CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: RATIFICATION OF LETTER OPPOSING ASSEMBLY BILL 339 (ORTEGA) – LOCAL PUBLIC EMPLOYEE ORGANIZATIONS: NOTICE REQUIREMENTS RECOMMENDATION:
Ratify the issuance of the letter opposing Assembly Bill 339 (Ortega) – Local Public Employee Organizations: Notice Requirements.
BACKGROUND/ANALYSIS:
Assembly Bill 339 (Ortega) would require local public agencies to provide recognized employee organizations with no less than 60 days’ written notice prior to issuing a request for proposals (RFP), request for quotes (RFQ), or renewing or extending a contract to perform services that fall within the scope of represented job classifications.
The bill also requires agencies to disclose the proposed contract’s scope, cost, and justification, and permits the employee organization to request a meet-and-confer process. Limited exemptions are provided for emergencies and exigent circumstances. Certain contracts governed by the Public Contract Code or specific public works provisions are excluded.
On July 23, 2025, the City submitted a letter opposing the bill. The letter outlines concerns regarding administrative burden, delays to routine and emergency contracting, and the broad applicability of the bill’s requirements. These requirements would constrain the City's ability to efficiently manage contracts for essential services, potentially delaying service delivery and increasing administrative workload, particularly for routine renewals or time-sensitive projects.
The ad hoc City Council Subcommittee on Legislative Affairs, comprised of Mayor Harnik and Mayor Pro Tem Trubee, reviewed and approved the letter in advance of formal ratification by the City Council.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
There is no financial impact associated with the issuance of this letter.
ATTACHMENTS:
1. AB 339 Bill Text
2. AB 339 Legislative Analysis
3. Letter of Opposition to AB 339
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AMENDED IN SENATE JULY 15, 2025
AMENDED IN SENATE JUNE 18, 2025
AMENDED IN ASSEMBLY MAY 23, 2025
california legislature—2025–26 regular session
ASSEMBLY BILL No. 339
Introduced by Assembly Member Ortega
January 28, 2025
An act to add Section 3504.1 to the Government Code, relating to public employment.
legislative counsel’s digest
AB 339, as amended, Ortega. Local public employee organizations:
notice requirements.
Existing law, the Meyers-Milias-Brown Act, contains various provisions that govern collective bargaining of local represented employees and delegates jurisdiction to the Public Employment Relations Board to resolve disputes and enforce the statutory duties and rights of local public agency employers and employees. Existing law requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations.
Existing law requires the governing body of a public agency, and boards and commissions designated by law or by the governing body, to give reasonable written notice, except in cases of emergency, as specified, to each recognized employee organization affected of any ordinance, rule, resolution, or regulation directly relating to matters within the scope of representation proposed to be adopted by the governing body or the designated boards and commissions.
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This bill would require the governing body of a public agency, and boards and commissions designated by law or by the governing body of a public agency, to give the recognized employee organization no less than 60 days’ written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract to perform services that are within the scope of work of the job classifications represented by the recognized employee organization. organization, subject to certain exceptions. The bill would require the notice to include specified information, including the anticipated duration of the contract. The bill would also require the public agency, if an emergency or other exigent circumstance prevents the public agency from providing the written notice described above, to provide as much advance notice as is practicable under the circumstances. If the recognized employee organization demands to meet and confer after receiving the written notice, the bill would require the public agency and recognized employee organization to meet and confer in good faith within a reasonable time, as specified. By imposing new duties on local public agencies, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 3504.1 is added to the Government Code, line 2 immediately following Section 3504, to read:
line 3 3504.1. (a) Except as provided in subdivision (c), the line 4 governing body of a public agency, and boards and commissions line 5 designated by law or by the governing body of a public agency, line 6 shall give the recognized employee organization no less than 60 line 7 days’ written notice before issuing a request for proposals, request line 8 for quotes, or renewing or extending an existing contract, to line 9 perform services that are within the scope of work of the job 96 AB 339 — 2 —
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line 1 classifications represented by the recognized employee line 2 organization.
