collection of assessments of the Indian Wells Street Lighting District No. 2000-1 for Fiscal Year 2024-25; and
ORDERS the Indian Wells Street Lighting District No. 2000-1 levy to be placed on the fiscal year 2024-25 Riverside County tax roll; and FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.
H.2 Annual Levy Report for Landscape and Lighting District No. 91-1 for the Fiscal Year 2024-25 and Ordering the Levy and Collection of Assessments
175
RECOMMENDED ACTIONS:
Council OPENS the Public Hearing, takes any public testimony, CLOSES the Public Hearing; and
ADOPTS Resolution approving collection of assessments for the Fiscal Year 2024-25 for the Landscape and Lighting District No. 91- 1; and
ORDERS the Landscape and Lighting District No. 91-1 levy to be placed on the Fiscal Year 2024-25 Riverside County tax roll; and FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.
Council Agenda- May 16, 2024
H.3 Annual Levy and Engineer’s Report for the Drainage Maintenance Benefit Assessment District No. 1
230
RECOMMENDED ACTIONS:
Council OPENS the Public Hearing, takes any public testimony, CLOSES the Public Hearing; and
ADOPTS Resolution approving the Engineer’s Report for the Drainage Maintenance Benefit Assessment District No. 1 for the Fiscal Year 2024-25; and
ADOPTS Resolution approving the annual levy of the Drainage Maintenance Benefit Assessment District No. 1 for the Fiscal Year 2024-25; and
ORDERS the Drainage Maintenance Benefit Assessment District No. 1 levy to be placed on the fiscal year 2024-25 Riverside County tax roll; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.
Council Agenda- May 16, 2024
H.4 Adopting Addendum to the City’s General Plan Environmental Impact Report, Amending the General Plan to Add a Public Benefit Land Use, and Amending the City’s Zoning Code to Add a Public Benefit Zone Compliance with the California Environmental Quality Act
252
RECOMMENDED ACTIONS:
City Council OPENS the Public Hearing, takes any public testimony, CLOSES the Public Hearing; and:
ADOPTS a Resolution of the City Council of the City of Indian Wells, California, adopting an Addendum to the City’s General Plan Environmental Impact Report in compliance with the California Environmental Quality Act; approving General Plan Amendment no. 2024-02 amending the General Plan Land Use Element and Land Use Map to add a Public Benefit land use designation; and directing staff to file a notice of determination; and
INTRODUCES Ordinance adding, pursuant to an adopted Addendum to the City’s General Plan Environmental Impact Report in compliance with the California Environmental Quality Act, chapter
21.37 and amending sections 21.12.20 and 21.12.030 of the City’s zoning code and approving Zone Map Amendment 2024-01 to add a Public Benefit land use and zoning designation; and directing staff to file a notice of determination.
I. GENERAL BUSINESS
The Mayor will call upon the members of the public to address the Council regarding the agenda item being considered. After the public has provided comment, the item is closed to further comment and brought to the Council for discussion and action.
Council Agenda- May 16, 2024
I.1 Adoption of County Ordinance Number 987 Regarding Unlawful Possession of Catalytic Converters and Finds Action to be Exempt from California Environmental Quality Act (CEQA)
473
RECOMMENDED ACTIONS:
Council INTRODUCES Ordinance to be read by title only and further reading waived, amending Title 9 of the City of Indian Wells Municipal code, adding Chapter 9.07, adopting by reference Riverside County Ordinance No. 987; and
FINDS Action to be Exempt from CEQA guidelines section 15061.
I.2 Ordinance Amending Section 2.12.030 of the Indian Wells Municipal Code Regarding Planning Commission Membership Terms
490
RECOMMENDED ACTIONS:
Council INTRODUCES Ordinance No. __ to be read by title only and further reading waived, approving Municipal Code Amending Section
2.12.030 the Indian Wells Municipal Code regarding Planning Commission Membership Term; and
AUTHORIZES staff to implement administrative changes as outlined in the staff report.
I.3 Resolution Approving Clarifying Edits to Sections 2.03.030,
2.03.080, 2.04.020, 2.04.040, 3.01.030, and 3.05.050 of the Indian Wells City Council Policy Manual
496
RECOMMENDED ACTIONS:
Council REVIEWS and ADOPTS the Resolution approving the Governance Ad hoc Committee recommended clarifying edits to Sections 2.03.030, 2.03.080, 2.04.020, 2.04.040, 3.01.030, and
3.05.050 of the Indian Wells City Council Policy Manual of the City Council Policy Manual; and
FINDS the action is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly; and that the action is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. (14 CCR 15061(b)(3).)
Council Agenda- May 16, 2024
I.4 Ordinance Establishing Rules for City Parks and Finds the Action to be Exempt from the California Environmental Quality Act (CEQA) 551
RECOMMENDED ACTIONS:
Council INTRODUCES Ordinance to be read by title only and further reading waived, adding Chapter 9.90 to the Municipal Code establishing rules for city parks in Indian Wells; and
FINDS that the ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15304, where the proposed amendment consists of minor public or private alterations to the condition of land, water, or vegetation as there is no possibility the activity in question will have a significant effect on the environment.
I.5 Consideration of Special Fire Tax Ballot Measure 556 RECOMMENDED ACTIONS:
Council DISCUSSES and APPROVES adding an Annual Escalator to the Special Fire Tax and directs the City Attorney to prepare the Ordinance approving the Revision and Resolution placing the Measure on the November 2024 Ballot for Voter Consideration.
I.6 Midcycle Update of the Fiscal Year 2024-25 Biennial Operating Budget and Capital Improvement Plan
597
RECOMMENDED ACTIONS:
Council REVIEWS, DISCUSSES, and APPROVES AS AMENDED the Biennial Operating Budget and Capital Improvement Plan from July 1, 2023, through June 30, 2025.
I.7 Proposed Capital Improvement Project Advancement 705 RECOMMENDED ACTIONS:
Council REVIEWS, DISCUSSES and PROVIDES direction to advance projects from the currently approved Capital Improvement Program as outlined in this staff report and
FINDS the action is not a “project” under CEQA and, alternatively, is exempt from CEQA review under CEQA Guidelines section 15061(b)(3).
J. COUNCIL MEMBER'S REPORTS
Council Agenda- May 16, 2024
J.1 Mayor Greg Sanders Request to Place a Discussion Item on a Future City Council Agenda
710
RECOMMENDED ACTIONS:
Council DISCUSSES and provides DIRECTION on Mayor Greg
Sanders request to place a discussion item on a future City Council agenda.
Council Agenda- May 16, 2024
K. COUNCIL MEMBER'S REPORTS AND COMMENTS
On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. Council Members may ask a question for clarification, make a referral to staff, or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.
K.1 COUNCIL MEMBER GRIFFITH
CVAG Conservation Commission
CVAG Energy & Sustainability Committee
CVAG Homelessness Committee
Indian Wells Community Activities Committee
Indian Wells Golf Resort Advisory Committee
Indian Wells Grants In Aid Committee
Indian Wells Finance/Legal Services Oversight Committee K.2 COUNCIL MEMBER REED
California Joint Powers Insurance Authority
CVAG Transportation Committee
Indian Wells Marketing Committee
Riverside County Transportation Commission
Southern California Association of Governments
K.3 COUNCIL MEMBER PEABODY
Cove Communities Services Commission
Coachella Valley Animal Campus
Indian Wells Golf Resort Advisory Committee
Indian Wells Marketing Committee
Sunline Transit Agency
K.4 MAYOR PRO TEM WHITMAN
Coachella Valley Economic Partnership
Coachella Valley Mountains Conservancy
CVAG Public Safety Committee
Desert Sands Unified School District
Indian Wells Personnel Committee
Indian Wells Public Safety
Indian Wells Tee Committee
Council Agenda- May 16, 2024
K.5 MAYOR SANDERS
Cove Communities Services Commission
CVAG Executive Committee
Desert Sand Unified School District
Indian Wells Finance & Legal Services Oversight Committee Indian Wells Personnel Committee
Indian Wells Public Safety Committee
Indian Wells Tee Committee
Visit Greater Palm Springs
L. ADJOURNMENT
To a regularly scheduled meeting of the City Council to be held at 1:30 p.m. on June 20, 2024 in the City Hall Council Chamber.
Affidavit of Posting,
I, Angelica Avila, certify that on May 8, 2024 I caused to be posted a notice of a City Council Meeting to be held on May 16, 2024 at 1:30 p.m. in the City Hall Council Chamber.
Notices were posted at Indian Wells Civic Center and City's Website [www.cityofindianwells.org]
________________________
Angelica Avila, MMC
City Clerk
Council Agenda- May 16, 2024
Good afternoon Indian Wells City Council,
My name is Alejandro Meza Aguilar, a resident of Coachella. I'm writing to highlight the pressing need for affordable housing in the Coachella Valley, considering housing as a fundamental right crucial for a healthy life. Despite earning a decent salary, finding affordable housing remains challenging, with typical rent for a two-bedroom apartment in Indian Wells reaching $4,950 per month. For a family with two full-time minimum wage earners, this exceeds their entire monthly income, leaving them struggling to meet basic needs.
With only one affordable housing project underway in Indian Wells, it's imperative to address this issue. Retaining local workers in affordable homes could stimulate economic development by reducing rent burden, enabling them to support local businesses. Research by the Alliance for Housing Solutions indicates, “each dollar invested in affordable housing boosts local economies by leveraging public and private resources to add to the community. Building 100 affordable rental homes generates $11.7 million in local income, $2.2 million in taxes and other revenue for local governments, and 161 local jobs in the first year”.
T o combat this housing crisis, Indian Wells must align with the State's Regional Housing Needs Assessment, aiming to develop 289 units of moderate, low-, and very low-income housing by 2029. This Action Plan is crucial for meeting these obligations and ensuring the construction of essential housing units. Working with in coalition with Lift to Rise has helped me see an overall improvement of the local municipalities and the development layouts with policy interventions such as inclusionary zoning, rezoning for mixed use, a TOT revenue allocation to the We Lift:
Coachella Valley Catalyst Fund, affordable housing overlays, and other prohousing policies.
T o conclude, I hope the City of Indian Wells will do their part in improving the quality of life in the Coachella Valley by focusing on an effective strategy to combat homelessness and focus on affordable housing. Many of the proposed city programs defined in their housing element that target the very low to low-income population have been classified as a “medium” priority.
Given the state of the housing crisis in the region, we urge the city to reconsider the urgency of such programs that will help reduce the number of families in our region that are experiencing rent burden and housing instability.
Sincerely,
Alejandro Meza Aguilar
Coachella Valley Organizer for IC4IJ
City Council Meeting - May 16, 2024
Submitted Public Comment- Item C.2
8/2/2024
1 Together we rise.
2024-2026
Action Plan
Presentation: May 16, 2024
City Council Meeting
Our North Star
Our Shared Goal
A future where all Coachella Valley families
are healthy, stable, and thriving.
Reduce rent burden in the Coachella Valley
by 30% through the production of 10,000
affordable housing units by 2028.
Our Shared Wins
1,200 units
under construction in
2024, up from 38
units/year pre-2018
$26 million
in loans obligated since 2021
to 11 community prioritized
projects sparking 891 units
1,787 residents
activated over the past
two years
We have the plan
The Action Plan is a roadmap co-created by members of our Housing Collaborative Action Network, including staff members from the City of Indian Wells, outlining collective contributions over the next two years to achieve our SHARED GOAL of reducing rent burden by 30% through the production of 10,000 affordable housing units.
To have at least 7,500 new units of
affordable housing completed, under
construction, or set to be under
construction within six months with an
emphasis on units connected to early
childhood education (ECE) and improved
health equity.
Our two-year goal is…
Key Strategies
During strategic planning sessions, we identified
six key strategies of focus for the next two years.
1. Pipeline
2. Funding
3. Infrastructure
4. Policy Advocacy
5. Movement Building
6. Rapid Response
Pipeline
Identify 3,000 new units a year that meet
the criteria for the affordable housing
pipeline with an emphasis on those that
include connections to health and ECE and
move at least 50% of Pipeline projects to
development.
• Lift to Rise – Affordable Housing Pipeline Portal
• 100 units in the pipeline in Indian Wells (Abode
Communities project)
Funding
Address the funding bottleneck occurring due to
scarcity of low-income housing tax credits through
increasing the lending pool of We Lift: The
Coachella Valley Housing Catalyst Fund, the
creation of alternative revenue streams, changes to
the current tax credit distribution process, and
innovative financing approaches.
• Lift to Rise – We Lift Catalyst Fund
• Indian Wells contributed a support letter for Lift to Rise’s successful application to SCAG’s REAP 2.0
program to secure funding for the Catalyst Fund.
• We are hopeful the city will consider future
investment into the Fund to keep up the
momentum we are seeing in production.
Policy Advocacy
Move policy and regulation at the
municipal, state, and federal level to
enable more affordable housing
development.
• Lift to Rise works with State and Federal legislative advocates to amplify prohousing policies relevant to our region.
• The city has the potential to benefit from SB 4 and
utilize faith-based land affordable housing development (Southwest Community Church).
• A 1% increase in Transient Occupancy Tax rate would
generate nearly $900,000 annually.
• The City’s proposed Public Benefit Land Use policy has the potential to accommodate over 128 affordable
units.
Infrastructure
Work with utility companies to ensure
affordable housing opportunities are not
limited by electric, gas, and sewer constraints.
• Housing supportive infrastructure
• Sustainable energy
• Working to get SoCal Edison, IID, CVWD all
at the table
Movement Building
Through strategic communications and
resident engagement, we will build
greater public awareness and support for
affordable housing in the region.
• Lift to Rise – Resident Engagement Team:
Resident Leadership Table, Committees by
Cities, Community Advisory Committee
• Lift to Rise – Strategic Communications Team
Rapid Response
Advocate for a develop supports that can help
residents with emergency or chronic housing
needs.
• Lift to Rise - United Lift Rental Assistance Program
distributed more than $300 million keeping more
than 120,000 renters in their homes.
• Indian Wells: 21 households, $187,000+ in rental
and utility assistance during the pandemic.
• Keeping residents housed and address their
immediate needs including expanding outside of
exclusively serving the senior community.
You have the power, Indian Wells!
• Congratulations on submitting your Housing Element Update for approval! You have defined many attainable housing goals that will benefit the community, at large, once implemented. • We would also love to see what a “Employee Housing Program” looks like in the city as a New Housing Choice initiative.
• Think about subsidies to affordable housing at the local level and streamline the affordable projects underway in the City.
• Increase your participation in our efforts to address the housing affordability crisis throughout the region, not just in Indian Wells. Your Housing Element mentions several times your intent to work with Lift to Rise and the We Lift: Housing Catalyst Fund and we strongly encourage this! • We urge the city to continue to advocate for the removal of government restraints to streamline affordable housing.
• Consider regional collaboration for interventions such as inclusionary zoning, TOT revenue allocation, a prohousing designation, etc.
You all have the
power to ensure a
healthy, stable, and
thriving community
for all.
THANK YOU!
Connect with us!
[email protected] / www.lifttorise.org / Facebook: @LiftToRise / Instagram:
@LiftToRise
Presentation: May 16, 2024
City Council Meeting
INDIAN WELLS CITY COUNCIL
May 16, 2024
To: City Council
From: City Manager Department
Prepared by: Micaela Wilkey, Senior Management Analyst
Subject: Visit Greater Palm Springs (VGPS) Joint Powers Agreement Amendment
RECOMMENDED ACTIONS:
Council APPROVES Joint Powers Agreement Amendment with Visit Greater Palm Springs to add economic development diversity recruitment, guidelines for adding new municipalities (City of Coachella), and contribution schedule for Joint Powers Authority Members.
BACKGROUND:
Visit Greater Palm Springs (VGPS) originally entered a Joint Powers Authority (JPA) with eight (8) cities, including Indian Wells. Other Cities in the JPA are Cathedral City, Desert Hot Springs, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage. The JPA was established to encourage, promote, and move items forward to enhance all aspects of hospitality, convention, and tourism industry for the Coachella Valley. The JPA assists in attracting visitors from national and international markets. VGPS helps Indian Wells by creating synergy and provides better efficiencies of marketing pieces. The JPA was amended for the first time in 1995 when Riverside County joined the JPA. Today the JPA is still the eight cities and the County of Riverside.
Visit Greater Palm Spring sent the attached staff report ( ATTACHMENT 1), Executive Committee Resolution (ATTACHMENT 2), and updated JPA agreement (ATTACHMENT 3) to member cities for consideration. The VGPS Executive Committee is recommending approval and adoption of an amended and restated joint powers agreement. The updated agreement will add economic development diversity recruitment to attract more businesses to cities and Coachella Valley as a whole, guidelines for adding new municipalities (such as the City of Coachella) and update the contribution schedule for JPA members. The formula for the annual contribution is the greater of $35,000 each year or the applicable contribution amounts as set for in the formula below:
- .0015 x Gross Room Rental Revenue for Lodging Establishments excluding Convention Hotels, and
- .0035 x Gross Room Rental Revenue for Convention Hotels
Indian Wells curre ntly pays $285,715 which is above the $35,000 minimum and thus there is no fiscal impact to the City. Details of the changes are included in Attachment 1, and in a redline version of the changes to the agreement (ATTACHMENT 4).
OPTIONS:
The City Council may choose to:
1. Adopt the Amendment #2 of the Joint Powers Agreement with Visit Greater Palm Springs; or
2. Provide alternative direction.
FISCAL IMPACT:
The second amendment to the JPA raises the minimum annual contribution from JPA members to $35,000 or the current JPA formula (whichever is greater). Indian Wells currently pays $285,714 annually which is higher than the minimum and thus there is no fiscal impact to the City.
ATTACHMENTS:
1. VGPS Executive Committee Staff Report
2. VGPS Executive Committee Resolution
3. Proposed Amendment
4. Redline of JPA
STAFF REPORT
TO: JPA Member Cities
FROM: Scott White, President & CEO
DATE: March 29, 2024
SUBJECT: THE JPA EXECUTIVE COMMITTEE IS RECOMMENDING APPROVAL AND ADOPTION OF THE
AMENDED AND RESTATED JOINT POWERS AGREEMENT TO ADD ECONOMIC DEVELOPMENT DIVERSITY
RECRUITEMENT, GUIDELINES FOR ADDING A NEW MUNICIPALITIES (CITY OF COACHELLA) AND
CONTRIBUTION SCHEDULE FOR JOINT POWERS AUTHORITY MEMBERS Background
The VGPS staff recommended adding the City of Coachella to the JPA Executive Committee. This recommendation was based on the new economic development diversity recruitment responsibilities and the addition of short-term vacation rentals in the City of Coachella. During the JPA agreement amendment process VGPS staff learned that when the JPA was first established, an entry and operation fee were required of all JPA member agencies.
Upon executing the Joint Powers Agreement on February 1, 1989, the original JPA members (eight cities) paid an upfront fee to help establish the organization. Commencing July 1, 1989, and quarterly thereafter, each JPA member agency contributed an amount based on a funding formula.
The interim funding fee and interim operation fee were divided among the JPA member cities. The interim fee was based on .55% x gross sales and the operation fee was based on the interim fee multiplied by
15.62%. Please see the original interim funding schedule below:
Fiscal Year 1988/1989
Interim Funding Formula
FY 1987-1988 FY 1987-1988
City
Estimated Gross
Sales x .55%
Interim Operation x
15.62%
Desert Hot Springs $ 3,338,000.00 $ 18,359.00 $ 2,868.00 Palm Springs $ 63,333,000.00 $ 348,332.00 $ 54,409.00 Cathedral City $ 10,744,000.00 $ 59,092.00 $ 9,230.00 Rancho Mirage $ 23,750,000.00 $ 130,625.00 $ 20,404.00 Palm Desert $ 47,083,000.00 $ 258,957.00 $ 40,449.00 Indian Wells $ 9,857,000.00 $ 54,214.00 $ 8,468.00 La Quinta $ 9,250,000.00 $ 50,875.00 $ 7,947.00 Indio $ 5,375,000.00 $ 29,563.00 $ 4,618.00 Coachella $ - $ 10,000.00 $ 1,562.00 Total $ 172,730,000.00 $ 960,017.00 $ 150,000.00 Riverside County joined the JPA Executive Committee in 1995. The amendment to the Joint Powers Agreement approving and adopting the membership of Riverside County established a minimum ATTACHMENT #1
2 | P a g e
contribution of $30,000. The minimum annual contribution was subject to an annual increase at a rate of 5% per year. Outlined below are the historical payments made by Riverside County.
