Palm Desert City Council
September 26, 2024

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Mariela Salazar, Management Analyst
Eric Ceja, Director of Economic Development
SUBJECT: APPROVAL OF THE UNITE PALM DESERT BUSINESS EMERGENCY

ASSISTANCE PROGRAM (BEAP)
RECOMMENDATION:

1. Approve the Unite Palm Desert Business Emergency Assistance Program (BEAP).

2. Authorize Director of Finance to transfer $100,000 from the Business Enhancement Program funds to Account No. 4254430-4393000 for the Business Emergency Assistance Program (BEAP).

3. Authorize the City Manager to modify evaluation guidelines and criteria for BEAP

4. Authorize City Manager to execute all documents required to effectuate the program.

BACKGROUND/ANALYSIS:

On April 17, 2024, a fire at the Plaza de Monterey Shopping Center destroyed four local businesses forcing them to temporarily close their doors. The fire has had a negative impact on the community, shopping center, business owners, and employees. Business owners are facing financial hardship due to lost revenue, property damage, and the cost of rebuilding.

In response, City Staff recommends the implementation of the Business Emergency Assistance Program (BEAP), which provides immediate financial relief to businesses affected by emergencies.

The proposed program aims to protect the economic vitality of the City by offering financial support and resources to businesses in need, with the goal of reopening as soon as possible.

This program is designed to alleviate some of the financial burdens local businesses face as they rebuild. The City of Palm Desert is committed to supporting the local business community, recognizing that small and medium-sized enterprises are vital to the City’s economic health.

Program Design:

BEAP aims to cover up to $10,000 in City fees that businesses would typically incur during the rebuilding and recovery process. The City will assist by offsetting city-imposed fees, including but not limited to permit fees and inspection fees. This program will help provide crucial support to businesses in recovery efforts and help sustain the local economy. By offsetting these costs and providing services, the City aims to expedite the recovery process, allowing affected businesses to focus their resources on rebuilding and resuming operations as quickly as possible.

In addition, the City will provide businesses with state and government resources, relocation assistance, expediated permit support, and assistance with job placement for employees experiencing unemployment due to business closures. BEAP represents a vital step in supporting the City of Palm Desert’s local businesses during times of crisis. By waiving city571 City of Palm Desert
Business Emergency Relief Program

imposed fees up to $10,000, the program will provide essential financial relief, helping businesses recover and thrive.

1. Eligibility Criteria:
a. Businesses must be a licensed commercial business located within city limits. b. Businesses must demonstrate they have been adversely impacted by an emergency (e.g., natural disaster, public health emergency, significant building damage requiring a rebuild (fire/flood), and other unforeseen circumstances). c. Priority will be given to small and medium-sized businesses with fewer than 50 employees.
d. Applicants must provide documentation to support their request for fee waivers, such as financial statements, tax returns, or other relevant records.

2. Fee Waivers:
a. The program will cover various city-imposed fees, including but not limited to building permit fees, inspection fees, and other city regulatory fees. b. The maximum waiver amount per business is $10,000.
c. Fee waivers will be granted on a first-come, first-served basis, subject to availability of funds.

3. Application Process:
a. Applications will be reviewed by a committee comprised of representatives from the City’s Economic Development Department. This committee will ensure that the review process is impartial and adheres to established criteria. b. Applications must demonstrate direct impact from the emergency, including physical damage or significant operational disruption. Photos, repair estimates, or temporary closure records will be required.
c. Applicants must provide documentation to support their request for fee waivers, such as financial statements, tax returns, or other relevant records. d. Approved fee waivers will be applied directly to the City fees related to the rebuild. e. Authorize the City Manager to establish evaluation guidelines and criteria for BEAP.

4. Evaluation Guidelines:
a. Criteria for Assessing Impact:
 Direct Impact: Applications must demonstrate that the business has been directly affected by the emergency.
 Physical Damage: Evidence such as photos, repair estimates, or documentation of structural damage.
 Operational Disruption: Records showing temporary closure or significant interruptions in business operations.
b. Financial Documentation:
 Financial Statements: Recent balance sheets and income statements demonstrating financial hardship.
 Tax Returns: Business tax returns for the previous year to assess overall financial health.
 Additional Records: Bank statements, invoices, or other relevant records that show the impact of the emergency on the business’s finances. c. Fee Waiver Application and Approval:
572
City of Palm Desert
Business Emergency Relief Program

 Application for Fee Waivers: Applicants must specify the City fees they wish to have waived and provide documentation supporting the request.  Fee Waiver Application Process: Applicant must list the requested fees and verify their relation to the emergency.
 Approval and Application: Approved fees will be applied directly to the rebuilding or recovery efforts. The City Finance Department will handle the application of these waivers.

5. Program Duration:
a. The program will be in effect for a period of two years from the date of approval, with the possibility of extension based on the needs of the business community and availability of funding. These funds will be first-come, first-served and are not to exceed the $100,000 budget.

Strategic Plan:

Implementation of the BEAP accomplishes the following Strategic Plan priorities:

1. Economic Development – Priority 1 – “Expand and raise awareness of business friendly services in order to retain and attract business.”

2. Land Use, Housing, and Open Space – Priority 1 – “Enhance Palm Desert as a first-class destination for premier shopping and nation retail businesses.” Outreach and Support
If approved, staff will work with the Public Affairs Department to promote BEAP to businesses.

Staff’s approach would be to provide businesses with information of the implementation of this program geared towards emergency assistance.

Legal Review:

This report has been reviewed by the City Attorney’s Office.

FINANCIAL IMPACT:

Staff is recommending an initial budget of $100,000 for this program. It will assist 10 businesses with City fees, not exceeding $10,000 per business. Eligible businesses will receive assistance with City fees, relocation, and resources to ensure a smooth transition. Ensuring a healthy and resilient business community aids in employment and tax generation to support ongoing City services.

Funds for this purpose may be transferred from the Business Enhancement Program funds to Account No. 4254430-4393000.

ATTACHMENTS:

1. BEAP Guidelines

2. BEAP Application
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574

UNITE PALM DESERT BUSINESS EMERGENCY ASSISTANCE PROGRAM (BEAP)

GRANT GUIDELINES

BACKGROUND
The Business Emergency Assistance Program (BEAP) is designed to provide financial relief to businesses affected by emergencies by covering up to $10,000 in City fees.

These fees typically arise during the rebuilding and recovery process, such as permit and inspection fees. BEAP aims to expedite business recovery, ensuring affected businesses can focus their resources on reopening and resuming operations as quickly as possible.

REQUIREMENTS
Grantees will be required to do/submit the following:
 Businesses must be licensed and operating within Palm Desert city limits.  Businesses must demonstrate adverse impact from an emergency (e.g., natural disasters, public health crises, significant structural damage such as fire or flood).  Priority consideration will be given to small and medium-sized businesses with fewer than 50 employees.
 Applicants must provide supporting documents such as financial statements, tax returns, or other relevant records to substantiate their request for fee waivers.

FEE WAIVERS
 The program will waive a variety of City-imposed fees, including but not limited to:
- Building permit fees
- Inspection fees
- Other regulatory fees imposed by the City
 The maximum waiver per business is $10,000.
 Fee waivers will be granted on a first-come, first-served basis, depending on available funding.

APPLICATION PROCESS
 Applications will be reviewed by a committee from the City’s Economic Development Department to ensure impartiality and adherence to established guidelines.
 Applicants must clearly demonstrate direct impact from the emergency, such as:
- Physical damage (photos, repair estimates)
- Operational disruption (temporary closure records)
 Financial documents, tax returns, and other records will be required to validate the fee waiver request.
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 Approved waivers will be applied directly to the applicable City fees related to the business’s recovery.

EVALUATION GUIDELINES
Criteria for Assessing Impact
 Applications must demonstrate direct effects from the emergency.  Provide evidence such as photos, repair estimates, or structural damage documentation.
 Records of temporary closures or major interruptions to business activities.

Financial Documentation
 Recent balance sheets and income statements to showcase financial hardship.
 Business tax returns from the prior year to evaluate overall financial health.  Bank statements, invoices, or other relevant records detailing the financial impact of the emergency.

Fee Waiver Application and Approval Process
 Applicants must list the City fees they want waived and provide supporting documentation.
 Approved fees will be applied directly to the business’s rebuilding or recovery efforts, facilitated by the City Finance Department.

PROGRAM DURATION
 BEAP will be available for two years from the date of approval. Extensions may be granted based on business community needs and fund availability.  The program has a total budget of $100,000, with fee waivers allocated on a firstcome, first-served basis.

QUESTIONS/INFORMATION
Contact Mariela Salazar, Management Analyst, [email protected] or 760-776- 6441.
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CITY OF PALM DESERT

DEPARTMENT OF ECONOMIC DEVELOPMENT
73510 Fred Waring Drive, Palm Desert, California 92260
Phone (760) 346-0611 ▪ Fax (760) 776-6417 ▪ [email protected]

UNITE PALM DESERT BUSINESS EMERGENCY ASSISTANCE

PROGRAM (BEAP) APPLICATION
Business/Property Owner Name:

Business/Property Owner Address:

Applicant/Representative Name:

Mailing Address:

City: State: Zip:

Phone: Email:

Need for BEAP funds:

Provide a brief description for BEAP funding:

1. Applicants must submit supporting documents for grant consideration.

2. All requirements outlined in the guidelines must be met before receiving funds.

Submission: Unite Palm Desert Business Emergency Assistance Program Application must be submitted by email to [email protected] or via mail at City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260, Attn: Economic Development Division.

Applicant/Representative Signature: By signing this application, I certify that the information provided is accurate. I understand that the City might not approve what I am applying for and/or might require conditions of approval.

Print Name: Signature: Date:

Property Owner Signature of Approval (if property owner is not the applicant) Print Name: Signature: Date:

OFFICE USE ONLY
Date Received: Approved: __ Yes __No Date Approved:
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578

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Amy Lawrence, Deputy Director of Economic Development SUBJECT: INFORMATIONAL REPORT ON THE COMPREHENSIVE CLIMATE ACTION PLAN
RECOMMENDATION:

Receive and file an update on the Comprehensive Climate Action Plan.

BACKGROUND/ANALYSIS:

In 2022, the City Council outlined Environmental Initiatives as one of eight priorities for the year.

In response, staff drafted an Environmental Initiatives Plan (EIP) and strategy to replace the outdated Environmental Sustainability Plan and Greenhouse Gas (GHG) Inventory, which were adopted by the City Council in February 2010 and later updated as part of the Green for Life Program in September 2015. Two of the goals outlined in the EIP are to update the City’s GHG Inventory and consider hiring a consultant to develop a formal environmental initiatives plan.

This year, the City was awarded $118,000 in Energy Efficiency and Conservation Block Grant (EECBG) funding from the U.S. Department of Energy (DOE) to hire a consultant to develop a climate action plan. As staff was preparing a report to formally inform the City Council of the grant award and seek direction on the process moving forward, in late June, staff was informed by the Coachella Valley Association of Governments (CVAG) that they were working on a regional Comprehensive Climate Action Plan (CCAP) for which the City would be a beneficiary of. Once the CCAP is completed, which is anticipated in the second quarter of 2025, the City will have an up-to-date GHG inventory and its own climate action plan. This will not only achieve the goals outlined in the EIP but will also make the City eligible for certain grant funding it may otherwise not qualify for.

Outlined below are details of CVAG’s CCAP project and next steps for the EECBG funding.

Regional Comprehensive Climate Action Plan
Last year, the U.S. Environmental Protection Agency (EPA) awarded a Climate Pollution Reduction Grant (CPRG) to the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA), which includes the San Bernardino Council of Governments (SBCOG), Western Riverside Council of Governments (WRCOG), and CVAG. SBCOG, as the contracting agency, hired the consulting services of ICF to complete the deliverables associated with this grant, including a Priority Climate Action Plan (PCAP) and a Comprehensive Climate Action Plan (CCAP). The PCAP for the Riverside-San Bernardino-Ontario MSA was completed in March 2024, and the focus is now on completion of the CCAP for the CVAG region, due in summer/fall 2025. The completed PCAP is available on the EPA’s website. 579
City of Palm Desert
Comprehensive Climate Action Plan Informational Report

To develop the CCAP, ICF is working with all jurisdictions in the CVAG region to gather data and information to complete individual plans, which will serve as subchapters in the regional CCAP. According to ICF, the plan will include:
 A 2023 GHG inventory for the region and each jurisdiction in CVAG.  Forecasts of GHG emissions and reduction targets to 2030 and 2045.  GHG reduction measures for each jurisdiction, building on current climate action planning where appropriate.
 An analysis of overall benefits, including benefits to low-income and disadvantaged communities.
 A workforce planning analysis.
 A review of authority to implement reduction measures.  A plan to leverage federal funding (in addition to the CPRG).  Community engagement on priorities for reduction measures.

Per the CPRG grant program requirements, the CCAP must include:
 Comprehensive GHG Inventory – Including all GHG emissions and sinks by category for six key sectors: electricity generation, industry, transportation, buildings, agriculture/natural and working lands, and waste management.  Quantified GHG Reduction Measures – A full suite of measures from the GHG emission sectors to meet reduction targets.
 Review of Authority to Implement – An indication of existing statutory and regulatory authority, along with a schedule of milestones for action needed by key entities to obtain necessary authority.
 GHG Emissions Projections – Near-term (e.g., 2030-2035) and long-term (e.g., 2050) projections, including a "business-as-usual" scenario and a scenario where the CCAP is fully implemented.
 Benefits Analysis – Quantified estimates of co-pollutant reductions (e.g., PM2.5, NOx, SO2, VOCs, air toxics, etc.) and tracking and minimizing any potential negative effects of GHG reduction measures.
 Intersection of other Funding – Identification of funding programs that are available or have been secured to pursue CCAP objectives.
 GHG Reduction Targets – Economy-wide near-term and long-term reduction targets for each jurisdiction, consistent with U.S. commitments to reduce emissions 50-52% relative to 2005 levels by 2030 and reach net-zero emissions by 2050.  LIDAC Benefits Analysis – Evaluation of the extent to which GHG reduction measures will deliver co-pollutant emissions reductions and other benefits to low-income and disadvantaged communities (LIDACs).
 Workforce Planning Analysis – An analysis of anticipated workforce shortages that could hinder the achievement the CCAP goals, and identification of solutions and partners equipped to address those challenges.
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City of Palm Desert
Comprehensive Climate Action Plan Informational Report

Next steps for ICF include identifying, developing, and selecting GHG reduction measures, which entails the following:
 Review of existing plans and previous climate action planning efforts  Completion of sector-specific analysis
 Community and stakeholder engagement
 Identification of potential measures
 Prioritization and selection
Staff has already provided ICF with the utility data required for the GHG inventory. Additionally, staff has provided ICF with the City’s draft list of potential GHG reduction measures, which was compiled by various City departments.

As required of the grant, ICF developed an 8-minute online GHG Emissions Community Survey in both English and Spanish to gather public input. Staff plans to share the surveys via social media, post on the City’s Engage Palm Desert Environmental Initiatives page and send out via email once the City Council is made aware of this project. Links to the survey can be found here in English and Spanish.

Staff recently informed the Resource Preservation and Enhancement Committee (RPEC) of this project and assured them that they would have opportunities to provide input on the plan, including reviewing the draft before it is finalized. Staff also clarified that RPEC members would be kept updated on any planned community engagement and, if needed, a special meeting would be called to request their input between regularly scheduled meetings due to the priority nature of this project.

For reference, ICF completed a similar multi-jurisdictional plan for the San Bernardino Council of Governments (SBCOG) in 2021. The San Bernardino County Regional Greenhouse Gas Reduction Plan is available for review.

EECBG Funding
The $118,000 in EECBG funding that was awarded to the City for development of a climate action plan requires expenditure by September 2025. According to the DOE grant manager, the City has two options:

1. We can reallocate the funds to a different energy-related project (e.g., energy audits and retrofits, solar installation, etc.). Staff will be meeting with other departments to discuss project feasibility.

2. Request an extension for expenditure of the grant funding with the intention of hiring a consultant to build off of the City’s subchapter in the regional CCAP to develop a more comprehensive plan, to include implementation, monitoring, and reporting.

Staff will continue working with CVAG and ICF to complete the CCAP and will return to the City Council to request direction on the best use of EECBG funds once more information is available. 581
City of Palm Desert
Comprehensive Climate Action Plan Informational Report

Legal Review:

This report has been reviewed by the City Attorney’s Office.

FINANCIAL IMPACT:

There is no financial impact associated with this request.

ATTACHMENTS:

1. Draft List of Potential GHG Reduction Measures
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Working Draft List of Potential CVAG GHG Reduction Measures Comprehensive Climate Action Plan
Draft, 07/19/2024
Below is a working draft list of potential measures to include in the CVAG Comprehensive Climate Action Plan (CCAP) for the municipalities within CVAG. This list is not the proposed list to include in the CCAP. This is, if you will, a “shopping list” that individual jurisdiction can use to identify the measures that are appropriate to include for their community. This list can also be used to solicit input from others within each community and from stakeholders. It is requested that you consider this list and provide feedback back to Jacob Alvarez ([email protected]) at CVAG with a cc to Jakub Zielkiewicz ([email protected]) at ICF by no later than August 9, 2024.

Please note that in the tables below, when it says “Similar to” other measures, these measures are listed in the Priority Climate Action Plan (PCAP) prepared for SBCOG. WRCOG, and CVAG earlier this year. See the PCAP for descriptions.

Thank you for your assistance in providing your input and developing a CCAP that works for all CVAG jurisdictions:

Please provide the following information:

Jurisdiction: City of Palm Desert _____________________________________________________________________ Person Who Filled this Template Out: Amy Lawrence__________________________________________________ Date Completed: August 8, 2024_____________________________________________________________________ Other comments/questions (Please provide below):
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Building Energy
Building Weatherization, Electrification, and Energy Efficiency Measures Category Measure Details Similar to Include for your
Municipality?
Comments from
Municipality
Weatherization Cool Roofs,
Cool
Pavements,
and/or Green
Roofs
Install and retrofit roofs with cool
and/or green roofs to reduce urban
heat island effects and lower energy
consumption. Install cool pavements
to reduce urban heat island effects.

WRCOG LE-7
SBCOG Energy-1
CVAG RE-1
Weatherization HVAC
Maintenance
Program
Provide HVAC check-ups to ensure
the systems are optimally operating
and not leaking CFCs
WRCOG LE-3
SBCOG Energy-1
YES
Weatherization Shade
Installation
Install awnings or blackout UV
window shades to reduce direct
sunlight into buildings
WRCOG LE-3
SBCOG Energy-1
YES
Weatherization Duct
testing/sealing,
and/or new
ducts, returns,
and registers
Conduct testing/sealing of air leaks in
conjunction with installation of a
ducted heat pump (required)
SBCOG Energy-1
PCAP Building
Decarbonization
Indio CAP
YES
Weatherization Roofline
Insulation/attic
encapsulation
Insulate roof rafter cavities. SBCOG Energy-1
PCAP Building
Decarbonization
Weatherization Solar Window
Film
Install solar window film that is
certified by the National Fenestration
Rating Council
SBCOG Energy-1 YES
Energy Efficiency LED bulbs and
fixtures
Replace interior and exterior
incandescent, compact fluorescent,
halogen, and T12 linear fluorescent
bulbs.

SBCOG Energy-3 YES
584
Building Weatherization, Electrification, and Energy Efficiency Measures Category Measure Details Similar to Include for your
Municipality?
Comments from
Municipality
Energy Efficiency Smart
Thermostat
Install occupant controlled smart
thermostats for buildings with central
heating and cooling systems
WRCOG LE-3
SBCOG Energy-1
YES
Energy Efficiency Appliance
Upgrades
Replace and install Energy Star
appliances
WRCOG LE-3
SBCOG Energy-1
YES
Energy efficiency Low-flow
showerheads
and faucets
Upgrade showerheads and water
faucets to be more water efficient
SBCOG Energy-1
PCAP Building
Decarbonization
YES
Energy Efficiency Commercial
Benchmarking
Promote or require commercial
benchmarking
Indio CA-1
Electrification Heating and
cooling
Install/replace gas-fired or electric
resistance heating and cooling
equipment with highest efficiency tier
heat pump (space heating and
cooling water heater)
WRCOG LE-3
SBCOG Energy-1
SBCOG Energy-3
PCAP Building
Decarbonization
YES
Electrification Appliances Replace gas-fired appliances with electric (ranges, cooktop, clothes
dryers)
SBCOG Energy-3
PCAP Building
Decarbonization
YES
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Renewable Energy Generation
Category Measure Details Similar to Include for your
Municipality?
Comments from
Municipality
Solar
Power
Commercial
Solar
Installation
Establish a goal for solar installations
on new commercial development
SBCOG Energy-4
Coachella CAP
Indio CAP
Palm Springs CAR
Solar
Power
Residential
Solar
Installation
Increase solar installations on existing
single-family homes
SBCOG Energy-6
Coachella CAP
Indio CAP
Palm Springs CAR
Solar
Power
Warehouse
solar
Promote and incentivize solar
installation on existing and new
warehouse space
SBCOG Energy-5
Coachella CAP
Indio CAP
Palm Springs CAR
Energy
Storage
Solar PV +
Battery Storage
Installation
Install right-sized battery storage on
homes with solar or during PV
installation.

PCAP Building
Decarbonization
Renewable
Energy
Community
Choice
Aggregation
Create, support, or join a Community
Choice Aggregation program to
increase
WRCOG LE-2
Coachella SNE

2.4 Murrieta BE-1
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Waste
Solid Waste
Category Measure Details Similar to Include for your
Municipality?
Comments from
Municipality
Resource
Efficiency
Construction and
Demolition Waste
Diversion
Adopt a construction and
demolition waste recovery
ordinance that meets or
exceeds the CALGreen
voluntary guidance of 65-75
percent reduction in
nonhazardous waste
Coachella IPS

5.12 Indio IA-4
SBCOG Waste-1
YES
Waste
Diversion
Solid Waste Diversion
and Recycling
Zero Waste
Multifamily Recycling
and Composting
Adopt citywide waste goals to
divert waste
Support zero waste programs
and circular economy
initiatives; support education
around refuse and reuse.

Conduct outreach and provide
technical assistance to
multifamily buildings and
implement recycling and
composting.

Coachella CAP
(multiple)
SBCOG Waste-1
Indio IA-5
YES
Waste
Diversion
Organics Diversion:

Food Share Programs/
Organics
Collection/Processing
Programs
Pilot a food share/food recovery
program
Indio IA YES
587
Agriculture
Agriculture
Category Measure Details Similar to Include for your
Municipality?
Comments from
Municipality
Renewable Energy Solar Agriculture
Water Pumps
On-farm renewable
energy generation
Identify and replace diesel
water pump generators
with solar water pumps.

Increase renewable energy
generation at agriculture
sites to reduce reliance on
fossil fuels for electricity
and machinery.

Electrification/Energy
Efficiency
Diesel engine
conversions
Convert diesel engines for
tractors and other ag
machinery to natural gas or
battery, if suitable
Carbon
sequestration
Carbon
farming/Regenerative
agriculture
Management of farmland
so that soils absorb and
hold more carbon
Local Food
Production
Local Agriculture and
Community Gardens
Support local farms,
community gardens, and
sustainable food
production
WRCOG LA-1 YES
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Urban and Rural Forestation and Natural Vegetation
Category Measure Details Similar to Include for your
Municipality?
Comments
from
Municipality
Energy
Conservation
Shade Trees Strategically plant
trees to reduce the
urban heat island
effect. Use
native and droughtresistant species.

WRCOG LE-6;
SBCOG Land Use-2
Coachella SNE 4.01, 1.11
YES
Carbon
sequestration
Reforestation Regional reforestation
that increases carbon
sequestration
Carbon
sequestration
Green
infrastructure
Urban forests and
other large scale
green infrastructure
that increases carbon
sequestration
Coachella SNE 4.01, 1.11
Land
Conversion
Protect
vegetated
lands in
sparsely
vegetated
areas
Prevent conversion of
vegetated lands in
deserts to other land
types; Prevent
disturbance of soil;
restore native plants
and remove nonnative grasses
https://resources.ca.gov/-
/media/CNRAWebsite/Files/Initiatives/ExpandingNature-Based-Solutions/CNRAReport-2022---Final_Accessible.pdf YES
589
Wastewater
Wastewater
Category Measure Details Similar to Include for your
Municipality?
Comments
from
Municipality
Energy
Recovery
Methane Recovery Capture fugitive emissions that
are emitted during the
wastewater treatment process.

SBCOG
Wastewater-1
Energy
Efficiency
Equipment Upgrades Upgrade and replace
wastewater treatment and
pumping equipment to be more
energy efficient.

SBCOG
Wastewater-2
590
Water
Category Measure Details Similar to Include for your
Municipality?
Comments
from
Municipality
Decrease
Carbon
Intensity of
Delivered
Water
Increase Recycled
Water Use
Expand the available water
supply through water recycling
and reuse infrastructure
WRCOG LW-1
Coachella SNE3.5
Indio Existing
Policy
YES
Water
Conservation
Water Conservation
Mandates,
Programs, and
Education
Expand on/enforce existing
water conservation ordinances
for buildings and landscaping
Reduce indoor and outdoor
water consumption through
education and outreach, and/or
promotion of conservation
programs.

Adopt voluntary CALGREEN
water efficiency measures for
existing buildings
WRCOG SW-1
SBCOG Water-1
SBCOG Water-3
Coachella CAP
Coachella SNE3.5
Indio CAP
YES
591
On-Road
On-Road
Category Measure Details Similar to Include for your
Municipality?
Comments
from
Municipality
Reduce Tailpipe
Emissions
Decarbonize
Goods Movement
Reduce emissions associated
with heavy and medium duty
vehicles, trains, and cargo
handling
PCAP Regional
Measure
Reduce Tailpipe
Emissions
Light Duty Electric
Vehicle
Infrastructure
Expand the availability of
publicly accessible EV
charging stations throughout
the region Promote
Neighborhood Electric
Vehicles and other electricpowered micromobility
solutions
PCAP Regional
Measure
WRCOG LT-10
and RT-3
SBCOG On
Road-5
Indio Mobility
Element
YES
Reduce Tailpipe
Emissions
Traffic Signal
Coordination
Incorporate technology to
synchronize and coordinate
traffic signals along local
arterials.