line 3 (b) The written notice specified in subdivision (a) shall include line 4 all of the following:
line 5 (1) The anticipated duration of the contract.
line 6 (2) The scope of work under the contract.
line 7 (3) The anticipated cost of the contract.
line 8 (4) The draft solicitation, or if not yet drafted, any information line 9 that would normally be included in a solicitation. line 10 (5) The reason the public agency believes the contract is line 11 necessary.
line 12 (c) If an emergency or other exigent circumstance prevents the line 13 public agency from providing the amount of notice required by line 14 subdivision (a), the public agency shall provide as much advance line 15 notice as is practicable under the circumstances. line 16 (d) If the recognized employee organization demands to meet line 17 and confer after receiving the written notice, the public agency line 18 and recognized employee organization shall, within a reasonable line 19 time, meet and confer in good faith relating to the public agency’s line 20 proposed decision to enter into the contract and any negotiable line 21 effects thereof.
line 22 (e) (1) This section shall not diminish any rights of an employee line 23 or recognized employee organization provided by law or a line 24 memorandum of understanding.
line 25 (2) This section shall not invalidate any provision of a line 26 memorandum of understanding in effect on the operative date of line 27 this section.
line 28 (3) This section does not apply to a contract for construction, line 29 alteration, demolition, installation, repair, or maintenance work line 30 that is subject to Chapter 1 (commencing with Section 1720) of line 31 Part 7 of Division 2 of the Labor Code or a contract for highly line 32 specialized data, software, or services related to that construction, line 33 alteration, demolition, installation, repair, or maintenance work. line 34 (f) Nothing in this section shall be construed to exempt contracts line 35 from the notice, meet and confer, or other procedural requirements line 36 applicable to contracting for services under existing collective line 37 bargaining laws, including this chapter.
line 38 SEC. 2. No reimbursement shall be made pursuant to Part 7 line 39 (commencing with Section 17500) of Division 4 of Title 2 of the line 40 Government Code for costs mandated by the state pursuant to this 96 — 3 — AB 339
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line 1 act. It is recognized, however, that a local agency or school district line 2 may pursue any remedies to obtain reimbursement available to it line 3 under Part 7 (commencing with Section 17500) and any other law.
O
96 AB 339 — 4 —
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AB 339 (Ortega) Page 1 of 9
SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT Senator Lola Smallwood-Cuevas, Chair
2025 - 2026 Regular
Bill No: AB 339 Hearing Date: July 9, 2025
Author: Ortega
Version: June 18, 2025
Urgency: No Fiscal: Yes
Consultant: Glenn Miles
SUBJECT: Local public employee organizations: notice requirements
KEY ISSUE
This bill requires public agencies regulated by the Meyers-Milias-Brown Act (MMBA) to give a recognized employee organization no less than 60 days’ written notice regarding contracts to perform services that are within the scope of work of job classifications represented by the recognized employee organization.
ANALYSIS
Existing law:
1) Authorizes counties to contract for special services on behalf of the following public entities: the county, any county officer or department, or any district or court in the county. Special services or special skills contracts shall be with persons specially trained, experienced, expert and competent to perform the special services. (Government Code (GC) §31000)
2) Authorizes counties to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, provided the board determines that it is in the economic interest of the county to provide such temporary help by contract, rather than employing persons for such purpose. Use of temporary help under this section shall be limited to a period of not to exceed 90 days for any single peak load, temporary absence, or emergency situation. (GC §31000.4)
3) Authorizes cities to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters. (GC §37103)
4) Authorizes the legislative body of any public or municipal corporation or district to contract with and employ any persons for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained, experienced, and competent to perform the special services required. (GC §53060)
5) Provides several statutory frameworks under California law to provide public employees collective bargaining rights, govern public employer-employee relations, and limit labor strife and economic disruption in the public sector through a reasonable method of resolving disputes regarding wages, hours and other terms and conditions of employment between public employers and recognized public employee organizations or their exclusive representatives. These include the Meyers-Milias-Brown Act SENATE HEALTH https://ctweb.capitoltrack.com/Bills/25Bills/asm/ab_0301-0350/ab_339... 1 of 8 7/21/2025, 10:38 AM
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(MMBA) which provides for public employer-employee relations between local government employers and their employees, including some, but not all public transit districts. (Government Code §3500 et seq.) 6) Establishes PERB, a quasi-judicial administrative agency charged with administering certain statutory frameworks governing employer-employee relations, resolving disputes, and enforcing the statutory duties and rights of public agency employers and employee organizations. (Government Code §3541) This bill:
1) Requires the public agency to give the recognized union no less than 60 days’ written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract, to perform services that are within the scope of work of the job classifications represented by the recognized employee organization.