Riverside County Annual Contribution
1995 $ 31,500.00
1996 $ 31,500.00
1997 $ 33,000.00
1998 $ 34,729.00
1999 $ 36,465.00
2000 $ 38,288.00
2001 $ 40,202.00
2002 $ 42,216.00
2003 $ 44,323.00
2004 $ 46,540.00
2005 $ 48,865.00
2006 $ 57,172.00
2007 $ 57,172.00
2008 $ 48,824.00
2009 $ 36,618.00
New JPA formula began Jan 2010
2010 1st half $ 18,309.00
FY 2010-2011 $ -
FY 2011-2012 $ 12,000.00
FY 2012 through
2023 $ 12,500.00
When the TBID was established in 2009, the JPA formula was reduced by 75%. Riverside County’s annual contribution amount was reduced to align with the reduction of the JPA formula. Riverside County paid $12,500 each year since FY 12/13.
We have no record why Riverside County has not used the established JPA formula that is currently .15% of gross rental revenues for non-convention lodging and .35% for convention lodging.
For reference, the Riverside County estimated JPA formula contribution for FY 22/23 would have been $25,093.
Based on the City of Coachella’s historical transient occupancy tax (TOT) budget figures and using the JPA formula, the following table outlines what Coachella’s annual JPA contribution would have been for previous years. These calculations are for reference:
City of Coachella
3 | P a g e
FY TOT
Gross
Revenues
JPA
Formula
2017/2018 $90,360.00 $1,004,000.00 $1,506.00
2018/2019 $133,385.00 $1,482,055.56 $2,223.08
2019/2020 $227,076.00 $2,523,066.67 $3,784.60
2020/2021 $533,044.00 $5,922,711.11 $8,884.07
2021/2022 $710,666.00 $7,896,288.89 $11,844.43
2022/2023 $380,060.00 $4,222,888.89 $6,334.33
2023/2024 $500,000.00 $5,555,555.56 $8,333.33
Based on the formula from FY 88/89 and the most recent estimated TOT collections, the initial fee charged to Coachella to join the JPA Executive Committee would be as follows:
The city of Coachella entry fee calculation is based on their FY 23/24 gross revenues estimate.
$5,555,555.00 x .55% = $30,555 plus the operation fee ($30,555 x 15.62%) = $4,772. The total amount would be $35,327.
Staff are recommending any new member agency should pay the entry fee and the fee should be paid within 30 days of joining the JPA Executive Committee.
Outlined below are the current JPA contribution estimates. These figures may fluctuate depending on the final gross revenues and are provided for reference.
Visit Greater Palm Springs Funding Budgets - Desert
Cities 'Fiscal Year 2023-2024
JPA Member 23/24 Annual Contribution
Cathedral City $ 50,625.00
Desert Hot Springs $ 42,841.99
Indian Wells $ 285,714.29
Indio $ 77,550.00
La Quinta $ 389,393.18
Palm Desert $ 425,000.00
Palm Springs $ 874,599.17
Rancho Mirage $ 374,591.80
Riverside County $ 12,500.00
Staff is recommending due to the additional responsibilities of economic development recruitment and the broader benefits recognized by the member agencies, a minimum annual JPA member contribution of $35,000 or the current JPA formula, shown below, whichever is greater, should be required by all member agencies, including Riverside County, and may only be modified by a two-thirds vote of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies. JPA Members’ legislative bodies shall, at a minimum, make quarterly payments of the annual contribution to VGPS.
A contribution from each of the JPA Members is a funding mechanism equal to:
4 | P a g e
.0015 x Gross Room Rental Revenue for Lodging establishments excluding Convention Hotels, and .0035 x Gross Room Rental Revenue for Convention Hotels
The Gross Room Rental Revenue described herein shall not include any transient occupancy tax rebate incentives provided by the JPA Members.
There is no material impact to the current JPA member cities.
ATTACHMENT 2
1 VISIT GREATER PALM SPRINGS
JOINT POWERS AGREEMENT
(“Second Amended and Restated Agreement”)
A California Joint Powers Authority
Created Pursuant to California Government Code Section 6500 et seq. _________________, 2024
ATTACHMENT #3
i
TABLE OF CONTENTS
RECITALS ........................................................................................................................... 1 AGREEMENT ..................................................................................................................... 1 Section 1 Definitions ....................................................................................... 1 Section 2 Incorporation of Recitals ................................................................. 3 Section 3 Purpose ............................................................................................ 3 Section 4 Name ................................................................................................ 3 Section 5 First Amended and Restated Agreement Superseded – Effective Date 3 Section 6 Termination ...................................................................................... 3 Section 7 JPA Members .................................................................................. 4 Section 8 Additional Members ........................................................................ 4 Section 9 Governing Body ............................................................................... 4 Section 10 JPA Executive Committee – Powers and Duties ............................. 4 Section 11 Territorial Boundaries ...................................................................... 5 Section 12 Contributions ................................................................................... 6 Section 13 Withdrawal ...................................................................................... 6 Section 14 Separate Entity ................................................................................. 6 Section 15 Powers of the JPA ............................................................................ 7 Section 16 Power to Invest ................................................................................ 9 Section 17 Bonding ........................................................................................... 9 Section 18 Treasurer and Auditor – Designations ............................................. 9 Section 19 Treasurer – Duties and Responsibilities ........................................... 9 Section 20 Independent Audit ......................................................................... 10
ii
Section 21 Auditor’s Duties............................................................................. 10 Section 22 Severability .................................................................................... 10 Section 23 Waiver ........................................................................................... 10 Section 24 Amendments .................................................................................. 10 Section 25 Ambiguities or Uncertainties ......................................................... 11 Section 26 Applicable Law .............................................................................. 11 Section 27 Venue ............................................................................................. 11 Section 28 Notices ........................................................................................... 11 Section 29 Counterparts ................................................................................... 12 Section 30 Privileges and Immunities ............................................................. 12
EXHIBIT A
Territorial Boundaries .......................................................................................................... 16
This Second 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 Member s 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 Member s that this Agreement shall be amendatory of the First Amended and Restated J oint Powers Agreement, dated January 20, 2016, including any subsequent amendments (“First Amended and Restated Agreement”), and shall restate, amend and supersede the First Amended and Restated Agreement in its entirety as of the Effective Date; and
WHEREAS, on or about _____________, 2024, 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 (i) add the City of Coachella as a JPA Member, (ii) add the City of Coachella to the territorial boundaries of the JPA; and (iii) amend the purpose of JPA as set forth below, among additional provisions as stated herein; and
WHEREAS, on or about _____________, 2024, 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 Second 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:
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 of this Agreement.
“President and Chief Executive Officer” shall mean the individual employed by VGPS, who is responsible for professionally supervising, managing , and administering VGPS’s day- to day affairs as described in paragraph (e) of Section 10 and elsewhere in this Agreement.
“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 3. Purpose
The purpose of VGPS is to benefit all JPA Members and their constituents by jointly:
(a) Marketing, attracting, encouraging, promoting, and do ing 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 national and international markets; and
(b) Doing such other things to promote and strengthen all aspects of the regional economy related to the hospitality, convention and tourism industry, and the diversification of the entire economy of the Coachella Valley.
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.
Section 5. First Amended and Restated Agreement Superseded - Effective Date
It is intended by the JPA Members that this Agreement shall be amendatory of the First Amended and Restated Agreement and shall restate, amend and supersede the First 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.
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 of the 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 of the 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 p ersons 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 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 Agreement shall be subject to the restrictions upon the manner of exercising such similar powers as are imposed on the City of Rancho Mirage in the exercise of similar 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 Sp rings,
Indian Wells, Indio, La Quinta, Palm Springs, Palm Dese rt 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 of the 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 of the JPA Members’ legislative bodies. JPA Members’ legislative bodies shall, at a minimum, make quarterly payments of the annual contribution to VGPS.
A contribution from each of the 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 of Withdrawal. (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 of Withdrawal 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 Area 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.
Section 14. Expulsion/Withdrawal
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, p ursuant 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 de bts, 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;
(d) The power to retain agents, independent contractors and consultants, including without limitation the power to engage legal counsel and other professional services;
(e) The power to acquire, construct, manage, maintain or operate any building,
works or improvements;
(f) 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;
(g) 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;
(h) 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;
(i) The power to donate any surplus real or personal property to any public agency or nonprofit organization;
(j) The power to incur debts, liabilities or obligations, including without limitation the power to borrow money, give security therefore, and purchase on contract;
(k) 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 other than levying a tax or assessment beyond the scope of those assessments which may be established and levied 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;
(l) 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., 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. 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) t h e 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 ;
(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
(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.
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;
(b) Director of Finance; and
(c) 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.
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 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 Co mmittee 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, return receipt 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:
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 El dorado 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 extrate rritorially under the provisions of this Agreement.
[SIGNATURES APPEAR ON THE FOLLOWING PAGES]
IN WITNESS WHEREOF, the duly authorized representatives of the JPA Members have each executed this Agreement.
CITY OF CATHEDRAL CITY
_________________________________
Mark Carnevale, Mayor
Dated: ___________________________
_________________________________
Charlie McClendon, City Manager
ATTEST:
_________________________________
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
________________________________
Eric S. Vail, City Attorney
CITY OF COACHELLA
_________________________________
Steven Hernandez, Mayor
Dated: ___________________________
_________________________________
Gabriel Martin, City Manager
ATTEST:
_________________________________
Angela M. Zepeda, City Clerk
APPROVED AS TO FORM:
________________________________
Carlos Campos, City Attorney
CITY OF DESERT HOT SPRINGS
_________________________________
Scott Matas, Mayor
Dated: ___________________________
_________________________________
Frank Luckino, City Manager
ATTEST:
_________________________________
Daniel McVey, City Clerk
APPROVED AS TO FORM:
________________________________
Jennifer Mizrahi, City Attorney
CITY OF INDIAN WELLS
_________________________________
Greg Sanders, Mayor
Dated: ___________________________
_________________________________
Christopher Freeland, City Manager
ATTEST:
_________________________________
Angelica Avila, City Clerk
APPROVED AS TO FORM:
________________________________
Todd Leishman, City Attorney
CITY OF INDIO
_________________________________
Guadalupe Ramos Amith, Mayor
Dated: ___________________________
_________________________________
Bryan Montgomery, 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
_________________________________
Karina Quintanilla, Mayor
Dated: ___________________________
_________________________________
Todd Hileman, City Manager
ATTEST:
_________________________________
Anthony Mejia, City Clerk
APPROVED AS TO FORM:
________________________________
Isra Shah, City Attorney
CITY OF PALM SPRINGS
_________________________________
Jeffrey Bernstein, Mayor
Dated: ___________________________
_________________________________
Scott Stiles, City Manager
ATTEST:
_________________________________
Brenda Pree, City Clerk
APPROVED AS TO FORM:
________________________________
Jeffrey Ballinger, City Attorney
CITY OF RANCHO MIRAGE
_________________________________
Steve Downs, Mayor
Dated: ___________________________
_________________________________
Isaiah Hagerman, City Manager
ATTEST:
_________________________________
Kristie Ramos, City Clerk
APPROVED AS TO FORM:
________________________________
Steven B, Quintanilla, City Attorney
COUNTY OF RIVERSIDE
____________________________________
Chuck Washington, Chairman
____________________________________
Jeff Van Wagenen, County Executive
Manager
ATTEST:
____________________________________
Kimberly A. Rector, Clerk of the Board
APPROVED AS TO FORM:
____________________________________
Minh Tran, County Counsel
EXHIBIT A
TERRITORIAL BOUNDARIES
1 Greater Palm Springs Convention & Visitors Bureau
VISIT GREATER PALM SPRINGS
JOINT POWERS AGREEMENT
(“Second Amended and Restated Agreement”)
A California Joint Powers Authority
Created Pursuant to California Government Code Section 6500, et seq.
JANUARY 20, 2016
_________________, 2024
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ATTACHMENT #4
i
TABLE OF CONTENTS
RECITALS ........................................................................................................................... 1 AGREEMENT ..................................................................................................................... 1 Section 1 Definitions ....................................................................................... 1 Section 2 Incorporation of Recitals ................................................................. 3 Section 3 Purpose ............................................................................................ 3 Section 4 Name ................................................................................................ 3 Section 5 InitialFirst Amended and Restated Agreement Superseded – Effective Date 3
Section 6 Termination ...................................................................................... 3 Section 7 CVBJPA Members .......................................................................... 4 Section 8 Additional Members ........................................................................ 4 Section 9 Governing Body ............................................................................... 4 Section 10 JPA Executive Committee – Powers and Duties ............................. 4 Section 11 Territorial Boundaries ...................................................................... 5 Section 12 Contributions ................................................................................... 6 Section 13 Withdrawal ...................................................................................... 6 Section 14 Separate Entity ............................................................................... 76 Section 15 Powers of the JPA ............................................................................ 7 Section 16 Power to Invest ................................................................................ 9 Section 17 Bonding ........................................................................................... 9 Section 18 Treasurer and Auditor – Designations ............................................. 9 Section 19 Treasurer – Duties and Responsibilities ........................................... 9 Formatted: Not Expanded by / Condensed by
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Section 20 Independent Audit ......................................................................... 10 Section 21 Auditor’s Duties ............................................................................ 10 Section 22 Severability .................................................................................... 10 Section 23 Waiver ....................................................................................... 1110 Section 24 Amendments .............................................................................. 1110 Section 25 Ambiguities or Uncertainties ......................................................... 11 Section 26 Applicable Law .............................................................................. 11 Section 27 Venue ............................................................................................. 11 Section 28 Notices ........................................................................................... 11 Section 29 Counterparts ................................................................................... 12 Section 30 Privileges and Immunities ............................................................. 12
EXHIBIT A
Territorial Boundaries .......................................................................................................... 16
1 This Second Amended and Restated Joint Powers Agreement (this “Agreement”) is entered heretointo 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. (“Agreement”).The Joint Powers Authority is known as “Visit Greater Palm Springs” (“VGPS”).
The parties to this Agreement are individually referred to herein as “CVBJPA Member” and collectively as “CVBJPA 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 CVBJPA Members entered into the original joint powers agreement on February 8, 1989, for the purpose 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 CVBJPA Members have in common; and
WHEREAS, it is intended by the CVBJPA Members that this Agreement shall be amendatory of the original joint powers agreement First Amended and Restated J oint Powers Agreement, dated February 8, 1989January 20, 20 16, including any subsequent amendments (“InitialFirst Amended and Restated Agreement”), and shall restate, amend and supersede the InitialFirst Amended and Restated Agreement in its entirety as of the Effective Date; and
WHEREAS, the CVB Members, consisting of the cities of Cathedral City, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage and the County of Riverside have consented to renaming the JPA to the “Greater Palm Springs Convention & Visitors Bureau” (“CVB”) for all purposes.
WHEREAS, on or about _____________, 2024, 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 (i) add the City of Coachella as a JPA Member, (ii) add the City of Coachella to the territorial boundaries of the JPA; and (iii) amend the purpose of JPA as set forth below, among additional provisions as stated herein; and
WHEREAS, on or about _____________, 2024, 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 Second Amended and Restated Joint Powers Agreement.
NOW, THEREFORE, in consideration of the terms and conditions hereinafter set Formatted: Font: 12 pt
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2 forth, and intending to be legally bound hereby, the CVBJPA Members hereby covenant and agree as follows:
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3 AGREEMENT
Section 1. Definitions
The following words, terms and phrases shall have the following meanings:
“Advisory Board” shall mean the board appointed by the JPA Executive Committee for the purposes described in paragraph (c) of Section 10.
“Additional JPA Members” shall mean qualified organizationsmunicipalities that may be added as members of CVBJPA 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.
that provides facilities“JPA” shall mean the Joint Powers Authority and services designedmay also be referred to host meetings or gatherings within or upon the same premises of the hotel or within a facility (herein as VGPS.
“JPA Executive Committee” shall mean the JPA’s governing body formed for example: convention centers, auditoriums, outdoor venues, etc.) that is in close proximity of the hotelthe purposes and having the powers and duties set forth in Section 10.
“CVB Fiscal Year” shall mean the period commencing July 1 of every year and ending June 30 of the following calendar year.
“CVB“JPA Member” shall mean an organizationa municipality that is party to this Agreement.
“CVBJPA Members” shall mean, collectively, the organizationsmunicipalities that have entered into this Agreement.
“CVBJPA Member Contributions” shall mean the annual contribution amounts duly established pursuant to Section 12.
“Greater Palm Springs Convention & Visitors Bureau” or “CVB” shall mean the Joint Powers Authority formed by the cities of Cathedral City, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage and the County of Riverside.
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4 “Lodging Establishments,” as referenced in Section 10, Paragraph C, ” 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, or any privatepublic 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.
“
“Joint Exercise of Powers Act” shall mean California Government Code sections 6500-6536.
“JPA Executive Committee” shall mean the CVB’s governing body formed for the purposes and having the powers and duties set forth in Section 10.
A “Non-Convention Hotel” shall mean any structure, with the exception of the previously defined “Convention Hotels,” or any portion of any structure which is occupied or intended or designed for use or occupancy by transients including, but not limited to, dwelling, lodging or sleeping purposes and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, campground, mobile home or house trailer at a fixed location, or other like structure or portion thereof. Non-Convention Hotel includes a recreational vehicle, as defined in Cal. Health & Safety Code § 18010 and campgrounds.
Partner” shall mean a non-governmental entity whose business and activities are directly related to the convention or tourism industry and the purposes of this Agreement.
“President and Chief Executive Officer ” shall mean the individual employed by CVBVGPS, who is responsible for professionally supervising, managing , and administering CVB’sVGPS’s day-to day affairs as described in paragraph (e) of Section 10 and elsewhere in this Agreement.
“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 CVB’sVGPS’s JPA Executive Committee for the purposes described in paragraph (d) of Section 10.
“Treasurer” shall mean the individual appointed by CVB’sVGPS’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 Formatted: Right: 0"
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5 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 3. Purpose
The purpose of this AgreementVGPS is to form a joint powers authority to benefit all JPA Members and their constituents by jointly encourage, promote, and to do:
(a) Marketing, attracting, encouraging, promoting, and do ing 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 national and international markets, all to the benefit of the CVB Members and their constituents.; and
(b) Doing such other things to promote and strengthen all aspects of the regional economy related to the hospitality, convention and tourism industry, and the diversification of the entire economy of the Coachella Valley.
Section 4. Name
The name of the JPA shall be the ““Visit Greater Palm Springs Convention & Visitors Bureau” (“CVB” (“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.
Section 5. InitialFirst Amended and Restated Agreement Superseded - Effective Date
It is intended by the CVBJPA Members that this Agreement shall be amendatory of the InitialFirst Amended and Restated Agreement and shall restate, amend and supersede the InitialFirst Amended and Restated Agreement. Upon its Effective Date, this Agreement shall govern the relationship of the CVBJPA 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 CVBJPA Members’ legislative bodies (“Effective Date”).
Section 6. Termination
(a) This Agreement may be terminated by unanimous vote of all the CVBJPA Members’ legislative bodies provided, however, the foregoing shall not be construed as limiting the rights of a CVBJPA Member to withdraw its membership in the JPA, and thus terminate this Agreement with respect to such withdrawing CVBJPA Member as described in Section 13; and
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6 (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 CVBJPA Members’ treasuries in proportion to the CVBJPA Member Contributions made by the respective CVBJPA 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. CVBJPA 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 CVBJPA Members that qualify to join a joint powers authority under the Joint Exercise of Powers Act may be added as CVBJPA Members at any time by a two-thirds vote of the of the entire JPA Executive Committee and a unanimous vote of the CVBJPA Members’ legislative bodies in compliance with all applicable provisions of the Joint Exercise of Powers Act and all other applicable laws.