WRCOG LT-6;
SBCOG On
Road-3
CVSync
YES
Reduce Tailpipe
Emissions
Express Lanes Add express lanes along
major freeways in the CVAG
subregion
WRCOG LT-12
Reduce Tailpipe
Emissions
Transition
City/Agency
Fleets to ZEVs
Purchase low- or zeroemission vehicles as vehicles
are retired from service
Local CAPs YES
592
On-Road
Category Measure Details Similar to Include for your
Municipality?
Comments
from
Municipality
VMT Reduction –
Mode Shift
Transportation
Demand
Management
Implement transportation
demand management
strategies and programs such
as commuter benefit
programs and promoting
telecommuting and remote
work programs.

Ride Share and Carpool
programs
Major event shuttles;
coordinated regional bus
service
WRCOG RT-2
WRCOG LT-3
Coachella CAP
SBCOG On
Road-2
Indio Mobility
Goal 7
YES
VMT Reduction -
Active
Transportation/Mode
Shift
Bicycle and
Micro-mobility
Infrastructure
Improvements
Expand on-street and offstreet bicycle and micromobility infrastructure, including bicycle lanes and
bicycle trails. Expand bike
sharing programs.

WRCOG LT-1
SBCOG On
Road-4
Local CAPs
YES
593
On-Road
Category Measure Details Similar to Include for your
Municipality?
Comments
from
Municipality
VMT Reduction -
Active
Transportation/Mode
Shift
Pedestrian
Infrastructure
Improvements
Expand and improve
pedestrian infrastructure,
including sidewalks,
crosswalks, and pedestrian
signals, through
implementation of an Active
Transportation Plan, Safe
Routes to School Plan and/or
similar plan.

WRCOG LT-2
Indio Mobility
Action 1,2, 7
YES
VMT Reduction -
Parking
Parking Pricing
and Limited
Requirements
Price public parking in central
business
districts/employments
centers/retail centers; Amend
zoning codes to reduce
requirements for vehicle
parking in new development
projects.

WRCOG LT-4
Coachella
LU&T
Indio Mobility
Goal 8, Action 6
VMT Reduction -
Mode Shift
Increase Transit
Service and
Frequency
Collaborate with regional
transit providers to increase
transit service and frequency
provided in the subregion.

WRCOG LT-5
Indio Mobility
Goal 4
Palm Springs
CAR
Coachella LU &
T
YES
594
On-Road
Category Measure Details Similar to Include for your
Municipality?
Comments
from
Municipality
VMT Reduction Increase Housing
Density
Increase the density of
planned housing units within
the region, especially near
transit and job centers.

WRCOG LT-7
Indio LUA-11
VMT Reduction Increase Land
Use Diversity
Provide for a variety of
development types and uses,
especially near transit and job
centers.

WRCOG LT-8
Indio LUA 2,4, 6
and 9
YES
VMT Reduction Transit Oriented
Development
Place new developments in
close proximity to transit
services.

WRCOG LT-9
Indio 2019 CAP
Notes: there
are plans for
Indio to get a
MetroLink
station
Off-Road
Category Measure Details Similar to Include for your
Municipality?
Comments
from
Municipality
Fuel switch -
electrification
Electric-Powered
Construction
Equipment
Electric
Landscaping
Equipment
Establish a goal for
construction equipment to
utilize electricity as power.

Adopt an ordinance that
reduces gasoline or dieselpowered landscaping
equipment use.

SBCOG Off Road-1
SBCOG Off Road-3
Palm Spring CAR
595
Reduce
Tailpipe
Emissions
Idling Ordinance Adopt an ordinance that limits
idling for heavy-duty
construction equipment.

SBCOG Off Road-2
Indio Mobility Action
8 596

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Shelby Goodwin, Special Events Coordinator SUBJECT: APPROVAL OF THE 2024 PALM DESERT GOLF CART PARADE RECOMMENDATION:

1. Permit the sale, possession, and consumption of alcoholic beverages on Public Property Pursuant to Palm Desert Municipal Code 9.58.040.

2. Waive Palm Desert Municipal Code Section 11.01.140 – Amplified Sound.

3. Authorize the City Manager to execute any documents that may be necessary to facilitate the event.

BACKGROUND/ANALYSIS:

The 60th annual Palm Desert Golf Cart Parade presented by the Palm Desert Area Chamber of Commerce (PDACC) is scheduled to take place on Sunday, October 27, 2024, on El Paseo. The theme for this year’s event is Diamonds of the Desert – Show us your sparkle. This year’s event will include a Kids Zone, food vendors, two beer gardens, car show, business expo, senior seating area, VIP seating area, Veteran’s seating area, live music, themed golf cart floats, and much more.

The City has been a title sponsor of the parade and a strong supporter of this event for several years. As part of the Fiscal Year 2024/25 budget, the City Council approved a $50,000 monetary sponsorship for this year’s event in honor of the parade’s 60th Anniversary. PDACC will be responsible for contracting with Tops N Barricades to provide traffic control and road closures for the event.

Burrtec will continue to provide portable restrooms and trash and recycling services at no cost as part of the City’s franchise agreement, and the City will continue to provide in-kind public safety services which will be offered by the Riverside County Sheriff’s Department and augmented by the Palm Desert Citizens on Patrol.

Legal Review:

This report has been reviewed by the City Attorney’s Office.

Strategic Plan:

Approval of the 2024 Palm Desert Golf Cart Parade would help address the following priorities as specified in the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together:
 Economic Development Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle.  Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination. 597
City of Palm Desert
Approval of the 2024 Palm Desert Golf Cart Parade

FINANCIAL IMPACT:

As part of the FY 2024-25 Annual Budget, City Council approved a Golf Cart Parade sponsorship in the amount of $50,000 and $10,000 for the City to construct a float to enter into the parade.

Additionally, the City Council approved $30,000 for public safety services for various events including the Golf Cart Parade. Public safety services for this event are expected not to exceed $20,500. Funds are available in Account Numbers 1104800-4302601 and 1100416-4306101 for this purpose.
598

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Celina Cabrera, Management Analyst
Veronica Chavez, Director of Finance
SUBJECT: HOUSING AUTHORITY RESOLUTIONS TO AMEND AND RESTATE THE

BYLAWS OF THE PALM DESERT HOUSING AUTHORITY AND PALM

DESERT HOUSING COMMISSION
RECOMMENDATION:

1. Adopt a Resolution entitled, “A RESOLUTION OF THE PALM DESERT HOUSING

AUTHORITY OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND RESTATING THE BYLAWS OF THE PALM DESERT HOUSING AUTHORITY.”

2. Adopt a Resolution entitled, “A RESOLUTION OF THE PALM DESERT HOUSING

AUTHORITY OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND RESTATING THE BYLAWS OF THE PALM DESERT HOUSING COMMISSION.” BACKGROUND/ANALYSIS:

The Palm Desert Housing Authority (“Authority”) bylaws, amended by Resolution No. HA-46, and the Palm Desert Housing Commission (“Commission”) bylaws, as amended by Resolution No. HA-106, outline the titles of the officers of the Authority and Commission respectively. Both the Authority and Commission bylaws currently state officer titles to be “Chairman” and “ViceChairman”. The presented Resolutions will clarify terminology of officer titles to read “Chairperson” and “Vice Chairperson”.

Legal Review:

This report has been reviewed by the City Attorney’s office.

Appointed Body Recommendation:

The Housing Commission reviewed this recommendation at its regular meeting on September 11, 2024. Upon request, a verbal report will be provided at the Authority’s regular meeting on September 26, 2024.

FINANCIAL IMPACT:

There is no direct fiscal impact related to this action.

ATTACHMENTS:

1. Resolution to amend and restate bylaws of the Palm Desert Housing Authority.

2. Resolution to amend and restate bylaws of the Palm Desert Housing Commission. 599
600
RESOLUTION NO. HA-____

A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY OF

THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND

RESTATING THE BYLAWS OF THE PALM DESERT HOUSING

AUTHORITY
WHEREAS, the Palm Desert Housing Authority ("Authority") was established under the Housing Authorities Law (the "Law"), being Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code, to ensure safe, sanitary dwelling units available at rents which persons of low income can afford while not being overcrowded; and WHEREAS, Section 34311 of the Law authorizes the Palm Desert Housing Authority Board (the “Authority Board”) to make, amend, and repeal bylaws and regulations to carry into effect the powers and purposes of the Authority; and WHEREAS, by its Resolution No. HA-1, adopted January 22, 1998, the Authority Board approved the Bylaws of the Palm Desert Housing Authority; and WHERAS, on September 11, 2024, the Palm Desert Housing Commission recommended that the Authority approve the Amended and Restated Bylaws of the Palm Desert Housing Authority (the "Amended and Restated Bylaws"), which replaces the title of “Chairman” with “Chairperson”, and “Vice Chairman” with “Vice Chairperson”; and WHEREAS, the Authority Board now desires to approve Amended and Restated Bylaws, attached hereto as Exhibit A.

NOW, THEREFORE, BE IT RESOLVED by the Palm Desert Housing Authority of the City of Palm Desert, California, as follows:

SECTION 1. The Amended and Restated Bylaws are hereby amended to read as provided in the Amended and Restated Bylaws of the Palm Desert Housing Authority, attached hereto as Exhibit A.

ADOPTED ON ________________.

KARINA QUINTANILLA

CHAIRPERSON
ATTEST:

ANTHONY J. MEJIA

SECRETARY
601
Resolution No. HA-____ Page 2
I, Anthony J. Mejia, Secretary of the Palm Desert Housing Authority, hereby certify that Resolution No. HA-______ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on ______________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________.

ANTHONY J. MEJIA

SECRETARY
602
Resolution No. HA-____ Page 3

EXHIBIT A

AMENDED AND RESTATED BYLAWS
OF THE

PALM DESERT HOUSING AUTHORITY
ARTICLE 1 - THE AUTHORITY
Section 1. Name of Authority. The name of the Authority shall be the “Palm Desert Housing Authority.”
Section 2. Seal of Authority. The Authority may have a seal. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization.

Section 3. Office of Authority. The office of the Authority shall be at the offices of the City of Palm Desert.

Section 4. Governing Body. The members of the City Council of the City of Palm Desert shall constitute the governing body of the Authority, which governing body shall be known as the Authority Commission and/or Authority Board.

ARTICLE 2 - OFFICERS
Section 1. Officers. The officers of the Authority shall be a Chairperson, a Vice Chairperson, a Secretary, a Treasurer and an Executive Director. Subject to other direction of the Authority Board by resolution or minute order, an officer shall sign all contracts, deeds and other instruments made by the Authority.

Section 2. Chairperson. The Chairperson shall be the member of the City Council who is the then current Mayor of the City of Palm Desert. The Chairperson shall preside at all meetings of the Authority.

Section 3. Vice Chairperson. The Vice Chairperson shall be the member of the City Council who is the then current Mayor Pro Tempore of the City of Palm Desert.

The Vice Chairperson shall perform the duties of the Chairperson in the absence or incapacity of the Chairperson.

Section 4. Secretary. The Secretary shall be the then current City Clerk of the City of Palm Desert. The Secretary shall keep the records of the Authority, shall act as Secretary of the meetings of the Authority Board and record all votes, and shall keep a record of the proceedings of the Authority in the form of minutes to be kept for such purpose, and shall perform all duties incident to the office of Secretary. The Secretary shall keep in safe custody the seal of the Authority and shall have power to affix such seal as required to all contracts and instruments authorized to be executed by the Authority Board. The Secretary may attest to signatures of other officers of the Authority.
603
Resolution No. HA-____ Page 4
Section 5. Treasurer. The Treasurer shall be the then current Treasurer of the City of Palm Desert. The Treasurer shall keep regular books of accounts showing receipts and expenditures and shall render to the Authority Board, as requested, an account of the transactions of the Authority and shall perform any other duties that are designated from time to time by the Authority. The Treasurer, or in the absence of the Treasurer, a person appointed by the Treasurer or the Authority Board, shall have the care and custody of all funds of the Authority. The Treasurer may enter into agreements on behalf of the Authority with any financial institution authorized to accept deposits of public funds, providing for the transfer of funds between accounts maintained therein by the Authority upon request by telephone. Such agreements may also provide for the investment upon request by telephone of funds maintained in such accounts, in property or securities in which public agencies may legally invest money subject to their control. Such agreements shall designate the accounts maintained by the Authority which are subject thereto, and the persons who may, from time to time, make such transfers and direct such investments by telephone request.

Section 6. Executive Director. As provided by City Council Resolution No. 2012-63, on September 13, 2012, the City Manager was appointed as the Executive Director of the Housing Authority. The Executive Director shall conduct day-to-day administration of the Authority’s business and affairs, subject to the direction of the Authority Board. Notwithstanding the provisions of Section 8 hereof, the Executive Director may appoint a deputy to perform such duties of the Executive Director as may be delegated to such deputy from time to time by the Executive Director. Notice of such appointment shall be given in writing to the Secretary and shall be effective as of the date of such notice.

Section 7. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Authority or these Bylaws or by resolution or minute order of the Authority Board. Any officer of the Authority may sign, with the countersignature of one other officer, deputy officer or member of the Authority, all orders and checks for the payment of money under the direction of the Authority.

Section 8. Additional Personnel. The Authority Board may from time to time appoint deputy officers to perform the duties of officers and employ such other personnel as it deems necessary to exercise its powers, duties and functions. The selection and compensation of such officers and other personnel shall be determined by the Authority Board.

ARTICLE 3 - MEETINGS
Section 1. Regular Meetings. Regular meetings shall be held on the day or days and at the time and place of regular meetings of the City Council of the City of Palm Desert provided there is business to conduct.

Section 2. Applicability of Ralph M. Brown Act. Meetings of the Authority shall be held, notice given and the business of the Authority conducted, all as provided in the 604
Resolution No. HA-____ Page 5
Ralph M. Brown Act, being California Government Code Section 54950, et seq.

Section 3. Quorum. Three members of the Authority Board shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. Action may be taken by the Authority Board upon a vote of a majority of a quorum, unless a higher vote is required by these Bylaws, a resolution of the Authority Board or applicable provisions of California law.

Section 4. Manner of voting. The manner of voting on resolutions and on other matters shall be as prescribed by the Chairperson.

Section 5. Payment of Money. All orders for the payment of money require the votes of at least three members of the Authority Board.

ARTICLE 4 - AMENDMENTS
Section 1. Amendments to Bylaws. The Bylaws of the Authority may be amended by resolution of the Authority.
605
606
RESOLUTION NO. HA-____

A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY OF

THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND

RESTATING THE BYLAWS OF THE PALM DESERT HOUSING

COMMISSION
WHEREAS, The Palm Desert Housing Authority ("Authority") was established under the Housing Authorities Law (the "Law"), being Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code, to ensure safe, sanitary dwelling units available at rents which persons of low income can afford while not being overcrowded; and WHEREAS, Section 34291 of the Law authorizes the City Council of the City of Palm Desert (the "City Council") to create a housing commission by ordinance; and WHEREAS, Section 34292 of the Law provides that the function of the Housing Commission is to review and make recommendations on all matters to come before the Authority prior to Authority action, except emergency matters and matters which the commission, by resolution, excludes from its review; and WHEREAS, on January 8, 1998, the City Council adopted Ordinance No. 861 thereby creating the Palm Desert Housing Commission (the "Commission"); and WHEREAS, Section 9 of Ordinance No. 861 defines the duties of the Commission to review and make recommendations on all matters to come before the Authority except emergency matters and matters which the Commission, by resolution, excludes from the Commission's review; and
WHEREAS, on June 22, 2000, the Authority adopted its Resolution HA-13 to establish the Bylaws of the Commission.

WHEREAS, on September 11, 2024, the Commission recommended that the Authority approve the Amended and Restated Bylaws of the Housing Commission, which replaces the title of “Chairman” with “Chairperson”, and “Vice Chairman” with “Vice Chairperson”; and
WHEREAS, the Authority now desires to approve Amended and Restated Bylaws of the Housing Commission, attached hereto as Exhibit A (the "Amended and Restated Bylaws").

NOW, THEREFORE, BE IT RESOLVED by the Palm Desert Housing Authority of the City of Palm Desert, California, as follows:

SECTION 1. The Amended and Restated Bylaws are hereby amended to read as provided in the Amended and Restated Bylaws of the Palm Desert Housing Commission, attached hereto as Exhibit A.
607
Resolution No. HA-____ Page 2
ADOPTED ON ________________.

KARINA QUINTANILLA

CHAIRPERSON
ATTEST:

ANTHONY J. MEJIA

SECRETARY
I, Anthony J. Mejia, Secretary of the Palm Desert Housing Authority, hereby certify that Resolution No. HA-____ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on __________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________.

ANTHONY J. MEJIA

SECRETARY
608
Resolution No. HA-____ Page 3

EXHIBIT A

AMENDED AND RESTATED BYLAWS
OF THE

PALM DESERT HOUSING COMMISSION

ARTICLE I - THE HOUSING COMMISSION
Section 1. Name of Commission. The name of the Housing Commission shall be the "Palm Desert Housing Commission".

Section 2. Office of Commission. The office of the Housing Commission shall be at the offices of the City of Palm Desert.

Section 3. Governing Body. The members of the Housing Commission shall be appointed by the City Council of the City of Palm Desert and shall constitute the governing body of the Housing Commission, and each member shall be known as a Housing Commissioner.

ARTICLE II- OFFICERS
Section 1. Officers. The officers of the Housing Commission shall be a Chairperson, a Vice Chairperson, a Secretary and an Executive Director.

Section 2. Chairperson. The Chairperson shall be the member of the Housing Commission elected by vote of the Housing Commission to hold the office of Chairperson. The Chairperson shall preside at all meetings of the Housing Commission.

Section 3. Vice Chairperson. The Vice Chairperson shall be the member of the Housing Commission elected by vote of the Housing Commissioners to hold the office of Vice Chairperson. The Vice Chairperson shall perform the duties of Chairperson in the absence of the Chairperson.

Section 4. Secretary. The Secretary shall be the City Clerk of the City of Palm Desert or the City Clerk's designee. The Secretary shall keep the records of the Housing Commission, shall act as Secretary of the meetings of the Housing Commissioners and record all votes, shall keep a record of the proceedings of the Housing Commission in the form of minutes to be kept for such purpose, and shall perform all duties incident to the office of Secretary. The Secretary may attest to signatures of other officers of the Housing Commission.

Section 5. Executive Director. The Executive Director shall be the then current Executive Director of the Palm Desert Housing Authority. The Executive Director shall conduct day-to-day administration of the business and affairs of the Housing Commission, subject to the direction of the Housing Commission. The Executive Director may appoint a deputy to perform such duties of the Executive Director as may 609
Resolution No. HA-____ Page 4
be delegated to such deputy from time to time by the Executive Director. Notice of such appointment shall be given in writing to the Secretary and shall be effective as of the date of such notice.

ARTICLE III- MEETINGS
Section 1. Regular Meetings. Regular meetings shall be held on the first Wednesday of each month at 3:30 p.m. at the offices of the City of Palm Desert. The Executive Director and the Chairperson, may determine that the Housing Commission does not have any business to conduct at a regular meeting and cancel such regular meeting. In no event shall the Chairperson cancel more than two consecutive regular meetings without prior approval of the Commission. Adjournment of a regular meeting for lack of a quorum shall not constitute a cancellation by the Chairperson for the purposes of the previous sentence.

Section 2. Applicability of Ralph M. Brown Act. Meetings of the Housing Commissioners shall be held, notice given and the business of the Housing Commission conducted, all as provided in the Ralph M. Brown Act, being California Government Code Section 54550, et seq.

Section 3. Quorum. Four members of the Housing Commission shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. Action may be taken by the Housing Commission upon a vote of a majority of a quorum, unless a higher vote is required by these Bylaws, a resolution of the Housing Commissioners or applicable provisions of California law.

Section 4. Manner of Voting. The manner of voting on resolutions and on other matters shall be as prescribed by the Chairperson.

ARTICLE IV - AMENDMENTS
Section 1. Amendments to Bylaws. The Bylaws of the Housing Commission may be amended by a resolution of the Housing Authority and by a resolution of the Housing Commission.
610

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Celina Cabrera, Management Analyst
SUBJECT: RATIFY TKE ENGINEERING, INC., FOR ON-CALL CONSTRUCTION

MANAGEMENT SERVICES FOR THE HOUSING AUTHORITY

PROPERTIES
RECOMMENDATION:

1. Ratify the award of contract to TKE Engineering, Inc., as an additional consultant to the OnCall Construction Management Services contract for the Housing Authority properties in a shared aggregate amount with the City in an amount not to exceed $11,739,394.

2. Authorize the City to administer the contract on behalf of the Housing Authority and authorize the City Manager to execute contract and subsequent task orders.

3. Direct the Directors of Finance, Public Works, and Capital Projects to review annual expenditures and performance of the vendor under this contract.

BACKGROUND/ANALYSIS:

On February 16, 2023, the City Council approved a five-year multiple vendor contract for OnCall Construction Management Services and other related services as needed, in a cumulative amount not to exceed $11,739,394 with Anser Advisory Management LLC and MARRS Services, Inc. On March 23, 2023, MAAS Companies, Inc., was added. The Housing Authority ratified the use of these vendors for the Housing Authority properties on July 13, 2023.

On April 25, 2024, the City Council approved TKE Engineering, Inc. (“TKE”) as an additional vendor for said agreement to support the planned projects in the five-year CIP efficiently and effectively. TKE provides services that include civil engineering, traffic engineering, roadway design, survey, and inspections. This request would ratify that action for the use of Housing Authority properties.

Legal Review:

This report has been reviewed by the City Attorney’s office.

Appointed Body Recommendation:

The Housing Commission will review the recommendation at its regular meeting on September 11, 2024. Upon request, a verbal report will be provided.

FINANCIAL IMPACT:

There is no additional fiscal impact because of this recommendation for approval. Task orders issued under this Construction Management Services contract will be paid from the Housing Authority Capital Replacement Fund. There is no financial impact to the City’s General Fund. 611
612

PALM DESERT HOUSING AUTHORITY

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Celina Cabrera, Management Analyst
SUBJECT: REJECT ALL PROPOSALS SUBMITTED FOR COURTESY PATROL

SERVICES AT HOUSING AUTHORITY PROPERTIES
RECOMMENDATION:

1. Reject all proposals submitted for Courtesy Patrol Services at Palm Desert Housing Authority owned properties.

2. Authorize staff’s request to solicit proposals for camera system installation and off-site monitoring services.

BACKGROUND/ANALYSIS:

The Palm Desert Housing Authority currently has a Courtesy Patrol Services Agreement with Southwest Protective Service, Inc., for annual cost of $135,000. The agreement expires on September 24, 2024.

Staff released a request for proposal for Courtesy Patrol Services on March 12, 2024, on the City of Palm Desert’s online bid management provider, OpenGov. Responses were due on April 12, 2024, and three proposals were received.

Proposer Annual Amount
General Security Service, Inc. $839,192.80
Securitas Security Services USA, Inc. $396,789.00
Alltech Industries, Inc. $147,101.76
Following an initial review of proposals by staff, two of the proposals were three times the current annual contract amount ($145,517.20), making them unfeasible, and the third proposal did not demonstrate the ability to fulfill the needs of the Housing Authority properties. Southwest Protective Service, the current provider, did not submit a proposal and has expressed that the security industry is experiencing difficulties securing required insurance when working with housing authorities. Consequently, staff is recommending all proposals be rejected.

The Housing Authority’s property management company, Falkenberg Gilliam & Associates (“FGA”) have communicated that they have experienced successes with the transition from onsite courtesy patrol services to surveillance cameras with live-offsite monitoring at other properties they manage in San Diego and Los Angeles Counties. Staff have briefly explored the subject and are requesting approval to continue pursuing the options for a surveillance camera system and monitoring services at the Housing Authority properties, including solicitation of proposals.
613
Palm Desert Housing Authority
Reject Courtesy Patrol Services Proposals

Legal Review:

This report has been reviewed by the City Attorney’s office.

Appointed Body Recommendation:

The Housing Commission will review this recommendation at its regular meeting on September 11, 2024. Upon request, a verbal report will be provided at the Authority’s regular meeting on September 26, 2024.

FINANCIAL IMPACT:

There is no direct fiscal impact related to this action. 614

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Chris Escobedo, Assistant City Manager
SUBJECT: AUTHORIZE PARTICIPATION AND FUNDING COMMITMENT FOR

IMPERIAL IRRIGATION DISTRICT ENERGY PARTNERSHIP TO

DEVELOP NEW SUBSTATION
RECOMMENDATION:

1. Authorize the City’s participation in the Imperial Irrigation District Energy Partnership for the development of a new substation, including a commitment to funding and reservation of energy capacity, and authorize the City Manager to execute all necessary agreements.

2. Appropriate $950,000 from General Fund reserves and transfer out to Capital Project Budget North Sphere Electric Substation Account 4004258-4400100.

BACKGROUND/ANALYSIS:

In 2022, City staff worked with the Imperial Irrigation District (IID) to secure a will-serve letter for an affordable housing development in the north sphere, as well as for the City’s fourth fire station (Fire Station 102), which is currently in design. In that effort, staff learned of IID’s infrastructure challenges specific to the portion of Palm Desert they serve in the north sphere. The rest of Palm Desert is served by Southern California Edison.

City staff has worked with IID to identify options for a new substation and distribution line to serve the north sphere through a multi-party project partnership. Absent the additional substation, IID will not issue any additional will-serve letters for new and planned development.

At the July 11, 2024, meeting, the City Council held a study session regarding the IID’s energy infrastructure partnership. The study session included:
 Summary of staff’s work with NV5, which is a technical engineering and consulting firm utilized to analyze and project the IID-served energy demand at build-out;  Outreach efforts to the impacted property owners;
 Review of financial forecasts and financing options; and  Outline of project cost and multi-agency partners.