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 CVBJPA Member; and (ii) a member of the Riverside County Board of Supervisors.
(b) Only those members of the JPA Executive Committee, whose agencies pay the CVBJPA 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 of the 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 Formatted: Condensed by 0.1 pt
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7 subsequent fiscal year, the term of which shall be set by a majority vote of the JPA Executive Committee;
(c) Appoint an advisory board consisting(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 f unctions 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 by the JPA Executive Committee;. 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 employed by each CVBJPA 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) 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 the JPA Executive Committee may designate;
(f) (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
(g)(f) Create any committees, sub -committees, advisory committees and advisory boardscommittees, as deemed necessary by a majority vote of the JPA Executive Committee, to advance and/or achieve the purposes set forth in this Agreement.
(h)(g) Pursuant to Section 6509 of the Government Code, the powers set forth in this Formatted ...
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8 Agreement shall be subject to the restrictions upon the manner of exercising such similar powers as are imposed on the City of Rancho Mirage in the exercise of similar 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 Sp rings, 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 CVBVGPS may only be changed by a two -thirds vote of the JPA Executive Committee and a unanimous vote of the CVBJPA Members’ legislative bodies.
Section 12. Contributions
(a) Initial Membership Fee . Each CVBnew 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.
(a)(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 of the CVBJPA Members’ legislative bodies. The provisions of this section may only be changed or amended with a unanimous vote of the JPA Executive Committee and a unanimous vote of the CVB JPA Members’ legislative bodies shall, at a minimum, make quarterly payments of the annual contribution to VGPS.
A contribution from each of the CVBJPA Members is a funding mechanism equal to:
.0015 x Gross Room Rental Revenue for Non-Lodging Establishments excluding Convention Hotels, and
.0035 x Gross Room Rental Revenue for Convention Hotels
(b)(a) The Gross Hotel Room Rental Revenue described herein shall not include any transient occupancy tax rebate incentives provided by the CVBJPA Members.
Section 13. Withdrawal
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9 Any Party may withdraw as a CVBJPA Member and the obligations under this Agreement subject to the following conditions:
(a) The withdrawing CVBJPA Member’s legislative body submits a duly adopted resolution to the JPA Executive Committee providing Notice of Withdrawal.
(b) The effective date of withdrawal shall always be the last day of the CVB’VGPS’ s Fiscal Year.
(c) All CVBJPA Member Contributions must be paid in full by the withdrawing CVBJPA Member through the end of the current CVBVGPS Fiscal Year of the year when the withdrawing CVBJPA Member provides its Notice of Withdrawal as well as the following CVBVGPS Fiscal Year.
(d) After giving notice of withdrawal, a withdrawing CVBJPA 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 CVBJPA Member may again become a party to this Agreement on condition that it pays to the treasury of the CVBVGPS an amount equal to all CVBJPA Member Contributions which the withdrawing CVBJPA Member would have been required to pay if it had not withdrawn from participation.
(f) Partners within the territorial boundaries of the CVBVGPS may remain active Partners as long as their respective government entity is a CVBJPA Member and during the period of their CVBJPA 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 Area 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.
Section 14. Expulsion/Withdrawal
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
PursuantExcept 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 Formatted: Condensed by 0.1 pt
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10 shall be its sole responsibility and shall not become the debts, liabilities, or obligations of any one CVBJPA Member except that any CVBJPA Member may separately contract for, or assume responsibility for specific debts, liabilities, or obligations of the JPA.
Section 1516. 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)(b) The power to retain agents, independent contractors and consultants, including without limitation the power to engage legal counsel and other professional services;
(d)(c) The power to acquire, construct, manage, maintain or operate any building, works or improvements;
(e)(d) 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)(e) 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)(f) 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)(g) The power to donate any surplus real or personal property to any public agency or nonprofit organization;
(i)(h) The power to incur debts, liabilities or obligations, including without limitation the power to borrow money, give security therefore, and purchase on contract;
(j)(i) 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 other than levying a tax or assessment beyond the scope of those assessments which may be established and levied 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;
(j) 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 Formatted: Right: 0"
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11 and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq., 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. Approval of this agreementAgreement by the CVBJPA Members constitutes consent: (i) to :
(k)(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 CVB in connection with formation of the said district (“2013 TMD”); (ii) to form an improvement district not to exceed an assessment rate of one percent (1%) on Lodging Establishments not currently being assessed under the 2013 TMD or the Palm Springs Desert Resort Communities Tourism Business Improvement District established by Ordinance No. 883 of the County of Riverside (“Tourism BID”); and (iii) to consolidate the 2013 TMD and Tourism BID as long as the overall assessment rate does not exceed three percent (3%) on the entities currently being assessed therein;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) t h e 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)(k) 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;
(m)(l) The power to enforce rules, regulations, resolutions and ordinances for the administration, maintenance and operation of the JPA;
(n)(m) 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;
(o)(n) The power to provide insurance pursuant to section 989 of the Government Code, et seq.;
(p)(o) The power to sue and be sued in the name of the JPA;
(q)(p) 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;
(r)(q) The power to travel domestically and internationally that is necessary or proper Formatted: Indent: Left: 0", First line: 1", Right: 0", Numbered + Level: 1 + Numbering Style: i, ii, iii, … +
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12 to carrying out the purposes and intent of the JPA;
(s)(r) 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;
(t)(s) The power to lobby on behalf of travel and tourism; and economic development;
(u)(t) 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 hospitality, convention and tourism and economic development industry; and
(v)(u) 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.
Section 1617. 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 1718. 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;
(b) Director of Finance; and
(c) Treasurer.
Section 1819. 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 1920. 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 Formatted ...
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13 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; Pay, when due, out of money of the JPA held by the Treasurer, all sums payable on outstanding bonds and coupons of the JPA;
(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 on the first day of July, October, January and April of eachno less than five (5) times per year to the President/Chief Executive Officer, the JPA Executive Committee and to all Parties the amount of money the Treasurer holds financial statement of activities for the JPA, the amount of receipts since the Treasurer’s last report, and the amount paid out since the Treasurer’s last reportyear.
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14 Section 2021. 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 2122. 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 2223. 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 Formatted: Right: 0"
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15 Agreement as so invalidated would be unreasonable or grossly inequitable under all the circumstances or would frustrate the purposes of this Agreement.
16 Section 2326. 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 2427. 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 CVBJPA Members’ legislative bodies in compliance with all applicable provisions of the Joint Exercise of Powers Act and all other applicable laws.
Section 2528. Ambiguities or Uncertainties
The CVBJPA Members have mutually negotiated the terms and conditions of this Agreement and each CVBJPA 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 CVBJPA Members and none of the CVBJPA 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 CVBJPA Member.
Section 2629. Applicable Law
This Agreement shall be construed and enforced in accordance with the laws of the State of California.
Section 2730. 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 2831. Notices
Any notice or communication required hereunder between the JPA and the CVBJPA Members shall be in writing, and may be given either personally or by registered mail, return receipt 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:
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17 City of Cathedral City
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
Attention: City Manager
City of Desert Hot Springs
11711 West DriveCoachella
Desert Hot Springs53990
Enterprise Way
Coachella, CA 92240 92236
Attention: City Manager
City of Indian Wells 44950 El
DoradoDesert Hot Springs
Indian Wells11999 Palm Drive
Desert Hot Springs, CA
9221092240 Attention: City
Manager
City of IndioIndian
Wells 44950 Eldorado
Drive
Indian Wells100 Civic
Center Mall Indio, CA
9220192210 Attention:
City Manager
City of La Quinta 78495 Calle TampicoIndio
100 Civic Center Mall La
Quinta
Indio, CA 92253 92201
Attention: City Manager
City of Palm Desert
La Quinta 78495
Calle Tampico
73510 Fred Waring Drive
Palm DesertLa Quinta,
CA 9226092253
Attention: City Manager
City of Palm SpringsDesert
3200 East Tahquitz Canyon Way
73510 Fred Waring Drive
Palm SpringsDesert, CA
9226292260
Attention: City Manager
City of Rancho Mirage 69-825 Highway
111Palm Springs
Rancho Mirage3200 East
Tahquitz Canyon Way Palm
Springs, CA 9227092262
Attention: City Manager
City of Rancho Mirage
69825 Highway 111
Rancho Mirage, CA 92270County of Riverside
County Administration Center
4080 Lemon Street
Riverside, California 92501
Attention: County ClerkCity
Manager
County of Riverside
County Administration Center
4080 Lemon Street
Riverside, California 92501
Attention: County Clerk
Section 2932. 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 3033. 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, Formatted: Normal, Left
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18 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. Formatted: Character scale: 105%
19 19
[SIGNATURES APPEAR ON THE FOLLOWING PAGES]
20 20
IN WITNESS WHEREOF, the duly authorized representatives of the CVBJPA Members have each executed this Agreement.
CITY OF CATHEDRAL CITY
____________________________________
_____________________,________________
_________________
Mark Carnevale, Mayor
____________________________________
_____________________,Dated:
___________________________
_________________________________
Charlie McClendon, City Manager
ATTEST:
____________________________________
___________________,__________________
_______________
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
____________________________________
________________________,_____________
___________________
Eric S. Vail, City Attorney
CITY OF DESERT HOT
SPRINGSCOACHELLA
____________________________________
_____________________,________________
_________________
Steven Hernandez, Mayor
____________________________________
_____________________,Dated:
___________________________
_________________________________
Gabriel Martin, City Manager
ATTEST:
____________________________________
___________________,__________________
_______________
Angela M. Zepeda, City Clerk
APPROVED AS TO FORM:
____________________________________
________________________,_____________
___________________
Carlos Campos, City Attorney
CITY OF INDIAN WELLS DESERT
HOT SPRINGS
____________________________________
_____________________,________________
_________________
Scott Matas, Mayor
____________________________________
_____________________,Dated:
CITY OF INDIOINDIAN WELLS
____________________________________
_____________________,
_________________________________
Greg Sanders, Mayor
____________________________________
_____________________,Dated:
___________________________
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21 21
___________________________
_________________________________
Frank Luckino, City Manager
ATTEST:
____________________________________
___________________,__________________
_______________
Daniel McVey, City Clerk
APPROVED AS TO FORM:
____________________________________
________________________,_____________
___________________
Jennifer Mizrahi, City Attorney
_________________________________
Christopher Freeland, City Manager
ATTEST:
____________________________________
___________________,__________________
_______________
Angelica Avila, City Clerk
APPROVED AS TO FORM:
____________________________________
________________________,_____________
___________________
Todd Leishman, City Attorney
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CITY OF LA QUINTAINDIO
____________________________________
_____________________,________________
_________________
Guadalupe Ramos Amith, Mayor
____________________________________
_____________________,Dated:
___________________________
_________________________________
Bryan Montgomery, City Manager
ATTEST:
____________________________________
___________________,__________________
_______________
Cynthia Hernandez, City Clerk
APPROVED AS TO FORM:
____________________________________
________________________,_____________
___________________
Steven P. Graham, City Attorney
CITY OF PALM DESERTLA 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 SPRINGSDESERT
____________________________________
_____________________,________________
_________________
Karina Quintanilla, Mayor
____________________________________
_____________________,Dated:
___________________________
_________________________________
Todd Hileman, City Manager
CITY OF RANCHO MIRAGE PALM
SPRINGS
____________________________________
_____________________,________________
_________________
Jeffrey Bernstein, Mayor
____________________________________
_____________________,Dated:
___________________________
_________________________________
Scott Stiles, City Manager
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23 23
ATTEST:
____________________________________
___________________,__________________
_______________
Anthony Mejia, City Clerk
APPROVED AS TO FORM:
____________________________________
________________________,_____________
___________________
Isra Shah, City Attorney
ATTEST:
____________________________________
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Brenda Pree, City Clerk
APPROVED AS TO FORM:
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___________________
Jeffrey Ballinger, City Attorney
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24 24
COUNTYCITY OF RIVERSIDERANCHO
MIRAGE
____________________________________
_____________________,_______________________
__________
Steve Downs, Mayor
Dated: ___________________________
_________________________________
Isaiah Hagerman, City Manager
Chairman
____________________________________
_____________, County Executive Officer
ATTEST:
____________________________________
___________________,________________________
_________
Kristie Ramos, City Clerk of the Board
APPROVED AS TO FORM:
____________________________________
________________________, County Counsel
________________________________
Steven B, Quintanilla, City Attorney
COUNTY OF RIVERSIDE
_____________________________
_______
Chuck Washington, Chairman
_____________________________
_______
Jeff Van Wagenen, County
Executive Manager
ATTEST:
_____________________________
_______
Kimberly A. Rector, Clerk of the
Board
APPROVED AS TO FORM:
_____________________________
_______
Minh Tran, County Counsel
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25 25
EXHIBIT A
TERRITORIAL BOUNDARIES Formatted: Font: 11 pt
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INDIAN WELLS CITY COUNCIL
May 16, 2024
To: City Council
From: City Manager Department
Prepared by: Christopher Freeland, City Manager
Subject: 2024 City Council Strategic Planning Session
RECOMMENDED ACTIONS:
Council RECEIVES and FILES the action items from the 2024 City Council Strategic Planning Session.
DISCUSSION:
Strategic planning determines where an organization is going over the next year or more, how it's going to get there, and how it'll know if it got there or not. This is the City’s “Game Plan.” The focus of a strategic plan is to outline the goals of the City Council for the entire community/organization over a period (one, three, or five years are common).
Goals-based planning starts with focusing on the organization's vision and/or values, selecting projects and programs to meet and achieve the goals, analyzing the resources needed and available resources, and finally, who will do what and by when.
Goal setting by the City Council has the following benefits:
Formally adopted City Council Goals provide official direction to plan and organize resources to ensure their completion.
The strategic plan is used to identify funding priorities for inclusion in the City’s two-year budget.
A better understanding by citizens and staff of the City Council’s plans as a single governing body for the future of the City of Indian Wells. Goals are established to meet the changing needs of the community. City staff is more focused and effective in addressing City Council priorities. City staff is more accountable to the City Council for achieving City Council Goals.
At the April 2, 2024, City Council Strategic Planning Session, the City Council provided the following recommended goals and activities for 2024. These goals and activities are in addition to the goals from 2023 that were presented at the March 7, 2024, City Council meeting.
City Council Fiscal Policies
The City Council and Housing Authority were provided an update on the financial status of the City, including a healthy cash reserve, projected General Fund surplus of over $28 million over the next ten years, repayment of former redevelopment agency loans to the City of over $9.2 million, and the development of new revenue sources (e.g., developer fees, future TOT revenues, and an operational Community Facilities District). In addition, staff provided an update on the Housing Authority fund, which is expected to run out of money in Fiscal Year 2028 -2029 based on current financial conditions. Moving forward, staff will continue the following:
Continue the Council Policy of reserving $2 million annually for long -term capital replacements.
Continue the Council Policy of maintaining a fully funded pension program. Bring forward the implementation of the citywide operational Community Facilities District.
Examine and develop recommendations to address the declining Housing Authority fund balance.
Provide the Council with regular financial updates on projections and performance. Work with Genton Development and Tommy Bahama to bring forth their projects to generate new revenues for the City.
Capital Improvement Program Update
The Capital Improvement Program (CIP) is the City’s comprehensive multi -year plan for the development of the City’s capital facilities, improvements, and maintenance. The plan outlines the expected capital projects over a five-year period. Capital improvement projects include the construction , acquisition, expansion, rehabilitation, or non -routine maintenance work that generally exceeds $5,000 and results in the creation or preservation of a City capital asset.
The City Council received a report from Public Works on CIP projects completed this fiscal year, projects planned for the summer, and other projects that are currently in design.
Public Works also acknowledged the significant amount of community participati on in addressing current and future CIP projects that improve public safety in the community (e.g., traffic safety plan , safe streets, sidewalk projects) and how essential public participation is in designing new amenities in the community.
The Council unanimously supported a review of CIP projects by Public Works that may be accelerated, especially those with a public safety component. In addition, the City Council requested that Public Works examine the possibility of accelerating other capital projects (e.g., residential pavement projects). A report responding to the City Council’s request is a separate item on today’s agenda.
Indian Wells Golf Resort
The City Council was provided with a comprehensive financial update by the Finance Director regardi ng the overall performance of the Indian Wells Golf Resort. The presentation encompassed a thorough review of the financial performance measures adopted by the Council, which Troon is tasked with overseeing in managing the operations of the Golf Resort. Ad ditionally, the Finance Director conveyed that the profitability of the Golf Resort has reached its peak in the current and preceding fiscal years. Notably, the Golf Resort has achieved profitability for the first time this fiscal year, encompassing all operational and capital expenses.
Troon management provided an update on solid performance in golf operations (e.g., rounds played, average rate paid, merchandise), improvements in the golf academy, improved agronomy performance with new capital equipment, efforts to improve course conditions, reopening of the Fairway Grill, efforts to address struggles in the Vue restaurant, success of Shots in the Night/Top Tracer, and other operational updates. In addition, there is a brief discussion on the need to improve the Golf Resort Maintenance Yard facilities. Troon will continue efforts to operate more efficiently, address deferred maintenance issues, and identify opportunities to improve the net operating income of the golf resort.
Troon also provided an updat e on the reconceptualization of the Vue Restaurant. The Vue Restaurant will close after Memorial Day 2024 and reopen in September/October 2024 as a new Richard Blais signature restaurant.
Finally, Troon and City staff presented an update on the possible redesign of the Players Course, including redesign objectives , outreach to various designers, the need to rehabilitate the course if not redesigned, and cost estimates for the multiple options. At the conclusion of the discussion, the City Council approved (4-0) the moving of Holes #17 & 18 to the north side of the Whitewater Channel and approved (3 -1) having the redesign completed by John Fought and for him to prepare the necessary design and bid documents.
FISCAL IMPACT:
This staff report is informational only; there is no fiscal impact.
INDIAN WELLS CITY COUNCIL
May 16, 2024
To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: Sponsorship Request for the 3 rd Annual Mama’s House Event and Desert Bar Association Event
RECOMMENDED ACTIONS:
Council APPROVES sponsorship request for the 3rd Annual Mama’s House event held on May 11, 2024, at the Indian Wells Country Club and SELECTS the level sponsorship of $1,500; and
APPROVES sponsorship request for the Annual Desert Bar event held on May 11, 2024, at the Indian Wells Country Club and SELECTS the level sponsorship in the amount of $1,300; and
AUTHORIZES the attendance of Council Members at the event.
DISCUSSION:
Mama’s House is widely recognized and respected as a model for supporting mothers and women in crisis. Their mission is to help and support women with children and/or victims of abuse who are vulnerable with no place to go or means of support. At Mama’s House women are provided with physical, emotional, spiritual, educational, and vocational support. Mothers are equipped with necessary life skills for stability, recovery, and self- sufficiency. Once women complete the unique, faith- based program at Mama’s House , the women are prepared for a brighter future with opportunities to reach their full potential as productive members of their communities.
The City received a sponsorship invitation to the Mama’s House 3rd Annual event held on May 11, 2024 at the Indian Wells Country Club, in Indian Wells. Mayor Sanders expressed interest in participating in this year’s event. The Council recommends supporting the event at a host level sponsorship and purchasing 10 tickets in the amount of $1,5 00 to support Mama’s House.
Mayor Pro Tem Whitman expressed interest in supporting the Annual Desert Bar Classic Golf Tournament event held on Saturday, May 11, 2024, at the Indian Wells Country Club. The Council recommends a sponsorship request in the amount of $1,300.
The Desert Bar Association (DBA) is a non-profit entity that was established to maintain the honor and integrity of the profession of the law. DBA increases its usefulness in promoting the due administration of justice, to cultivate social activities among it s members and to support and administer programs and activities consistent with such goals. The DBA is a professional organization for practicing and retired attorneys and judges, and other professionals who interact with the legal community.