The City Council directed staff to proceed with the partnership. Staff has conducted additional follow-up since that time, including:
 Met with IID staff to verify the timeframe, which IID indicated is 3 years from the execution of the agreement, however, staff conservatively anticipates 4 years to energize the area.  Held additional property owner input/feedback sessions.  Met with the City’s legal counsel and financing team. 615
City of Palm Desert
Participation and Funding of IID Energy Infrastructure Partnership

 Met with the other government partners and proposed a working group comprised of the government entities to fully execute the objectives of the partnership.

Project Scope
The energy needs of the north sphere at build-out are 14.6 Megawatts (MW). This 14.6 MW need has been factored into the proposed substation, which would be located just north of the I10 freeway on Cook Street. This location has existing energy conduit and serves as the most efficient routing point for all parties. The project involves a 2-50 MVA substation bank, including the engineering, procurement, and construction of the 2-50 MVA, 92/13.2kV power transformer and associated equipment, including transmission and supporting infrastructure. Each entity would be requested to contribute their share, and IID would then commence ordering equipment, as well as initiating the design and construction phases.

High Level Total Substation Cost
Substation $20.76 Million
Distribution Gateways $4.00 Million
Transmission Line Upgrade 2-92 kV $2.53 Million
Total $27.29 Million
Multi-Party Project Agreement
The energy infrastructure partnership would have 8 entities contributing their proportional share of the substation costs. The table below, provided by IID, shows the entities being asked to participate, their energy demand, and their respective cost share.

The red box outlined shows Palm Desert’s energy demand at build-out and its corresponding cost share, which totals $5 million. Included in this amount is the energy required for the buildout of the California State University, San Bernardino – Palm Desert Campus (CSUSB-PD).

While CSUSB-PD cannot financially participate, City staff has negotiated other benefits with 616
City of Palm Desert
Participation and Funding of IID Energy Infrastructure Partnership

them, including the use of CSU property for flood infrastructure, wind fence improvements, and possible joint use of sports fields.

The total amount estimated for Palm Desert is $5 million, of which $1.65 million is allocated for CSUSB-PD. IID has also identified up to an additional $2 million to cover transmission lines, which would be the developer’s proportionate cost, consistent with current IID development practices.

Financing Plan
The City has retained Willdan, a financial adviser, and bond counsel to assist with the formation of the Community Facilities District (CFD), which will issue bonds and assess the property owners the amount necessary to fund the infrastructure needs. The CFD will allow each private property owner to pay their respective amount either upfront or over a 30-year period. The City will enter into reimbursement agreements with the property owners, allowing the City to be reimbursed for each private party’s energy amount through bond proceeds. In turn, these property owners would be guaranteed will-serve letters for energy from IID.

Future Build-Out Impact to the General Fund
Staff engaged Keyser Marston Associates (KMA) to analyze City revenue projections at buildout for the area being served by IID, based on three build-out scenarios. The most aggressive scenario involves hotel development in this area. KMA’s analysis projects that the City stands to receive approximately $1.3 million (least aggressive scenario) to $2 million (most aggressive scenario) annually in Transient Occupancy Tax (TOT), Property Taxes, and Sales and Use Taxes upon full build-out of the area.

Legal Review:

This report has been reviewed by the City Attorney’s office. Additionally, the City Attorney’s expert on energy matters reviewed the partnership materials and participation agreement.

FINANCIAL IMPACT:

Based on the total estimated cost of $27.29 million for the 15MW Substation partnership, the City would be required to front approximately $5 million for the Palm Desert property owners’ share of costs to facilitate the project collaboratively and expeditiously.

With the approval of a CFD by the Palm Desert property owners in need of service, preliminary analyses indicate that the City could recoup approximately 80-90% of the $5 million through reimbursement from bond proceeds issued on behalf of the CFD property owners, upon meeting the necessary property value threshold. Debt service for the CFD bonds would be paid annually through a Mello-Roos special tax, collected on the property owners’ property tax bill. The maximum risk to the General Fund is the $5 million payment, necessary to ensure the project is funded and commenced quickly.

KMA has projected annual revenue to the General Fund ranging from $1.3 million to $2.2 million after the build-out of the associated development area. The initial appropriation of $950,000 from General Fund Reserves will be utilized to pay project consultants, related legal fees, as well as the initial deposit assisting in ordering mitigating the long lead items for the substation. Upon the 617
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Participation and Funding of IID Energy Infrastructure Partnership

creation of the CFD and issuance of bonds, funds will be remitted to the City to reimburse costs related to the project.

ATTACHMENT:

1. Letter of Commitment
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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Martin Alvarez, Public Works Director
SUBJECT: RATIFY AMENDMENT NOS. 1, 2, AND 3 TO CONTRACT NO. C44200

WITH HERMANN DESIGN GROUP FOR THE DESERT WILLOW

GREENS AND TEE BOX RENOVATION AND TURF REDUCTION
(MLS00005)
RECOMMENDATION:

1. Ratify Amendment No. 1, 2, and 3 to Contract No. C44200 with Hermann Design Group for the Desert Willow Greens and Tee Box Renovation and Turf Reduction Project for a total amount of $31,085.

2. Authorize the City Manager to execute the amendment and any documents necessary to effectuate the actions taken herewith.

BACKGROUND/ANALYSIS:

On September 29, 2022, the City Council awarded Contract No. C44200 to Hermann Design Group for the design of the Desert Willow Greens/Tee Box Renovations and Turf Reduction in the amount of $305,100. To address unforeseen design circumstances during construction, staff requested approval from the City Manager for the following:

Amendment No. Description Amount
1 Firecliff Hole No. 10 tee box and golf cart path relocation $10,000 2 Additional landscape and engineering services $9,085
3 Planting Enhancements to enhance turf reduction areas $12,000 TOTAL $31,085
Amendment 1 – Tenth Tee Relocation:

Relocated the tenth tee and cart path due to a new parking area. This included updates to planning, landscaping, irrigation, grading, and drainage, with revisions to drawings and bid documents.

Amendment 2 – Construction Survey Services:

The Altum Group provided construction staking for the relocated tenth tee boxes and worked with HDG to align the cart path and adjust the tee location due to an underground water line.

Amendment 3 – Planting Enhancements:

Additional landscape design and field observations were conducted per City request. The scope included designing planting plans with materials, site visits, and cost estimates. The contractor received plans for bidding, and the City council approved the change order based on these plans.

Staff requests ratification of these amendments, totaling $31,085, to complete the project. 631
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(Ratify Amendment 1, 2, and 3 to Contract C44200 with Hermann Design Group)

Legal Review:

This report has been reviewed by the City Attorney’s office.

FINANCIAL IMPACT:

The costs of the Desert Willow Firecliff Golf Course Renovation are covered by the Desert Willow Capital Fund, under Account No. 4414195-4809200, with no financial impact on the General Fund.

The following table shows the current project budget and costs:

Item Authorized Budget Expenses
Carryover Funds Awarded Contracts $404,790.00
Consulting Services Hurdzan
Professional - A42830
February 1, 2022 $50,000.00
Design Services Herman Design
Group - C44200
September 29, 2022 $305,100.00
*Design Hermann Amend 1 September 6, 2023 $10,000.00 $10,000.00 *Design Hermann Amend 2 July 26, 2024 $9,085.00
*Design Hermann Amend 3 August 26, 2024 $12,000.00
Construction Management HR Green
– A44920
March 9, 2023 $49,690.00
Appropriation December 14, 2023 $4,473,396.75
Construction American Landscape -
C44200B
December 14, 2023 $10,000.00 $4,083,396.75
Construction CO 1 American $93,599.00
Construction CO 2 American $292,985.00
Appropriation September 12, 2024 $443,570.00
Construction CO 3 American September 12, 2024 $395,901.00 Add Contingency – C44200B September 12, 2024 $40,000
Total $5,341,756.75 $5,341,756.75
Less: DSRT SURF Developer Reimbursement ($319,121.50)
Project Cost $5,022,635.25
*Current request
ATTACHMENTS:

1. C44200 Contract

2. C44200 Amendment 1

3. C44200 Amendment 2

4. C44200 Amendment 3
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Contract No. C44200

CITY OF PALM DESERT

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this 29th day of September, 2022, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260- 2578, County of Riverside, State of California (“ City”) and Herman Design Group, a Stock Corporation, with its principal place of business at 77899 Wolf Road, Suite 102, Palm Desert, CA 92211 (" Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Project.

The City is a public agency of the State of California and is in need of professional services for the following project:

Greens/ Tee Box Renovation and Turf Reduction at Desert Willow Golf Resort hereinafter referred to as “the Project”).

2.2 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement.

Consultant is duly licensed and has the necessary qualifications to provide such services.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services necessary for the Project (" Services").

The Services are more particularly described in Exhibit " A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from September 29, 2022 to June 30, 2024, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates.

The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant' s exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their 633
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performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit " B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause.

The key personnel for performance of this Agreement are as follows: Chris Hermann, PLA, President and Chief Executive Officer.

3.2.5 City's Representative. The City hereby designates Audrey Nickerson, Project Manager, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement (" City's Representative").

City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant' s total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.6 Consultant' s Representative. Consultant hereby designates Chris Hermann, PLA, President and Chief Executive Officer, or his/her designee, to act as its representative for the performance of this Agreement (" Consultant' s Representative").

Consultant' s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant' s Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant 634
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represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant' s failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“ Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “ A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“ Performance Milestones”).

Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’ s performance and is one or more of the following: ( 1) Acts of God or other natural disasters; ( 2) terrorism or other acts of a public enemy; ( 3) orders of governmental authorities ( including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); ( 4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and ( 5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement.

Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation.

Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

3.2.10 Laws and Regulations; Employee/ Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause.

3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law 635
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respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.

3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed.

3.2.11 Insurance.

3.2.11.1 Minimum Requirements. Without limiting Consultant’ s indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City.

A) General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $ 2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO insured contract” language will not be accepted.

B) Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement.

C) Professional Liability ( Errors & Omissions) Insurance.

Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $ 1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement.

D) Workers’ Compensation Insurance. Consultant shall
maintain Workers’ Compensation Insurance ( Statutory Limits) and Employer’ s Liability Insurance 636
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with limits of at least $ 1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers and representatives.

E) Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’ s liability. Such policy or policies shall include the following terms and conditions:
1) A drop down feature requiring the policy to respond if any primary insurance that would otherwise have
applied proves to be uncollectible in whole or in part for any reason;
2) Pay on behalf of wording as opposed to reimbursement; 3) Concurrency of effective dates with primary policies; and 4) Policies shall “ follow form” to the underlying primary policies.
5) Insureds under primary policies shall also be insureds under the umbrella or excess policies.

3.2.11.2 Other Provisions or Requirements.

A) Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

B) Duration of Coverage. Consultant shall procure and
maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants.

C) Primary/ Non-Contributing. Coverage provided by
Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or selfinsurance shall be called upon to protect it as a named insured.

D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems 637
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necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement.

E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants.

G) Enforcement of Contract Provisions ( non estoppel).

Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

H) Requirements Not Limiting. Requirements of specific
coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance.

Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

I) Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/ umbrella liability policies.

K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
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L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’ s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’ s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

M) Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review.

N) City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety ( 90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’ s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice.

O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.

P) Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’ s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Q) Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services.

3.2.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act ( 33 U.S.C. 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority.

Consultant must comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Failure to comply with laws, regulations, and ordinances listed in this Section is a violation of federal and state law.

Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies of this Section.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including 639
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authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit " C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Three Hundred Five Thousand One Hundred Dollars and 0/100 ($305,100.00) without written approval of the City Council or City Manager, as applicable.

3.3.2 Payment of Compensation. Consultant shall submit to City monthly invoices which provide a detailed description of the Services and hours rendered by Consultant.

City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant' s fees, the City shall give written notice to Consultant within thirty ( 30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty ( 30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit " C" of this Agreement.

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

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.4 Labor Code Requirements.

3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on " public works" and " maintenance" projects. If the Services are being performed as part of an applicable " public works" or maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant' s principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4.2 Registration/ DIR Compliance. If the Services are being performed on a public works project of over $ 25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $ 15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“ DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance 640
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monitoring and enforcement by the DIR. It shall be Consultant’ s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’ s performance of Services, including any delay, shall be Consultant’ s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant.

3.4.3 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker' s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5 Accounting Records.

3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three ( 3) years from the date of final payment under this Agreement.

3.6 General Provisions.

3.6.1 Termination of Agreement.

3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven ( 7) days’ written notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. 641
Contract No. C44200

3.6.1.4 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: Hermann Design Group
77899 Wolf Road, Suite 102
Palm Desert, CA 92211
ATTN: Chris Hermann, President and Chief Executive
Officer
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
ATTN: Audrey Nickerson, Project Manager
Such notice shall be deemed made when personally delivered or when mailed, forty- eight ( 48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.6.3 Ownership of Materials and Confidentiality.

3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (" Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen ( 15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.

3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes 642
Contract No. C44200
no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.

3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’ s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.

3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted.

3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’ s proprietary information (" Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant' s objection to the City's release of Proprietary Information.

Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense ( including attorney’ s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: ( 1) Consultant fails to fully indemnify, defend ( with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; 643
Contract No. C44200
and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.6.5 [ Reserved]

3.6.6 Indemnification.

3.6.6.1 To the fullest extent permitted by law, Consultant shall defend ( with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subconsultants or agents in connection with the performance of the Consultant’ s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorney’ s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant' s obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, volunteers, or representatives.

3.6.6.2 If Consultant’ s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’ s performance as a “ design professional” ( as that term is defined under Civil Code section 2782. 8), then, and only to the extent required by Civil Code section 2782. 8, which is fully incorporated herein, Consultant’ s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’ s liability for such claim, including the cost to defend, shall not exceed the Consultant’ s proportionate percentage of fault.

3.6.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.

3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County.

3.6.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.6.10 City' s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties.

3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer 644
Contract No. C44200
without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City.

Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

3.6.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, volunteers and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.6.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.6.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.6.16 No Third- Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.6.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.6.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.6.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
645
Contract No. C44200

3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination.

SIGNATURES ON NEXT PAGE]
646
Contract No. C44200

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM DESERT

AND HERMANN DESIGN GROUP
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
ATTEST:

By:

Anthony Mejia
City Clerk
APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney
Hermann Design Group
By:

Its:

Printed Name:

By:

Its:

Printed Name:

QC: MN
Insurance:

Initial Review
Final Approval
President/ CEO
Chris Hermann
Kristin Hermann ( Nov 17, 2022 13:40 PST)
Kristin Hermann
CFO/ Managing Director
Kristin Hermann
Robert Hargreaves ( Nov 18, 2022 08: 06 PST)
Robert Hargreaves
Todd Hileman ( Nov 18, 2022 09:42 PST)
Anthony Mejia ( Nov 18, 2022 10:06 PST)
mr
mr
647
Contract No. C44200
Exhibit “ A”
EXHIBIT "A"

SCOPE OF SERVICES
648

SCOPE OF SERVICES
C42200
Exhibit A
649

HERMANN
DESIGN GROUP08 PALM DESERT OFFICE 760. 777.9131 RIVERSIDE OFFICE 951. 782.9335 SAN DIEGO OFFICE 619. 415.0095 SCOPE
OF SERVICES The following outlines the proposed scope of work as outlined by the City of Palm Desert in the RFP and includes the tee and green renovations described in the Hurdzan Golf Design master plan.FIRECLIFF
GOLF COURSE Hole SCOPE TEES
GREEN EXPANSION 1 Shift White Tee left
1 YES 2 Shift Tees to Right
4 NO 3 Expand Blue and White Tees
2 YES 4 Enlarge White Tee
1 YES 5
N/ A6Add Forward Tee
1 YES 7Add Forward Tee
1 YES 8 Expand Tees
3 YES 9 Expand White Tee
1 YES 10 Add Five New Tees
5 NO 11 Enlarge Blue, White, and Gold Tees
3 NO 12
N/ A13 Add Forward Tee, Enlarge Tees
5 NO 14 Enlarge
Tees YES 15 Enlarge Blue and White
2 YES 16 Enlarge Blue, White, Gold Tees
3 YES 17 Enlarge Blue, White, Gold Tees
3 YES 18 Enlarge Blue and White Tees
650

HERMANN
DESIGN GROUP09 PALM DESERT OFFICE 760. 777.9131 RIVERSIDE OFFICE 951. 782.9335 SAN DIEGO OFFICE 619. 415.0095 SCOPE

OF SERVICES MOUNTAIN VIEW TURF REMOVAL (PER
HURDZAN PLAN)Hole CONVERSIONS, REMOVAL,
AND INSTALLATIONS 1 Rough
to Desert 2 Rough to Fairway/ Tee and Rough
to Desert 3 Rough
to Desert 4 Rough to Desert and Sand Bunker
to Rough 5 Desert
to Rough 6 Rough to Desert and
Remove Vegetation 7 Rough to Desert and
Remove Vegetation 8 Rough to Desert and
Remove Vegetation 9 Rough
to
Desert 10 Remove Vegetation, Rough to Desert, Fairway
to Rough, Rough to Green, Sand Bunker to Rough, Desert
to Fairway, and Desert
to Rough 11 Rough
to Desert 12 Rough to Desert and Sand Bunker
to Rough 13 Rough
to Desert 14 Rough
to Desert 15 Rough to Desert and
Remove Vegetation 16 Rough to Desert and Rough to
Fairway/ Tee 17 Rough
to Desert 18 Rough to Desert, Sand Bunkers to Rough,
Rough to Fairways/ Tee, and Install
651

HERMANN
DESIGN GROUP10 PALM DESERT OFFICE 760. 777.9131 RIVERSIDE OFFICE 951. 782.9335 SAN DIEGO OFFICE 619. 415.0095 SCOPE
OF SERVICES I. DESIGN
DEVELOPMENT SERVICES Project Kick
Off Meeting HDG will meet with the Client to review the preliminary plans that have been previously prepared by Hurdzan Golf Design to refine and clarify the project’ s objectives. Aproject schedule will be presented at the meeting and initial base sheets for the areas of work will be provided by HDG and the
consultant team.

Base Sheets The Altum Group will utilize the existing aerial survey prepared for other work at Desert Willow and develop base sheets at 50 scale on 24” x36” size title blocks to meet City standards. Golf Course
Master Plan The Hurdzan master plan will be combined with the aerial survey into one reference plan that will be used for establishing locations and limits of tees and greens. The master plan exhibit will be used to prepare area calculations ofthe proposed improvements and establish the project budget and direction for final
biddocuments.

Preliminary Grading Preliminary grading for relocated tees will be provided to determine cut/ fill and earthwork costs.Mapping Existing
Irrigation System We will map all existing valve- in- head ( VIH) rotors, electric valves, isolation valves and irrigation controllers on the golf course utilizing survey grade GPS equipment. The golf course shall furnish an electric golf cart from the clubhouse for transportation on the golf course during the survey.To minimize disruption to golf course play, the following procedure shall be implemented: We will provide wired marking flags to the golf course personnel ( GCP). GCP familiar with the current irrigation system shall use the marking flags to identify the locations of the existing irrigation components. System components shall include sprinklers and valve boxes. This shall be completed before the arrival of the GPS operator in groups of three to six golf holes tobe determined at the time of survey). The GPS operator shall survey the location ofthe marker flags and collect the flags, clearing the golf hole as the survey is completed on each
golfhole. Existing irrigation will be overlaid onto the golf course master plan and itemized in preparation forthe development of competitive bid documents for VIH sprinklers and swing joints. Site Study, Inventory,
and Analysis We will visit the site and identify proposed areas of improvement, inventory existing irrigation system, electrical, plumbing and valving with the existing and proposed tee box limits, and identify areas where trees or landscaping must be removed to accommodate new tee box locations and
652

HERMANN
DESIGN GROUP11 PALM DESERT OFFICE 760. 777.9131 RIVERSIDE OFFICE 951. 782.9335 SAN DIEGO OFFICE 619. 415.0095 SCOPE
OF SERVICES A written summary of recommendations will be provided identifying irrigation improvements. The direction of the irrigation master plan will be developed in collaboration with the golf
course superintendent. Irrigation
Master Plan We will provide an irrigation master plan that will assist in determining the important criteria for theVIH sprinkler replacement, the tee box renovation, and greens renovation projects.

Plans will include apreliminary head layout with existing mainline, existing/ proposed valving and proposed lateral routing as well as coverage plans showing full and effective coverage areas. Awater use calculation summarizing monthly/ annual average water demands for the new irrigation will
be included. Opinion of Probable
Construction Cost We will prepare apreliminary opinion of probable construction cost for use in determining the
project budget.II.

CONSTRUCTION DOCUMENTS Upon approval ofthedesign development package by theCity, the following construction documents will
be prepared: MARKETING COORDINATOR /
EXECUTIVE ASSISTANTA. Landscape
Demolition Plan We will prepare aplan that illustrates landscape demolition for each golf course. Existing material to remain will be noted and material that can be relocated will be shown. B. Planting Plan
and Details This plan will illustrate the location of all existing and proposed plant material.

Aplant legend will describe the Latin and common names, sizes and remarks for each plant shown on the plan. Details will be provided
as required.C. Green
Layout Plan This plan will illustrate the proposed layout forthe grassing of the new green layouts and serve as the staking
location plan. D. Tee
Grading Plan This plan will illustrate the proposed grading for all new tee locations and serve as the staking
location plan.E. Irrigation Plan and Details for Tee
Box Renovations This plan will illustrate the location ofall new irrigation components required for the planting of new materials. Details will be provided as required. F. Construction Specifications/
Bid Documents Technical specifications and itemized bid documents for the items covered under this scope of work will
653

HERMANN
DESIGN GROUP12 PALM DESERT OFFICE 760. 777.9131 RIVERSIDE OFFICE 951. 782.9335 SAN DIEGO OFFICE 619. 415.0095 SCOPE
OF SERVICES G. Opinion of Probable
Construction Cost We will prepare a final opinion of probable construction cost for use in bidding documents and determination of alternate bid item( s), if necessary, for the items covered under this scope
of work.III. AGENCY
APPROVAL ( ALLOWANCE) We will submit to the City all plans, specifications, estimates, and/or other necessary documents required to obtain approval. The following plan check submittals are included: 1st Review – 50% Check Plans
and Specifications 2nd Review – 90% Check Plans
and Specifications 3rd Review – 100% Check
Plans, Specifications 4th Review – Final
Plan Check We will make revisions as required by the City and resubmit plans for approval.IV. MEETINGS/ PROJECT ADMINISTRATION (
HOURLY
ALLOWANCE) Meetings Attend City meetings, agency review meetings, and related project presentations as required. Attend and/or conduct development team meetings and conference calls as necessary to perform the scope of work. Six (6) meetings are anticipated with staff during the project.

Coordination with the Cityand project management are included within this scope of work.

Kickoff Meeting Staff Review of Design
Development Plans Staff Review of 50%
Working Drawings Staff Review of 90%
Working Drawings Staff Review of 100% Working
Drawings/ Specifications City Council Approval of plans and final construction cost estimate
Project Administration Perform general project management services as necessary to support tothe work of this project. V.

BIDDING PHASE PreBid Meeting We will attend the pre-bid conference and answer questions.

Bid Solicitation We will provide bid assistance toinclude answering questions from 654

HERMANN
DESIGN GROUP13 PALM DESERT OFFICE 760. 777.9131 RIVERSIDE OFFICE 951. 782.9335 SAN DIEGO OFFICE 619. 415.0095 SCOPE
OF SERVICES VI.

CONSTRUCTION SERVICES Construction
Observation Services Wewill provide construction observation services upon request by the City.The following construction services
are recommended: Staking oftee improvements (
32 tees) Staking of
green improvements Flag plant material locations prior
toinstallation Review of
emitter placement Review final installation and
irrigation coverage Final
punch list We will respond to requests for information and provide clarification on plans as required. During field observations we will verify that products being installed are per plans and specifications. A written report will be prepared following each site visit.Following completion of the project we will coordinate with the Contractor to provide Operation Manuals, Warranty Letters, Materials List, and Training on the irrigation control system. Perform general project management services as necessary to support to the work of 655
Contract No. C44200
Exhibit “ B”
EXHIBIT “B”

SCHEDULE OF SERVICES
656
14 HERMANN DESIGN GROUP

PROJECT SCHEDULE
PALM DESERT OFFICE 760.777.9131 SAN DIEGO OFFICE 619.415.0095 RIVERSIDE OFFICE 951.782.9335 Milestone 10/ 6/ 22 10/ 20/ 22 11/ 24/ 22 12/ 1/ 22 12/ 19/ 22 1/25/ 23 2/ 23/ 23 6/ 1/ 23 7/ 2023 8/ 2023 9/ 2023 10/ 6/ 23 10/ 20/ 23 Kick Off Meeting with City
50% Design Review & Provide Conceptual Drawings
90% Review of Plans, Specs, and Cost Estimate
100% Receipt of Drawings, Plans, Specs, and Cost
Construction Bid Posting
Construction Bids Due
Contractor Selection
Construction Notice to Proceed
50% Construction Completion
75% Construction Completion
95% Construction Completion
Final Construction Review
Final Construction Documents Due
Exhibit B
C44200
657
Contract No. C44200
Exhibit “ C”
EXHIBIT "C"

COMPENSATION
658
HERMANN DESIGN GROUPPALM DESERT OFFICE 760. 777.9131 SAN DIEGO OFFICE 619. 415.0095 RIVERSIDE OFFICE 951. 782. 9335 CITY
O

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659
HERMANN DESIGN GROUPPALM DESERT OFFICE 760. 777.9131 SAN DIEGO OFFICE 619. 415.0095 RIVERSIDE OFFICE 951. 782.9335 FEES
AND CHARGES Firecliff Course (With Optional Tasks) $201, 100.0Mountain ViewCourse $ 104,
000. 00 TOTAL $305,
100.00 Firecliff Course (Without Optional Tasks) $192,
100.0Mountain ViewCourse $ 104,
000. 00 TOTAL $296,
100.00 NORMAL

HOURLY RATES HERMANN
DESIGN GROUP Principal Landscape Architect....................................................................$ 185.00 perhour Project Manager ........................................................................................... 165.00 perhour Landscape Architect ..................................................................................... 160.00 per hour Senior Designer ............................................................................................ 140.00 per hour Designer ....................................................................................................... 110.00 per hour Admin ........................................................................................................... 100.00 per hour
OUTSIDE CONSULTANTS Servicesof outside consultants not listed inthis proposal, at our direct cost, plus 15% ofthe actual costoftheir services
for
coordination. REIMBURSABLES Reimbursable items, such as the cost of reprographics, soil samples, and travel required outside the Coachella Valley will be charged at our cost plus 15% within theallowances provided in the
feebreakdowns.FAIRWAY
IRRIGATION DESIGN Construction Services ................................................................................$ 175.00 per hour GPS Surveying ............................................................................................... 175.00 per hour CAD Drafting ................................................................................................. 175.00 per hour Irrigation Design ........................................................................................... 175.00 per hour Meetings & Coordination ............................................................................. 150.00 per hour
660
HERMANN DESIGN GROUPPALM DESERT OFFICE 760. 777.9131 SAN DIEGO OFFICE 619. 415.0095 RIVERSIDE OFFICE 951. 782.9335 THE
ALTUM GROUP Principal ...............................................................................................$ 184.00 per hour Director .................................................................................................. 163.00 per hour Senior Project Manager .......................................................................... 158.00 per hour Project Manager ..................................................................................... 152.00 per hour Assistant Project Manager...................................................................... 142.00 perhour Senior Associate ..................................................................................... 131.00 per hour Associate ................................................................................................ 116.00 per hour Assistant ................................................................................................... 90.00 perhour Project Coordination ................................................................................ 79.00 per hour Administrative Assistant/ Clerical .............................................................. 58.00 per hour Intern ........................................................................................................ 37.00 per hour Utility
Location Services Mobilization - 1st Hour ................................................................................... 150. 00 1-Man Crew - Non- Prevailing ..................................................................................

90. 00 2-Man Crew - Non-Prevailing ............................................................................... 169. 00 1-Man Crew - Prevailing ......................................................................................$ 125. 00 2-Man Crew - Prevailing ....................................................................................... 250.00
Survey Services Survey Crew - Non-Prevailing .............................................................................$ 225.00 Survey Crew - Prevailing ....................................................................................... 275.00 Survey
Crew Rates Hourly rates include standard 2-man crew, 1-man robotic crew and 1-man GPScrew.

Reimbursables Expenses Mileage is billed atIRS business rate plus 15%. Printing, reproduction, etc. are billed at direct cost plus15%.
661
HERMANN DESIGN GROUPPALM DESERT OFFICE 760. 777.9131 SAN DIEGO OFFICE 619. 415.0095 RIVERSIDE OFFICE 951. 782. 9335 HDG FAIRWAY

IRRIGATION ALTUM
DESIGN DEVELOPMENT Base Sheets $ 2, 000. 00 $10,
000.00 Golf Master Plan Exhibit $ 2,
000.00 Preliminary Grading $ 2, 500. 00 $2,
500.00 GPS Survey $ 9,
000.00Site Reconnaissance, Inventory, and Analysis $ 2, 500.00Inventory Current Irrigation System $ 3,
000.00 Irrigation Reduction/ Change Plan ( 32 Tees)$ 9, 000.00 Irrigation Report $ 3,
000. 00 Irrigation Master Plan ( Tee Box,
Greens Expansion, and
Turf Reduction) Renovation Design $ 1,
500. 00 Plans $ 12,
000.00 Water Use Analysis Report $ 3,
000.00 Preliminary Cost Estimate $ 1, 500. 00 $ 3,
000.00
CONSTRUCTION DOCUMENTS Landscape and Turf Reduction Demolition Plans $12, 500.00 Tee Grading Plan $15,
000.00 Turf
Reduction Plans Irrigation Final Plan Set $ 4, 000. 00 $ 9, 000.00 Irrigation Construction Itemized Cost Estimate $ 3, 000.00 Irrigation Technical and Workmanship Specs $ 3,
000.00 Greens/Tee Box Renovations Plans $ 6, 500. 00 $ 1, 500.00 Irrigation Plan Set $ 9,
000.00 Irrigation Construction Itemized Cost Estimate $ 3, 000.00 Irrigation Technical and Workmanship Specs $ 3,
000.00 Planting Plan and Details $ 8,
000.00 Landscape Specifications $ 2,
000.00 Final Opinion of Probable Cost $ 5,
000.00 AGENCY APPROVAL $ 3,
500.00 MEETINGS AND COORDINATION ( 5)$ 4, 500. 00 $ 3, 000. 00 $ 1, 500.00 CONSTRUCTION BID ASSISTANCE $ 1, 500. 00 $ 3,
000.00
CONSTRUCTION SUPPORT General Irrigation Support $ 3,
000.00
Construction Staking Green/Tee
Expansion/ Relocation)$ 5,
600.00 Computer
Database Update Tees/Greens/
Turf Reduction)$ 6,
000.00 Record Drawings of Revised Sprinklers -
32 Tees Optional)$ 5,
000.00 Record Drawings of New Turf Areas
and
Irrigation Optional)$ 4,
000.00 Construction Observation Services - Hourly $ 7,
500. 00 REIMBURSABLES $ 1, 500.00 $
500. 00 SUBTOTAL $ 67, 000.00 $105, 100. 00 $29,
000. 00 TOTAL $201,
100.00

FEE SCHEDULE
662
HERMANN DESIGN GROUPPALM DESERT OFFICE 760. 777.9131 SAN DIEGO OFFICE 619. 415.0095 RIVERSIDE OFFICE 951. 782. 9335 HDG FAIRWAY

IRRIGATION ALTUM
DESIGN DEVELOPMENT Base Sheets $ 2, 000.00 $ 10,
000.00 Golf Master Plan Exhibit $ 2,
000.00 GPS Survey $ 9,
000.00Site Reconnaissance, Inventory, and Analysis $ 2, 500.00 $ 15, 000. 00 Irrigation
Master Plan Plans $ 8,
000.00 Water Use Analysis Report $ 3,
000. 00 Record Drawings and
Computer Database Update $ 6,
000.00 Preliminary Cost Estimate $ 1, 500. 00 $ 3,
000.00
CONSTRUCTION DOCUMENTS Landscape and Turf Reduction Plans $ 2, 500.00 Irrigation Final Plan Set $ 9,
000.00Irrigation Construction Itemized Cost Estimate $ 3, 000.00 Irrigation Technical and Workmanship Specs $ 3,
000.00 Planting Plan and Details $ 8,
500.00 Landscape Specifications $ 2,
500.00 AGENCY APPROVAL $ 3,
500.00 MEETINGS AND COORDINATION ( 5)$ 3, 500. 00 $ 3, 000. 00 $ 1, 500. 00 REIMBURSABLES $ 1, 500.00 $
500. 00 SUBTOTAL $ 30, 000. 00 $62, 500. 00 $11,
500. 00 TOTAL $104,
000.00

FEESCHEDULE MOUNTAIN
663
664
Contract No. C44200

AMENDMENT NO. 1 TO THE DESERT WILLOW GREENS/TEE BOX RENOVATION

AND TURF REDUCTION BETWEEN THE CITY OF PALM DESERT

AND HERMANN DESIGN GROUP

1. Parties and Date.

This Amendment No 1 to the Desert Willow Greens/Tee Box Renovation and Turf Reduction is made and entered into as of this 6th day of September 2023, by and between the City of Palm Desert (“City”) and Hermann Design Group, a Corporation, with its principal place of business at 77899 Wolf Road, Suite 102, Palm Desert CA 92211 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Agreement. The City and Hermann Design Group have entered into an agreement entitled Desert Willow Greens/Tee Box Renovation and Turf Reduction dated September 29, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of Hermann Design Group to provide landscape architecture services for Desert Willow.

2.2 Amendment. The City and Hermann Design Group desire to amend the Agreement to increase compensation to include additional services.

2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section

3.6.14 of the Agreement.

3. Terms.

3.1 Section 3. Section 3.3 of the Agreement is hereby amended in its entirety to read as follows:

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under Exhibit "C" of the original Agreement and in Exhibit “D” attached hereto and incorporated herein by reference. The total compensation shall increase by Ten Thousand Dollars ($10,000) and not exceed Three Hundred Fifteen Thousand One Hundred Dollars ($315,100) without written approval of the City Council or City Manager, as applicable.

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1.

3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1.

3.4 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each DocuSign Envelope ID: D897BEC7-DE67-40DA-A28F-670FAF974BFD 665
Contract No. C44200

of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
DocuSign Envelope ID: D897BEC7-DE67-40DA-A28F-670FAF974BFD 666
Contract No. C44200

SIGNATURE PAGE FOR AMENDMENT NO. 1 TO DESERT WILLOW GREENS/TEE BOX

RENOVATION AND TURF REDUCTION BETWEEN THE CITY OF PALM DESERT AND HERMANN DESIGN GROUP, INC.

IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 to the Desert Willow Greens/Tee Box Renovation and Turf Reduction as of the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Best Best & Krieger LLP
City Attorney
HERMANN DESIGN GROUP, INC., A

CORPORATION
By:

Its:

Printed Name:

By:

Its:

Printed Name:

QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
DocuSign Envelope ID: D897BEC7-DE67-40DA-A28F-670FAF974BFD CEO/President
Chris Hermann

CFO/CORPORATE SECRETARY
Kristin Hermann
667
Work Authorization
Date
7/20/2023
WA #
2023053
Name / Address

VIA EMAIL
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92211
Hermann Design Group, Inc.
78365 Highway 111, PMB 332
La Quinta, CA 92253
Please sign and return via facsimile or email to [email protected] Total 760-777-9131 Phone / 760-777-9132 Fax
Signature: _____________________________________________________________ Description Total

GREENS/TEE BOX RENOVATION

DESERT WILLOW GOLF RESORT
Landscape Architecture Services
HDG Job No.: 22053.01
Amendment 01
Firecliff Tenth Tee Alternative Locations
Hermann Design Group (HDG) and The Altum Group will make the appropriate revisions to final plans and bid schedule to add tenth tee alternative locations for the Firecliff tee relocation plans. All other provisions of the original agreement shall apply herein; reimbursable expenses to be billed separately if incurred. 10th Tee Relocation - Alternative Locations 10,000.00
$10,000.00
"EXHIBIT D"
"EXHIBIT D"
DocuSign Envelope ID: D897BEC7-DE67-40DA-A28F-670FAF974BFD 668
Contract No. C44200

BBK 72500.00001\32445060.1
AMENDMENT NO. 2 TO THE DESERT WILLOW GREENS/TEE BOX RENOVATION

AND TURF REDUCTION BETWEEN THE CITY OF PALM DESERT AND HERMANN DESIGN GROUP

1. Parties and Date.

This Amendment No 2 to the Desert Willow Greens/Tee Box Renovation and Turf Reduction is made and entered into as of this 25th day of July, 2024, by and between the City of Palm Desert (“City”) and Hermann Design Group, a Corporation, with its principal place of business at 77899 Wolf Road, Suite 102, Palm Desert, CA 92211 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Agreement. The City and Hermann Design Group have entered into an agreement entitled “Desert Willow Greens/Tee Box Renovation and Turf Reduction” dated September 29, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of Hermann Design Group to provide landscape architecture services for Desert Willow.

2.2 Amendment. The City and Hermann Design Group desire to amend the Agreement to increase compensation to include additional services. The Parties have heretofore entered into that Amendment No. dated September 6, 2023.

2.3 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section

3.6.14 of the Agreement.

3. Terms.

3.1.1 Compensation. Section 3.3 of the Agreement is hereby amended in its entirety to read as follows:
"3.3.1 Compensation. Consultant shall receive
compensation, including authorized reimbursements, for all Services rendered under Exhibit "C" of the original Agreement, Exhibit “D” in Amendment 1, and Exhibit “E” attached hereto and incorporated herein by reference. The total compensation shall increase by Nine-Thousand and Eighty-Five Dollars ($9,085.00) and not exceed Three Hundred Twenty-Four Thousand One-Hundred and Eighty-Five Dollars ($324,185.00) without written approval of the City Council or City Manager, as applicable."

3.1.2 Term. Section 3.3 of the Agreement is hereby amended in its entirety to read as follows:
“3.1.2 Term. The term of this Agreement shall be from July 1, 2024 to June 30, 2025, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 2. From and after the date of this Amendment No. 2, Docusign Envelope ID: 662FC4FD-3457-4287-A9DB-8735412D16BD 669
Contract No. C44200

BBK 72500.00001\32445060.1
whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2.

3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2.

3.4 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5 Counterparts. This Amendment No. 2 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: 662FC4FD-3457-4287-A9DB-8735412D16BD 670
Contract No. C44200

BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 2 TO DESERT WILLOW GREENS/TEE BOX

RENOVATION AND TURF REDUCTION BETWEEN THE CITY OF PALM DESERT

AND HERMANN DESIGN GROUP
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 2 to the Desert Willow Greens/Tee Box Renovation and Turf Reduction as of the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Israh Shah
Best Best & Krieger LLP
City Attorney

HERMANN DESIGN GROUP, A

CORPORATION
By:

Chris Hermann
CEO/President
By:

Kristin Hermann
CFO/Corporate Secretary
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Docusign Envelope ID: 662FC4FD-3457-4287-A9DB-8735412D16BD 671
Work Authorization
Date
7/1/2024
WA #
2024030
Name / Address

VIA EMAIL
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92211
Hermann Design Group, Inc.
78365 Highway 111, PMB 332
La Quinta, CA 92253
Please sign and return via facsimile or email to [email protected] Total 760-777-9131 Phone / 760-777-9132 Fax
Signature: _____________________________________________________________ Description Total

GREENS/TEE BOX RENOVATION

DESERT WILLOW GOLF RESORT
Landscape Architecture Services
HDG Job No.: 22053.02
Contract C44200
Amendment 02
Construction Surveying Services
Firecliff Hole 10 Relocated Tee Boxes
Hermann Design Group's (HDG) subconsultant The Altum Group will provide construction surveying services as required for the Firecliff Hole 10 Relocated Tee Boxes. All other provisions of the original agreement shall apply herein; reimbursable expenses to be billed separately if incurred.

Construction Survey Services 7,900.00
Consultant and Agency Coordination 1,185.00
$9,085.00
Docusign Envelope ID: 662FC4FD-3457-4287-A9DB-8735412D16BD 672
Contract No. C44201

Revised 01-2024
BBK 72500.00001\32445060.1
AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE

CITY OF PALM DESERT AND HERMANN DESIGN GROUP

1. Parties and Date.

This Amendment No. 3 to the made and entered into on August 26, 2024, between the City of Palm Desert (“City”) and Hermann Design Group, a Corporation, with its principal place of business at 77899 Wolf Road, Suite 102, Palm Desert, CA. 92201 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. Recitals.

2.1 Agreement. The City and Hermann Design Group have entered into an agreement entitled “Professional Services Agreement” dated September 29, 2022. (“Agreement” or “Contract”) for the purpose of retaining the services of Hermann Design Group to provide landscape architecture services for Desert Willow.

2.2 Amendment No. 3. The City and Hermann Design Group desire to amend the Agreement to increase compensation to include additional services.

2.3 Amendment Authority. This Amendment No. 3 is authorized pursuant to Section

3.6.14 of the Agreement.

Amendment Number Amendment Description Amendment Date
1 increase compensation to
include additional services
09/06/2023
2 extend term and increase
compensation
07/25/2024

3. Terms.

3.1.1 Compensation. Section 3.3.1 of the Agreement is hereby amended in its entirety to read as follows:
"3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under Exhibit "C" of the original Agreement and in Exhibit “D” in Amendment No. 1, Exhibit “E” in Amendment No. 2, and Exhibit "F" attached hereto and incorporated herein by reference. The total compensation shall not exceed Three-Hundred and Thirty-Six Thousand One-Hundred and Eighty-Five Dollars ($336,185.00) without written approval of the City Council or City Manager, as applicable."

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 3, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 3. From and after the date of this Amendment No. 3, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 3.

3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 3.

Docusign Envelope ID: 134949D0-198B-43D9-8820-2AFB158BFCE8 673
Contract No. C44201

Revised 01-2024
BBK 72500.00001\32445060.1

3.4 Severability. If any portion of this Amendment No. 3 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5 Counterparts. This Amendment No. 3 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: 134949D0-198B-43D9-8820-2AFB158BFCE8 674
Contract No. C44201

Revised 01-2024
BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 3 TO PROFESSIONAL SERVICES

AGREEMENT BETWEEN THE CITY OF PALM DESERT

AND HERMANN DESIGN GROUP
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 3 to the Professional Services Agreement as of the day and year first above written.

CITY OF PALM DESERT
By:

L. Todd Hileman
City Manager
Attest:

By:

Anthony J. Mejia
City Clerk
Approved as to form:

By:

Isra Shah
Best Best & Krieger LLP
City Attorney

HERMANN DESIGN GROUP, A
CORPORATION.

By:

Chris Hermann
CEO/President
By:

Kristin Hermann
CFO/Corporate Secretary
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Docusign Envelope ID: 134949D0-198B-43D9-8820-2AFB158BFCE8 675
Contract No. C44201

Revised 01-2024
BBK 72500.00001\32445060.1
Docusign Envelope ID: 134949D0-198B-43D9-8820-2AFB158BFCE8 676

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Michael S. Rowe, PE, City Engineer
SUBJECT: RESOLUTION APPROVING FINAL PARCEL MAP 37234 AND

ASSOCIATED SUBDIVISION IMPROVEMENT AGREEMENT
RECOMMENDATION:

1. Adopt Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF PARCEL MAP NO. 37234”

2. Authorize the City Attorney to make necessary nonmonetary changes to the agreement.

3. Authorize the City Manager to execute the Subdivision Improvement Agreement.

BACKGROUND/ANALYSIS:

On March 12, 2020, the Palm Desert City Council adopted Resolution No. 2020-17, which approved the MCP Specific Plan and Tentative Parcel Map (TPM 37234). The MCP Specific Plan and TPM 37234 regulate the development of a 32+ acre area of land comprised of two existing parcels located at the southeast corner of Monterey Avenue and Dick Kelly Avenue. The original life of the tentative map was 24 months.

On April 19, 2022, the Palm Desert Planning Commission, by Minute Motion, granted an 18- month extension of time for TPM 37234 until September 12, 2023.

On July 18, 2023, the Palm Desert Planning Commission adopted Planning Commission Resolution No. 2835, granting an additional 12-month extension of time for TPM 37234 until September 12, 2024.

On September 3, 2024, the Palm Desert Planning Commission adopted Planning Commission Resolution No. 2880, granting an additional 6-month extension of time for TPM 37234 until March 12, 2025.

Resolution No. 2880 included Conditions of Approval for certain improvements to be constructed and impact fees to be paid. These improvements include:

1. Payment of fair share (25%) for the traffic signal modifications at Monterey and Street A is deferred since the traffic study did not warrant it at this time. The City of Rancho Mirage is neutral on this matter since there is no project to warrant its need or location at this time. The future project will therefore be required to pay for any installation if their future project desires a signal or median modification mid-block on Monterey, and their projectspecific Traffic Study warrants its installation.

2. The costs for future relocation of power lines along Monterey, to accommodate a future deceleration lane into the project, were established with a preliminary plan showing a 677
City of Palm Desert
Resolution Approving Final Parcel Map 37234 and Agreements

reasonable location for a project entrance. This plan included a left-in off southbound Monterey along with the right-in/right-out entrance from northbound Monterey. This preliminary plan was used to establish a reasonable estimate of probable costs that included moving two power poles, replacement of the sidewalk along Monterey, and median improvements in Monterey. This plan and estimate was submitted and approved by the City Engineer.

3. The applicant’s traffic consultant developed a fair-share cost for necessary modifications to the existing signal at Monterey Avenue and Dick Kelly, which was included in the cost estimate approved by the City Engineer.

4. The pedestrian and vehicular access easements through each parcel were satisfied with a note in the Owner’s Statement. Each parcel will allow reciprocal rights through each other, with the locations determined through the entitlement process of each parcel and their individual Conditions of Approval.

Applicant has entered into a Subdivision Improvement Agreement with bonds for the completion and payment of these improvements based on the Preliminary Cost Estimates provided to the City and approved by the City Engineer.

Applicant has also paid their impact fees for Drainage and Art in Public Places.

Legal Review:

This report has been reviewed by the City Attorney’s Office.

Environment Assessment/Environmental Review:

The proposed Final Map is a project under CEQA. The adoption of the Final Map is exempt from CEQA under Section 15268(b) of Chapter 3 of Title 14 of the California Code of Regulations (State CEQA Guidelines). Section 15628(b) exempts ministerial approval by public agencies from CEQA. Final Maps are specifically cited as a type of ministerial permit.

Therefore, this project qualifies for the identified exemption.

The original Specific Plan and tentative map were evaluated for environmental impacts, and a Mitigated Negative Declaration was adopted per CEQA requirements.

FINANCIAL IMPACT:

There are no direct impacts to the General Fund with this action. However, when the modifications of the public streets and signals are completed their long term maintenance will be the responsibility of the City of Palm Desert
ATTACHMENTS:

1. Resolution

2. Planning Commission Resolution 2880

3. City Council Reso 2020-17

4. Conditions of Approval

5. TPM 37234
678
City of Palm Desert
Resolution Approving Final Parcel Map 37234 and Agreements

6. Final Parcel Map 37234

7. Subdivision Improvement Agreement

8. Subdivision Improvement Bond
679
680
1 RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM

DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF PARCEL MAP 37234.

WHEREAS, Parcel Map conforms to the requirements of the Subdivision MapAct and City Ordinances; and
WHEREAS, the Tentative Parcel Map 37234 (TPM 37234) was approved to subdivide a 32.8 acre site into 2 commercial parcels (approximately 15.4 acres) and 2 residential parcels (approximately 17.4 acres): and
WHEREAS, the Final Subdivision Map of Parcel Map 37234 has been approved by the City Surveyor and City Engineer and securities posted. Final Subdivision Map of Parcel Map 37234 includes 2 residential parcels, 2 commercial parcels and 1 lots for public street expansion. City will execute a maintenance and easement agreement with Applicant upon completion for that portion of expanded right of way to be maintained in perpetuity: and
WHEREAS, the Final Subdivision Map of Parcel Map 37234, has met the Conditions of Approval for this project (Resolution No 2020-17).

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. That the foregoing Recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The Final Subdivision Map of Parcel Map 37234, City of Palm Desert, California, is hereby approved as the official map of said tract, subject to the conditions of the Tentative Map.

SECTION 3. The Director of Development Services is directed to process the Parcl Map for recording upon receipt of the required payment of all fees.

SECTION 4. Effective Date. This Resolution shall take effect immediately upon this adoption.

ADOPTED ON , 2024.

KARINA QUINTANILLA, MAYOR
ATTEST:

ANTHONY J. MEJIA, CITY CLERK
681
682
PLANNING COMMISSION RESOLUTION NO. 2880

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM

DESERT, CALIFORNIA, APPROVING A SIX MONTH TIME EXTENSION FOR TENTATIVE PARCEL MAP 37234 UNTIL MARCH 14, 2025
CASE NO. TPM 37234 Extension of Time No. 3
WHEREAS, the City Council of the City of Palm Desert, California, did on the 12th day of March 2020, adopt Resolution No. 2020-17, adopting a Mitigated Negative Declaration of Environmental Impact pursuant to the California Environmental Quality Act (CEQA, and approving the MCP Specific Plan and Tentative Parcel Map 37234 (TPM 37234) to subdivide 32 acres located at the southeast corner of Monterey Avenue and Dick Kelly Drive into four (4) parcels; and
WHEREAS, the original resolution for the tentative map established a 24-month life and was set to expire on March 24, 2022; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 19th day of April 2022 grant an 18-month time extension of time for TPM 37234 until September 12, 2023; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 18th day of July 2023 grant an 12-month time extension of time for TPM 37234 until September 12, 2024; and
WHEREAS, a timely request was filed by Chambers Development, the authorized representative for the property owner, MCL Palm Desert GST, for a six month time extension of TPM 37234; and
WHEREAS, the original findings and Conditions of Approval in the entirety for Planning Case Nos. SP 16-342 and TPM 37234 as stated in City Resolution No. 2020-17 are still applicable to the project and incorporated herein by reference; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 3
rd day of September 2024, consider the request by the property owner for approval of the above-noted extension of time request; and
WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the Planning Commission did find the following facts and reasons, which are outlined in the staff report exist to justify approval of said request; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred; and
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Palm Desert, California, as follows:
683
PLANNING COMMISSION RESOLUTION NO. 2880
2 SECTION 1. Recitals. The Planning Commission hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution.

SECTION 2. Project Approval. The Planning Commission approves a six month time extension for Planning Case No. TPM 37234 from September 12, 2024, to March 12, 2025, subject to the Conditions of Approval attached hereto as Exhibit “A.” ADOPTED ON September 3, 2024

RON GREGORY

CHAIRPERSON
ATTEST:

RICHARD D. CANNONE, AICP

SECRETARY
I, Richard D. Cannone, AICP, Secretary of the City of Palm Desert, hereby certify that Resolution No. 2880 is a full, true, and correct copy, and was duly adopted at a regular meeting of the Planning Commission of the City of Palm Desert on September 3, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on September ____, 2024.