The primary function of the DBA is to build strong connections and support members of the legal profession in the Coachella Valley. The association is also fully inclusive of non- legal professionals who desire to network with legal professionals. Programs include outreach to the entire community, including high school students and mature adults, to educate residents about legal rights, issues, and processes.
As part of the City’s efforts to support charitable events held in Indian Wells, the Council established a line item in the budget in the amount of $10,000 to support such events.
FISCAL IMPACT:
Funds are available in the FY 2024-25 Budget for this event and a supplemental appropriation is not necessary.
INDIAN WELLS CITY COUNCIL
May 16, 2024
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Approval of Protective Netting Along the Southern Edge of the Driving Range
RECOMMENDED ACTIONS:
Council APPROVES the Installation of protective netting along the southern edge of the Driving Range.
BACKGROUND:
The General Manager of the Renaissance Esmeralda Hotel recently brought to the attention of their counterpart at the Indian Wells Golf Resort a concerning issue involving errant golf balls from the resort's driving range. These stray balls have been causin g damage to parked vehicles in an adjacent parking lot owned by the Renaissance, situated just east of the hotel premises. The damages reported so far include dented vehicles and broken glass, prompting the hotel management to address the situation promptly.
Initially, the Renaissance Esmeralda Hotel managed to mitigate the impact of these incidents on their guests by handling the damages internally. However, recognizing the recurring nature of the problem, they have reached out to the Indian Wells Golf Resort, seeking collaborative solutions.
Following thorough discussions between representatives from Troon, which manages the Indian Wells Golf Resort, and the Renaissance, it was mutually agreed that the installation of specialized netting designed for golf courses and driving range operations would be the most effective measure to alleviate the issue of errant golf balls.
This proactive approach aims to significantly reduce the occurrence of stray balls, thereby preventing further damage to vehicles in the adjacent parking lot and ensuring the safety and satisfaction of both hotel guests and golf enthusiasts.
FISCAL IMPACT:
In the event that the Council decides to proceed with the proposed capital project, it will necessitate a supplemental appropriation. Troon management has diligently assessed the
capital acquisition and installation expenses in collaboration with several reputable firms, resulting in a total cost of $45,000. Subject to approval, the funding for this initiative will be sourced from the City's Golf fund.
ATTACHMENTS:
1. Netting Barrier proposal
11851 Westminster Ave., Garden Grove, CA 92843
Office (800) 955-6788 (714) 265-2200 FAX (714) 265-2400 California Contractors License #779080
www.judgenetting.com
PROPOSAL & CONTRACT
Fe
bruary 26, 2024
Mr.
Ryan Stella
Facilities Manager
Indian Wells Golf Resort
44-500 Indian Wells Lane
Indian Wells, CA 92210
Re
: Netting Barrier Install, Right Side
De
ar Mr. Stella:
Pe
r the recent information pro vided, we propose to supply the material, labor, and equipment necessary to install a new netting barrier on the right side of your driving r ange. The new barrier will measure approximately 200 LF by 20’ high. New poles to be steel, painted flat black and designed for local wind conditions. New netting will be custom fitted UV treated polyester netting with sewn in perimeter, vertical, and horizontal rib li nes. New cable to be 5/16” and 3/8” and hardware will be heavy duty ¾ inch galvanized. We are a licensed California Contractor, and all applicable state and local taxes are included in this proposal. (Please initial , total and sign upon acceptance where applicable)
______Price for this barrier as described above is: $41,800.
Options:
______Price for Stamped Engineering is $2,900.
*If engineering is requested, prices are subject to change after review of final engineered calcs.
Pa
yment Terms:
30 percent due upon acceptance of contract, with the balance due upon completion. Visa and MasterCard payments accepted with a convenience fee of 2.5%. If required, engineering and permitting costs will be billed and immediately payable as accrued. Invoices not paid when due are subject to a service charge of 1-1/2% per month. This is an annual percentage rate of 18 %. Shoul d suit be instituted to enforce the provisions of this Proposal an d Contrac t, the prevailing party shall be entitled to re asonable attorney’s fees and court costs as determined by the co urt or other tribunal hearing the matter.
Sta
ndard Assumptions:
• Our prices are firm for acceptance for a period of 30 days. • Necessary access “to,” “from,” and “at” work site during construction. • Good digging conditions are defined as being able to complete the excavation using our au guring equipment.
• Ex
cavation: the client will be responsible for locating all private underground utilities located on their property.
• Material excavated from the holes to be spread near the holes or on property by client’s direction. • Our proposal is designed on a basic Wind S peed (3 second gust) to be 92 miles per hour; Exposure Category ‘C', Topographic Factor (kzt) 1.0, per 2019 California Building Code (CBC) at 8% sol id with a 150 Lateral soil pressure. If this standard is unacceptable to the governing code authority in your area, we will be pleased to install the structu re to t he necessary standards an d requirements contingent upon acceptance of a revised proposal which will include any cost implications and/or modifications.
ATTACHMENT #1
Mr. Ryan Stella February 26, 2024
Indian Wells Golf Resort
• Golf and other activities may require alteratio n during const ruction to provide a sa fe working environment for our employees and equipment.
• Mobilization costs included in our proposal are based on one move -on and move-off. Any cessation of work due to lack of permits or any re ason by client will require a $ 3,000 re-mobilization charge with all work and materials invoiced to date.
Standard Exclusions:
• We are a non-union company and, as such, will not become signatory to any labor agreement. • Bonding, engineering, or prevailing wages, unless otherwise stated in this proposal. • This proposal does not inc lude permit fees or related costs involved in securing permits except as n oted in this p roposal. If Judge Netting is not contracted to pull permits, t he cli ent is responsi ble f or acq uiring all permits and any costs r elating to p ermit requirem ents. Should a government agenc y require changes , additional construction costs will be assumed by the client. Should the project be stopped for lack of permits or for any reason by client or government agencies, material and work will be inv oiced, and a remobilization fee shall apply.
• Indemnification: Judge Netting , Inc. will not indemnify a ny additional Owners, Architects, Con tractors, or Agents.
• Accidental non-negligent damage to driv eways, park ing lots, tennis courts, i rrigation syst ems, or sod, that may be caused by our equipment.
• Subsurface or latent physical conditions at the site differing from those indicated. • Unknown ph ysical conditions at the site of any un usual nature, differe nt materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the contract. • The owner shall promptly investigate the conditions, and if it finds that conditions do materia lly so differ, or do involve haz ardous waste, and cause a decrease or in crease in the Contra ctor’s cost of, or the time required for, performance of any part of the work shall issu e a Change Ord er in the amount of contractor’s expenses incurred plus 10%.
• Judge Netting makes no warranty, either expressly or implie d, as to the p rotective capabilities of netti ng or structures, in cluding height requirements and/or performance of any exi sting material or material used during construction.
Judge Netting's liability under this contract shall not exceed the price identified above.
Cancellation: Upon execution by both parties, this Proposal and Contract is non-cancellable. Any cancellation by Purchaser shall entitle Judge Netting at its discretion, to collect any fees or charges it has incurred in preparation for delivery of the work outlined above.
We appreciate the opportunity to present this proposal and look forward to working with you. Please contact us at [email protected] or 714-265-2200 with questions or concerns.
JUDGE NETTING, INC. ACCEPTED BY: INDIAN WELLS GOLF RESORT
By: By: __ (Authorized Signature)
Date: February 26, 2024 Date: __ __
INDIAN WELLS CITY COUNCIL
May 16, 2024
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Adoption of Proposed City of Indian Wells Goals and Policies Concerning the Use of the Mello-Roos Community Facilities Act of 1982 to Finance Public Facilities and Services
RECOMMENDED ACTIONS:
Council ADOPTS Resolution Approving Goals and Policies Concerning the Use of the Mello-Roos Community Facilities Act of 1982 to Finance Public Facilities and Services; and FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15060 and 15378.
DISCUSSION:
The City has recognized the need for new development to be fiscally neutral and to pay for all public facilities and services necessary to serve the needs imposed by each new development.
The City has recently engaged in talks with the owners of undeveloped property seeking to develop projects and a special tax consultant to assist in establishing the City’s first community facilities district (“CFD”) . Community Facilities District No. 2024-1 (Public Safety) is proposed to be the City’s first CFD to levy a special tax to fund public safety services in association with all new developments. However, prior to the formation of the CFD, the City must adopt its local goals and policies described below.
The Mello-Roos Community Facilities Act of 1982, as amended, California Government Code Section 53311 et seq. (the “Act”) requires public agencies to establish and adopt a “local goals and policy” document prior to establishing any CFD for the purposes of financing public improvements and services. Accordingly, the City Council has been provided the attached document, entitled the “City of Indian Wells Goals and Policies Concerning the use of the Mello-Roos Community Facilities Act of 1982 to Finance Public Facilities and Services” (the “CFD Goals and Policies”).
The CFD Goals and Policies contain the requirements set forth in Section 53312.7 of the Act. As such, the City has established specific criteria to be used and followed regarding
the formation and administration of CFDs. These goals and policies may be amended and updated by the City at any time.
Approval of the attached resolution and the CFD Goals and Policies satisfies the requirements of the Act and allows the City to proceed with the planned formation of Community Facilities District No. 2023-1 (Public Safety).
OPTIONS:
The Council provides alternative direction to staff.
FISCAL IMPACT:
There is no fiscal impact on the City’s general fund.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the L ead Agency, determined that this resolution is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a “project” as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.
ATTACHMENTS:
1. Resolution- Intention to Adopting Goals and Policies
2. Indian Wells Goals and Policies Concerning the Use of the Mello-Roos Community Facilities Act of 1982
26529.00060\42240469.1
RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIAN WELLS,
CALIFORNIA, ADOPTING GOALS AND POLICIES CONCERNING THE USE OF THE MELLO -ROOS COMMUNITY FACILITIES ACT OF 1982 TO
FINANCE PUBLIC FACILITIES AND SERVICES
WHEREAS, the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, provides that a local government, including the City of Indian Wells (the “City”), m ay initiate proceedings to establish a community facilities district (“CFD”) pursuant to the Act only if the legislative body thereof has first considered and adopted local goals and policies concerning the use of the Act; and
WHEREAS, the City Council of the City of Indian Wells (“City Council”) now desires to state its CFD goals and policies concerning the use of the Act; and WHEREAS, the City’s CFD goals and policies have been incorporated in the “City of Indian Wells Goals and Policies Concerning the Use of the Mello-Roos Community Facilities Act of 1982 to Finance Public Facilities and Services” (the “CFD Goals and Policies”) attached as Exhibit “A” hereto and incorporated herein by this reference which have been presented to the City Council for its consideration.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF INDIAN WELLS AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are true and correct and are incorporated herein by this reference.
Section 2. CFD Goals and Policies. The CFD Goals and Policies are hereby adopted. A copy of which shall be kept on file in the office of the City Clerk.
Section 3. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on this 16th day of May 2024.
GREG SANDERS
MAYOR
ATTACHMENT #1
26529.00060\42240469.1
City of Indian Wells
Resolution No. 2024-__
CERTIFICATION FOR RESOLUTION NO. 2024-
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTIFY that the whole number of the members of the City Council is five (5); that the above and foregoing Resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Indian Wells on the 16th day of May 2024, by the following vote:
AYES:
NOES:
ATTEST: APPROVED AS TO FORM:
______________________________________ ____________________________________
ANGELICA AVILA TODD LEISHMAN FOR
CITY CLERK BEST BEST & KRIEGER LLP
CITY ATTORNEY
26529.00060\42240469.1
A-1
EXHIBIT A
CITY OF INDIAN WELLS GOALS AND POLICIES CONCERNING THE USE OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 TO FINANCE PUBLIC
FACILITIES AND SERVICES
26529.00060\42240479.1
1 CITY OF INDIAN WELLS
GOALS AND POLICIES CONCERNING
THE USE OF
THE MELLO-ROOS COMMUNITY FACILITIES ACT
OF 1982 TO FINANCE PUBLIC FACILITIES AND SERVICES
Adopted May 16, 2024
CITY OF INDIAN WELLS
ATTACHMENT #2
26529.00060\42240479.1
2 GOALS AND POLICIES CONCERNING THE USE OF
THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
TO FINANCE PUBLIC FACILITIES AND SERVICES
Introduction.
The City Council of the City of Indian Wells (the "City Council") hereby establishes and states its goals and policies concerning the use of the Mello -Roos Community Facilities Act of 1982, as amended, (the “Act”), being Chapter 2.5 of Part I of Division 2 of Title 5 of the Government Code of the State of California in providing adequate public infrastructure improvements and services for the City of Indian Wells (the "City"). The following goals and policies shall apply to all Community Facilities Districts (the “CFD”) hereafter formed or proposed to be formed by the City. Any policy or goal stated herein may be supplemented or amended by resolution of the City Council.
The purpose of the “City of Indian Wells Goals and Policies Concerning the Use of the Mello - Roos Community Facilities Act of 1982 to Finance Public Facilities and Services” (the “CFD Goals and Policies”) is to provide City staff, the residents of the City , and the owners and developers of property located within the City with guidance in the application for and consideration of the establishment o f CFDs within the City for the purpose of financing or assisting in financing the acquisition or construction of public infrastructure to benefit and serve either existing or new development or a combination thereof , and to finance ongoing costs of providing service and maintenance to public infrastructure. The underlying principals behind this policy are the protection of the public interest, assuring fairness in the application of special taxes to current and future property owners, assuring full disclosure of the existence of any special tax liens, insuring the creditworthiness of any CFD municipal bonds (“CFD Bonds”), protecting the City's credit rating and financial position and assuring that applicants for all CFD proceedings other than City initiated proceedings pay all costs associated with the formation of any CFD.
The scope of this policy is limited to the proposed formation of CFDs for the limited purpose of financing or assisting in financing the acquisition or construction of public infrastructure or to provide funding for services or maintenance.
The City is under no obligation to issue CFD Bonds. The ability to issue CFD Bonds depends upon the particular facts and circumstances of each CFD. When issuing CFD Bonds, the developer or property owners must agree to cooperate in connection with any covenants or other requirements that may be necessitated by tax-exempt bonds.
Priorities for CFD Financing/Funding.
The priority that various kinds of public facilities or services will have for financing or funding through the City’s use of the Act is as follows:
(a). public facilities to be owned and operated by the City that provide a dem onstrated public benefit;
(b). public services to be performed by the City; and
(c). public facilities to be owned and operated by a public agency other than the City.
26529.00060\42240479.1
3 Examples of a demonstrated public benefit may include, but are not limited to, the following:
1. Construction of a major public facility which meets a community need , for example a major arterial which will provide a vital roadway facility to alleviate congestion, park or recreational facilities intended to serve residents throughout the City, water distribution facilities, and storm drainage facilities which are a part of the storm drainage master plan.
2. Construction of public infrastructure sooner than would otherwise be required for a particular development project.
3. Construction of public infrastructure to serve commercial or industrial projects that will expand the City’s employment and/or sales tax base.
Equity of Special Tax Formulas and Maximum Special Taxes for CFDs.
Reasonable Basis of Apportionment. Special taxes must be allocated and apportioned on a reasonable basis to all categories and classes of property (other than exempt property) within the CFD. Exemptions from the special tax may be given to parcels which are publicly -owned, are held by property owners associations, are used for a public purpose such as open space or wetlands, or are affected by public utility easements making impractical their utilization for other than the purposes set forth in the easement.
Total Tax Burden. The total tax burden (that is, the anticipated maximum annual CFD special tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees and charges payable from and secured by the property) on any residential owner-occupied parcel in a CFD shall not exceed two percent (2.00%) of the estimated base sales price of such parcel upon completion of the public and private improvements relating thereto.
Rate and Method of Apportionment. The rate and method of apportionment (“RMA”) for CFD special taxes must be structured so as to produce special tax revenues sufficient to pay : (a) scheduled debt service on all CFD Bonds, if applicable; (b) pay annual services or maintenance expense, if applicable; and (c) reasonable and necessary annual administrative expenses of the CFD.
Additionally, the RMA may be structured so as to produce amounts sufficient to fund: (a) any amounts required to establish or replenish any rese rve fund established for a CFD Bond issue; (b) any amounts required to establish or replenish any capital improvement plan or reserve and contingency fund established for CFD services and maintenance; (c) a mounts to pay directly the costs of public facilities authorized to be financed by the CFD; (d) the accumulation of funds reasonably required for future debt service on CFD bonds; (e) amounts equal to projected delinq uencies in special tax payments; (f) remarketing, credit enhancement or liquidity fees; and (g ) any other costs or payments permitted by law.
In any case, the RMA must be structured such that the projected maximum special tax that could be levied in any fiscal year would produce special tax revenues at least equal to (a) 110% of projected annual debt service on all CFD B onds for the calendar year commencing in such fiscal year, plus (b) projected administrative expenses of the CFD for the calendar year commencing in such fiscal year. Generally, the RMA for CFD special taxes will be required to include a back -up tax so that changes in development within the CFD would not result in the inability to levy special taxes that would produce special tax revenues in such amounts.
26529.00060\42240479.1
4 Increases in Special Tax. The maximum special tax for services and maintenance for any taxable parcel within a CFD shall escalate at the greater of three percent (3.00%) or the annual percentage increase of a published Consumer Price Index (“CPI”) . For facilities CFDs issuing CFD Bonds, the maximum special tax for any one taxable parcel within a CFD shall not escalate more than two percent (2%) per year. The increase in the special tax levied on any taxable parcel within a CFD as a consequence of delinquency or default by the owner on any other parcel may not be increased by more than ten percent (10.00%) of the rate that would have been levied had no delinquency or default existed, but in no event shall any special tax levied on any taxable parcel exceed any maximum specified in the Act or the RMA.
Prepayment of Special Tax Obligation. Generally, the RMA of a special tax for a facilities CFD issuing CFD Bonds will be structured so as to allow the prepayment of the full amount of the special tax obligation by property owners or any partial amount desired by the property owner . CFDs for services shall not have the ability to be prepaid.
Use of Special Tax Proceeds. Generally, the RMA of a special tax for a CFD will be structured to prohibit the use of special tax coverage to be used to reimburse a developer for acquired public facilities.
Credit Quality Requirements for CFD Bond Issues.
All t erms and conditions of any CFD B onds, including, without limitation, the sizing, timing, term, interest rates, discount, redemption features, flow of funds, investment provisions and foreclosure covenants, shall be est ablished by the City. Each CFD B ond issue shall be structured to adequately protect bond owners and to avoid negatively impacting the bonding capacity or credit worthiness of the City.
Unless otherwise approved by the City Council, the follow ing shall serve as minimum CFD Bond requirements:
Project Viability. The viability of the development project within a CFD is a critical component of the credit quality of a CFD Bond issue. Accordingly, the viability of each such development project will be reviewed and evaluated by the City. Under most circumstances, the viability of a development project is enhanced as the project moves further through the development process. Therefore, generally, a CFD will be established only if tract or parcel maps for the development project to be undertaken therein have been approved by the City Council and the project is consistent with the City’s General Plan.
Statutory Requirements. The City will require that the credit quality of any CFD B ond issue be such that the requirements of Section 53345.8 of the Government Code will be met.
Reserve Fund. In order to enh ance the credit quality of CFD B ond issues, the City will require that each such bond issue be secured by a reserve fund. Generally, each such reserve fund will be required to be funded (with cash or an acceptable reserve surety or other credit facility) in an amount no less than the least of : (a) 10% of the initial principal amount of the bonds of such issu e; (b) maximum annual debt ser vice on the bonds of such issue; and (c) 125% of the average annual debt service on the bonds of such issue. Any reserve surety or other credit facility funding such a reserve fund will generally be required to be issued or guaranteed by an entity, the long term unsecured
26529.00060\42240479.1
5 obligations of which are rated at least "A" by Moody's Investors Service or Standard & Poor's Ratings Service.
Credit Enhancement. Where a substantial amount of the property within a CFD is undeveloped , there is a concentration of ownership or insufficient value to lien the City may require credit enhancement in the form of bank letter of credit or other form of financial institution guarantee to increase the credit quality of such CFD B ond issue. The credit enhancement will be in the amount equivalent to a minimum of two (2) years of debt service payments on the bonds as security for the amount of future taxes to be paid. The credit enhancement shall remain in place until the special tax burden of the property owner providing the credit enhancement falls below twenty percent (20 %) of the special tax burden.