RICHARD D. CANNONE, AICP

SECRETARY
684
PLANNING COMMISSION RESOLUTION NO. 2880
3 EXHIBIT A

CONDITIONS OF APPROVAL
CASE NOS. TPM 37234 EXTENSION OF TIME NO. 3
PLANNING DIVISION:

1. The Applicant agrees that in the event of any administrative, legal, or equitable action instituted by a third party challenging the validity of any of the procedures leading to the adoption of these Project Approvals for the Project, or the Project Approvals themselves, the Developer and City each shall have the right, in their sole discretion, to elect whether or not to defend such action. The Developer, at its sole expense, shall defend, indemnify, and hold harmless the City (including its agents, officers, and employees) from any such action, claim, or proceeding with counsel chosen by the City, subject to the Developer’s approval of counsel, which shall not be unreasonably denied, and at the Developer’s sole expense. If the City is aware of such an action or proceeding, it shall promptly notify the Developer and cooperate in the defense. The Developer, upon such notification, shall deposit with City sufficient funds in the judgment of the City Finance Director to cover the expense of defending such action without any offset or claim against said deposit to assure that the City expends no City funds. If both Parties elect to defend, the Parties hereby agree to affirmatively cooperate in defending said action and to execute a joint defense and confidentiality agreement in order to share and protect the information under the joint defense privilege recognized under applicable law. As part of the cooperation in defending an action, City and Developer shall coordinate their defense in order to make the most efficient use of legal counsel and to share and protect information. The Developer and City shall each have sole discretion to terminate its defense at any time.

The City shall not settle any third-party litigation of Project approvals without the Developer’s consent, which consent shall not be unreasonably withheld, conditioned, or delayed unless the Developer materially breaches this indemnification requirement.

2. The Applicant shall comply with the Conditions of Approval of the previously approved Planning Case No. TPM 37234, per City Council Resolution No. 2020-17, attached hereto as Exhibit “B” in their entirety. The Conditions of Approval are still applicable and valid and are incorporated herein by reference. The tentative map will expire on before March 12, 2025.

END OF CONDITIONS OF APPROVAL
685
PLANNING COMMISSION RESOLUTION NO. 2880
4 EXHIBIT B
686
PLANNING COMMISSION RESOLUTION NO. 2880
5 687
PLANNING COMMISSION RESOLUTION NO. 2880
6 688
PLANNING COMMISSION RESOLUTION NO. 2880
7 689
PLANNING COMMISSION RESOLUTION NO. 2880
8 690
PLANNING COMMISSION RESOLUTION NO. 2880
9 691
PLANNING COMMISSION RESOLUTION NO. 2880
10 692
PLANNING COMMISSION RESOLUTION NO. 2880
11 693
PLANNING COMMISSION RESOLUTION NO. 2880
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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: RESOLUTION ADOPTING POLICY CLRK-002: THREATS OF VIOLENCE

DIRECTED TOWARDS COUNCIL MEMBERS AND CANDIDATES
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORIA, ADOPTING POLICY CLRK-002: THREATS OF VIOLENCE DIRECTED TOWARDS COUNCIL MEMBERS AND CANDIDATES.”
BACKGROUND/ANALYSIS:

The proposed Policy CLRK-002 was developed to establish formal protocols for handling and responding to threats of violence directed toward Council Members and Candidates. This policy includes procedures for reporting threats, involving law enforcement, ensuring confidentiality, and an incident report checklist. The policy comes in response to recent threats directed at a Council Member. While these threats have gained public attention, the City is committed to handling them discreetly, in compliance with legal guidelines and best practices for public safety.

The key provisions of Policy CLRK-002 include:

1. Immediate Reporting: Council Members, Candidates, and staff must immediately report any threats to the City Manager and law enforcement.

2. Law Enforcement Involvement: Law enforcement will assess the risk and determine the necessary actions, including potential investigations and protective measures.

3. Confidentiality: All details of the threats will be kept confidential and shared only with necessary personnel to ensure the safety of those involved.

4. Facility Access Control: Guidelines are established to limit unauthorized access to City Hall during off-hours to minimize vulnerabilities.

5. Training: Regular training will be conducted for relevant staff and officials to ensure preparedness for handling threats.

6. Public Communication: The City Manager or designee, in coordination with law enforcement, will handle any necessary public communication regarding threats, ensuring that investigations and individual safety are not compromised.

7. Incident Response Checklist: The attached Exhibit A provides a detailed checklist for immediate reporting, risk assessments, mitigation steps, and coordination with law enforcement and the legal and communications teams, which ensures thorough and systematic handling of threats.

The policy is aligned with the City’s Workplace Violence Prevention Plan (WVPP) and complies with state regulations, including SB 553, which mandates proactive measures for preventing workplace violence.
755
City of Palm Desert
Policy on Threats of Violence Directed Towards Council Members and Candidates

Legal Review:

This report has been reviewed by the City Attorney’s Office FINANCIAL IMPACT:

There is no financial impact associated with this action.

ATTACHMENTS:

1. Draft Resolution

2. Exhibit A – Policy CLRK-002
756
RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ADOPTING POLICY CLRK-002: THREATS OF

VIOLENCE DIRECTED TOWARDS COUNCIL MEMBERS AND

CANDIDATES
WHEREAS, the City of Palm Desert is committed to maintaining a safe environment for its Council Members, Candidates, and staff; and WHEREAS, threats of violence directed toward public officials are becoming an increasing concern nationwide and pose significant safety risks; and WHEREAS, the City Council recognizes the importance of establishing formal protocols for reporting and responding to such threats to ensure the safety and security of Council Members, Candidates, and City staff; and
WHEREAS, the City of Palm Desert’s Workplace Violence Prevention Plan (WVPP) and state laws, including SB 553, support proactive measures to mitigate risks related to workplace violence; and
WHEREAS, Policy CLRK-002, attached as Exhibit A, has been developed to provide clear procedures for the reporting, assessment, and management of threats of violence directed toward Council Members and Candidates; and WHEREAS, the City Council finds that adopting this policy will promote safety, consistency, and confidentiality in addressing such threats and ensure cooperation with law enforcement authorities as needed.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. That the foregoing Recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The City Council hereby adopts Policy CLRK-002: Threats of Violence Directed Toward Council Members and Candidates, as outlined in Exhibit A attached hereto.

SECTION 3. The City Manager is authorized to implement and enforce the provisions of Policy CLRK-002, including any future revisions necessary to comply with applicable laws or enhance the safety protocols therein.

SECTION 4. The City Clerk shall certify the passage and adoption of this resolution and shall enter it into the official records of the City of Palm Desert. 757
Resolution No. 2024-____ Page 2
ADOPTED ON ________________, 2024.

KARINA QUINTANILLA
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2024-__ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on _______________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________.

ANTHONY J. MEJIA

CITY CLERK
758

CITY OF PALM DESERT

ADMINISTRATIVE PROCEDURES
Subject THREATS OF VIOLENCE DIRECTED TOWARD

COUNCILMEMBERS AND CANDIDATES
Policy No. CLRK-002
Date Approved:

Amended:

Approved by Resolution No. 2024-____
Authored by Anthony J. Mejia, City Clerk
I. PURPOSE
To establish a protocol for responding to threats of violence received by or directed toward Council Members and Candidates.

II. SCOPE
This policy applies to all City staff and officials who may become aware of threats of violence directed at Council Members or Candidates. This policy supplements the Workplace Violence Prevention Plan which would otherwise exclude candidates.

III. DEFINITIONS
A. Candidate: An individual who has filed the necessary paperwork and is actively campaigning for election to the Palm Desert City Council, in compliance with applicable election laws and regulations.

B. Confidentiality: The obligation to keep all details related to threats, investigations, and protective measures private and to share such information only with authorized individuals as necessary for the safety and security of Council Members, Candidates, and City personnel.

C. Council Member: An individual currently serving in an elected capacity on the City Council of Palm Desert.

D. Law Enforcement Authorities: This refers to any local, state, or federal agency responsible for enforcing laws and protecting public safety. This may include the local police department, sheriff’s office, or other agencies involved in investigating and responding to threats.

E. Threat of Violence - Any verbal or written statement, including, but not limited to, texts, electronic messages, social media messages, or other online posts, or any behavioral or physical conduct, that conveys an intent, or that is reasonably perceived to convey an intent, to cause physical harm or to place someone in fear of physical harm, and that serves no legitimate purpose.

F. Workplace Violence Prevention Plan (WVPP): A policy adopted by the City of Palm Desert designed to prevent and respond to incidents of violence in the workplace, ensuring the safety and well-being of employees. This plan is referenced in conjunction with this policy but excludes Candidates. 759
Administrative Procedures Manual CLRK-002
Citywide Records Management Policy Page 2 of 5
IV. POLICY
A. Responsibilities of Council Members and Candidates:

1. Reporting Threats of Violence: Any Council Member or Candidate who perceives, experiences, or believes there is a threat to their safety must immediately report the threat to the City Manager and law enforcement authorities.

This includes threats made in person, through electronic communications, or via other means.

2. Basic Due Diligence: Council Members and Candidates are responsible for taking basic safety precautions in the event of a threat, such as:
a. Notifying law enforcement immediately if the threat appears imminent. b. Avoiding public appearances or activities that may increase risk until guidance from law enforcement is received.
c. Keeping a record of any threatening communications or actions, including written or digital communications, recordings, or eyewitness statements, to assist in any investigation.

3. Cooperation with Law Enforcement: Council Members and Candidates must fully cooperate with law enforcement in the investigation and assessment of any threats of violence. This includes providing all relevant details and following any recommended safety measures.

4. Confidentiality: Council Members and Candidates must also maintain the confidentiality of the investigation and avoid sharing details about the threat with unauthorized individuals, unless advised otherwise by law enforcement.

5. Facility Access Control:
a. Council Members are prohibited from inviting members of the public into City Hall after hours or on weekends without a special exception from the City Manager. This restriction is intended to reduce vulnerabilities during times when staff and law enforcement presence may be limited. b. Family members or guests of Council Members may be permitted to visit their offices or take brief tours of City Hall, but entry into employee-only areas is strictly prohibited unless authorized by the City Manager. Guests must remain under the direct supervision of the Council Member while on City premises.

B. Training:

The City shall provide regular training to relevant staff and officials on recognizing, reporting, and responding to threats of violence, specifically including those directed toward Council Members and Candidates. This training should include scenarios and best practices to ensure preparedness. The policy will also be provided during candidate orientations and new Council Member orientations to ensure all individuals are familiar with the procedures and protocols. This training is to be conducted in alignment with the City’s Workplace Violence Prevention Plan (WVPP) to ensure comprehensive safety measures across all departments, as mandated by SB 553. 760
Administrative Procedures Manual CLRK-002
Citywide Records Management Policy Page 3 of 5
C. Immediate Reporting:

Any City employee, official, or individual who becomes aware of a threat of violence directed at a Council Member or Candidate must report the threat as soon as reasonably possible to the City Manager and local law enforcement authorities.

The report should include all available details of the threat, including the nature of the threat, how it was received, and any identifying information about the person making the threat. Refer to Exhibit A for a step-by-step checklist on the immediate reporting procedures and necessary actions following the receipt of a threat.

D. Law Enforcement Involvement:

The City Manager or designee will ensure that the threat is communicated to law enforcement and/or appropriate personnel for assessment and appropriate action.

Law enforcement will determine the level of risk and take necessary steps to protect the Council Member or Candidate, which may include monitoring, investigation, or providing protective services.

E. Confidentiality:

The identity of the Council Member or Candidate and the details of the threat shall be kept confidential, shared only on a need-to-know basis with law enforcement and key City officials, or as otherwise required by law.

F. Communication:

The City Manager or designee, in consultation with law enforcement, will guide the Council Member or Candidate on appropriate steps to take, including any changes to their public schedule or activities.

Any public communication about the threat will be handled by the City Manager or designee in coordination with law enforcement, ensuring that the information released does not compromise the investigation or the safety of the individual involved.

G. Policy Updates and Amendments:

This policy may be amended or updated as needed to reflect changes in the law, organizational structure, or operational needs. It shall be reviewed periodically to ensure alignment with the City’s WVPP and compliance with applicable state laws, including SB 553. All amendments shall be approved by the City Manager and communicated to relevant staff.

H. Effective Date:

This policy is effective immediately and shall remain in effect until amended or rescinded by the City Manager or City Council.
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Administrative Procedures Manual CLRK-002
Citywide Records Management Policy Page 4 of 5

EXHIBIT A
INCIDENT RESPONSE CHECKLIST: THREATS OF VIOLENCE
Immediate Reporting (Reporting Party)
☐ Report any threat (verbal, written, electronic, etc.) to the City Manager and law enforcement authorities immediately.
☐ Include all available details in the report (e.g., nature of the threat, how it was received, and any information about the person making the threat).

Responsibilities of Council Members and Candidates
☐ Take basic safety precautions (e.g., avoiding public appearances or high-risk activities until guidance is received from law enforcement).
☐ Document any threatening communications or actions to assist investigations. ☐ Do not share details of the threat with unauthorized individuals unless directed otherwise by law enforcement.

Risk Assessment and Mitigation (City Manager’s Office)
☐ Ensure law enforcement is requested to conduct a risk assessment. ☐ Review security procedures and any vulnerabilities exposed by the incident. ☐ Conduct a security audit of facilities and adjust access controls, surveillance, or other measures as necessary.

Guidance from City Manager and Law Enforcement
☐ The City Manager or designee, in consultation with law enforcement, will advise the Council Member or Candidate on any immediate steps to take, including changes to their public schedule or activities.
☐ Ensure that the Council Member or Candidate is advised on safe transportation options, including escorts if necessary.
☐ Determine whether the Council Member or Candidate should temporarily work remotely or limit exposure at public facilities such as City Hall. ☐ Advise on any necessary changes to communications, such as limiting public access to contact information or social media accounts.
☐ Establish a direct line of communication between the Council Member or Candidate and designated law enforcement personnel for real-time updates and support.

Coordination with Legal and Communications Teams (City Manager’s Office) ☐ Coordinate with the legal team to ensure compliance with relevant laws and any potential legal ramifications.
☐ Review any necessary legal filings, restraining orders, or other legal actions that should be taken following the threat.
☐ Collaborate with the City’s Communications Team for a controlled public response, ensuring that messaging aligns with safety and confidentiality protocols. 762
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Citywide Records Management Policy Page 5 of 5
Post-Incident Review and Documentation (City Manager’s Office) ☐ Conduct a debriefing with law enforcement, the City Manager, and relevant personnel to review the incident.
☐ Update the City's threat database or incident log with pertinent information to track recurring issues or patterns.
☐ Identify any areas for policy improvement or further training based on the incident. 763
764

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Randy Chavez, Deputy Public Works Director SUBJECT: STREET SWEEPING UPDATE
RECOMMENDATION:

Receive and file an update on Street Sweeping.

BACKGROUND/ANALYSIS:

This staff report provides an overview of the City of Palm Desert’s street sweeping services, highlighting two key contracts and recent developments.

CVAG Regional PM 10 Street Sweeping Program
Program Overview: The City of Palm Desert (City) participates in the Regional PM 10 Street Sweeping Program, which is managed by the Coachella Valley Association of Governments (CVAG) and supported by the South Coast Air Quality Management District (SCAQMD). The program aims to mitigate particulate matter less than 10 microns (PM 10), which is generated by wind events, vehicle traffic, and construction.

Funding: Assembly Bill 2766 (AB 2766) is a California law that provides funding from vehicle registration fees to support local efforts aimed at reducing air pollution from mobile sources.

Under the City’s AB 2766 Memorandum of Understanding (MOU), 75% of the City’s AB 2766 funds are allocated to CVAG for this initiative. This program is a critical part of the Coachella Valley’s State Implementation Plan, which is designed to address elevated levels of particulate matter (PM 10).
 Annual Funding: The City receives approximately $74,000 annually from SCAQMD.  Allocation to CVAG: About $55,500 (75%) of these funds are allocated to CVAG.

Scope: The program covers major arterials throughout Palm Desert and the Coachella Valley under a regional sweeping agreement managed by CVAG. Streets include:
 Monterey: Varner to Country Club (east side)
 Hwy 74: Hwy 111 to Cahuilla Way
 Hwy 111: Cook Street to Parkview
 Hovley Lane East: Cook to Washington
 Deep Canyon: Hwy 111 to Fred Waring
 Country Club: Washington to Monterey
 Gerald Ford: Monterey to Portola
 Gerald Ford: Portola to Cook
 Portola: Gerald Ford to Country Club
 Frank Sinatra: Monterey to El Dorado
 Dinah Shore: Miriam Way to Portola Avenue
 Washington Street: Fred Waring Drive to Country Club (west side) 765
City of Palm Desert
Street Sweeping Update

 Eldorado: Hovley Lane East to Frank Sinatra
 Cook Street: Fred Waring to Dinah Shore
Frequency: Sweeping occurs twice a month.

Contractor: CleanStreet is contracted to manage the regional street sweeping program for CVAG, benefiting from economies of scale that reduce per-mile costs.

Performance Assessment: CleanStreet has consistently underperformed in providing services, leading to repeated expressions of dissatisfaction from City staff. Despite frequent communication with CVAG and direct outreach to CleanStreet regarding the inadequate service, there has been little to no improvement. Recently, staff presented several concerns to CVAG’s new street sweeping project manager, including:
 Frequent staff turnover and new drivers
 Insufficient supervision and accountability
 Underpowered and inadequate equipment
 Non-compliance with the scheduled sweeping times
 Incomplete sweeping services
Additionally, neighboring agencies within the program have reported similar issues. One agency even invested in its own equipment to improve street cleaning services. On August 27, 2024, CVAG held a roundtable meeting with all participating agencies to discuss these issues and explore potential solutions.

Recent Updates:
 May 7, 2024: Amendment 6 to the MOU was extended through June 30, 2026.  August 1, 2024: City staff met with CVAG’s new street sweeping project manager to discuss ongoing service inconsistencies.
 August 27, 2024: CVAG announced that CleanStreet would be required to install GPS units in vehicles to monitor and ensure adherence to the sweeping schedule.

Annual Citywide Sweeping Services
Contract Award: On April 27, 2023, the City Council awarded a three-year contract to M&M Sweeping for citywide sweeping services.

Cost:
 Annual Contract: $230,917
 Additional Services: $25,000
Scope: This contract covers all residential neighborhoods, the entire business district (including El Paseo), and City-owned parking lots, such as those at the Civic Center campus, parks, and corporation yards. Sweeping services extend across approximately 250 curb miles of streets and nearly 1.9 million square feet of parking lots. Additionally, emergency sweeping services are available for immediate response to high-wind events or storms to maintain safety and cleanliness in critical areas.
766
City of Palm Desert
Street Sweeping Update

Frequency: Sweeping services are performed twice a month.

Performance Assessment: M&M Sweeping has recently faced performance inconsistencies.

One major issue contributing to these inconsistencies has been vehicles parked along the street on sweeping days. To address this problem, the City is developing a new app that will allow residents to input their address and check the scheduled sweeping days. Once launched, the app will be promoted through the Public Affairs team to educate residents about the app and the street sweeping schedule.

In response to recent complaints, the City has also taken the following actions:
 Daily check-ins with drivers,
 Weekly meetings with the supervisor, and
 Regular staff inspections
While challenges remain, staff have observed some improvements. Continued oversight will be required to maintain and further enhance service quality.

Recent Updates:
 June 12, 2024: Staff met with M&M Sweeping representatives to discuss service inconsistencies. Key issues identified include:
o Lack of communication,
o Lack of supervision, and
o Vehicles parked on streets during sweeping days.
 August 28, 2024: Staff initiated weekly meetings to discuss improvements.

Additional Measures
Performance Assessment: Over the past year, staff has addressed excessive sand buildup along curbs, gutters, and turn pockets by renting a street sweeper. This approach has led to significantly improved street cleanliness and safety, resulting in fewer constituent complaints. Inhouse sweeping efforts have consistently yielded better results compared to contracted services.

Rental of Street Sweeper: To manage problematic areas, especially after rain events, the City has been renting a street sweeper at a cost of approximately $15,000 per month.

Purchase of New Street Sweeper: A new street sweeper, expected by fall, will help manage problem areas between scheduled sweeps and during adverse weather conditions. The cost is approximately $500,000. This purchase aims to improve overall service quality.

Cost Estimate for Full Program Management: To further improve the City’s sweeping services, staff have prepared the following cost estimates for managing the program in-house with dedicated equipment operators:
 Full-Time Equipment Operators (2): $315,602
 Fuel (2): $30,000
 Maintenance (2): $50,000
 Disposal Fees (2): $20,000
767
City of Palm Desert
Street Sweeping Update

 Additional Sweeper (One-time Cost): $550,000
 Total Estimated First-Year Cost: $965,602
 Total Estimated Following-Year Cost: $415,602
Recent Developments: As noted, staff recently met with CVAG and M&M Sweeping to address concerns regarding inadequate sweeping operations. Additionally, staff is coordinating with Code Compliance to manage vehicle parking issues. Note that CleanStreet and M&M Sweeping have historically been the primary companies submitting proposals for street sweeping services.

Recommendation: The City will closely monitor and document the level of service from both contractors over the next six months. This assessment will help determine whether the necessary improvements have been made or if bringing sweeping services in-house should be considered. If the level of service does not improve, staff will evaluate the feasibility of assuming responsibility for street sweeping services as part of next fiscal year's budget planning.

Next Steps:
 Evaluate Feasibility: Continue assessing the costs and feasibility of transitioning to an in-house street sweeping program.
 Explore Additional Services: Investigate the possibility of securing additional weekly services from contractors to improve overall performance.  Service Improvements: Continue to monitor contractor performance and explore all options to enhance current street sweeping services.

Additional Considerations
To evaluate the feasibility of taking over the entire street sweeping program, the following costs have been estimated:

Additions Annual Cost Quantity Total
Full-Time Equipment Operator $157,801 2 $315,602
Fuel $15,000 2 $30,000
Maintenance $25,000 2 $50,000
Disposal Fees $10,000 2 $20,000
Total Annual Cost $207,801 2 $415,602
Additional Sweeper One-time Cost 1 $550,000
1 st Year Costs $965,602
Annual Cost Comparison
In-House Services $415,602
Current Contractual Services $255,917
Additional Annual Costs $159,685
Cost of Adding Weekly Service: Staff will investigate whether contractors can provide additional weekly sweeping services and the associated costs. 768
City of Palm Desert
Street Sweeping Update

Legal Review:

This report has been reviewed by the City Attorney’s Office.

FINANCIAL IMPACT:

There is no direct financial impact associated with this update. 769
770

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Joe Barron, Senior Grants and Contract Analyst Veronica Chavez, Director of Finance
SUBJECT: APPROVE AN AFFORDABILITY RESTRICTION AND REGULATORY

AGREEMENT (DENSITY BONUS) WITH BRAVO GARDEN

APARTMENTS, LLC, INCLUDING A CONCESSION PROVIDING FOR
REIMBURSEMENT OF IMPACT FEES FROM THE CITY’S HOUSING

MITIGATION FEES
RECOMMENDATION:

1. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING (1) AFFORDABILITY RESTRICTIONS AND REGULATORY

AGREEMENT (DENSITY BONUS) WITH BRAVO GARDEN APARTMENTS, LLC REGARDING A MULTI-FAMILY RESIDENTIAL DEVELOPMENT WITH 388 TOTAL APARTMENTS, WITH 20% RESTRICTED TO VERY LOW INCOME AND LOW INCOME HOUSEHOLDS; AND (2) A DEVELOPMENT FEE AGREEMENT FOR THE USE OF HOUSING MITIGATION FEES IN AN AMOUNT NOT TO EXCEED $180,000 AS REIMBURSEMENT TO DEVELOPER IN EXCHANGE FOR RESTRICTING 5 UNITS TO QUALIFYING HOUSEHOLDS WITH LOCAL EMPLOYEES.”

2. Approve the Affordability Restriction and Regulatory Agreement (the “Agreement”), by and between the City of Palm Desert and Bravo Garden Apartments, LLC, in accordance with the conditions of approval adopted by Resolution No. 2018-18, for the development of 388 units known as Bravo Garden Apartments, a multifamily rental housing project located at located on Hovely Lane, Palm Desert, California (the “Project”), substantially as to form.

3. Authorize the Development Fee Agreement for the use of Housing Mitigation fees up to $180,000 to reimburse the developer for the fees attributable to five (5) units restricted for occupancy for qualifying residents who work within the Palm Desert city limits.

4. Authorize the City Manager or his designee, and/or legal counsel to negotiate and finalize the Agreement, and the documents described in the Agreement or otherwise deemed necessary or proper to effectuate the conditions of approval, with such changes thereto as the City Manager or his designee, in consultation with the City’s legal counsel, may deem appropriate or necessary and consistent with the purposes of the Agreement and conditions of approval, with such approval to be conclusively evidenced by the execution and delivery thereof.

5. Authorize the Mayor and/or City Manager to execute and deliver the finalized Agreement, for and in the name of the City, the Agreement and other documents, as described in Recommendation No. 2, and authorize the City Clerk to record the Agreement.

BACKGROUND/ANALYSIS:

On April 26, 2018, the City Council adopted Resolution No. 2018-18, approving a density bonus, precise plan, conditional use permit, and mitigated negative declaration (the “Approvals”) for the 771
City of Palm Desert
Approval of an Agreement with Bravo Garden Apartments, LLC

construction of a three hundred eighty-eight (388)-unit apartment development on the Property consisting of a mix of thirteen (13) two-story buildings and three (3) three-story buildings together with a clubhouse, recreational amenities, and roadway improvements (collectively, the “Project”).

As part of the Project’s approval, the developer is required to enter into a Housing Agreement to effectuate the condition for the developer to restrict twenty percent (20%) of the units to very low and lower-income households at affordable rents. The Agreement is required to be executed and recorded for the developer to obtain building permits.

The Project is now owned by Bravo Garden Apartments, LLC (“Bravo Garden”) and the condition set forth in Resolution No. 2018-18 runs with the land. Pursuant to the Approvals, Bravo Garden has agreed to restrict 20% of the units to be affordable as required by the condition of approval.

The Project will include 388 total rental units. Bravo Garden has agreed to make 78 of the rental units continuously available to and occupied by, or held vacant for occupancy by, households with incomes not exceeding 50% of the area median income (“AMI”) in Riverside County at affordable rents. The affordable rental units will be comprised of units with the following number of bedrooms:

Bedroom Size
Very Low-Income
Household
Affordable Units
Local Employee
Households
(Reserved for
persons employed in
Palm Desert city
limits)
One 36 2
Two 37 2
Three 5 1
Total 78 5
The affordable units will be restricted for 55 years, commencing upon the issuance of a final building Certificate of Occupancy for the Project.