Capitalized Interest. Interest shall be capitalized for a bond issue only so long as necessary to place the special tax installments on the assessment roll; provided, however, interest may be capitalized for a term to be established in the sole discretion of the City Council on a case -by-case basis, not to exceed an aggregate of eighteen (18) months, taking into consideration the value -to-debt ratio, the expected timing of initial residential occupancies, expected absorption and build out of the project, the expected construction and completion schedule for the public improvements to be funded from the proceeds of the bond issue in question, the size of the bond issue, the development pro forma and the equity position of the applicant and such other factors as the City Council may deem relevant.
Bond Structure. The term to maturity of any CFD B onds shall not exceed the maximum term specified in the Act. Principal amortization of CFD Bonds shall commence no later than the end of the second bond year. CFD B onds shall be structured such that, once principal amortization thereof has commenced, debt service thereon will be substantially level subject to annual increase as described under “Increase in Special Taxes”.
Limited Obligations. Neither the faith, credit or taxing power of the City shall be pledged to the payment of CFD B onds. The sole source of revenue for the payment of CFD B onds shall be the special taxes (net of a reasonable amount determined by the City to pay the annual costs of administration of the CFD and the CFD Bonds), capitalized interest, if any, credit enhancement, if any, and moneys on deposit in the reserve fund established for such bonds. The City shall not be required or expected to make any payment of the bonds out of its General Fund or other available funds.
Development Milestones. The City may require certain development milestones be reached prior to the issuance of bonds. The City desires to have at least 50% of the properties subject to special taxes within either the CFD or an improvement area boundary to have received building permits and be completed to substantially completed prior to the issuance of bonds secured by the property’s special taxes.
The City will require bond financings be structured so that bonds are purchased and owned by suitable investors. For example, the City may require placement of bonds with a limited number of sophisticated investors, large bond denominations, and/or transfer restrictions in situations where there is an insufficient value-to-lien ratio, where a substantial amount of the property within a CFD is undeveloped, where tax delinquencies are present in parcels within the CFD, and in any other situation identified by the City.
26529.00060\42240479.1
6 Value-to-Debt Ratio. It is the City’s policy that the value -to-debt ratio, i.e., the full market value of the properties subject to the levy of special taxes, including the value of the improvements to be financed from the proceeds of the issue or series of special tax bonds for which the value-to-debt ratio is being computed, compared to the aggregate amount of the special tax lien proposed to be created, plus any fixed assessment liens and/or special tax liens, for a CFD, must be at least 4:1. A CFD with a value-to-debt ratio of less than 4:1, but equal to or greater than 3:1, may be approved, in the sole discretion of the City Council, upon a determination by the City Manager, after consultation with, the bond counsel, the underwriter, and the municipal advisor, a value-to-debt ratio of less than 4:1 is acceptable in light of the circumstances of the particular CFD and/or credit enhancement such as a letter of credit, or the escrow of bond proceeds to offset a deficiency in the required value -to- debt ratio as it applies to the taxable property within the CFD in the aggregate or with respect to any development area.
Acquisition or Construction Districts.
The construction of public improvements may be funded by a developer or property owner and acquired by the City upon inspection and completion from the CFD bonds or and/or special tax proceeds (“Acquisition”) or funded by public contract led by the City or other public agency (“Construction”) or, in appropriate cases, both. The City may consider acquisition of discrete usable components of improvements or facilities or require all the improvement to be complete prior to Acquisition. Any work performed by Acquisition must be done under prevailing wage contracts and the applicant shall be responsible for such compliance.
Appraisals for CFD Bond Issues.
The definitions, standards and assumptions to be used in appraisals required in connection with the City's use of the Act for CFDs are as set forth in Section 53345.8 of the Act and the Appraisal Standards for Land Secured Financings published by the California Debt Advisory Commission and originally dated May 1994 and modified July 2004 (the "CDIAC Guidelines").
Notwithstanding the foregoing, if there is a conflict between the definitions, standards or assumptions in the CDIAC Guidelines or the corresponding definitions, standards or assumptions in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation ("USPAP"), the definitions, standards, and assumptions of Section 53312.7(a)(5) shall govern.
Independent Absorption Study. An independent absorption study of the proposed residential development project shall be required for the formation of any CFD. The independent absorption study shall be used: 1) as a basis to verify proposed base pricing of the residential units subject to the levy of the special tax; and 2) to determine if the public financing of the public facilities is appropriate given the timing of development. Additionally, the projected absorption rates will be provided to the appraiser for use in the appraisal.
The appraiser shall be selected by the City and the appraisal shall be coordinated under the direction of the City. The selected appraiser must be willing to consent to the use of the appraisal in the official statement. The appraisal must be dated within three months of the date the bonds are priced, unless the City determines a longer time is appropriate.
26529.00060\42240479.1
7 Disclosure for CFD Bond Issues.
Initial Disclosure. Each owner of property within a CFD that has not reached its planned development stage and that will be responsible for a substantial portion (as determined by the City) of annual debt service on an issue of CFD B onds will be required to provide for inclusion in the official statement or other offering materials distributed in connection with the offering and sale of such bonds such information as may be required for the City to comply with, satisfy any requirements of, or avoid any liability under, any applicable federal or state securities laws.
Continuing Disclosure. Each owner of property within a CFD, and each subsequent owner of property therein, that has not reached its planned development stage and that will be responsible for a substantial portion (as determined by the City) of annual debt service on an issue of CFD Bonds will be required to provide such information, on an ongoing basis, as may be required for the underwriter of such bonds to satisfy the requirements imposed on it pursuant to Rule 15c2 -12 promulgated under the Securities Exchange Act of 1934.
Joint Financing Agreements/Joint Powers Authority.
The City will not participate in a Joint Powers Authority nor will it enter into a Joint Financing Agreement for a CFD with regard to a non-City initiated CFD unless there is compliance with all City policies and the City receives the largest share of facilities to be funded by the CFD Bond proceeds not factoring in the special taxes to be collected over time.
Disclosure to Prospective Property Purchasers in CFDs.
The applicant for the formation of a CFD will be required to demonstrate to the satisfaction of the City Manager (when the term City Manager is used herein it shall mean the City Manager or his designee) that there will be full disclosure of the special tax obligation for such CFD and of any and all other special taxes or assessments on individual parcels to prospective purchasers or lessees of property within such CFD, including merchant builders, residential homeowners and commercial or industrial purchasers or lessees.
Such notice must include all of the following in addition to such other provisions as may be required by the Act or the applicant may deem necessary:
(a). Provide for full disclosure of the existence of the special tax lien and any other assessment or special tax obligation applicable to the properties within the CFD (whether imposed by the City or any other public agency), including the principal amount of the special tax obligation and any other applicable assessment or special tax obligation, term of each of the assessment or special tax liens and the amount of the expected payments of the special taxes and the maximum authorized special tax.
(b). Disclose the option to prepay the special tax obligation or allow the special tax to pay for public facilities to be passed through to the purchaser of such property and the adjustment, if any, in the sales price of the homes or other property which will apply if the special tax lien is passed through. Provide the ability for the prospective purchaser to elect to exercise the option either to prepay the special tax obligation at the close of escrow or to have the special taxes
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8 included in the property taxes for the property. Such disclosure shall be placed in all sales brochures, all other on-site advertising and all purchase documents. (c). Specify in all disclosure documents the name, title, telephone number and address of a representative of the City as provided to the applicant who may be contacted by any prospective purchaser of property within the CFD for further information regarding the CFD and the special tax lien.
The applicant must agree to provide an original copy of all applicable disclosure documents to the City prior to initiating property sales.
Advance of Funds to Pay Formation and Issuance Costs.
Except for those applications for CFDs where the City is the applicant, all City and consultant costs incurred in the evaluation of applications and the proceedin gs to form a CFD and issue CFD Bonds therefore will be paid by the applicant by advance deposit with the City of moneys sufficient to pay all such costs.
Each application for the formation of a CFD shall be accompanied by an initial deposit in an amount to be determined by the City Manager to be adequate to fund the evaluation of the application and undertake the proceedings to form the CFD and issue the CFD B onds therefore (collectively, the “Formation and Issuance Costs”) . The City Manager may, in his or her sole discretion, permit an applicant to make periodic deposits to cover the Formation and Issuance Costs rather than a single lump sum deposit; provided, however, no such costs shall be incurred by the City in excess of the amount then on deposit for such purposes. If additional funds are required to pay the required Formation and Issuance C osts, the City Manager may make written demand upon the applicant for such additional funds and the applicant shall deposit such additional funds with the City within five (5) working days of the date of receipt of such demand. Upon the depletion of the funds deposited by applicant for Formation and Issuance C osts, all proceedings to form the CFD and/or issue the CFD Bonds shall be suspended until receipt by the City of such additional funds as the City Manager may demand.
The deposits shall be used by the City to pay for Formation and Issuance C osts incurred by the City incident to the evaluation of the application and the proceedings for the formation of the C FD and the issuance of the CFD B onds therefore, including, but not limited to, legal, special tax consultant, engineering, appraisal, market absorption, financial advisor, administrative and staff costs and expenses, required notifications, printing and publication costs.
The City shall refund any unexpended portion of the deposits , after payment or provision for payment of all Formation and Issuance Costs previously incurred, upon the occurrence of one of the following events:
(a). The formation of the CFD and the issuance of the CFD Bonds;
(b). The formation of the CFD or the issuance of the CFD B onds is disapproved by the City Council;
(c). The proceedings for the formation of the C FD and the issuance of the CFD B onds are abandoned at the written request of the applicant; or
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9 (d). The CFD Bonds may not be issued and sold.
Except as otherwise provided herein, the applicant shall be entitled to reimbursement of all amounts deposited with the City to pay for Formation and Issuance C osts upon the formation of the CFD and the successful issuance and sale of the CFD B onds for the CFD. Any such reimbursement shall be payable solely from the proceeds of the CFD Bonds.
The City shall not accrue or pay interest on any moneys deposited with the City.
Selection of Consultants.
The City shall select, in its sole discretion, and retain all consultants necessary for the evaluation of any application and the proceedings for the formation of a CFD and the issuance of the special tax bonds therefore, including, but not limited to, special tax consultant, bond counsel, municipal advisor, underwriter, appraiser, and market absorption consultant after consultation with the applicant and consideration of any recommendations of the applicant.
Development Rights.
Properties proposed to be included in a CFD must h ave received such discretionary land use approvals as may, in the determination of the City, be necessary to enable the City to adequately evaluate the CFD including the properties to be included and the improvements proposed to be financed. The City will issue bonds secured by the levy of special taxes within a CFD only when : (i) the properties included within such CFD have received those applicable discretionary land use approvals which would permit the development of such properties consistent with the assumptions utilized in the development of the RMA of the special taxes for such CFD and (ii) applicable environmental review has been completed.
It is the policy of the City Council in granting approval for development such as zoning, specific plan or subdivision approval to grant such approval as a part of the City's ongoing planning and land use approval process. In granting such approval, the City reserves such rights as may be permitted by law to modify such approvals in the future as the City Council determines the public health, safety, welfare and interest may require. Such approval when granted is subject to a condition that the construction of any part of the development does not, standing alone, grant any rights to complete the development of the remainder of such development. Construction of public improvements to serve undeveloped land financed through a CFD shall not vest any rights to the then existing land use approvals for the property taxed for such improvements or to any particular level, type or intensity of development or use. Applicants for a CFD must provide an express acknowledgment of this policy and shall expressly waive on their behalf and on behalf of their successors and assigns any cause of action at law or in equity including, but not limited to, taking or damaging of property, for reassessment of property or denial of any right protected by USC Section 1983 which might be applicable to the properties to be assessed.
Application Procedure for CFD’s.
Any application for the establishment of a CFD shall contain such information and be submitted in such form as the City Manager may require. In addition to such information as the City Manager may require, each application must contain:
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10 (a). Proof of authorization to submit the application on behalf of the owner of the property for which the application is submitted if the applicant is not the owner of such property; (b). Evidence satisfactory to the City Manager that the applicant represents or has the consent of the owners of not less than 67%, by area, of the property proposed to be subject to the levy of the special tax; and
(c). For any CFD proposed to finance improvements to benefit new development, a business plan for the development of the property within the proposed CFD and such additional financial information as the City Manager may deem necessary to adequately review the financial feasibility of the CFD. For any CFD proposed to finance improvements to benefit new development, the applicant must demonstrate to the satisfaction of the City Manager the ability of the owner of the property proposed to be developed to pay the special tax installments for the CFD and any other assessments, special taxes and ad valorem taxes on such property until full build out of the property.
It is the intention of the City Council that applicants for a CFD have an early opportunity to have the application reviewed by City staff for compliance with this policy. In that regard, the City Council may consider, but is not obligated, to create a CFD application review committee composed of such staff members and additional persons as the City Manager may deem necessary. The committee may meet with the applicant for the purpose of reviewing an application to form a CFD following the determination by the City Manager that the information contained in the application complies with the requirements of this policy. Following the review of such an application, the City Manager shall prepare and submit a report to the City Council containing the findings and recommendations of the committee regarding the application.
Following completion of the committee report, the City Manager shall place the application on the City Council agenda for review. After review of the application and consideration of the committee report, the City Council shall determine whether or not to approve the initiation of proceedings to form the CFD. The decision of the City Council pertaining to the application shall be final.
INDIAN WELLS CITY COUNCIL
May 16, 2024
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Proceedings to Form Proposed Community Facilities District No. 2024-1 (Public Safety)
RECOMMENDED ACTIONS:
Council ADOPTS Resolution of Intention with Respect to Formation of Proposed City of Indian Wells Community Facilities District No. 2024-1 (Public Safety); and FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15060 and 15378.
DISCUSSION:
The City of Indian Wells has identified the need to fund the continuing expansion of demand for additional municipal services associated with new development and population growth. In October 2021, the City began talks with the owner of certain properties located within the City and a Special Tax Consultant to assist in establishing Community Facilities District No. 2024-1 (Public Safety) (“CFD”) to levy a special tax to fund Public Safety serving the new development.
The City has received a petition from Summit Developments, the owner and developer (“Owner”) of Assessor’s Parcel Numbers (APNs) : 633-150-087, 633-310-004, 633-310- 013, 633-310-026, 633-310-021, 633-310-028, 633-310-035, 633-410-045, 633-410-049 and 633-410-051 (the “Property”) requesting the formation of the proposed CFD to fund additional municipal services.
It is also anticipated that additional property will annex into the CFD at a future date. The future property expected to annex into the CFD includes, but is not limited to, Leo Cook, the owner and developer of APN 633- 240-042, and BBC Esmeralda, owner of APN 633- 150-044.
APNs 633-310-014, 633-310-030, 633-310-032, 633-310-034, 633-410-036, 633-410- 041, 633-410-046, 633-410-050, 633-410-052, 633-150-071, and 633-150-077 are owned by the City of Indian Wells and are proposed to annex into the CFD. As a public agency, the City is not subject to the proposed special tax and intends to transfer
ownership of the property to be included in the CFD to third parties. The property will be subject to a special tax once ownership is transferred to third parties.
Approval of the resolution described above is the first step to establishing the proposed CFD for the Property. The resolution of intention:
establishes the name of the CFD;
approves the boundaries of the proposed CFD;
specifies the services to be financed;
specifies that special taxes will be levied on all parcels of taxable property in the proposed CFD to finance the services and
schedules a public hearing regarding the formation of the CFD.
Although the initial CFD will be established to serve property owned and under development by the Owner, several projects are already conditioned or are in the process of being conditioned to annex into the CFD once e stablished. Once established, the Council will have the option to annex any future residential projects into the CFD.
The final steps for forming the proposed CFD will occur at the City Council meeting on June 20, 2024. The Mayor and the City Council will conduct a public hearing on such day and, following the public hearing, may adopt resolutions to form the proposed CFD, call a special election of qualified voters to approve the levy of special taxes, conduct a special election, and declare election results.
At the 2023 City Council Strategic Planning Session, the Council authorized staff to move forward with the formation of the CFD to provide operational funding for public safety.
OPTIONS:
Council provides alternative direction to staff.
FISCAL IMPACT:
There is a one-time cost to the City’s general fund as the City will pay for the costs of this CFD formation proceedings . The formation costs are estimated to be approximately fifteen thousand dollars ($15,000). The costs of future CFDs, including the annexation of additional territory to this CFD, will be paid for from proceeds of deposits collected from the property owners requesting the formation of additional CFDs or annexation to this CFD. The ongoing administration costs will be paid from the levy and collection of the annual special taxes . The i nitial annual special tax rates for the CFD are proposed as follows:
Permanent Residential Property: $388 per residential unit Short-Term Rental Property: $291 per residential unit Hotel Property: $277 per hotel room
Retail Property: $0.67 per building square foot
Other Non-Residential Property: $0.34 per building square foot
Beginning July 1, 2026, an annual escalation factor will increase the maximum special tax rates each subsequent fiscal year. Long-term revenue projections will depend on the number, scale, and progress of new developments annexed into the CFD.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that t he resolution is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a “project” as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.
ATTACHMENTS:
1. Resolution of Intention for CFD No. 2024-1 (Public Safety)
2. Indian Wells CFD No. 2024-1 (Public Safety) Boundary Map
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RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIAN WELLS,
CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2024-1 (PUBLIC SAFETY) OF THE CITY OF
INDIAN WELLS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
WHEREAS, the City Council (the “City Council”) of the City of Indian Wells (the “City”) has received a written petition from the owner (the “Owner”) of certain real property within the City requesting that the City Council initiate proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”) for the purpose of financing certain public services which are necessary to meet increased demands placed upon the City as a result of the development of real property within the territory to be included in the community facilities district (the “Services”); and WHEREAS, Section 53313 of the Act provides that a community facilities district may be established to finance certain types of services, including but not limited to the Services; and WHEREAS, the Owner is the owner of more than ten percent (10%) of the property which is proposed to be included within the boundaries of the proposed community facilities district; and
WHEREAS, pursuant to such petition, the City Council desires to initiate proceedings to consider the formation of a community facilities district which shall hereinafter be referred to as Community Facilities District No. 2024-1 (Public Safety) of the City of Indian Wells, County of Riverside, State of California” (the “CFD”); and
WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of community facilities districts; and WHEREAS, the City Council has heretofore established its Local Goals and Policies (the “Policy”) for the use of the Act, and the proposed formation and Services comply with the Policy; and
WHEREAS, having received such petitions, the City Council is required to institute proceedings for the formation of the CFD by the adoption of a resolution of intention to initiate the proceedings for the establishment of the CFD, to set forth the boundaries for the CFD, to indicate the type of public services proposed to be financed by the CFD, to indicate the rate and method of apportionment of a special tax sufficient to finance the public services and the administration of the CFD, and to set a time and place for a public hearing relating to the establishment of the CFD; and
WHEREAS, portions of the land within the proposed community facilities district is currently owned by the City, a public agency. The City has stated pursuant to Section 53317(f) of the Act and to a separate certificate attached hereto as Exhibit “D” that the land is intended to be transferred to private ownership and will be subject to the special taxes on the same basis as private property in the proposed commun ity facilities district and has affirmatively waived any ATTACHMENT #1
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City of Indian Wells
Resolution No. 2024-
defense that it may have, as a result of public ownership, to any action to foreclose on such property in the event of non-payment of the special tax.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF INDIAN WELLS AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are true and correct and the City Council hereby accepts the petition of the landowners to proceed with the formation of the CFD.
Section 2. Proposed Community Facilities District . A community facilities district is proposed to be established under the provisions of the Act. The name proposed for the CFD is “Community Facilities District No. 2024-1 (Public Safety) of the City of Indian Wells, County of Riverside, State of California.”