As part of the original request for a density bonus, the applicant requested a concession to waive certain development impact fees associated with the development of the affordable units. The request was reviewed at that time and concurrently with the approval of the Project, and the City Council approved assistance of up to $180,000 to offset City imposed development fees as part of the Approvals. In exchange, the developer agreed to set aside a minimum of five (5) of the affordable units to persons who work within Palm Desert city limits. Assistance for the fees and the terms of how the assistance will be provided have been established in a Development Fee Agreement providing for reimbursement and made part of the Agreement.

The use of Low-Income Housing Mitigation Fees is consistent with the purpose of the fees to increase, produce, improve, and preserve affordable housing for low and very low income households with persons who work within the City.

Staff recommends approval of the Agreements in accordance with the requirement of the affordable housing condition of approval pursuant to City Council Resolution No. 2018-18. This approval does not amend or modify the Approvals.
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City of Palm Desert
Approval of an Agreement with Bravo Garden Apartments, LLC

Legal Review:

This report has been reviewed by the City Attorney’s Office.

Strategic Plan:

One of the priorities of the City of Palm Desert’s (“City”) Envision Palm Desert Strategic Plan, as part of Land, Use, Housing and Open Space, is to facilitate development of high-quality housing for people of all income levels. This request meets that objective by diversifying the City’s housing stock for moderate- and lower-income households.

Environment Review:

This Agreement is being approved in compliance with the State Density Bonus Law (California Government Code Section 65915 et seq.) and the City’s implementing ordinance (Palm Dessert Municipal Code Section 25.34.040). The Agreement concerns rental rate restrictions and impact fee reimbursements and so, pursuant to Public Resources Code § 21166 of the California Environmental Quality Act (Pub. Res. Code § 21000 et seq. (“CEQA”) and CEQA Guidelines 15378, the Agreement is not a “project” within the meaning of CEQA as it will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and, as such no environmental review is required. City staff is directed to file a notice of exemption.

FINANCIAL IMPACT:

The fiscal impact to the City resulting from the approval of the Development Fee Agreement is to the Housing Mitigation Fund for the reimbursement of fees of up to $180,000 upon completion of the Project. There is no financial impact to the general fund.

ATTACHMENTS:

1. Draft Resolution

2. Draft Regulatory Agreement for Bravo Garden Apartments 773
774
RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, APPROVING (1) AFFORDABILITY

RESTRICTIONS AND REGULATORY AGREEMENT (DENSITY BONUS)
WITH BRAVO GARDEN APARTMENTS, LLC REGARDING A MULTIFAMILY RESIDENTIAL DEVELOPMENT WITH 388 TOTAL APARTMENTS, WITH 20% RESTRICTED TO VERY LOW INCOME AND
LOW INCOME HOUSEHOLDS; AND, (2) A DEVELOPMENT FEE

AGREEMENT FOR THE USE OF HOUSING MITIGATION FEES IN AN
AMOUNT NOT TO EXCEED $180,000 AS REIMBURSEMENT TO
DEVELOPER IN EXCHANGE FOR RESTRICTING 5 UNITS TO
QUALIFYING HOUSEHOLDS WITH LOCAL EMPLOYEES.

WHEREAS, BRAVO GARDEN APARTMENTS LLC, a California limited liability company (“Owner”), is the owner of real property located on Hovely Lane within the City of Palm, Desert, California (the “Property”), which is the location of a planned 388-unit, multi-family residential rental apartment project (the “Project”) that was previously approved by the City Council pursuant to Resolution No. 2018-18, on or about April 26, 2018. Owner is the successor in interest to the Property and the Project from the original applicant, New Cities Investment Partners, LLC, a California limited liability company; and WHEREAS, Owner is requesting approval of an agreement for a density bonus and related concessions pursuant to the California Density Bonus Law (Government Code § 65915) and the City’s implementing ordinance at Palm Desert Municipal Code (“PDMC”) 25.34.040, as approved by Resolution No. 2018-18, Section 7 and Condition of Approval 4, pursuant to which twenty percent (20%) of the total units in the Project will be restricted for occupancy to very low income households at an affordable rent; and WHEREAS, Owner has agreed to the terms of an Affordability Restrictions and Regulatory Agreement (Density Bonus) (the “Density Bonus Agreement”), which has been submitted to the City Council for review and consideration, and which is intended to comply with the approval from Resolution No. 2018-18, and will be recorded against the Property in compliance with the California Density Bonus Law and City ordinance; and WHEREAS, the Density Bonus Agreement provides for, among other things, that the Project may be developed with 388 units, which exceeds the base density provided for under the City zoning provisions, and Owner shall receive two concessions: (i) reimbursement of up to $180,000 in development impact fees in exchange for restricting five (5) units for very low income households with a member who works within the City, and (ii) a reduction in parking standards; and
WHEREAS, PDMC § 25.34.040(G) provides that the City council is the approving body for the Density Bonus Agreement.
775
Resolution No. 2024-____ Page 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows:

SECTION 1. The City Council of the City of Palm Desert hereby makes the following findings:

A. The foregoing recitals are approved and incorporated herein by reference.

B. The Density Bonus Agreement is authorized by and shall comply with the prior approvals for the Project adopted by the City Council though Resolution NO. 2018-18.

C. The Density Bonus Agreement is authorized by and shall comply with California Density Bonus Law and PDMC § 25.24.040.

D. The Density Bonus Agreement contains the following material terms: (1) not less than seventy eight (78) units, shall be restricted for occupancy by very low income households (the “Affordable Units”), (2) the Affordable Units shall be leased to qualifying households at an affordable rent, as determined in accordance with the California Density Bonus Law, (3) a concession that provides the City will pay up to $180,000 in reimbursement for impact fees attributable to five (5) of the Affordable Units restricted for occupancy by households with members who work within the City, to be paid from available funds from the City’s Low Income Housing Mitigation Fees, (4) a concession that provides for a reduction in parking standards to allow 1.77 spaces per unit, and (5) all other terms and conditions set forth in the Density Bonus Agreement submitted to the City Council in conjunction with the approval of this resolution.

E. The Density Bonus Agreement furthers the City’s Envision Palm Desert Strategic Plan by facilitating development of high-quality housing for people of all income levels, diversifies the City’s housing stock for low income households, and provides housing opportunities for local employees.

F. The Project will further the City’s goal of providing affordable housing opportunities to low income households.

G. The use of Low Income Housing Mitigation Fees is consistent with Resolution No. 90-130 because reimbursement of impact fees on the Project serves the purpose of increasing, producing, improving and preserving affordable housing for very low income households with persons who work within the City.

SECTION 2. This Density Bonus Agreement is being approved in compliance with the State Density Bonus Law (California Government Code Section 65915 et seq.) and PDMC § 25.34.040. The Agreement concerns rental rate restrictions and impact fee 776
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reimbursements and so, pursuant to Public Resources Code § 21166 of the California Environmental Quality Act (Pub. Res. Code § 21000 et seq. (“CEQA”) and CEQA Guidelines section 15378, the Agreement is not a “project” within the meaning of CEQA as it will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and, as such, no environmental review is required. City staff is directed to file a notice of exemption.

SECTION 3. The City Council of the City of Palm Desert, hereby approves the Density Bonus Agreement, subject to all conditions and requirements of the approvals of Resolution No. 2018-18.

SECTION 4. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions.

ADOPTED ON ________________, 2024.

KARINA QUINTANILLA
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
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Resolution No. 2024-____ Page 4
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2024-__ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on _______________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________.

ANTHONY J. MEJIA

CITY CLERK
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RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:

City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: ___________________
with a copy to:

Bravo Garden Apartments LLC
72877 Dinah Shore Dr., Ste. 103
Rancho Mirage, CA 92270
Attn: Claudio Bravo
Space Above This Line for Recorder’s Use Only
This document is recorded for the benefit of the City of Palm Desert and is exempt from the payment of a
recording fees pursuant to California Government
Code Sections 27383, 27881, and 6103.

AFFORDABILITY RESTRICTIONS AND

REGULATORY AGREEMENT
(Density Bonus)
By and Between

THE CITY OF PALM DESERT
And

BRAVO GARDEN APARTMENTS LLC
DATED AS OF JUNE 13, 2024
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TABLE OF CONTENTS
ARTICLE 1. DEFINITIONS AND INTERPRETATION

1.1 Definitions

1.2 Rules of Construction
ARTICLE 2. ONGOING PROJECT OBLIGATIONS

2.1 Project and Affordable Units

2.2 Residential Rental Property

2.3 Very Low Income Households and Very Low Income Employee Households

2.4 Affordable Rent

2.5 Rent Increases

2.6 Income Recertification of Affordable Units

2.7 Lease or Occupancy Agreement

2.8 Security Deposits

2.9 Additional Information; Books and Records

2.10 Specific Enforcement of Affordability Restrictions

2.11 Audit

2.12 Management Agent

2.13 Binding for Term
ARTICLE 3. TERM AND RECORDATION

3.1 Term of Agreement

3.2 Agreement to Record

3.3 Early Termination of Restrictions
ARTICLE 4. DEFAULT; REMEDIES

4.1 An Event of Default

4.2 City’s Option to Lease
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4.3 City Remedies

4.4 Action at Law; No Remedy Exclusive
ARTICLE 5. GENERAL PROVISIONS

5.1 Limitations on Recourse

5.2 Maintenance, Repair, Alterations

5.3 Notice

5.4 Relationship of Parties

5.5 No Claims

5.6 Conflict of Interests

5.7 Non-Liability of City Officials, Employees and Agents

5.8 Unavoidable Delay; Extension of Time of Performance

5.9 Indemnity

5.10 Rights and Remedies Cumulative

5.11 Applicable Law

5.12 Severability

5.13 Legal Actions

5.14 Binding Upon Successors

5.15 Time of the Essence

5.17 Complete Understanding of the Parties

5.18 Covenants to Run With the Land

5.19 Burden and Benefit

5.20 Counterparts

5.21 Amendments
EXHIBIT A: Legal Description ..................................................................................................... A-1 EXHIBIT B: Household Income Certification........................................................................... B-1 EXHIBIT C: Certificate of Continuing Compliance ................................................................ C-1 781
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EXHIBIT D: Development Fee Agreement ................................... D-1 EXHIBIT E: Affordable Housing Development Plan ............................ E-1 782
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AFFORDABILITY RESTRICTIONS AND

REGULATORY AGREEMENT
(Density Bonus)

THIS AFFORDABILITY RESTRICTIONS AND REGULATORY AGREEMENT (Density Bonus) (this “Agreement”) is dated as of September 26, 2024, and is by and between the CITY OF PALM DESERT, a municipal corporation (the “City”), and BRAVO GARDEN APARTMENTS LLC, a California limited liability company (the “Owner”). City and Owner are sometimes referred to herein individually as a “Party” and collectively as “Parties”.

RECITALS
This Agreement is predicated upon the following facts:

A. The Owner is the owner of certain real property located within the City of Palm Desert, California, which property is described in “Exhibit A” attached hereto and made a part hereof (the “Property”).

B. The City Council adopted Resolution No. 2018-18, approving a density bonus, precise plan, conditional use permit, and mitigated negative declaration (the “Approvals”) for the construction of a three hundred eighty-eight (388)-unit apartment development on the Property consisting of a mix of thirteen (13) two-story buildings and three (3) three-story buildings together with a clubhouse, recreational amenities, and roadway improvements (collectively, the “Project”). Owner is the successor in interest to the Property and the Project from the original applicant, New Cities Investment Partners, LLC, a California limited liability company.

C. The Owner has agreed to reserve seventy-eight (78) Affordable Units in the Project for Very Low Income Households at an Affordable Rent (each as defined herein), making the Project eligible for a density bonus and other concessions pursuant to California Government Code Section 65915 et seq. and the City’s Zoning Ordinance (Palm Desert Municipal Code Section 25.34.040). Accordingly, the Approvals entitle the Owner to a density bonus of one hundred eleven (111) units, for a total of four hundred twenty-six (426) units, which is more than the three hundred eighty-eight (388) units proposed for the Project, contingent upon the Owner, prior to the issuance of a building permit for the Project, entering into an agreement with the City to set forth the affordability restrictions for the Project as specified in the Approvals and the recordation of such agreement in the real property records of Riverside County.

D. In addition to providing the Affordable Units, the Owner has agreed to reserve five (5) of the Affordable Units for Very Low Income Employee Households at an Affordable Rent (each as defined herein) in consideration for the City’s agreement to offset development fees imposed in connection with the development of the Affordable Units, in an amount not to exceed One Hundred Eighty Thousand Dollars ($180,000), on the terms and conditions set forth in the Development Fee Agreement, which is attached 783
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hereto as Exhibit D and incorporated herein as part of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and the Owner hereby agree as follows:

ARTICLE 1. DEFINITIONS AND INTERPRETATION.

1.1 Definitions.

Capitalized terms used herein shall have the following meanings unless the context in which they are used clearly requires otherwise. “Affordable Units” shall mean seventy-eight (78) of the three hundred eighty-eight (388) units in the Project available to and occupied by, or held vacant for occupancy only by, Very Low Income Households and Very Low Income Employee Households, and rented at an Affordable Rent. The Affordable Units shall comply with the criteria set forth in Section 2 of this Agreement.
“Affordable Rent” shall mean rent for an Affordable Unit, including a Reasonable Utility Allowance, determined pursuant to California Health and Safety Code Section 50053(b) and the state regulations adopted by the California Department of Housing and Community Development pursuant thereto, as amended from time to time, based upon the AMI adjusted for a Household Size Appropriate to the Affordable Unit. More specifically, for each of the seventy-eight (78) Affordable Units reserved for Very Low Income Households and Very Low Income Employee Households, the maximum monthly Affordable Rent, including a Reasonable Utility Allowance, may not exceed thirty percent (30%) of fifty percent (50%) of the AMI, adjusted for a Household Size Appropriate to the Affordable Unit, divided by twelve (12).
“AMI” shall mean the area median income for Riverside County as published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50052.5, or successor statute, as adjusted for family size in accordance with the state regulations adopted pursuant to California Health and Safety Code Section 50052.5.
“Household Size Appropriate to the Affordable Unit” in the absence of pertinent federal statutes applicable to the Project, shall have the meaning set forth in California Health and Safety Code Section 50052.5(h), as amended from time to time. “Reasonable Utility Allowance” shall mean a utility allowance for utilities paid by a tenant (not including telephone, internet or cable service), as described in Title 25 of the California Code of Regulations, Section 6918, and utilizing the utility allowance schedule published annually by the Housing Authority of the County of Riverside. “Required Covenant Period” shall mean the period commencing on the date all units in the Project have been completed as evidenced by the City’s issuance of a final 784
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Certificate of Occupancy for the Project, and ending as of the fifty-fifth (55th) anniversary thereof.
“Very Low Income Employee Household” shall mean persons and families who meet the fifty percent (50%) or less of AMI income qualification limits set forth in California Health and Safety Code Section 50105 and Title 25 of the California Code of Regulations, Section 6926, as such statute and regulation may be amended from time to time, and who have at least one household member over the age of eighteen (18) that works in the City of Palm Desert.
“Very Low Income Household” shall mean persons and families who meet the fifty percent (50%) or less of AMI income qualification limits set forth in California Health and Safety Code Section 50105 and Title 25 of the California Code of Regulations, Section 6926, as such statute and regulation may be amended from time to time.

1.2 Rules of Construction.

1.2.1 The singular form of any word used herein, including the terms defined herein shall include the plural and vice versa. The use herein of a word of any gender shall include correlative words of all genders.

1.2.2 Unless otherwise specified, references to articles, sections, and other subdivisions of this Agreement are to the designated articles, sections, and other subdivisions of this Agreement as originally executed. The words “hereof,” “herein,” “hereunder,” and words of similar import shall refer to this Agreement as a whole.

1.2.3 All of the terms and provisions hereof shall be construed to effectuate the purposes set forth in this Agreement and to sustain the validity hereof.

1.2.4 Headings or titles of the several articles and sections hereof and the table of contents appended to copies hereof shall be solely for convenience of reference and shall not affect the meaning, construction, or effect of the provisions hereof.

ARTICLE 2. ONGOING PROJECT OBLIGATIONS.

Pursuant to the requirements of California Government Code Section 65915 et seq., and based upon the recitals set forth above, which are incorporated herein as part of this Agreement, the Owner agrees to the following:

2.1 The Project and Affordable Units.

A. The Owner shall develop and construct the Project on the Property in substantial conformity with the Approvals and shall commence construction in substantial accordance with the Approvals. Thereafter, during the Required Covenant Period, the Owner agrees that not less than seventy-eight (78) units in the Project shall be Affordable Units, meaning that such units shall be continually occupied by, or held vacant for occupancy only by, Very Low Income Households and Very Low Income Employee Households. The Affordable Units shall comply with the specifications set forth in the 785
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Affordable Housing Development Plan attached hereto as Exhibit “E” and incorporated herein by reference, which may be amended from time to time by written consent of the Parties.

B. The Owner agrees that not less than five (5) of the Affordable Units shall be continually occupied by, or held vacant for occupancy only by, Very Low Income Employee Households.

C. All of the units in the Project shall be similarly constructed and all of the Affordable Units shall be generally constructed at the same time as those units which are available to other tenants, and reasonably disbursed in terms of location throughout the Project, as further set forth in the Affordable Housing Development Plan. Prior to issuance of any building permit for the Project, the Owner shall inform the City of the Affordable Units to be constructed under the requested permit and the status of pending construction, if any, for other Affordable Units. The Owner shall obtain the City’s written consent for any proposed change to the Affordable Housing Development Plan, and the City shall have the right to approve or disapprove the same within thirty (30) days’ of receipt of notice. The Affordable Units shall contain, on average, the same number of bedrooms as the unrestricted units, and shall be compatible with the design or use of the unrestricted units in terms of appearance, materials, and quality The Owner agrees that, to the extent commercially possible, Affordable Units will not be underutilized. No persons shall be permitted to occupy any Affordable Unit in excess of applicable limit of maximum occupancy set by the City Code and the laws of the State of California. As further set forth in the Affordable Housing Development Plan, the Project shall provide Affordable Units as follows:
(i) Thirty-six (36) of the Affordable Units shall be one (1) bedroom/one (1) bathroom units, with two (2) of these Affordable Units for Very Low Income Employee Households;
(ii) Thirty-seven (37) of the Affordable Units shall be two (2) bedroom/two (2) bathroom units, with two (2) of these Affordable Units for Very Low Income Employee Households; and
(iii) Five (5) of the Affordable Units shall be three (3) bedroom/two (2) bathroom units, with one (1) of these Affordable Units for Very Low Income Employee Households.

E. Concessions. Pursuant to Government Code Section 65915, the City agreed to the concessions set forth in this sub-paragraph E. The Owner agrees and acknowledges that no other concessions, incentives, or waivers are requested and that this Agreement fully satisfies the City’s obligations under California law. (i) Parking Concession. The Project shall have reduced parking, in accordance with Resolution 2018-18, which allows for a reduction in parking standards from two (2) spaces per unit to 1.77 spaces per unit.
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(ii) Development Fee Agreement. The City agrees to reimburse the Owner for development fees attributable to the Affordable Units, pursuant to the Development Fee Agreement, which is attached hereto as Exhibit “D” and incorporated herein by reference. The Owner agrees to pay all Development Fees, as defined, for the Project, prior to issuance of a building permit for the Project. The City agrees to reimburse Development Fees attributable to the Affordable Units, in an amount not to exceed One Hundred Eighty Thousand Dollars ($180,000) from available funds from Low Income Housing Mitigation Fees, on the terms and conditions set forth in the Development Fee Agreement.

2.2 Residential Rental Property.

The Owner represents, warrants, and covenants to operate the Project as residential rental property. During the Required Covenant Period, the Affordable Units will be held and used for the purpose of providing residential living, and the Owner shall own, manage and operate, or cause the management and operation of, the Project to provide such affordable rental housing. All of the units except for one (1) manager’s unit in the Project will be available for rental on a continuous basis to members of the general public and the Owner will not give preference to any particular class or group in renting the units in the Project, except as required under this Agreement or any applicable agreement encumbering the Project and imposing affordability restrictions. The Owner shall not convert any Affordable Unit to condominiums or cooperative ownership or sell condominium or cooperative conversion rights to any Affordable Unit during the term of this Agreement.

2.3 Very Low Income Households and Very Low Income Employee Households.

2.3.1 Income and Employment Qualification; Initial Certification. Subject to the applicable provisions hereof, throughout the Required Covenant Period, Affordable Units will be exclusively occupied by, or available for occupancy only by, Very Low Income Households and Very Low Income Employee Households on a continuous basis. Prior to the rental or lease of an Affordable Unit, the Owner will obtain and maintain on file a Household Income Certification (“Income Certification”) substantially in the form attached hereto as Exhibit “B” and incorporated herein by reference for each Very Low Income Household and Very Low Income Employee Household, and shall provide copies of same to the City at such times as the City may, from time to time, reasonably require.

With respect to Very Low Income Employee Households, the Owner will also obtain and maintain on file an employment verification from a current employer showing that at least one household member over the age of eighteen (18) works in the City. In addition, the Owner will provide such further information as may reasonably be required in the future by the City. The Income Certification shall be dated no more than thirty (30) days prior to the household’s initial occupancy of an Affordable Unit. The Owner shall make a good faith effort to verify that the income provided by an applicant in an Income Certification is accurate by taking any one or more of the following steps as part of the verification process for all household members over the age of eighteen (18) as appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods; 787
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(ii) Obtain a true copy of an income tax return for the most recent tax year in which a return was filed;
(iii) Obtain an income verification form from the applicant’s current employer;
(iv) Obtain an income verification form from the Social Security Administration and/or the State Department of Social Services, or its equivalent, if the applicant receives assistance from either of those agencies; (v) If the applicant is unemployed and has no tax return, obtain another form of independent verification; or
(vi) Obtain such other documentation as may be reasonably acceptable pursuant to Title 25 to verify income.

2.3.2 Certificate of Continuing Program Compliance; Annual Report. Throughout the Required Covenant Period, the Owner will prepare and submit to the City, at such periodic frequency as it might reasonably require, but not less than once annually, a Certificate of Continuing Compliance in substantially the form attached hereto as Exhibit “C” and incorporated herein by reference, executed by the Owner.

The Owner will also prepare and submit to the City on or before each anniversary date of the commencement of the Required Covenant Period, with respect to the preceding calendar year (or portion thereof for the first year) a report in form and substance reasonably satisfactory to the City, summarizing the vacancy rate of the Project, including the number of Affordable Units held vacant for occupancy by Very Low Income Households and Very Low Income Employee Households for such calendar year.

The report shall notify the City of any requested change in the designation of the Affordable Units as listed in the Affordable Housing Development Plan.

2.4 Affordable Rent. Throughout the Required Covenant Period, an Affordable Rent shall be charged to the Very Low Income Household and Very Low Income Employee Household occupants of Affordable Units.

2.5 Rent Increases. Rents for Affordable Units may be increased only once per year and not earlier than twelve (12) months since the date of the tenant’s initial occupancy or the last rent increase, as applicable. The rents charged following such an increase, or upon a vacancy and new occupancy by a Very Low Income Household or Very Low Income Employee Household, shall not exceed an Affordable Rent. The Owner shall consistent with applicable law give proper written notice to tenants of all rent increases, and upon written request, provide the City with reasonable detail concerning the amount of and rationale for such rent increases.

2.6 Income and Employment Recertification of Affordable Units. Annually, on the anniversary date of occupancy of an Affordable Unit by a Very Low Income Household or a Very Low Income Employee Household, the Owner shall obtain and maintain on file an annual income certification from each household occupying an Affordable Unit in a form 788
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satisfactory to the City, based upon the current income of each occupant of the unit over the age of eighteen (18). The Owner shall make a good faith effort to verify that the income provided by the household is accurate in accordance with Section 2.3.1. In addition, with respect to a Very Low Income Employee Household, the Owner shall annually obtain and maintain on file an employment verification from a current employer showing that at least one household member over the age of eighteen (18) works in the City.

2.6.1 A unit occupied by a household that qualifies as a Very Low Income Household or Very Low Income Employee Household at the time the household first occupies an Affordable Unit shall be deemed to continue to be so occupied until: (i) a recertification of such household’s income or verification of employment status, as applicable, demonstrates that such household no longer qualifies as a Very Low Income Household or Very Low Income Employee Household, and (ii) thereafter an available unit with the same number of bedrooms in the Project is occupied by a new household other Very Low Income Household or Very Low Income Employee Household, as applicable.

At such time as a household ceases to qualify as a Very Low Income Household or Very Low Income Employee Household based on income or employment recertification, as applicable, the Owner shall designate the next available unit (one that is not occupied by a tenant) with the same number of bedrooms as the Affordable Unit occupied by such household so that the number of Affordable Units occupied by or reserved for occupancy by Very Low Income Households or Very Low Income Employee Households, as applicable, will remain constant. For purposes of this Agreement, such designated unit will be considered an Affordable Unit if it is held vacant and available solely for occupancy by a Very Low Income Household or Very Low Income Employee Household, as applicable, and, upon occupancy, the income eligibility of the household as a Very Low Income Household, and, if applicable, the employment status of the Very Low Income Household, is verified and the unit is rented at Affordable Rent.

2.6.2. Owner shall exercise reasonable efforts to designate Affordable Units pursuant to Section 2.6.1 in such a manner that the Affordable Units remain reasonably disbursed throughout the entire Project.