Section 3. Description and Map of Boundaries. The boundaries of the CFD are shown on the map entitled “Map of Proposed Boundaries of Community Facilities District No. 2024-1 (Public Safety)” which is on file with the City Clerk of the City Council (the “City Clerk”), and attached hereto as Exhibit “C” and incorporated herein by this reference. Said map is hereby approved and, pursuant to Section 3110 of the California Streets and Highways Co de, the City Clerk shall, after conforming with the other requirements of Section 3111 of the California Streets and Highways Code, record the original of said map in the office of the City Clerk, and within 15 days of the adoption of this Resolution but not later than 15 days prior to the date of the public hearing set forth in Section 8 hereof shall file a copy of said boundary map with the County Clerk- Recorder of the County of Riverside.
Section 4. Types of Services; Incidental Expenses. It is the further intention of the City Council to finance the municipal services generally described in Exhibit “A” (the “Services”) attached hereto and incorporated herein by this reference and all costs associated with the establishment of the CFD, administration thereof, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the CFD.
The City Council hereby finds and determines that the public interest will not be served by allowing the property owners in the CFD to enter a contract in accordance with Section 53329.5(a) of the Act.
Section 5. Special Taxes. It is the intention of the City Council that, except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses authorized by the Act, secured by the recordation of a continuing lien against all non- exempt real property in the CFD, shall be annually levied within the boundaries of the CFD pursuant to the Rate and Method (defined below).
Particulars as to the rate and method of apportionment of the proposed special tax are set forth in the attached Exhibit “B” (the “Rate and Method”), which is incorporated herein by this reference and which sets forth in sufficient detail the rate and meth od of apportionment of the special taxes to allow each landowner or resident within the proposed CFD to clearly estimate the maximum amount that such person will have to pay.
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The special tax obligation for any parcel may not be prepaid.
Pursuant to Section 53340 of the Act, said special taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that the CFD may collect special taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act.
Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure the levy of special taxes shall attach to all non-exempt real property in the CFD, and that lien shall continue in force and effect until the collection of the special taxes ceases. The City Council hereby finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD.
Section 6. Exempt Properties . Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of special taxes. Additionally, the Rate and Method describes property exempt from the Special Tax for the CFD. If a portion of the property within the CFD becomes exempt for any reason, wholly or in part, from the levy of the Special Tax, the City Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD that is not exempt in order to yield the annual expenses o f the CFD, if any, subject to the provisions of the Rate and Method and the Act regarding limitations on maximum annual Special Tax rates and annual increases in the annual Special Tax levy.
Section 7. Necessity. It is further determined by the City Council that the Services are necessary to meet increased demands and needs placed upon the City as a result of development within the boundaries of the CFD.
Section 8. Hearing. A public hearing will be held by the City Council to consider the formation of the CFD, the proposed levy of special taxes therein, the proposed rate, method of appointment, and manner of collection of the special taxes, and all other matters as set for th in this Resolution at 1:30 p.m. on June 20, 2024 in the City Council Chamber, 44950 Eldorado Drive, Indian Wells, California 92210. At such hearing, any persons interested, including all taxpayers, property owners, and registered vot ers within the CFD, may appear and be heard, and the testimony of all interested persons or taxpayers for or against the establishment of the CFD and the levy of the special taxes, or the extent of the CFD, or the establishment of an appropriations limit therefor, or on any other matters set forth in this Resolution, will be heard and considered.
Any protests to the proposals in this Resolution may be made orally or in writing by any interested persons or taxpayers, except that any protests pertaining to the regularity or sufficiency of such proceedings shall be in writing and shall clearly set forth the irregularities and defects to which the objection is made. The City Council may waive any irregularities in the form or content of any written protest and at such public hearing may correct minor defects in such proceedings.
All written protests not presented in person by the protester at the public hearing shall be field with the City Clerk on or before the time fixed for the public hearing in order to be received and
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City of Indian Wells
Resolution No. 2024-
considered. Any written protest may be withdrawn in writing at any time before the conclusion of such public hearing.
If fifty percent (50%) or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the CFD and not exempt from the levy of special taxes, or the owners of one-half or more of the area of the land in said territory, file written protests against the formation of the CFD, and protests are not withdrawn so as to reduce the value of the protest to less than a majority, no further proceedings to create the CFD or to levy the specified special taxes shall be taken for a period of one year from the date of the decision of the City Council. If a majority of protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of Services within the CFD, those types of Services will be eliminated from the resolution of formation establishing the CFD.
The public hearing may be continued from time to time, but shall be completed within thirty (30) days, except that if the City Council finds that the complexity of the CFD or the need for public participation requires additional time, the public hearing ma y be continued from time to time for a period not to exceed six (6) months.
At the conclusion of the public hearing, the City Council may abandon the proposed formation or may, after passing upon all protests, determine to proceed with establishing the CFD.
Section 9. Notice. The City Clerk shall publish a notice of the time and place of said public hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the proposed boundaries of the CFD as prescribed by Section 53322.4 of the Act. Said notice shall be published in a newspaper of general circulation within the boundaries of the CFD at least seven (7) days before the date of the public hearing, and may be mailed, first-class postage prepaid, to each owner of land and each registered voter residing within the boundaries of the CFD at least fifteen (15) days prior to the date of the public hearing, and shall contain the information required by said Section 53322.
Section 10. Report. The City Manager is hereby directed to study the CFD, and, at or before the time of said hearing, prepare or cause to be made and then file a report or reports with the City Council containing a brief description of the Services by type which will in their opinion be required to adequately meet the needs of the new development expected to occur within the CFD and their estimates of the fair and reasonable cost of providing those Services, and the related incidental expenses to be incurred in connection therewith. Such report shall be submitted to the City Council for its review, shall be available for inspection by the public, and shall be made a part of the record of the public hearing to be held pursuant to Section 8 hereof.
Section 11. Description of Voting Procedures . The voting procedures to be followed shall be pursuant to Section 53326 of the Act and pursuant to the applicable provisions of the California Election Code. If the City Council determines at the conclusion of the public hearing to proceed with the establishment of the CFD, it expects that the propose d voting will be by the landowners voting in accordance with the Act, as the City Council is informed that during the
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City of Indian Wells
Resolution No. 2024-
ninety (90) days prior to the date set for the hearing, there have been fewer than twelve (12) registered voters residing in the proposed boundaries of the CFD. The City Council hereby requires this information to be confirmed before ordering the election.
Section 12. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on this 16th day of May 2024.
GREG SANDERS
MAYOR
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City of Indian Wells
Resolution No. 2024-
CERTIFICATION FOR RESOLUTION NO. 2024-
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTIFY that the whole number of the members of the City Council is five (5); that the above and foregoing Resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Indian Wells on the 16th day of May 2024, by the following vote:
AYES:
NOES:
ATTEST: APPROVED AS TO FORM:
__________________________________ _________________________________
ANGELICA AVILA TODD LEISHMAN FOR
CITY CLERK BEST BEST & KRIEGER LLP
CITY ATTORNEY
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A-1
EXHIBIT A
CITY OF INDIAN WELLS
COMMUNITY FACILITIES DISTRICT NO. 2032-1
(PUBLIC SAFETY)
Authorized Services
The City of Indian Wells (the “City”) is establishing Community Facilities District No. 2024-1 (Public Safety) (the “CFD”) to finance, in whole or in part, the following services (“services” shall have the meaning given to that term in the Mello-Roos Community Facilities Act of 1982 (the “Act”)) which include administration expenses and collection for reserves. All services to be funded by the CFD are to be in addition to those provided before the CFD was created, and may not supplant services already available when the CFD was created.
Authorized Services:
The types of City services to be financed by the CFD (“Services”) shall include, but are not limited to, police protection services, fire protection and suppression services, ambulance and paramedic services, maintenance of streets and roadways, maintenance and operation of street lights, parks, parkways and open space, and maintenance of public facilities, including any incidental expenses authorized by the Act, and any other miscellaneous or incidental services identified by the City necessary to provide the described Services herein.
Administrative Expenses:
In addition, the following costs will also be funded by the special taxes levied within the CFD.
1. Administrative Expenses including costs incurred to determine, levy and collect the special taxes, including compensation of City employees for administrative work performed in relation to the CFD and a proportionate amount of the City’s general administrative overhead related thereto, the fees of consultants and legal counsel, the costs of collecting installments of the special taxes upon the general tax rolls, preparation of required reports, and any other costs incurred for the administration of the CFD by the City;
2. Any amounts needed for operating reserves and capital replacement reserves; and
3. Any amounts needed to cure actual or estimated delinquencies in special taxes for the current or previous fiscal years.
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B-1
EXHIBIT B
CITY OF INDIAN WELLS
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
Rate and Method of Apportionment of Special Taxes
RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX
For the City of Indian Wells Community Facilities District No. 202 4-1 (Public Safety), County of Riverside, State of California
The Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels within the City of Indian Wells Community Facilities District No. 202 4-1 (Public Safety), (“CFD 202 4-1”), other than Assessor’s Parcels classified as Exempt Property as defined herein and collected each Fiscal Year commencing in Fiscal Year 2024-25, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD 2024-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Act” means the Mello-Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the following actual or reasonably estimated expenses related to the administration of CFD 2024-1: the costs of determining the amount of the levy of the Special Tax, the collection of Special Taxes, including the expenses of collecting delinquencies and pursuing foreclosures, the payment of a proportional share of salaries and benefits of any City employee and City overhead whose duties are directly related to the administration of CFD 2024- 1, fees and expenses for counsel, audits, costs associated with responding to public inquiries regarding CFD 2024-1, and any and all other costs incurred in connection with the administration of CFD 2024-1.
“Annual Escalation Factor” means the annual percentage increase of the All Urban Consumers Consumer Price Index (“CPI”) or three percent (3%), whichever is greater. The annual CPI used shall be for the area of Riverside-San Bernardino-Ontario, CA as determined by the Bureau of Labor Statistics for the twelve (12) months ending the preceding December 31, or such other replacement index as may be determined by the City.
“Assessor’s Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned assessor’s parcel number.
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B-2
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by assessor’s parcel number.
“Base Year” means Fiscal Year beginning July 1, 2023 and ending June 30, 2024. “Building Permit” means a permit issued for new construction of a residential dwelling or non - residential structure. For purposes of this definition, “Building Permit” shall not include permits for construction or installation of retaining walls, grading, utility improveme nts, or other such improvements not intended for human habitation or commercial activities. “Building Square Footage” or “Building Square Foot” means for Residential Property, all the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area; and for Non-Residential Property, all the square footage within the perimeter of the non-residential structure, measured from outside wall to outside wall, not including space devoted to stairwells, basement storage, required corridors, public restrooms, elevato r shafts, light courts, vehicle parking areas incidental thereto, mechanical equipment incidental to the operation of such building, and covered pedestrian circulation areas, including atriums, lobbies, plazas, patios, decks, arcades and similar areas, except such public circulation areas or portions thereof that are used solely for business purposes.
The determination of Building Square Footage shall be based on the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax for CFD 2024-1.
“CFD 2024-1” means City of Indian Wells Community Facilities District No. 2024-1 (Public Safety) established by the City Council under the Act.
“City” means the City of Indian Wells.
“City Council” means the Council of the City of Indian Wells, acting as the legislative body of CFD 2024-1.
“County” means the County of Riverside.
“Developed Property” means an Assessor’s Parcel of Taxable Property for which a Building Permit was issued on or before June 1 preceding the Fiscal Year for which the Special Tax is being levied. “Exempt Property” means all Assessor’s Parcels within CFD 2024-1 that are exempt from the Special Tax pursuant to the Act or Section F herein.
“Fiscal Year” means the period commencing on July 1 of any year and ending the following June
30. “Hotel Property” means all Assessor’s Parcels of Developed Property within CFD 2024-1 for which a Building Permit has been issued for purposes of constructing one or more non -residential buildings intended to provide accommodations, meals and other services for travelers and tourists.
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“Land Use Type” means any of the land use types listed in Table 1 below. “Maximum Special Tax” means the maximum Special Tax determined in accordance with Section C, which may be levied in any Fiscal Year on an Assessor’s Parcel of Taxable Property. “Multi-Family Residential Property” means all Assessor’s Parcels of Residential Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management.
“Municipal Services” means those authorized services that may be funded by CFD 2024-1 pursuant to the Act, as amended including but not limited to fire protection and suppression services; ambulance and paramedic services; police protection services; maintenance of streets and roadways; maintenance and operation of street lights; maintenan ce of parks, parkways and open space; and maintenance of public facilities.
“Non-Residential Property” means any Assessor’s Parcel classified as Developed Property, which is not classified as any, Residential Property, Public Property and Property Owner Association Property.
“Permanent Residential Property” means all Assessor’s Parcels of Residential Property not classified as Short-Term Rental Property.
“Property Owner Association Property” means for each Fiscal Year any property within the boundaries of CFD 2024-1 that was owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to a property owner association, including any master or sub-association, as of June 1.
“Proportionately” means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels within each Land Use Class. “Public Property” means any property that is owned by, dedicated or irrevocably dedicated to a city, the federal government, the State of California, the County, or any other public agency (each, a “Public Entity”); provided, however, that any such property is leased by such a Public Entity to a private entity and is thereby subject to taxation pursuant to Section 53340.1 of the Act, such leasehold estate shall be classified and taxed according to the use thereof. “Residential Property” means Assessor’s Parcels of Developed Property within CFD 2024-1 for which a Building Permit has been issued for purposes of constructing one or more Residential Unit(s).
“Residential Unit” means any residence in which a person or persons may live, which is not considered to be used for non-residential purposes.
“Short-Term Rental Property” means Assessor’s Parcels of Residential Property intended for rental to the general public on a short-term basis.
“Special Tax” means the special tax authorized to be levied within CFD 2024-1 pursuant to the Act, to fund the Special Tax Requirement.
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“Special Tax Requirement” means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Municipal Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish any operational reserve fund established for Municipal Services, (iv) pay incidental expenses related to the Municipal Services as authorized pursuant to the Act, (v) fund an amount equal to a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied (“Estimated Special Tax Delinquency Amount”) and (vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year necessary to fund the Specia l Tax Requirement for such Fiscal Year where such shortfall resulted from delinquencies in the payment of the Special Tax in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for such Fiscal Year. “Taxable Property” means all Assessor’s Parcels that are not exempt from the Special Tax pursuant to the Act or Section F.
“Undeveloped Property” means an Assessor’s Parcel of Taxable Property which is not classified as Developed Property.
B. CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 202 4-25, using the definitions above, each Assessor’s Parcel within CFD 2024-1 shall be classified by the CFD Administrator as Taxable Property or Exempt Property. In addition, each such Fiscal Year, each Assessor’s Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped P roperty. Commencing with Fiscal Year 2024-25 and for each subsequent Fiscal Year, all Taxable Property shall be assigned a Land Use Type and subject to the levy of the Special Tax pursuant to Section C below.
C. SPECIAL TAX RATES
1. Developed Property
Each Fiscal Year commencing in Fiscal Year 202 4-25, each Assessor’s Parcel of Developed Property shall be subject to the Special Tax.
The Maximum Special Tax for Developed Property for Fiscal Year 2024-25 is shown below in Table 1.
TABLE 1
Land Use Type Maximum
Special Tax
Permanent Residential
Property
$388 per Residential
Unit
Short-Term Rental
Property
$291 per Residential
Unit
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Hotel Property $277 per Hotel
Room
Retail Property $0.67 per Building
Square Foot
Other Non-Residential
Property
$0.34 per Building
Square Foot
Effective July 1, 2026 and each subsequent Fiscal Year following, the Maximum Special Tax rates shall be increased from the Maximum Special Tax rate in effect for the prior Fiscal Year by the Annual Escalation Factor.
2. Undeveloped Property
Each Fiscal Year commencing in Fiscal Year 2024-25, each Assessor’s Parcel classified as Undeveloped Property shall be exempt from the levy of the Special Tax.
3. Exempt Property
No Special Tax shall be levied on Exempt Property as defined in Section F.
For each Fiscal Year, if the use or ownership of an Assessor’s Parcel or Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in Section F, therefore making such Assessor’s Parcel no longer eligible to be classified as Exempt Property, such Assessor’s Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the provisions of Section C.
D. METHOD OF APPORTIONMENT OF SPECIAL TAX
Commencing in Fiscal Year 2024-25 and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax on all Taxable Property of CFD 2024-1 until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property within CFD 2024-1 up to 100% of the Maximum Special Tax to satisfy the Special Tax Requirement.
Notwithstanding any provision of this Section D to the contrary, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property that is classified as Residential Property be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default in the payment of the Special Tax by the owner of any other Assessor’s Parcel.
E. PREPAYMENT OF SPECIAL TAX
The Special Tax shall be levied in perpetuity for the purpose of financing ongoing authorized services and therefore may not be prepaid.
F. EXEMPTIONS
The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, including but not limited to property designated for
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open space, trails, pathways, parks or park and recreation related facilities, and (iv) property reasonably designated by the City or CFD Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors.
G. APPEALS
Any property owner claiming that the amounts or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax. The CFD Ad ministrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the decision of the CFD Administrator requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s) to compensate for the overpayment of the Special Tax.
H. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the Special Tax may be billed and collected at a different time or in a different manner if necessary to meet the financial obligations of CFD 2024-1.
I. DURATION OF TAX
The Special Tax shall be levied in perpetuity to fund the Special Tax Requirement unless such tax is no longer required as determined by the City Council.
J. INTERPRETATION
The City may interpret, clarify, and revise this Rate and Method to correct any inconsistency, vagueness, or ambiguity, by resolution and/or ordinance, that does not create a material adverse effect on the levy and collection of the Special Tax.
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EXHIBIT C
CITY OF INDIAN WELLS
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
Proposed Boundary Map
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EXHIBIT D
CITY OF INDIAN WELLS
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
REPRESENTATION AS TO OWNERSHIP OF PROPERTY
AND INTENDED USE BY THE CITY OF INDIAN WELLS
The undersigned states and certifies as follows:
1. That they are the [City Manager/Mayor] of the City of Indian Wells and as such is authorized to sign this certificate.
2. That the City of Indian Wells is owner of the property described in Resolution No. __________ of the City of Indian Wells in Exhibit C thereto (the “Property”).
3. That the City of Indian Wells is a “landowner” within the provisions of Section 53317(f), that all of the Property is intended to be transferred to private ownership for development and as such the Property will be subject to the special taxes on the same basis as private property within the proposed community facilities district.
4. The City of Indian Wells hereby affirmatively waives any defense based on the fact of public ownership to any action to foreclose on the property in the event of non-payment of the special tax.