2.7 Lease or Occupancy Agreement. Prior to the rental or lease of an Affordable Unit to a Very Low Income Household or Very Low Income Employee Household, the Owner shall require the tenant to execute a written lease or occupancy agreement. The Owner shall maintain on file throughout the Required Covenant Period and for a four (4) year period thereafter, the executed lease or occupancy agreement of each tenant occupying an Affordable Unit. The form of lease or rental agreement used by the Owner for the lease or rental of Affordable Units shall be that which is reasonable and customary in residential leasing. Each lease or rental agreement for an Affordable Unit shall provide that the tenants of such Affordable Unit shall also be subject to annual recertification of income and employment status, if applicable, and subject to rental increases in accordance with Sections 2.5 and 2.6 of this Agreement. In addition, each lease or rental agreement shall contain a provision to the effect that the Owner has relied on the income certification and supporting information supplied by the Very Low Income Household or Very Low Income Employee Household, including, as applicable, employment 789
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verification, in determining qualification for occupancy of the Affordable Unit, and that any material misstatement in such certification (whether or not intentional) may be cause for immediate termination of such lease or rental agreement.

2.7.1 The Owner shall refrain from restricting the rental or lease of Affordable Units on the basis of race, color, religion, sex, marital status, disability, ancestry or national origin of any person. All leases or occupancy agreements shall contain or be subject to substantially the following nondiscrimination or non-segregation clauses:
“There shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of the Agreement, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” “Notwithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph.”

2.7.2 The covenants established herein shall, without regard to technical classification and designation, be binding for the benefit and in favor of City, and its successors and assigns and shall burden and run with the Property.

2.7.3 The City is deemed to be the beneficiary of the terms and provisions of the covenants herein, both for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, for whose benefit these covenants running with the land have been provided.

2.8 Security Deposits. The Owner may require security deposits on Affordable Units in amounts which are consistent with applicable law.
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2.9 Additional Information; Books and Records. The Owner shall provide any additional information concerning the Affordable Units reasonably requested by the City.

The Owner will maintain complete and accurate records pertaining to the Affordable Units throughout the Required Covenant Period and for a four (4) year period thereafter. The City shall have the right upon written notice of no less than forty-eight (48) hours to the Owner, at any time during normal business hours of 9:00 a.m. to 5:00 p.m., to examine and make copies of all books, records or other documents maintained by the Owner or by any of the Owner’s agents which pertain to any Affordable Unit, including all executed leases or rental agreements and all Income Certifications and to obtain copies of any requested executed leases, occupancy agreements and Income Certifications. Owner shall provide executed copies of any leases, occupancy agreements and Income Certifications as may be requested by City within ten (10) business days from the City’s written request.

2.10 Specific Enforcement of Affordability Restrictions. The Owner hereby agrees that specific enforcement of the Owner’s agreement to comply with the allowable rent and occupancy restrictions and covenants contained herein is one of the reasons and consideration for the issuance of the Approvals and that, in the event of the Owner’s breach of such requirements, potential monetary damages to the City, as well as to existing and prospective Very Low Income Households and Very Low Income Employee Households, would be difficult, if not impossible, to evaluate and quantify. Therefore, in addition to any other relief to which the City may be entitled as a consequence of the breach hereof, the Owner agrees to the imposition of the remedy of specific performance against it in the case of any event of default by the Owner in complying with any provision of this Agreement beyond any applicable notice and cure period.

2.11 Audit. The City shall have the right to perform an audit of the Project to determine compliance with the provisions of this Agreement. Such audit shall not be undertaken more often than once each calendar year. All costs and expenses associated with the audit shall be paid by the Owner.

2.12 Management. The Owner and/or the management agent (if not the Owner) shall operate the Project in a manner that will provide decent, safe and sanitary residential facilities to the occupants thereof, and will comply with provisions of this Agreement.

Upon the written request of the City, the Owner shall cooperate with the City in the periodic review of the management practices, location, and financial status of the Affordable Units. The purpose of each periodic review will be to enable the City to determine if the Affordable Units are being operated and managed in accordance with the requirements and standards of this Agreement, as well as City and State law. Results of such City review shall be provided to the Owner, and the City shall have the authority to require the Owner to make reasonable modifications necessary to ensure the objectives of this Agreement and requirements of City and State law are met.

2.13 Binding for Term. It is intended by the Parties that except as otherwise expressly provided herein the provisions of this Agreement shall apply to the Project throughout the entire term hereof, as established in Section 3.1 below. 791
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ARTICLE 3. TERM AND RECORDATION.

3.1 Term of Agreement. This Agreement shall remain in full force and effect for the Required Covenant Period, unless the Owner and the City agree, in writing, to terminate this Agreement prior to the expiration of the Required Covenant Period. Unless terminated earlier pursuant to the prior sentence of this Section 3.1 or Section 3.3 below, the Parties intend that the provisions and effect of this Agreement, and specifically of Article 2 hereof, shall remain in full force and effect for the entire Required Covenant Period.

3.2 Agreement to Record. The Owner represents, warrants, and covenants that this Agreement will be recorded in the real property records of Riverside County, subject only to those matters of record to which the City agrees.

3.3 Early Termination of Restrictions. Notwithstanding the generality of the foregoing provisions of this Article 3 or any other provisions hereof, this Agreement and all of the terms and provisions hereof (except as otherwise herein expressly provided and those contained in Section 2.7.1) shall terminate and be of no further force and effect in the event of involuntary noncompliance as a result of unforeseen events such as fire or act of God which leaves the entire Project uninhabitable and the Owner elects not to reconstruct the Project, or a change in a federal or state law or an action by the federal government, the State or a court of competent jurisdiction, after the date of recordation hereof, that prevents the City from enforcing the provisions of this Agreement, or a condemnation or a similar event. Upon termination of this Agreement, the Parties or their successors, as applicable, agree to execute, deliver and record appropriate instruments of release and discharge of the terms hereof; provided, however, that the execution and delivery of such instruments shall not be necessary or a prerequisite to termination of this Agreement in accordance with its terms.

ARTICLE 4. DEFAULT; REMEDIES.

4.1 An Event of Default. Each of the following shall constitute an “Event of Default” by the Owner under this Agreement:

4.1.1 Failure by the Owner to duly perform, comply with and observe any of the conditions, terms, or covenants of any agreement with the City concerning the Project, or of this Agreement, if such failure remains uncured thirty (30) days after written notice of such failure from the City to the Owner in the manner provided herein or, with respect to a default that cannot be cured within thirty (30) days, if the Owner fails to commence such cure within such thirty (30) day period or thereafter fails to diligently and continuously proceed with such cure to completion. However, if a different period or notice requirement is specified under any other section of this Agreement, then the specific provision shall control.

4.1.2 Any representation or warranty contained in this Agreement or in any application, financial statement, certificate, or report submitted by the Owner to the City proves to have been incorrect in any material respect when made. 792
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4.1.3 A court having jurisdiction shall have made or rendered a decree or order:
(i) adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a petition seeking reorganization of the Owner or seeking any arrangement on behalf of the Owner under the bankruptcy laws or any other applicable debtor’s relief law or statute of the United States or of any state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of the Owner in bankruptcy or insolvency or for any of its properties; or (iv) directing the winding up or liquidation of the Owner, providing, however, that any such decree or order described in any of the foregoing subsections shall have continued unstayed or undischarged for a period of ninety (90) days.

4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment or execution on any substantial part of its property, unless the property so assigned, sequestered, attached, or executed upon shall have been returned or released within ninety (90) days after such event or prior to sale pursuant to such sequestration, attachment, or execution. If the Owner is diligently working to obtain a return or release of the Property and the City’s interests hereunder are not imminently threatened in its reasonable business judgment, then the City shall not declare a default under this subsection.

4.1.5 The Owner shall have voluntarily suspended its business or dissolved.

4.1.6 The seizure, or appropriation of all or a substantial part of the Project, except for condemnation initiated by the City or any other governmental agency or authority.

4.1.7 There should occur any breach of the Development Fee Agreement or default declared by any lender under any loan document or deed of trust relating to any loan made in connection with the Project, which loan is secured by a deed of trust or other instrument affecting the Project, and senior to this Agreement, and such default remains uncured following the expiration of any applicable cure period.

4.2 City’s Option to Lease. Upon the occurrence of an Event of Default that relates solely to Owner’s failure to comply with the provisions of Article 2 of this Agreement, and to cause the Project to meet the requirements of this Agreement, the Owner hereby grants to the City the option to lease up to that number of units as necessary to achieve compliance with the provisions of Article 2 of this Agreement, and for the purpose of subleasing such units in accordance with the requirements of this Agreement. The amount of rent to be paid by the City to Owner for such units following the exercise of the City’s option shall be equal to the applicable Affordable Rent. Any rent paid to the City under any such sublease by the subtenant under such sublease shall be paid to the City without obligation to pay any such rent to the Owner during the pendency of the Owner’s default.

4.3 City’s Remedies.

A. The City shall have the right to mandamus or other suit, action or proceeding at law or in equity to require the Owner to perform its obligations and 793
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covenants under this Agreement or to enjoin acts or things which may be unlawful or in violation of the provisions hereof, provided that in any such case the City has first provided the required notice of any alleged default and the Owner has had the requisite opportunity to cure pursuant to Section 4.1.1, above. The City’s remedies under this Agreement include, but are not limited to, remedies available under the City’s Municipal Code regarding enforcement or revocation of the Approvals for the Project.

B. Action at Law; No Remedy Exclusive. The City may take whatever action at law or in equity as may be necessary to enforce performance and observance of any obligation, agreement or covenant of the Owner under this Agreement. No remedy herein conferred upon or reserved by the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law, in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of such right or power, but any such right or power may be exercised from time to time and as often as the City may deem expedient. In order to entitle the City to exercise any remedy reserved to it in this Agreement, it shall not be necessary to give any notice, other than such notice as may be herein otherwise expressly required or required by law to be given. The City’s remedies under this Agreement include, but are not be limited to, recovery of any amounts paid to Owner under the Development Fee Agreement.

C. Liquidated Damages. Owner acknowledges that the City is entering into this Agreement, in part, to implement the goals, objectives and policies of the City’s General Plan Housing Element, and that City has granted an incentive and/or concession to Owner in recognition of Owner’s agreement to provide the Affordable Units as set forth in this Agreement. Owner also acknowledges that the Development Fee Agreement involves the use of certain City revenues that must be used for affordable housing. If Owner does not rent the units as Affordable Units in accordance with the provisions of this Agreement, Owner shall be in default of this Agreement and the City will suffer damages; provided, however, the City shall provide Owner at least thirty (30) days to cure the default by renting the Affordable Units, and the City may, but is not required to, allow Owner up to sixty (60) days to rent the Affordable Units, if Owner exercises reasonable diligence to rent the Affordable Units in accordance with this Agreement. The Parties agree it is extremely difficult and impractical to ascertain the extent of the damages to City, therefore, in addition to any other legal or equitable remedies, the City may have, Owner and the City agree that if the Affordable Units in the Project are not rented with Affordable Rents, or to Very Low Income Households or Very Low Income Employee Households, in accordance with the provisions of this Agreement, as liquidated damages, the City shall be entitled to recover from Owner liquidated damages in the amount of five hundred dollars ($500) for each day the Affordable Units are not rented in accordance with this Agreement (“Per Day Liquidated Damages”). The Per Day Liquidated Damages represent the damages incurred from breach of the obligations arising from the Development Fee Agreement. The total amount of Per Day Liquidated Damages shall not exceed the payments from the City to Owner under the Development Fee Agreement. If, and only if, Owner exceeds the total amount of liability for Per Day Liquidated Damages, 794
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thereafter, the liquidated damages shall be equal to the amount of any rents received by Owner from any units in excess of the limits of Affordable Rent.

ARTICLE 5. GENERAL PROVISIONS.

5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in this Agreement, except in the event of fraud, waste, or illegal acts, or with regard to any indemnity obligations imposed upon the Owner under the terms of this Agreement, (i) no partner, member, manager, shareholder, officer or director, as applicable, of the Owner (each, an “Owner Affiliate”) shall have any direct, indirect or derivative personal liability for the obligations of the Owner under this Agreement, and (ii) the City shall not exercise any rights or institute any action against any Owner Affiliate directly, indirectly or derivatively for the payment of any sum of money that is or may become payable hereunder.

5.2 Maintenance, Repair, Alterations. The Owner shall maintain and preserve the Project in good condition and repair and in a prudent and businesslike manner. The Owner shall comply with all laws, ordinances, rules, regulations, covenants, conditions, restrictions, and orders of any governmental authority now or hereafter affecting the conduct or operation of the Project and of the Owner’s business on the Project or any part thereof or requiring any alteration or improvement to be made thereon. The Owner shall not commit, suffer, or permit any act to be done in, upon, or to the Project or any part thereof in violation of any such laws, ordinances, rules, regulations, or orders. The Owner hereby agrees that the City may conduct from time to time through representatives, upon reasonable notice of no less than forty-eight (48) hours, on-site inspections and observation of: (i) the maintenance and repair of the Project, including a review of all maintenance and repair programs and practices and all reports and records pertaining thereto, including records of expenditures relating thereto; and (ii) such other facilities, practices, and records of the Owner relating to the Affordable Units as may be reasonably necessary or appropriate in order to monitor the Owner’s compliance with the provisions of this Agreement.

5.3 Notice. All notices (other than telephone notices), certificates or other communications (other than telephone communications) required or permitted hereunder shall be sufficiently given and should be deemed given when personally delivered, when sent by telegram, or when sent by email (if confirmed by sending a copy of such transmission by mail the same calendar day), or forty-eight (48) hours following mailing by registered or certified mail, postage prepaid, or twenty-four (24) hours following transmission of such notice by express mail, Federal Express or similar commercial carrier, addressed as follows:

If to the City:

City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Jessica Gonzales
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Phone: (760) 346-0611
Email: [email protected]
If to the Owner:

Bravo Garden Apartments LLC
72877 Dinah Shore Drive, Suite 103
Rancho Mirage, CA 92270
Attn: Claudio Bravo
Phone:760-902-7549
Email [email protected]

5.4 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the City and the Owner or the Owner’s agents, employees or contractors, and the Owner shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement for the operation of the Project. The Owner has and hereby retains the right to exercise full control of employment, direction, compensation and discharge of all persons assisting in the performance of services hereunder. In regards to the on-site operation of the Project, the Owner shall be solely responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding and all other laws and regulations governing such matters.

The Owner agrees to be solely responsible for its own acts and those of its agents and employees.

5.5 No Claims. Nothing contained in this Agreement shall create or justify any claim against the City by any person the Owner may have employed or with whom the Owner may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the operation of the Project.

5.6 Conflict of Interests. No member, official or employee of the City shall make any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No officer or employee of the Owner shall acquire any interest in conflict with or inimical to the interests of the City.

5.7 Non-Liability of City Officials, Employees and Agents. No member, official, employee or agent of the City shall be personally liable to the Owner, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Owner or successor or on any obligation under the terms of this Agreement.

5.8 Unavoidable Delay; Extension of Time of Performance. In addition to specific provisions of this Agreement, performance by either Party hereunder shall not be deemed 796
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to be in default where it is due to an “Unavoidable Delay.” “Unavoidable Delay” means a delay due to the elements (including unseasonable weather), fire, earthquakes or other acts of God, strikes, labor disputes, lockouts, shortages of construction materials experienced generally in the construction industry in the local area, acts of the public enemy, riots, insurrections or governmental regulation of the sale or transportation of materials, supply or labor; provided, however, that to the extent a delay is caused by any other reason that the Owner reasonably believes is beyond its control, the Owner may request, on a case-by-case basis, that the City excuse any such delay as an Unavoidable Delay and the City shall make its determination as to whether such delay constitutes an Unavoidable Delay using its reasonable judgment.

5.9 Indemnity.

5.9.1 The Owner shall indemnify, defend and hold harmless the City and all officials, employees and agents of City (with counsel reasonably satisfactory to the City) against any costs, liabilities, damages or judgments arising from claims or litigation of any nature whatsoever brought by third parties and directly or indirectly arising from the Owner’s ownership or operation of the Project, or the Owner’s performance of its obligations under this Agreement, and in the event of settlement, compromise or judgment hold the City free and harmless therefrom. Notwithstanding the foregoing, the indemnity provisions contained in this Section 5.9 shall not apply with respect to any costs, liabilities, damages or judgments arising directly or indirectly from (i) the City’s rental of units within the Project as described in Section 4.2 hereof, or (ii) the gross negligence or willful misconduct of the City. The provisions of this Section 5.9 shall survive the term of this Agreement.

5.9.2 The Owner is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. The Owner represents and warrants that the work or maintenance on the Project is not a public work. City has not made any representations or warranties to the Owner regarding the applicability of prevailing wages. If any work on the Project is part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is One Thousand Dollars ($1,000) or more, the Owner agrees to fully comply with such Prevailing Wage Laws, including but not limited to payment of prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) debarment of contractors and subcontractors (Labor Code Section 1777.1), and maintaining bonds for the payment of workers (Labor Code Section 1781).

The Owner shall defend, indemnify and hold the City, its elected officials, officers, employees, volunteers and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
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5.10 Rights and Remedies Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties are cumulative, and the exercise or failure to exercise one or more of such rights or remedies by either Party shall not preclude the exercise by it, at the same time or different times, of any right or remedy for the same default or any other default by the other Party. No waiver of any default or breach by the Owner hereunder shall be implied from any omission by the City to take action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the waiver, and such wavier shall be operative only for the time and to the extent therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition. The consent or approval by the City to or of any act by the Owner requiring further consent or approval shall not be deemed to waive or render unnecessary the consent or approval to or of any subsequent similar act. The exercise of any right, power, or remedy shall in no event constitute a cure or a waiver of any default under this Agreement, nor shall it invalidate any act done pursuant to notice of default, or prejudice the City in the exercise of any right, power, or remedy hereunder or under any agreements ancillary or related hereto.

5.11 Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of the State of California.

5.12 Severability. If any term, provision, covenant or condition of this Agreement is held in a final disposition by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.

5.13 Legal Actions. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the Party prevailing in any such action shall be entitled to recover against the Party not prevailing all reasonable attorneys’ fees and costs incurred in such action (including all legal fees incurred in any appeal or in any action to enforce any resulting judgment).

5.14 Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit of the permitted heirs, administrators, executors, successors in interest and assigns of each of the Parties. Any reference in this Agreement to a specifically named Party shall be deemed to apply to any successor, heir, administrator, executor or assign of such Party who has acquired an interest in compliance with the terms hereof or under law.

5.15 Time of the Essence. In all matters under this Agreement, time is of the essence.

5.16 Approval by the City. Any approvals required under this Agreement shall be made by the City Manager or his or her designee, and shall not be unreasonably withheld, conditioned, delayed or made, except where it is specifically provided that another standard applies, in which case the specified standard shall apply. 798
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5.17 Complete Understanding of the Parties. This Agreement and the attached Exhibits constitute the entire understanding and agreement of the Parties with respect to the matters described herein.

5.18 Covenants to Run With the Land. The Owner hereby subjects the Project to the covenants, reservations, and restrictions set forth in this Agreement. The City and the Owner hereby declare their express intent that the covenants, reservations, and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s successors in title to the Project; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire, except for the covenants set forth in Section 2.7.1, which shall run in perpetuity. Each and every contract, deed or other instrument hereafter executed covering or conveying the Project or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instruments. No breach of any of the provisions of this Agreement shall defeat or render invalid the lien of a mortgage or deed of trust made in good faith and for value encumbering the Property or any interest of the Owner therein.

5.19 Burden and Benefit. The City and the Owner hereby declare their understanding and intent that: (i) the burden of the covenants, reservations, restrictions, and agreements set forth herein touch and concern the Property and the Project, in that Owner’s legal interest in the Project is rendered less valuable thereby, (ii) the covenants, reservations, restrictions, and agreements set forth herein directly benefit the Property and the Project (a) by enhancing and increasing the enjoyment and use of the Project by certain Very Low Income Households and Very Low Income Employee Households, the intended beneficiaries of such covenants, reservations, restrictions, and agreements, (b) by making possible the obtaining of advantageous financing for the Property and the Project, and (c) by furthering the public purposes advanced by the City, and (iii) the covenants, reservations, restrictions and agreements set forth herein shall run with the Property and shall be binding for the benefit of and enforceable by the City and its successors and assigns for the entire term of this Agreement.

5.20 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.

5.21 Amendments. This Agreement may be amended only by the written agreement of the City and the Owner.
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WHEREFORE, the undersigned has executed this Agreement as of the date firstabove written.

CITY OF PALM DESERT,
A Municipal Corporation
By:

Name:

Title:

BRAVO GARDEN APARTMENTS
LLC, a California limited liability
company
By:

Its: Manager
ATTEST:

Anthony J. Mejia,
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP,
Limited Liability Partnership
By:

City Attorney
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A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of )
On ____________, 20__, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
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A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of )
On _______________, 20__, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
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EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
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EXHIBIT B

HOUSEHOLD INCOME
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805
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806
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807
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EXHIBIT C

CERTIFICATE OF CONTINUING COMPLIANCE
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809
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810
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812
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813
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EXHIBIT D

DEVELOPMENT FEE AGREEMENT
Development Fee Agreement
This Development Fee Agreement (“DFA”), effective _________________, 2024, (“Effective Date”), is between the City of Palm Desert, a California municipal corporation (“City”), and BRAVO GARDEN APARTMENTS LLC (“Developer”), collectively, the “Parties.”

RECITALS
A. The Parties enter into this DFA as part of a Affordability Restrictions and Regulatory Agreement (Density Bonus) (“Density Bonus Agreement”), to which this DFA is made part of and incorporated therein. All terms and exhibits referenced herein shall have the same meaning as set forth in the Density Bonus Agreement.

B. Developer owns or controls that real property located at and more specifically described in Exhibit A of the Density Bonus Agreement (the “Property”).

C. Developer desires to develop the Property with a 388-unit affordable-housing project with a mix of thirteen (13) two-story and three-story buildings, pursuant to the approvals from the City on or about April 12, 2018 (“City Approvals”) and further described in the Density Bonus Agreement (the “Project”).

D. The Density Bonus Agreement includes an agreement by the City to use the City’s Low Income Housing Mitigation Fees to offset certain development fees for the Project. In exchange, the Density Bonus Agreement provides that, of the seventy eight (78) Affordable Units in the Project, five (5) shall be restricted for occupancy by Very Low Income Employee Households that have a member of the household that works within the City.

E. The City’s Low Income Housing Mitigation Fees are imposed upon commercial and industrial projects, in accordance with Resolution No. 90-130 adopted by the City Council, and thereafter renewed from time to time. As part of the City Approvals, and in exchange for the restriction of five units to Very Low Income Employee Households, pursuant to Resolution No. 2018-18, the City authorized the use of up to One Hundred Eighty Thousand ($180,000.00) from the Low Income Housing Mitigation Fees to offset development fees attributable to the Affordable Units in the Project.

F. In accordance with the foregoing, this Agreement establishes the terms and conditions under which the City will reimburse Developer to offset the Development Fees for the Project using the City’s Low Income Housing Mitigation Fees. 814
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NOW, THEREFORE, the Parties agree as follows:

1. Payment of Development Fees. Prior to issuance of a building permit for the Project, Developer shall pay all development fees the City imposes on the Project (collectively, the “Development Fees”). To the extent the City allows Developer to pay a portion of the Development Fees for a permit to construct a phase of the Project, the Developer agrees the phasing must comply with the schedule of construction approved by the City in accordance with the Density Bonus Agreement.

2. Determination of Development Fees Attributable to Affordable Units. Within sixty (60) days of completion of the entire Project, Developer shall submit a request to the City, supported by written documentation stating an amount of Development Fees that Developer believes are attributable to the Affordable Units (the “Affordable Unit Development Fees”). The Affordable Unit Development Fees shall be based on the proportion of the square footage of the Affordable Units (78) as compared to the total number of units in the Project (388), provided that the Affordable Unit Development Fees shall not exceed twenty percent (20%) of the Development Fees. The City shall review the written documentation and, within sixty (60) days, shall approve or disapprove the amount determined for the Affordable Unit Development Fees. In the event the City disapproves the amount, the parties shall meet and confer regarding the difference, and the City shall, in the exercise of reasonable discretion, make a final determination of the amount of the Affordable Unit Development Fees.

3. Certificate of Occupancy. Developer agrees and acknowledges that the Affordable Units must be completed and ready for occupancy by Very Low Income Households and Very Low Income Employee Households, as required herein and by the Density Bonus Agreement, prior to the City issuing a Certificate of Occupancy for the building within the Project where the Affordable Units are located.

4. City Reimbursement for Development Fees Attributable to Affordable Units. The City shall reimburse Developer for the Affordable Unit Development Fees, in an amount not to exceed One Hundred Eighty Thousand ($180,000.00), upon satisfaction of all of the following conditions:
a. The Density Bonus Agreement is duly recorded against the Property in the Official Records of the County of Riverside, subject only to those matters of record to which the City agrees.
b. Developer has received a Certificate of Occupancy for all the buildings for the entire Project, inclusive of all of the Affordable Units required under the Density Bonus Agreement.
c. Developer has submitted a written request for reimbursement for the Affordable Unit Development Fees.
d. Developer is not in default of this Agreement or the Density Bonus Agreement. e. The City has funding available from the Low Income Housing Mitigation Fees to pay for the requested reimbursement.
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f. Developer provided written evidence that the five Affordable Units restricted for occupancy to Very Low Income Employee Households have been leased to qualifying households, or Developer has demonstrated to the reasonable satisfaction of the City that it has made diligent progress to lease such Affordable Units to qualifying households.
g. The City has reviewed and approved the request for reimbursement. The review shall be completed within sixty (60) days of the request from Developer.