THE CITY OF INDIAN WELLS
By:
Name:
Title:
MAP OF PROPOSED BOUNDARIES OF
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
C I T Y O F I N D I A N W E L L S C O U N T Y O F R I V E R S I D E
S T A T E O F C A L I F O R N I A
S H E E T 1 O F 2
F
Legend
P r o p o s e d B o u n d a r i e s C i t y o f I n d i a n W e l l s B o u n d a r y HWY 111
F R E D W A R I N G D R
F I L E D I N T H E O F F I C E O F T H E C I T Y C L E R K T H I S _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ _ , 2 0 _ _ _ _ . I H E R E B Y C E R T I F Y T H A T T H E W I T H I N M A P S H O W I N G P R O P O S E D B O U N D A R I E S O F C O M M U N I T Y F A C I L I T I E S D I S T R I C T N O . 2 0 2 4 - 1 ( P U B L I C S A F E T Y ) , C I T Y O F I N D I A N W E L L S , C O U N T Y O F R I V E R S I D E , S T A T E O F C A L I F O R N I A , W A S A P P R O V E D B Y T H E C I T Y C O U N C I L O F T H E C I T Y O F I N D I A N W E L L S , A T A R E G U L A R M E E T I N G T H E R E O F , H E L D O N T H E _ _ _ _ _ _ _ _ _ _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 _ _ _ _ , B Y I T S R E S O L U T I O N N O . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ C I T Y C L E R K
C I T Y O F I N D I A N W E L L S F I L E D T H I S _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 _ _ _ _ _ , A T T H E H O U R O F _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ O C L O C K _ _ _ _ _ _ _ _ , I N B O O K _ _ _ _ _ _ _ _ _ _ O F M A P S O F A S S E S S M E N T A N D C O M M U N I T Y F A C I L I T I E S D I S T R I C T A T P A G E ( S ) _ _ _ _ _ _ _ _ _ , I N T H E O F F I C E O F T H E C O U N T Y R E C O R D E R , C O U N T Y O F R I V E R S I D E , S T A T E O F C A L I F O R N I A . P E T E R A L D A N A , A S S E S S O R - C O U N T Y C L E R K - R E C O R D E R _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ B Y D E P U T Y
C O U N T Y R E C O R D E R
C O U N T Y O F R I V E R S I D E
S T A T E O F C A L I F O R N I A
T H E L I N E S A N D D I M M E N S I O N S O F E A C H L O T O R P A R C E L S H O W N O N T H I S D I A G R A M S H A L L B E T H O S E L I N E S A N D D I M E N S I O N S A S S H O W N O N T H E R I V E R S I D E C O U N T Y A S S E S S O R S M A P S F O R T H O S E P A R C E L S L I S T E D . T H E R I V E R S I D E C O U N T Y A S S E S S O R S M A P S S H A L L G O V E R N F O R A L L D E T A I L S C O N C E R N I N G T H E L I N E S A N D D I M M E N S I O N S O F S U C H L O T S O R P A R C E L S . SITE
ATTACHMENT #2
UV2
UV7
UV5
UV6
UV1
UV10
UV8
UV3
UV9
UV4
MAP OF PROPOSED BOUNDARIES OF
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
CITY OF INDIAN WELLS
COUNTY OF RIVERSIDE
STATE OF CALIFORNIA
SHEET 2 OF 2
F
HWY 111
MAP REFERENCE
NUMBER
ASSESSOR'S PARCEL
NUMBER
1 633-150-087
2 633-310-004
3 633-310-013
4 633-310-021
5 633-310-026
6 633-310-028
7 633-310-035
8 633-410-045
9 633-410-049
10 633-410-051
EXISTING CFD TERRITORY
INDIAN WELLS CITY COUNCIL
May 16, 2024
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Proceedings to Establish Future Annexation to Proposed Community Facilities District No. 2024-1 (Public Safety) RECOMMENDED ACTIONS:
Council ADOPTS Resolution Intention to Annex Territory in the Future to Community Facilities District No. 2024-1 (Public Safety) of the City of Indian Wells, County of Riverside, State of California; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15060 and 15378.
DISCUSSION:
Prior to this agenda item, the City Council considered a resolution to establish the City of Indian Wells Community Facilities District No. 2024-1 (Public Safety) (“CFD”) to address the need to provide funding for the continued demand for additional municipal services associated with new development and population growth. The proposed CFD is to assist in funding public safety cost increases related to future development throughout the community. Concurrent with establishing Community Facilities District No. 2024-1, the City wishes to develop a mechanism to annex additional property to the CFD as those projects begin development.
The City is in the process of establishing the CFD for the initial property owner Summit Developments, the owner and developer (“Owner”) of Assessor’s Parcel Numbers (APNs):
633-150-087, 633-310-004, 633-310-013, 633-310-026, 633-310-021, 633-310-028, 633-310-035, 633-410-045, 633-410-049 and 633- 410-051 (the “Formation Property”) which requested the formation of the proposed CFD to fund additional municipal services.
It is anticipated that additional property will be annexed into the CFD at a future date.
Adopting the attached resolution begins the process of the City annexing the additional properties as needed. Future property anticipated to annex into the CFD includes, but is not limited to, Leo Cook, the owner, and developer of APN 633- 240-042, and BBC Esmeralda, owner of APN 633-150-044 (the “Future Annexation Property”). Additionally, APNs 633-310-014, 633-310-030, 633-310-032, 633-310-034, 633- 410-036, 633-410-
041, 633 -410-046, 633 -410-050, 633 -410-052, 633 -150-071, and 633 -150-077 are owned by the City of Indian Wells and are proposed to annex into the CFD at a later date.
As a public age ncy, the City is not subject to the proposed special tax and intends to transfer ownership of the property to be included in the CFD to third parties. The property will be subject to a special tax once ownership is transferred to third parties and the annexation into the CFD is completed.
Approval of the resolution described above is the first step to establishing the proposed future annexation to the CFD for all Future Annexation Property. Establishing the ability to annex Future Annexation Property this evening will reduce the administrative burden on the City, City Counsel, and property owners wishing to develop in the City. The administrative burden is reduced because the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") which usually requires two meetings of the City Council (e.g. , a resolution of intention meeting and then a second meeting to hold the public hearing) may be reduced to one meet ing pursuant to Section 53339 of the Act. The City can eliminate the need to hold the public hearing upon adopting the future annexation procedures. Instead, with the unanimous consent of the owner or owners of any parcel proposed for annexation , the City can adopt a single resolution approving each annexation.
The final steps for establishing the future annexation to the CFD will occur at the City Council meeting on June 20, 2024. The Mayor and the City Council will conduct a public hearing on such day and, following the public hearing may adopt a resolution to form the future annexation area of the CFD.
OPTIONS:
The Council provides alternative direction to staff.
FISCAL IMPACT:
There is no fiscal impact on the City’s general fund as the costs of the future annexation proceedings are paid for from proceeds of deposits collected from the Owner to form the CFD. The future costs of annexing property to the CFD and the ongoing administration costs will be paid from property owner deposits and the levy and collection of the annual special taxes collected from future annexation property.
A special tax proposed to pay for the services to be provided to the territory proposed for annexation in the future shall be equal to any special tax levied to pay for the same services in the Formation Property , creating the CFD. However, if the actual cost of providing the services to property within the proposed future annexation a rea is higher or lower than the cost of providing such services within the existing CFD, a higher or lower special tax may be levied within such territory to the extent the actual cost of
providing the services in the annexation territory is higher or lower than the costs of providing those services to the Formation Property. The special tax rates to be imposed in each annexation area are subject to unanimous approval and election of the owner or owners of such property . In any such circumstance, the rate and method of apportionment may be revised to reflect the higher or lower special tax, as applicable.
However, the maximum special tax rate in the existing community facilities district may not be increased as a result of any annexation. The existing special tax rates are proposed as follows:
Permanent Residential Property: $388 per residential unit Short-Term Rental Property: $291 per residential unit Hotel Property: $277 per hotel room
Retail Property: $0.67 per building square foot
Other Non-Residential Property: $0.34 per building square foot
An annual escalation factor will increase the maximum special tax rates for each fiscal year. Long-term revenue projections will depend on the number, scale, and progress of new developments annexed into the CFD.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regul ations. The City, acting as the Lead Agency, determined that the resolution is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a “project” as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.
ATTACHMENTS:
1. Resolution of Intention Declaring Future Annexation to CFD No. 2024-1 (Public Safety)
2. Indian Wells CFD No. 2024-1 (Public Safety) Future Annexation Boundary Map
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RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIAN WELLS,
CALIFORNIA, DECLARING INTENTION TO ANNEX TERRITORY IN THE FUTURE TO COMMUNITY FACILITIES DISTRICT NO. 2024-1 (PUBLIC
SAFETY) OF THE CITY OF INDIAN WELLS , COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA
WHEREAS, the City Council (the “City Council”) of the City of Indian Wells (the "City") desires to provide the authorization to annex territory in the future to a community facilities district pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), and specifically Article 3.5 thereof. The community facilities district has been designated as Community Facilities District No. 2024-01 (Public Safety) of the City of Indian Wells, County of Riverside, State of California (the "CFD"); and WHEREAS, it is determined to be within the public interest and convenience to establish a procedure to allow and provide for future annexations to the CFD and further to specify the amount of special tax that would be levied and set forth the terms and conditions for certification of any annexation in the future; and
WHEREAS, the territory proposed to be annexed in the future shall be known and designated as Future Annexation Area Communi ty Facilities District No. 202 4-01 (the "Future Annexation Area"), and a map designated as "Future Annexation Area to Community Facilities District No. 2024-01 (Public Safety), City of Indian Wells, County of Riverside, State of California" showing the territory proposed to be annexed in the future is on file in the Office of the City Clerk and shall be kept with the transcript of these proceedings and attached hereto as Exhibit “C” and incorporated by this reference.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF INDIAN WELLS AS FOLLOWS:
Section 1. Recitals. The above recitals are all true and correct and incorporated herein by this reference.
Section 2. Authorization. These proceedings for future annexations are authorized and initiated by this legislative body pursuant to the authorization of the Act and specifically Section 53339.2 of the Government Code of the State of California.
Section 3. Public Convenience and Necessity . This City Council hereby determines that the public convenience and necessity requires a procedure to allow and authorize territory to be annexed in the future to the CFD in order to finance the costs and expenses for the authorized services.
Section 4. Boundaries of the CFD and Territory Proposed to be Annexed in the Future.
A general description of the territory included in the CFD is hereinafter described as follows:
All that property and territory as previously included within the CFD, as said property was shown on a map designated as " Map of ATTACHMENT #1
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Resolution No. 2024-__
B-2
Proposed Boundaries of Community Facilities District No. 2024-01 (Public Safety), City of Indian Wells, County of Riverside, State of California," a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection.
A description of the boundaries and territory proposed to be annexed in the future is as follows:
All that property and territory proposed to be annexed in the future to the CFD, as said property is shown on the map designated as “Future Annexation Area to Community Facilities District No. 2024- 01 (Public Safety), City of Indian Wells, County of Riverside, State of California,” a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection.
Future annexation proceedings may only be completed with the unanimous consent of the owner or owners of any parcel proposed for annexation.
Section 5. Name of the CFD and Future Annexation Area . The name of the CFD is "Community Facilities District No. 2024-01 (Public Safety) of the City of Indian Wells, County of Riverside, State of California" and the designation for the Future Annexation Area shall be Future Annexation Area, Community Facilities District No. 2024-01 (Public Safety).
Section 6. Authorized Services. The types of services to be financed from the levy of the special tax in the CFD, including the Future Annexation Area, are those described in Exhibit “A” attached hereto which is incorporated herein by this reference ("Authorized Services").
The Authorized Services to be financed by the levy of special taxes to be levied on specific territory within the Future Annexation Area to be annexed to the CFD may include some or all of such Authorized Services or may include alternatives to the Authorized Services.
The Authorized Services shall to the maximum extent practicable, taking into account budgetary and operational demands of the City, be provided in common within the CFD and the Future Annexation Area.
The City Council finds that the Authorized Services described in this Section 6 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the CFD and the Future Annexation Area.
Section 7. Special Tax. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to finance the Authorized Services (the "Special Tax") to be provided in the territory of the Future Annexation Area upon the annexation of such territory to the CFD and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real property in the Future Annexation Area that annexes to the CFD, will be levied annually within the boundaries of the territory within the Future Annexation Area upon the annexation of such territory to the CFD. For further particulars as to the rates and method of apportionment of the proposed Special Tax, reference is made to the attached and in corporated Exhibit “B” (the "Rate and Method"), which sets forth in sufficient
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Resolution No. 2024-__
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detail the rate and method of apportionment of the Special Tax to allow each landowner or resident within the territory in proposed Future Annexation Area to clearly estimate the maximum amount of the Special Tax that such person will have to pay for the Authorized Services upon the annexation of such territory to the CFD. The Special Tax may not be prepaid.
Notwithstanding the foregoing, if the actual cost of providing Authorized Services to territory within any territory within the proposed Future Annexation Area is higher or lower than the cost of providing such services within the existing CFD, a higher or lower special tax may be levied within such territory , to the extent the actual cost of providing the services in the annexation territory is higher or lower than the costs of providing those services in the existing district, subject to the unanimous approval and election of the owner or owners of such territory.
In any such circumstance, the Rate and Method may be revised to reflect the higher or lower special tax, as applicable. The maximum special tax rate in the existing community facilities district may not be increased as a result of any annexation proceeding.
The Special Tax herein authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes or in such other manner as this City Council or its designee shall determine, including direct billing of the affected property o wners. Such Special Tax shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any Special Tax that may not be collected on the County tax roll shall be collected through a direct billing procedure by the City.
Pursuant to Government Code Section 53340 and except as provided in Government Code Section 53317.3, properties of entities of the state, federal, and local governments shall be exempt from the levy of the Special Tax.
Section 8. Effective Date of Future Annexation. Annexation of territory in the future shall be effective upon the unanimous approval and election of the owner or owners of any such parcel authorizing the levy of the Special Tax upon such parcel following the annexation of such parcel to the CFD, and no further public hearings or additional proceedings will be required to accomplish such annexation.
Section 9. Public Hearing. NOTICE IS GIVEN THAT ON JUNE 20, 2024, at 1:30 PM, IN THE REGULAR MEET ING PLACE OF THE CITY COUNCIL BEING 44950 ELDORADO DRIVE , INDIAN WELLS, CALIFORNIA 92210 OR VIA TELECONFERENCE AS MAY BE DIRECTED BY THE CITY DUE TO COVID-19 SOCIAL DISTANCING GUIDELINES, A PUBLIC HEARING WILL BE HELD
WHERE THIS CITY COUNCIL WILL CONSIDER THE ANNEXATION OF CERTAIN TERRITORY IN
THE FUTURE TO THE CFD, THE PROPOSED RATE AND METHOD OF APPORTIONMENT OF THE
SPECIAL TAX TO BE LEVIED WITHIN SAID PROPOSED FUTURE ANNEXATION AREA AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. ANY INTERESTED
PERSONS MAY APPEAR AND BE HEARD, AND WRITTEN PROTESTS SHALL BE FILED ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING.
Section 10. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication of a Notice of Public Hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Gov ernment
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City of Indian Wells
Resolution No. 2024-__
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Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing.
Section 11. Effective Date. This resolution shall become effective upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on this 16th day of May 2024.
GREG SANDERS
MAYOR
CERTIFICATION FOR RESOLUTION NO. 2024-
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTIFY that the whole number of the members of the City Council is five (5); that the above and foregoing Resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Indian Wells on the 16th day of May 2024, by the following vote:
AYES:
NOES:
ATTEST: APPROVED AS TO FORM:
______________________________________ ____________________________________
ANGELICA AVILA TODD LEISHMAN FOR
CITY CLERK BEST BEST & KRIEGER LLP
CITY ATTORNEY
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City of Indian Wells
Resolution No. 2024-__
B-5
EXHIBIT “A”
CITY OF INDIAN WELLS
COMMUNITY FACILITIES DISTRICT NO.
(PUBLIC SAFETY)
Authorized Services
The City of Indian Wells (the “City”) is establishing Community Facilities District No. 2024-1 (Public Safety) (the “CFD”) to finance, in whole or in part, the following services (“services” shall have the meaning given to that term in the Mello -Roos Community Facilities Act of 1982 (the “Act”)) which include administration expenses and collection for reserves. All services to be funded by the CFD are to be in addition to those provided before the CFD was created, and may not supplant services already available when the CFD was created.
Authorized Services:
The types of City services to be financed by the CFD (“Services”) shall include, but are not limited to, police protection services, fire protection and suppression services, ambulance and paramedic services, maintenance of streets and roadways, maintenance and operation of street lights, parks, parkways and open space, and maintenance of public facilities, including any incidental expenses authorized by the Act , and any other miscellaneous or incidental services identified by the City necessary to provide the described Services herein.
Administrative Expenses:
In addition, the following costs will also be funded by the special taxes levied within the CFD.
1. Administrative Expenses including costs incurred to determine, levy and collect the special taxes, including compensation of City employees for administrative work performed in relation to the CFD and a proportionate amount of the City’s general administrative overhead related thereto, the fees of consultants and legal counsel, the costs of collecting installments of the special taxes upon the general tax rolls, preparation of required reports, and any other costs incurred for the administration of the CFD by the City;
2. Any amounts needed for operating reserves and capital replacement reserves; and
3. Any amounts needed to cure actual or estimated delinquencies in special taxes for the current or previous fiscal years.
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EXHIBIT “B”
CITY OF INDIAN WELLS
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
Rate and Method of Apportionment of Special Taxes
RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX
For the City of Indian Wells Community Facilities District No. 2024-1 (Public Safety), County of Riverside, State of California
The Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels within the City of Indian Wells Community Facilities District No. 2024-1 (Public Safety), (“CFD 2024-1”), other than Assessor’s Parcels classified as Exempt Property as defined herein and collected each Fiscal Year commencing in Fiscal Year 2024-25, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD 2024-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Act” means the Mello-Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the following actual or reasonably estimated expenses related to the administration of CFD 2024-1: the costs of determining the amount of the levy of the Special Tax, the collection of Special Taxes, including the expenses of collecting delinquencies and pursuing foreclosures, the payment of a proportional share of salaries and benefits of any City employee and City overhead whose duties are directly related to the administration of CFD 2024- 1, fees and expenses for counsel, audits, costs associated with responding to public inquiries regarding CFD 2024-1, and any and all other costs incurred in connection with the administration of CFD 2024-1.
“Annual Escalation Factor” means the annual percentage increase of the All Urban Consumers Consumer Price Index (“CPI”) or three percent (3%), whichever is greater. The annual CPI used shall be for the area of Riverside-San Bernardino-Ontario, CA as determined by the Bureau of Labor Statistics for the twelve (12) months ending the preceding December 31, or such other replacement index as may be determined by the City.
“Assessor’s Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned assessor’s parcel number.
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“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by assessor’s parcel number.
“Base Year” means Fiscal Year beginning July 1, 2024 and ending June 30, 2025. “Building Permit” means a permit issued for new construction of a residential dwelling or non - residential structure. For purposes of this definition, “Building Permit” shall not include permits for construction or installation of retaining walls, grading, utility improveme nts, or other such improvements not intended for human habitation or commercial activities. “Building Square Footage” or “Building Square Foot” means for Residential Property, all the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area; and for Non-Residential Property, all the square footage within the perimeter of the non-residential structure, measured from outside wall to outside wall, not including space devoted to stairwells, basement storage, required corridors, public restrooms, elevato r shafts, light courts, vehicle parking areas incidental thereto, mechanical equipment incidental to the operation of such building, and covered pedestrian circulation areas, including atriums, lobbies, plazas, patios, decks, arcades and similar areas, except such public circulation areas or portions thereof that are used solely for business purposes.
The determination of Building Square Footage shall be based on the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax for CFD 2024-1.
“CFD 2024-1” means City of Indian Wells Community Facilities District No. 2024-1 (Public Safety) established by the City Council under the Act.
“City” means the City of Indian Wells.
“City Council” means the Council of the City of Indian Wells, acting as the legislative body of CFD 2024-1.
“County” means the County of Riverside.
“Developed Property” means an Assessor’s Parcel of Taxable Property for which a Building Permit was issued on or before June 1 preceding the Fiscal Year for which the Special Tax is being levied. “Exempt Property” means all Assessor’s Parcels within CFD 2024-1 that are exempt from the Special Tax pursuant to the Act or Section F herein.
“Fiscal Year” means the period commencing on July 1 of any year and ending the following June
30. “Hotel Property” means all Assessor’s Parcels of Developed Property within CFD 2024-1 for which a Building Permit has been issued for purposes of constructing one or more non -residential buildings intended to provide accommodations, meals and other services for travelers and tourists.
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“Land Use Type” means any of the land use types listed in Table 1 below. “Maximum Special Tax” means the maximum Special Tax determined in accordance with Section C, which may be levied in any Fiscal Year on an Assessor’s Parcel of Taxable Property. “Multi-Family Residential Property” means all Assessor’s Parcels of Residential Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management.
“Municipal Services” means those authorized services that may be funded by CFD 2024-1 pursuant to the Act, as amended including but not limited to fire protection and suppression services; ambulance and paramedic services; police protection services; maintenance of streets and roadways; maintenance and operation of street lights; maintenan ce of parks, parkways and open space; and maintenance of public facilities.
“Non-Residential Property” means any Assessor’s Parcel classified as Developed Property, which is not classified as any, Residential Property, Public Property and Property Owner Association Property.
“Permanent Residential Property” means all Assessor’s Parcels of Residential Property not classified as Short-Term Rental Property.