5. Default; Remedies.
a. If any party breaches this Agreement or the Density Bonus Agreement, the nonbreaching party shall give notice and demand the breaching party cure the breach within thirty (30) days. The breaching party shall have thirty (30) days to cure, except that if a longer time to cure is reasonably necessary, then the breaching party shall have up to ninety (90) days to cure, provided that the breaching party commences to cure and diligently pursues curing the breach during such time. b. The failure to cure a breach as set forth in sub-paragraph (a) within the applicable cure period constitutes a default of this Agreement (“Event of Default”). c. City’s Rights Upon Event of Default. For an Event of Default by Developer, the City shall have all remedies available at law or equity, including but not limited to:
i. The City may withhold any payments for reimbursement of the Affordable Unit Development Fees;
ii. The City may withhold a Certificate of Occupancy or any further permits required for construction on the Property or the Project; iii. Any amounts paid by the City as reimbursement for the Affordable Unit Development Fees may be recovered as a lien against the Property; or iv. The City may pursue any other administrative, civil or criminal enforcement action that is available to the City at law or in equity. d. Developer’s Rights Upon Event of Default. For an Event of Default by the City, the Developer’s sole and exclusive remedy shall be limited to any amounts owed under this DFA. Developer agrees and acknowledges that this limitation of liability is a release and specifically waives the provisions of Civil Code Section 1542, which states:

A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, 816
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would have materially affected his or her settlement with the debtor or released party.

Developer’s Initials:__________

6. Hold Harmless.

6.1 Developer shall indemnify, defend and hold harmless the City and all officials, employees and agents of City (with counsel reasonably satisfactory to the City) against any costs, liabilities, damages or judgments arising from claims or litigation of any nature whatsoever brought by third parties and directly or indirectly arising from the Developer’s ownership or operation of the Project, or the Developers performance of its obligations under this DFA, and in the event of settlement, compromise or judgment hold the City free and harmless therefrom.

Notwithstanding the foregoing, to the extent required by law, the indemnity provisions contained in this Section 6 shall not apply with respect to any costs, liabilities, damages or judgments arising directly or indirectly from (i) the City’s rental of units within the Project, or (ii) the sole or active negligence or willful misconduct of the City. The provisions of this Section 6 shall survive the term of this Agreement.

6.2 Developer is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. Developer represents and warrants that the work or maintenance on the Project is not a public work. City has not made any representations or warranties to the Owner regarding the applicability of prevailing wages. If any work on the Project is part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is One Thousand Dollars ($1,000) or more, Developer agrees to fully comply with such Prevailing Wage Laws, including but not limited to payment of prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) debarment of contractors and subcontractors (Labor Code Section 1777.1), and maintaining bonds for the payment of workers (Labor Code Section 1781).

Developer shall defend, indemnify and hold the City, its elected officials, officers, employees, volunteers and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

7. General.

7.1 Successors. This DFA binds the Parties’ successors.

7.2 Assignment. This DFA shall not be assigned without the prior, written consent of the City, which assignment may be approved, or not, by the City’s reasonable discretion.
817
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P6401-0001\2227790v5.doc Exhibit D - 40

7.3 Recording. This DFA must be recorded with the Density Bonus Agreement by Developer on the Property within five business days after full execution by the Parties.

7.4 Severability. If any part of this DFA is held by a court to be invalid, all other parts of the Agreement remain in effect.

7.5 Choice of Law and Venue. This DFA, its construction and any and all disputes arising out of or relating to it, shall be interpreted in accordance with the substantive laws of the State of California without regard to its conflict-of-law principles.

Venue lies exclusively in state and federal courts in Riverside County, California.

7.6 Modification. No modification, amendment, or waiver of any provision of this DFA is effective unless made in writing and signed by both Parties.

7.7 Merger and Integration. This DFA contains the entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior negotiations, agreements, and understandings with respect thereto.

7.8 Counterparts. This DFA may be executed in any number of counterparts, each of which is deemed an original, and all of which, when taken together, constitute one and the same instrument. The DFA becomes effective as of the Effective Date when each Party signs a counterpart and delivers it to the other Party, in its original form or by electronic mail, facsimile or other electronic means. The Parties hereby consent to the use of electronic signatures in connection with the execution of this DFA and further agree that electronic signatures to this DFA are legally binding with the same force and effect as manually executed signatures.

7.9 Relationship of the Parties. The Parties are entering into an arm’s-length transaction and do not have any relationship, employment or otherwise. This DFA does not create nor is it intended to create, a partnership, franchise, joint venture, agency, or employment relationship between the Parties. There are no third-party beneficiaries to this DFA.

7.10 Waiver and Cumulative Remedies. No failure or delay by either Party in exercising any right under this DFA may be deemed to waive that right or any other right.

Other than as expressly stated herein, the remedies provided herein are in addition to, and not exclusive of, any other remedy that a Party might have at law or in equity.

7.11 Force Majeure. Neither Party is liable for any failure or delay in performance under this DFA due to causes beyond that Party’s reasonable control and that occurs without that Party’s fault or negligence, including, but not limited to, any act of God, act of government, flood, fire, civil unrest, acts of terror, strike or other labor problem (other than those involving Developer employees), computer attacks or malicious acts, such as attacks on or through the Internet, any Internet service provider, telecommunications or hosting facility. Dates by which performance 818
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P6401-0001\2227790v5.doc Exhibit D - 41
obligations are scheduled to be met will be extended for a period of time equal to the time lost due to any delay so caused.
(Signatures on following page)
819
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P6401-0001\2227790v5.doc Exhibit D - 42
IN WITNESS WHEREOF, the City and Developer have executed this Agreement as set forth below.

CITY OF PALM DESERT,
A Municipal Corporation
By:

Name:

Title:

BRAVO GARDEN APARTMENTS
LLC, a California limited liability
company
By:

Its: Manager
ATTEST:

Anthony J. Mejia,
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP,
Limited Liability Partnership
By:

City Attorney
820
DRAFT

EXHIBIT E

AFFORDABLE HOUSING DEVELOPMENT PLAN
“Pending City Approval”
821
822

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 26, 2024
PREPARED BY: Joe Barron, Senior Contracts and Grants Analyst Veronica Chavez, Director of Finance
REQUEST: HOUSING AND URBAN DEVELOPMENT COMMUNITY DEVELOPMENT BLOCK GRANT – PUBLIC HEARING TO RECEIVE PUBLIC COMMENTS ON FISCAL YEAR 2023/24 COMPREHENSIVE ANNUAL

PERFORMANCE AND EVALUATION REPORT
RECOMMENDATION:

Conduct a public hearing to receive public comments on the City’s Fiscal Year 2023/24 Comprehensive Annual Performance and Evaluation Report (CAPER).

BACKGROUND/ANALYSIS:

The Community Development Block Grant (CDBG) program, administered by the U.S.

Department of Housing and Urban Development (HUD), provides eligible jurisdictions with federal funds annually to address the needs of low- and moderate-income individuals, allow for neighborhood housing improvements, and respond to urgent needs.

The City of Palm Desert has completed a draft of its FY 2023/24 CAPER, which outlines the City’s accomplishments under the CDBG program from July 1, 2023, to June 30, 2024, and details the expenditures for the FY 2023/24 funding cycle. This report also marks the first year of our 2023-2028 Consolidated Plan, which outlines the City’s commitment to various goals and objectives aimed at enhancing the community. The City is required to hold a public hearing to receive public comments on the fiscal year 2023/24 comprehensive annual performance and evaluation report to remain in compliance.

During the first year of the 2023-2028 Consolidated Plan, the following goals were supported:
 Fund Vital Community and Homeless Services to prevent homelessness, including funding:
o Operation Safe House, Inc.
 Support Public and Community Facilities Improvement, including funding:
o The Desert Arc, ADA Restroom Improvements
o The Joslyn Center, ADA Restroom Improvements
 Support Fair Housing Initiatives, including funding:
o Fair Housing Council of Riverside County, Inc.

Legal Review:

This report has been reviewed by the City Attorney’s office.

FINANCIAL IMPACT:

There is no fiscal impact associated with the conduct of this public hearing. 823
City of Palm Desert
CDBG FY2023/24 CAPER Report

ATTACHMENT:

Draft - Palm Desert CAPER FY2023-24
824
City of Palm Desert PY 2023 CDBG Annual CAPER 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year.

The 2023-2024 Consolidated Annual Performance and Evaluation Report (CAPER) has been prepared to assist residents of the City of Palm Desert (the City) and the U.S. Department of Housing and Urban Development (HUD) in assessing the City’s use of federal grant funds to meet priority housing and community needs identified in the City’s 2023–2028 Consolidated Plan. The CAPER for Program Year 2023-2024 primarily provides an overview of the City's accomplishments from July 1, 2023, through June 30, 2024, utilizing Community Development Block Grant (CDBG) funds.

The Consolidated Plan established the following goals:

Provide decent housing: Help homeless persons obtain appropriate housing and assisting those at risk of homelessness; preserving the City’s affordable housing stock; increasing the availability of affordable permanent housing for low- and moderate-income persons without discrimination; increasing the supply of supportive housing.

Provide a suitable living environment: Improve the safety and livability of neighborhoods; increasing access to quality facilities and services; and reducing the isolation of income groups within an area through integration of low-income housing opportunities.

Expand economic opportunities: Create jobs accessible to low- and moderate-income persons; make down payment and closing cost assistance available for low- and moderate-income persons; promote long-term economic and social viability; empower low-income persons to achieve self-sufficiency.

The PY 2023-24 reporting period is the first year of the City’s 2023-2028 Consolidated Plan cycle. The 2023-2024 Annual Action Plan outlined an expenditure plan for the City’s $393,904.00 CDBG grant allocation. The Action Plan identified activities to be carried out during the reporting period utilizing CDBG funds, including public facility improvements, public service grants, and program administration.

Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and 825
City of Palm Desert PY 2023 CDBG Annual CAPER 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Goal Category Source /
Amount
Indicator Unit of
Measure
Expected
–
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected
–
Program
Year
Actual –
Program
Year
Percent
Complete
Fund Vital
Community and
Homeless
Services
Homeless
CDBG:
$
Homeless Person
Overnight Shelter
Persons
Assisted
300 15

5.00%
300 15

5.00%
Fund Vital
Community and
Homeless
Services
Homeless
CDBG:
$
Homelessness
Prevention
Persons
Assisted
2000 15

0.75%
2000 15

0.75%
Preserve and
Enhance
Affordable
Housing
Affordable
Housing
CDBG:
$
Public service
activities for
Low/Moderate
Income Housing
Benefit
Households
Assisted
5 0

0.00%
5 0

0.00%
Support
Essential Senior
Services
Non-Homeless
Special Needs
CDBG:
$
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
3000 0

0.00%
3000 0

0.00%
826
City of Palm Desert PY 2023 CDBG Annual CAPER 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
Support Fair
Housing
Initiatives
CDBG:
$
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
0 0 500 591

118.20%
Support Fair
Housing
Initiatives
CDBG:
$
Public service
activities for
Low/Moderate
Income Housing
Benefit
Households
Assisted
2000 591

29.55%
Support Public
and Community
Facilities
Improvement
Non-Housing
Community
Development
CDBG:
$
Public Facility or
Infrastructure
Activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
50000 645

1.29%
Support Public
and Community
Facilities
Improvement
Non-Housing
Community
Development
CDBG:
$
Public Facility or
Infrastructure
Activities for
Low/Moderate
Income Housing
Benefit
Households
Assisted
0 0 5000 645

12.90%
Table 1 - Accomplishments – Program Year & Strategic Plan to Date Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

The City focused CDBG resources to address priority community needs identified in the Consolidated Plan. Progress was exceeded towards 827
City of Palm Desert PY 2023 CDBG Annual CAPER 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
meeting goals and objectives.

Priority needs addressed during the reporting period include the following:

Administration - CDBG Program (2023)
Operation Safe House, Inc.(2023)- PSG- safe housing for homeless and runaway youth Desert Arc Restroom Improvements (2023)- facility improvements at area nonprofit serving special needs individuals Joslyn Center ADA Restroom Improvements (2023)- facility improvements at area nonprofit serving seniors Fair Housing Council of Riverside County (2023)- PSG- for fair housing services as defined by HUD 828
City of Palm Desert PY 2023 CDBG Annual CAPER 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)

CDBG HOME
White 3,734 0
Black or African American 228 0
Asian 51 0
American Indian or American Native 7 0
Native Hawaiian or Other Pacific Islander 5 0
Total 4,025 0
Hispanic 2,736 0
Not Hispanic 1,289 0
Table 2 – Table of assistance to racial and ethnic populations by source of funds Narrative
According to the U.S. Census Bureau (2019 American Community Survey 5-Year Estimates), most Palm Desert residents are racially White – 82.5 percent. This same data source reports that 23.5 percent of the City’s population is Hispanic/Latino. Based on the data from Table 2, approximately 83.3 percent of CDBG-funded program participants are White, and a significant number of assisted individuals are Hispanic/Latino (32.9 percent). Additionally, 46.8 percent of program beneficiaries report a household income equal to or less than 30 percent of the County median income (defined by HUD as extremely low-income). This data indicates that many program beneficiary households may be economically unstable and seek services to help stabilize their financial situation.

Note: By default, Table 2 excludes multi-racial program beneficiaries in IDIS. 829
City of Palm Desert PY 2023 CDBG Annual CAPER 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG public - federal 393,904 196,596
HOME public - federal 0
Table 3 - Resources Made Available
Narrative
The performance report includes a description of the resources made available $393904), the investment of available resources including all activities spelled out in CR-05 - Goals and Outcomes -

91.520(a) , and the geographic distribution (Citywide) and location of investments.

Identify the geographic distribution and location of investments Target Area Planned Percentage of
Allocation
Actual Percentage of
Allocation
Narrative Description
Citywide 100 100 Citywide
Table 4 – Identify the geographic distribution and location of investments Narrative
As anticipated, the City used 2023-24 CDBG funding on a citywide basis. The City did not receive program income. Attachments PR05 & PR26 provide a detailed summary of CDBG expenditures.

Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

While the City of Palm Desert does not have owned land, the Palm Desert Housing Authority owns 15 communities throughout the City that provides 1,100 multi-family and senior housing units of various size and character. To the extent that the Housing Successor Agency has funds available, housing resources will be used to address the housing needs of very low and lowincome residents. 830
City of Palm Desert PY 2023 CDBG Annual CAPER 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
Additionally, nonprofit partners leveraged CDBG resources with other grant awards and private donations.

CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 0 0
Number of Non-Homeless households to be
provided affordable housing units 0 0
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 0 0
Table 5 – Number of Households
One-Year Goal Actual
Number of households supported through
Rental Assistance 0 0
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 0 0
Number of households supported through
Acquisition of Existing Units 0 0
Total 0 0
Table 6 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

The City did not utilize CDBG funds to assist with the development or rehabilitation of housing during the reporting period. The City continued to support various organizations that provide a service to Palm Desert Residents. The City supported over 1,000 households with rental assistance for this fiscal year, however, it was not supported with CDBG funding.

Discuss how these outcomes will impact future annual action plans. 831
City of Palm Desert PY 2023 CDBG Annual CAPER 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
As discussed above, the City did not use CDBG funds for housing activities. Private development and incentives to create affordable housing units within a new development will likely support future housing activity.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual
Extremely Low-income 0
Low-income 0
Moderate-income 0
Total 0
Table 7 – Number of Households Served
Narrative Information
832
City of Palm Desert PY 2023 CDBG Annual CAPER 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City is actively involved in multiple activities to address the needs of homeless persons, which include coordination with the Continuum of Care. For example, the City is involved in regional coordination efforts between stakeholders throughout the Coachella Valley and Riverside County. The City has historically funded homelessness services coordinated regionally through the Coachella Valley Association of Governments (CVAG) outside of the CDBG program. For years, the City contributed funds to CVAG for the operation of Roy’s Desert Resource Center, which permanently closed in July 2017.

Since then, CVAG has allocated its regional financial commitments for other homelessness services. In recent years, the City made a financial commitment in the amount of $100,000 to CVAG to continue their Housing First program that focused on providing housing and services to the regions chronically homeless individuals.

The City in September of 2023 entered into an agreement with Kingdom Causes Inc., DBA, City Net a non-profit. City Net provides two full time street outreach workers, case management, housing resources, vital documentation, and linkage to substance and alcohol abuse treatment facilities.

Addressing the emergency shelter and transitional housing needs of homeless persons The City of Palm Desert utilized funds to support Operation Safe House this year. The City supported the regional CoC and Emergency Solutions Grant (ESG) funded sub-recipients that provide bridge housing for persons experiencing homelessness. The City has established an agreement with Coachella Valley Rescue Mission to purchase five shelter beds per month to assist the unhoused who are only from the City.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The Riverside County CoC is responsible for implementing the regional discharge plan – the City supports these efforts. The discharge plan aims to prevent local institutions from releasing individuals into homelessness. Elements of the discharge plan include the following:
833
City of Palm Desert PY 2023 CDBG Annual CAPER 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
To help individuals experiencing homelessness transition into permanent housing, the Riverside CoC has increased resources for rapid re-housing assistance. Rapid rehousing aims to place a household into housing as quickly as possible and provides wrap-around supportive services. The Riverside CoC partners with the County’s Economic Development Agency (EDA) to implement a regional rapid rehousing program. This partnership has increased the number of homeless households that are rapidly rehousing. The County CoC is also responsible for implementing the regional Homeless Coordinated Entry System. This housing/service triage system prioritizes scarce resources to individuals experiencing prolonged episodes of homelessness and that rank high in a vulnerability index.

The City of Palm Desert is a member of the Riverside CoC and supports these efforts. 834
City of Palm Desert PY 2023 CDBG Annual CAPER 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The City does not operate a Public Housing Authority, however provides support to the Fair Housing Council of Riverside County
Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
The City does not operate a Public Housing Authority.

Actions taken to provide assistance to troubled PHAs
The City does not operate a Public Housing Authority.
835
City of Palm Desert PY 2023 CDBG Annual CAPER 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The City’s Consolidated Plan identifies a strategy to eliminate barriers to the provision of affordable housing. The strategy addresses housing costs via incentives to develop, maintain, or improve affordable housing in the jurisdiction. Public policies such as taxes, land use controls, zoning, building codes, fees, and growth limits also impact the cost of housing.

The City continued to discuss with private developers the need to construct residential projects and include a certain percentage of affordable housing units.

Consequently, no plans were submitted for projects with an affordable housing component; however, the City will continue to encourage private developers to build affordable housing.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The City continued to provide City funding resources to assist households facing housing insecurity, living in poverty, and persons experiencing homelessness. The City partnered with numerous local nonprofit organizations to address a myriad of issues faced by underserved populations. During the reporting period, the following services were provided to assist underserved residents:

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The City did not use CDBG program resources to undertake housing activities that triggered HUD’s leadbased paint hazards compliance. However, as indicated in the Consolidated Plan, the City referred residents with Lead-Based Paint Hazards concerns to Riverside County Health Services Lead Hazard Reduction Section Department. Additionally, the City distributed brochures regarding Lead-Based Paint Hazards through the Housing Successor Agency and the City’s Building and Safety Department to contractors, homeowners, and renters. Nonprofit partners, such as the Fair Housing Council, also distribute the Lead-based Paint Hazards brochures to educate the public regarding lead-based paint hazards.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) According to the U. S. Census Bureau, approximately 13.1 percent of Palm Desert residents live in poverty. This figure includes 18.8 percent of children age 18 and younger and 8.6 percent of residents age 65 and older. As previously reported, over 48 percent of all CDBG program beneficiaries have extremely low income – over 71 percent of beneficiaries had very low-income (50 percent of the county 836
City of Palm Desert PY 2023 CDBG Annual CAPER 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
median income). During the reporting period, the City allocated significant CDBG resources to agencies assisting lower-income Palm Desert residents, especially those with extremely low and very lowincome.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City continues to partner with local government entities, service providers, and other agencies/organizations tasked with similar goals and objectives to improve the quality and quantity of services provided to the homeless and lower-income persons. Working with various County of Riverside departments and the many local nonprofits has created a cohesive working relationship to address Palm Desert's needs and the needs of the greater Coachella Valley. These collaborative actions have address gaps in the regional institutional structure.

As previously outlined, the City has established several partnerships with nonprofits, the regional CoC, and county departments to address the needs of the City’s lower-income residents. For example, the City continued to work with the Riverside County Department of Mental Health and the Department of Social Services to address homelessness and mental health issues.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
The City continued efforts to enhance coordination between public and private housing and social services agencies during the reporting period. These efforts include the following:
• The City is a member of the CVAG Homeless Committee, which has a membership of all Coachella Valley cities, County of Riverside Supervisor’s office, County of Riverside departments, Desert Health Care District, and various nonprofit organizations. • The City is a member of the Riverside County CoC, including various local jurisdictions, the County, nonprofits, and other interested individuals and organizations. • The City typically conducts an annual Community Meeting, publishes meeting information in the Desert Sun newspaper, and posts information on the City website. • The City typically conducts seminars on crime-free multi-family housing for landlords. • The City provides flyers and materials directing residents to the regional social services 211 system and other local service providers.
• The City provides meeting facilities for fair housing informational meetings for landlords who have units available for lower-income households.
• The City contracts with the Fair Housing Council of Riverside County, which provides workshops to educate and inform residents and property owners/managers about fair housing laws.

Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) 837
City of Palm Desert PY 2023 CDBG Annual CAPER 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
Consolidated Plan regulations require CDBG recipients to (1) examine and attempt to alleviate housing discrimination within their jurisdiction; (2) promote fair housing choice for all persons; (3) provide opportunities for all persons to reside in any given housing development, regardless of race, color, religion, sex, disability, familial status, or national origin; (4) promote housing that is accessible to and usable by persons with disabilities; and (5) comply with the non-discrimination requirements of the Fair Housing Act. The City hired Castaneda and Associates to complete its Analysis of Impediments to Fair Housing Choice and Fair Housing Action Plan (AI). The following action steps were identified in the AI:
• Publish information on the City’s website describing reasonable accommodation procedures.

The City’s “Americans with Disabilities Act and the City” web page links several related documents, including the City’s procedures for requesting accommodations. • Continue to support the efforts of the private and nonprofit sectors to address the needs of the residents. The City contracted with the Fair Housing Council of Riverside County to provide fair housing outreach, education, and enforcement services.
• Utilize the Housing Element site inventory in making future location decisions regarding the sites suitable for affordable housing. The current 2022-2029 Housing Element contain an inventory of vacant land suitable for affordable housing development. • Fair Housing of Riverside County – should continue to provide fair housing-related workshops and distributed related information. As indicated above, the City continues to contract with the Fair Housing Council of Riverside County to provide fair housing outreach, education, and enforcement services, including producing and distributing fair housing educational information. 838
City of Palm Desert PY 2023 CDBG Annual CAPER 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
The monitoring plan that the City has in place and will continue to implement is outlined in the Consolidated Plan. The monitoring plan indicates that the City will monitor all HUD-funded activities and subrecipients per applicable U.S. Department of Housing and Urban Development regulations and requirements. The guiding principles and objectives of the monitoring plan help ensure that the primary benefits of activities are intended, directed, and received by targeted groups, including but not limited to low and moderate-income households, homeless, elderly, at-risk youth, persons with disabilities, and women and minority-owned businesses.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

The CAPER will be available for 15 days for public comment prior to submission to HUD. 839
City of Palm Desert PY 2023 CDBG Annual CAPER 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

N/A
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No
[BEDI grantees] Describe accomplishments and program outcomes during the last year. 840
City of Palm Desert PY 2023 CDBG Annual CAPER 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided Total Labor Hours CDBG
Total Number of Activities 0
Total Labor Hours
Total Section 3 Worker Hours
Total Targeted Section 3 Worker Hours
Table 8 – Total Labor Hours
Qualitative Efforts - Number of Activities by Program CDBG Outreach efforts to generate job applicants who are Public Housing Targeted Workers 0
Outreach efforts to generate job applicants who are Other Funding Targeted Workers. 0
Direct, on-the job training (including apprenticeships). 0 Indirect training such as arranging for, contracting for, or paying tuition for, off-site training. 0
Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching). 0
Outreach efforts to identify and secure bids from Section 3 business concerns.
0 Technical assistance to help Section 3 business concerns understand and bid on contracts. 0
Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns. 0
Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services. 0 Held one or more job fairs. 0
Provided or connected residents with supportive services that can provide direct services or referrals. 0
Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation. 0 Assisted residents with finding child care. 0
Assisted residents to apply for, or attend community college or a four year educational institution. 0
Assisted residents to apply for, or attend vocational/technical training. 0 Assisted residents to obtain financial literacy training and/or coaching. 0 Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. 0
Provided or connected residents with training on computer use or online technologies. 0
Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses. 0 841
City of Palm Desert PY 2023 CDBG Annual CAPER 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.
0 Other. 0
Table 9 – Qualitative Efforts - Number of Activities by Program Narrative
842

THE CONSOLIDATED ANNUAL

PERFORMANCE AND
EVALUATION REPORT. (CAPER)
Joe Barron
Sr. Contracts and
Grants Analyst
September 26, 2024
843

INTRODUCTION
The 2023/24 Consolidated Annual
Performance and Evaluation Report
(CAPER) is required by HUD to
assess the City’s use of federal grant
funds to meet priority housing and
community needs as identified in the
City’s Five-Year Con Plan.

The CAPER for the 2023/24 Program
Year provides an overview of the
City's accomplishments during that
time using (CDBG) funds.
2 844

PROGRAM RESULTS

HOW MANY PEOPLE SERVED
• 1,254 people were
served using CDBG
Funds.
• 100% of those served fell
below 80% of the poverty
line.

FUNDING UTILIZED
• The City of Palm Desert was
awarded $393,904.00 for the
Program Year.
• To date, the City expended a
total of $196,596 to qualifying
programs.
3 845
4 PROGRAM RESULTS

ACTIVITIES FUNDED WITH CDBG

PROJECT
FUNDED
AMOUNT

EXPENDED
AMOUNT
PEOPLE
SERVED
Fair Housing Council $21,500 $21,499.38 594
Operation Safe House $10,000 $10,000 15
Desert Arc-ADA Improvements $30,000 $29,895.00 645
Cahuilla Hills Park- ADA Improvements $193,420 $0 Pending Joslyn Center ADA Restroom
Improvements $104,000 $104,000 Pending
Grant Administration $78,780 $32,701.60 N/A
Total $437,700 $198,096 1254
846

THANK YOU
Joe Barron
[email protected]
(760) 776-6491
Sanya Vitale
[email protected]
(574) 400-3600
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