“Property Owner Association Property” means for each Fiscal Year any property within the boundaries of CFD 2024-1 that was owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to a property owner association, including any master or sub-association, as of June 1.
“Proportionately” means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels within each Land Use Class. “Public Property” means any property that is owned by, dedicated or irrevocably dedicated to a city, the federal government, the State of California, the County, or any other public agency (each, a “Public Entity”); provided, however, that any such property is leased by such a Public Entity to a private entity and is thereby subject to taxation pursuant to Section 53340.1 of the Act, such leasehold estate shall be classified and taxed according to the use thereof. “Residential Property” means Assessor’s Parcels of Developed Property within CFD 2024-1 for which a Building Permit has been issued for purposes of constructing one or more Residential Unit(s).
“Residential Unit” means any residence in which a person or persons may live, which is not considered to be used for non-residential purposes.
“Short-Term Rental Property” means Assessor’s Parcels of Residential Property intended for rental to the general public on a short-term basis.
“Special Tax” means the special tax authorized to be levied within CFD 2024-1 pursuant to the Act, to fund the Special Tax Requirement.
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“Special Tax Requirement” means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Municipal Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish any operational reserve fund established for Municipal Services, (iv) pay incidental expenses related to the Municipal Services as authorized pursuant to the Act, (v) fund an amount equal to a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied (“Estimated Special Tax Delinquency Amount”) and (vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year necessary to fund the Specia l Tax Requirement for such Fiscal Year where such shortfall resulted from delinquencies in the payment of the Special Tax in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for such Fiscal Year. “Taxable Property” means all Assessor’s Parcels that are not exempt from the Special Tax pursuant to the Act or Section F.
“Undeveloped Property” means an Assessor’s Parcel of Taxable Property which is not classified as Developed Property.
B. CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2024-25, using the definitions above, each Assessor’s Parcel within CFD 2024-1 shall be classified by the CFD Administrator as Taxable Property or Exempt Property. In addition, each such Fiscal Year, each Assessor’s Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped P roperty. Commencing with Fiscal Year 2024-25 and for each subsequent Fiscal Year, all Taxable Property shall be assigned a Land Use Type and subject to the levy of the Special Tax pursuant to Section C below.
C. SPECIAL TAX RATES
1. Developed Property
Each Fiscal Year commencing in Fiscal Year 2024-25, each Assessor’s Parcel of Developed Property shall be subject to the Special Tax.
The Maximum Special Tax for Developed Property for Fiscal Year 2024-25 is shown below in Table 1.
TABLE 1
Land Use Type Maximum
Special Tax
Permanent Residential
Property
$388 per Residential
Unit
Short-Term Rental
Property
$291 per Residential
Unit
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B-5
Hotel Property $277 per Hotel
Room
Retail Property $0.67 per Building
Square Foot
Other Non-Residential
Property
$0.34 per Building
Square Foot
Effective July 1, 2026 and each subsequent Fiscal Year following, the Maximum Special Tax rates shall be increased from the Maximum Special Tax rate in effect for the prior Fiscal Year by the Annual Escalation Factor.
2. Undeveloped Property
Each Fiscal Year commencing in Fiscal Year 2024-25, each Assessor’s Parcel classified as Undeveloped Property shall be exempt from the levy of the Special Tax.
3. Exempt Property
No Special Tax shall be levied on Exempt Property as defined in Section F.
For each Fiscal Year, if the use or ownership of an Assessor’s Parcel or Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in Section F, therefore making such Assessor’s Parcel no longer eligible to be classified as Exempt Property, such Assessor’s Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the provisions of Section C.
D. METHOD OF APPORTIONMENT OF SPECIAL TAX
Commencing in Fiscal Year 2024-25 and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax on all Taxable Property of CFD 2024-1 until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property within CFD 2024-1 up to 100% of the Maximum Special Tax to satisfy the Special Tax Requirement.
Notwithstanding any provision of this Section D to the contrary, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property that is classified as Residential Property be increased by more than ten percent (10%) p er Fiscal Year as a consequence of delinquency or default in the payment of the Special Tax by the owner of any other Assessor’s Parcel.
E. PREPAYMENT OF SPECIAL TAX
The Special Tax shall be levied in perpetuity for the purpose of financing ongoing authorized services and therefore may not be prepaid.
F. EXEMPTIONS
The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the e asement, including but not limited to property designated for
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open space, trails, pathways, parks or park and recreation related facilities, and (iv) property reasonably designated by the City or CFD Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors.
G. APPEALS
Any property owner claiming that the amounts or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax. The CFD Ad ministrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the decision of the CFD Administrator requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s) to compensate for the overpayment of the Special Tax.
H. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the Special Tax may be billed and collected at a different time or in a different manner if necessary to meet the financial obligations of CFD 2024-1.
I. DURATION OF TAX
The Special Tax shall be levied in perpetuity to fund the Special Tax Requirement unless such tax is no longer required as determined by the City Council.
J. INTERPRETATION
The City may interpret, clarify, and revise this Rate and Method to correct any inconsistency, vagueness, or ambiguity, by resolution and/or ordinance, that does not create a material adverse effect on the levy and collection of the Special Tax.
26529.00060\42240459.1
EXHIBIT “C”
CITY OF INDIAN WELLS
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
Proposed Future Annexation Boundary Map
C I T Y O F I N D I A N W E L L S C O U N T Y O F R I V E R S I D E
S T A T E O F C A L I F O R N I A
S H E E T 1 O F 5
F
Legend
E x i s t i n g C F D T e r r i t o r y F u t u r e A n n e x a t i o n A r e a t o C o m m u n i t y F a c i l i t i e s D i s t r i c t N o . 2 0 2 4 - 1 ( P u b l i c S a f e t y ) C i t y o f I n d i a n W e l l s B o u n d a r y HWY 111
F R E D W A R I N G D R
F I L E D I N T H E O F F I C E O F T H E C I T Y C L E R K T H I S _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ _ , 2 0 _ _ _ _ . I H E R E B Y C E R T I F Y T H A T T H E W I T H I N M A P S H O W I N G P R O P O S E D B O U N D A R I E S O F T H E F U T U R E A N N E X A T I O N A R E A O F C O M M U N I T Y F A C I L I T I E S D I S T R I C T N O . 2 0 2 4 - 1 ( P U B L I C S A F E T Y ) , C I T Y O F I N D I A N W E L L S , C O U N T Y O F R I V E R S I D E , S T A T E O F C A L I F O R N I A , W A S A P P R O V E D B Y T H E C I T Y C O U N C I L O F T H E C I T Y O F I N D I A N W E L L S , A T A R E G U L A R M E E T I N G T H E R E O F , H E L D O N T H E _ _ _ _ _ _ _ _ _ _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 _ _ _ _ , B Y I T S R E S O L U T I O N N O . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ C I T Y C L E R K
C I T Y O F I N D I A N W E L L S F I L E D T H I S _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A Y O F _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , 2 0 _ _ _ _ _ , A T T H E H O U R O F _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ O C L O C K _ _ _ _ _ _ _ _ , I N B O O K _ _ _ _ _ _ _ _ _ _ O F M A P S O F A S S E S S M E N T A N D C O M M U N I T Y F A C I L I T I E S D I S T R I C T A T P A G E ( S ) _ _ _ _ _ _ _ _ _ , I N T H E O F F I C E O F T H E C O U N T Y R E C O R D E R , C O U N T Y O F R I V E R S I D E , S T A T E O F C A L I F O R N I A . P E T E R A L D A N A , A S S E S S O R - C O U N T Y C L E R K - R E C O R D E R _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ B Y D E P U T Y
C O U N T Y R E C O R D E R
C O U N T Y O F R I V E R S I D E
S T A T E O F C A L I F O R N I A
T H E L I N E S A N D D I M M E N S I O N S O F E A C H L O T O R P A R C E L S H O W N O N T H I S D I A G R A M S H A L L B E T H O S E L I N E S A N D D I M E N S I O N S A S S H O W N O N T H E R I V E R S I D E C O U N T Y A S S E S S O R S M A P S F O R T H O S E P A R C E L S L I S T E D . T H E R I V E R S I D E C O U N T Y A S S E S S O R S M A P S S H A L L G O V E R N F O R A L L D E T A I L S C O N C E R N I N G T H E L I N E S A N D D I M M E N S I O N S O F S U C H L O T S O R P A R C E L S .
FUTURE ANNEXATION AREA TO
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
ATTACHMENT #2
UV21
UV18
UV17
UV20
UV19
T2
T5T1
T3
FUTURE ANNEXATION AREA TO
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
CITY OF INDIAN WELLS
COUNTY OF RIVERSIDE
STATE OF CALIFORNIA
SHEET 2 OF 5
F
Legend
Existing CFD Territory
Future Annexation Area
Map Reference Number
City of Indian Wells Boundary
HWY 111
T30
T29
T23
T33
T31
T24
T22
T32
T7
T6
T10
T8
T9
T4
FUTURE ANNEXATION AREA TO
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
CITY OF INDIAN WELLS
COUNTY OF RIVERSIDE
STATE OF CALIFORNIA
SHEET 3 OF 5
F
Legend
Existing CFD Territory
Future Annexation Area
Map Reference Number
City of Indian Wells Boundary
HWY 111
T14
T25
T12
T15
T28
T26
T16
T27
T13T11
FUTURE ANNEXATION AREA TO
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
CITY OF INDIAN WELLS
COUNTY OF RIVERSIDE
STATE OF CALIFORNIA
SHEET 4 OF 5
F
HWY 111
Legend
Existing CFD Territory
Future Annexation Area
Map Reference Number
City of Indian Wells Boundary
T34
FUTURE ANNEXATION AREA TO
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC SAFETY)
CITY OF INDIAN WELLS
COUNTY OF RIVERSIDE
STATE OF CALIFORNIA
SHEET 5 OF 5
F
HWY 111
Rancho Palmeras
Legend
Existing CFD Territory
Future Annexation Area
Map Reference Number
City of Indian Wells Boundary
MAP
REFERENCE
NUMBER
ASSESSOR'S
PARCEL
NUMBER SHEET
1 633-150-087 2
2 633-310-004 2
3 633-310-013 2
4 633-310-021 3
5 633-310-026 2
6 633-310-028 3
7 633-310-035 3
8 633-410-045 3
9 633-410-049 3
10 633-410-051 3
MAP
REFERENCE
NUMBER
ASSESSOR'S
PARCEL
NUMBER SHEET
11 604-640-002 4
12 604-640-003 4
13 604-640-004 4
14 604-640-005 4
15 604-640-015 4
16 604-640-016 4
17 633-150-044 2
18 633-150-071 2
19 633-150-077 2
20 633-240-042 2
21 633-310-014 2
22 633-310-030 3
23 633-310-032 3
24 633-310-034 3
25 633-360-002 4
26 633-360-023 4
27 633-360-024 4
28 633-360-030 4
29 633-410-036 3
30 633-410-041 3
31 633-410-046 3
32 633-410-050 3
33 633-410-052 3
34 633-890-026 5
EXISTING CFD TERRITORY
FUTURE ANNEXATION AREA
1 INDIAN WELLS CITY COUNCIL
May 16, 2024
To: City Council
From: Community Development Department
Prepared by: Luis Rubalcava, Planner
Subject: Resolution Approving Tentative Parcel Map No. 38976 to Subdivide an Existing 1. 06 Acre Residential Lot into Three Located within The Vintage Club at 74465 Palo Verde Drive (APN: 625-530-080)
RECOMMENDED ACTIONS:
Council FINDS the project exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15315, Minor Land Divisions; and ADOPTS Resolution approving Tentative Parcel Map No. 38976 for the subdivision of an existing 1.06-acre residential lot into three separate residential parcels located within The Vintage Club at 74465 Palo Verde Drive.
BACKGROUND:
The property owner has applied for a Tentative Parcel Map proposing to subdivid e an existing 1.06-acre residential estate lot into three separate single-family lots within the Vintage Club (Attachment 2). The subject property ’s development is documented through a series of subdivision map approvals and a merger as follows:
Tract Map 14968-12: Approved in 1984 as part of the Vintage Club Development.
The subject property consisted of three (3) legal residential lots numbered 3, 4, & 5.
Parcel Map 23829: Approved in 1989, merged lots 3 and 4 referenced in Tract Map 14968-12, creating a new parcel, “Parcel One.”
Parcel Merger 15-99-2: Approved in 1999, merged lot 5 and Parcel One of Parcel Map 23829 to create the existing 1.06-acre lot identified as “Parcel A.” The existing estate lot had all improvements and buildings demolished and currently exists as a vacant lot within the Vintage Club (Attachment 3 ). The owner is requesting to revert to the original three (3) legal lots that were approved by Council in 1984 (Attachment 4).
2 The Planning Commission held a duly noticed public hearing to consider the tentative map application on April 25, 2024, and unanimously recommended approval to the City Council.
ANALYSIS:
The applicant is requesting approval of a Tentative Parcel Map to subdivide an existing
1.06 acre (46,347 sq. ft.) residential estate lot into three (3) new single-family residential lots resulting in parcels with 15,486 sq. ft., 15,491 sq. ft., and 15,370 sq. ft. of land area (Attachment 5). The subject property is bound by the existing golf course to the south and existing single -family homes immediat ely to the north, east and west. Vehicular circulation is provided by Palo Verde Drive.
The subject property is in Planning Area 11 (Vintage/Living Desert/Hidden Valley Area), is currently zoned Residential Very Low Density ( “RVLD”). This Planning Area has an active homeowners’ association (“HOA”) and is overlaid by the Golf Course Overlay Zone, which governs uses within the golf course area. According to Section 21.23.050 of the Indian Wells Municipal Code (“IWMC”) the RVLD zoning district requires a minimum lot size of 12,000 sq. ft. with dimensions of at least 100ft x 100ft . These minimum requirements are met by each of the new parcels created through the proposed lot split and access onto Palo Verde Drive will be maintained . Considering the subject p roperty was comprised of 3 legal residential lots under the original Tract No. 14968-12 for the Vintage Club, the proposed lot split is consistent with the site’s approved density. In addition, the applicant has received HOA approval to revert the large 1.06-acre estate lot back to three (3) individual single-family lots, as was originally designed for the Vintage Club development (Attachment 6). The proposed project, subject to standard City Planning review, complies with the zone's requirements for singl e-family residence use, density, and lot sizes. All future residential development shall conform to the RVLD zoning standards as outlined in IWMC Chapter 21.23.
Pursuant to Section 20.04.030(c) of the IWMC, the Planning Commission shall review and make a recommendation to the City Council to approve, conditionally approve or disapprove tentative parcel maps. The City Council shall then review the proposed project via the City Council Consent Calendar. Tentative Parcel Map No. 38976 has been prepared by a professional land surveyor and there are no additional easements or offers of dedication included as part of the Map request. Upon approval by the City Council , the City Engineer shall file and record the tentative and final parcel map in accordance with the Subdivision Map Act.
3 FISCAL IMPACT:
No fiscal impact. The applicant has submitted and paid for all the required City applications under consideration, and the project will have no impact on the City’s General Fund.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the environmental regulations of the City. The City acting as Lead Agency , has determined the lot-split qualifies as being Categorically Exempt from CEQA pursuant to Section 15315, Minor Land Divisions.
ATTACHMENTS:
1. Resolution
2. Aerial Vicinity Map
3. Existing Site Conditions
4. Sheet 10 of Tract Map 14968-12 for the Vintage Club Development
5. Proposed Tentative Parcel Map No. 38976
6. HOA Approval Letter
RESOLUTION NO. 2024-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIAN WELLS, CALIFORNIA, APPROVING TENTATIVE PARCEL MAP NO. 38976 TO SUBDIVIDE A 1.06 ACRE RESIDENTIAL LOT INTO THREE NEW SINGLE-
FAMILY LOTS WITHIN THE VINTAGE CLUB FOR WHICH THE PROJECT
HAS BEEN FOUND TO BE EXEMPT FROM THE PROVISIONS OF CEQA PURSUANT TO CEQA GUIDELINES SECTION 15315, MINOR LAND
DIVISIONS
WHEREAS, VLMK Engineering + Design (the “Applicant”) has filed an application with the City of Indian Wells (the “City”) for approval of Tentative Parcel Map No. 38976 for the subdivision of an existing 1.06 acre residential parcel in the Vintage Club into three (3) separate residential parcels; and
WHEREAS, on April 25, 2024, the Planning Commission held a duly noticed public hearing and recommended City Council approve Tentative Parcel Map No. 38976; and WHEREAS, on May 16, 2024, the City Council carefully considered all information pertaining to the Project, including Planning Commission’s recommendation, the staff report, project plans and specifications, and approved the Project in accordance with Section 20.28.010(c) of its Municipal Code; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIAN WELLS RESOLVES AS FOLLOWS:
SECTION 1. The Recitals above are true and correct and are hereby adopted as findings as if fully set forth herein.
SECTION 2. In accordance with Section 20.16.070(c) of the City of Indian Wells Municipal Code, the following findings for approving Tentative Parcel Map No. 38976 are made:
1. The proposed tentative parcel map complies with all the requirements of the zoning regulations and applicable general and specific plans.
FACT: The proposed tentative parcel map is consistent with The Vintage Club Master Plan and City’s General Plan Land Use and Zoning designation for the site. The proposed tentative parcel map would effectively restore a 1.06-acre residential parcel back to its configuration of three (3) single-family residential lots as originally approved by Tract Map 14968-12 in 1984. Consistent with minimum lot area and size requirements for the City’s RVLD zoning, each resulting lot will be over 12,000 sq. ft. with lot depth and width exceeding 100-feet. The subdivision of the parcels as proposed by the tentative parcel map will not result in a change to the existing land use of the site or the type of residential development permitted on the site.
2. The requirements imposed upon the subdivision would not render infeasible the development of housing for all segments of the economic community and that the ATTACHMENT #1
City of Indian Wells
Resolution No. 2024-___
effect of any actions on the map considers the housing needs of the region and is balanced against the public service needs of its residents and available fiscal and environmental resources.
FACT: The proposed tentative p arcel map would not render infeasible the development of housing in the local community or region as it will facilitate the subdivision of an existing single residential lot into three (3) separate residential lots, resulting in a net gain of two (2) new residential lots available within The Vintage Club residential community.
3. The design of the subdivision provides, to the extent feasible, for future passive or natural heating or cooling opportunities in the subdivision.
FACT: The subdivision of the parcels as proposed by Tentative Parcel Map 38976 will not result in a change to the existing residential use or character of the subject property or surrounding community. The resulting residential parcels will continue to permit natural heating and cooling opportunities for future single -family developments.
4. The subdivision site is physically suitable for the proposed development and all conditions of approval will ensure that the site is physically suitable for the type of development proposed.
FACT: The site is located within a residential neighborhood within The Vintage Club and meets minimum lot area and size requirements of the RVLD zone . The conditions of approval attached as Exhibit “A” shall ensure the site continues to be physically suitable for future residential uses on site and compatible with the surrounding neighborhood.
5. The Tentative Parcel Map complies with all the requirements of Title 20, Subdivisions, of the Indian Wells Municipal Code.
FACT: Unless otherwise waived by the City, as part of the approval process, the Tentative Parcel Map, and any Final Map recorded thereunder, shall be made to comply with the requirements and standards of Government Code §§ 66410 through 66499.58 (the “Subdivision Map Act”), and the requirements of Title 20 of the Indian Wells Municipal Code (IWMC).
6. The subdivision design is not likely to cause serious public health problems as the improvements are consistent with General Plan and Zoning Designations.
FACT: Tentative Parcel Map 38976 will not result in a change to the existing residential development of the site and surrounding neighborhood. The new parcels have been designed in conformance with the minimum lot depth, width, and area requirements and future residential development shall conform to the City’s RVLD Zoning standards.
7. The proposed improvements for the subdivision will not conflict with any easement acquired by the public at large for access through the subdivision.
FACT: The subject property is within the private gated community of The Vintage Club. There is no public access or easements affecting the subject property or immediate surrounding properties. Utility easements exist along all front lot lines of