2) Requires the written notice to include all of the following:
a. The anticipated duration of the contract.
b. The scope of work under the contract.
c. The anticipated cost of the contract.
d. The draft solicitation, or if not yet drafted, any information that would normally be included in a solicitation.
e. The reason the public agency believes the contract is necessary. 3) Provides that if an emergency or other exigent circumstance prevents the public agency from providing the required amount of notice the public agency shall provide as much advance notice as is practicable under the circumstances.
4) Requires the public agency and the union, if the union demands so, to meet and confer within a reasonable time in good faith relating to the public agency’s proposed decision to enter into the contract and any negotiable effects thereof.
5) Provides that the bill’s provisions shall not diminish any rights of an employee or recognized union provided by law or a memorandum of understanding.
6) Provides that the bill’s provisions shall not invalidate any provision of a memorandum of understanding in effect on the operative date of this bill.
7) Provides that no reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. 8) Recognizes, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
COMMENTS
1. Committee Amendments
The committee recognizes the importance of ensuring that local public employers adhere to the longstanding state policy that public agency employees, not private contractors, perform public agency work.
This bill supports that policy.
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However, the committee acknowledges the many concerns expressed by several groups regarding this bill’s potential unintended consequences. While unable to address all opposition concerns, the committee recommends the author take the following amendments in this committee to ensure that certain contracts for specialized public works projects are exempt from the bill’s provisions to avoid interruptions in key projects. The committee also encourages the author to continue to work with opposition to address their remaining concerns if the bill proceeds:
Government Code 3504.1
(e) (1) This section shall not diminish any rights of an employee or recognized employee organization provided by law or a memorandum of understanding.
(2) This section shall not invalidate any provision of a memorandum of understanding in effect on the operative date of this section.
(3) This section does not apply to a contract for construction, alteration, demolition, installation, repair, or maintenance work that is subject to Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code or a contract for highly specialized data, software, or services related to that construction, alteration, demolition, installation, repair, or maintenance work. (f) Nothing in this section shall be construed to exempt such contracts from the notice, meet and confer, or other procedural requirements applicable to contracting for services under existing collective bargaining laws, including the Meyers-Milias-Brown Act.
2. Need for this bill?
According to the author:
“Local governments use a procurement process, often involving RFPs and requests for qualifications (RFQs), for externally contracted services. This process is distinct from formal competitive bidding and can have different requirements regarding public bidding laws and disclosure. Additionally, proposals submitted in response to an RFP or RFQ are typically exempt from disclosure under the California Public Records Act.
When local governments decide to contract out the work of their public employees, the Meyers-MiliasBrown Act (MMBA) and the Public Employment Relations Board (PERB) case law requires the agency to notify the union and bargain over either the decision or its impacts. However, very few local governments comply with this requirement. Unions are unaware that their bargaining unit work has been contracted out until it’s too late to meaningfully engage their existing bargaining rights.”
3. Proponent Arguments
According to Service Employees International Union, California:
“Under the Meyers-Milias-Brown Act (MMBA), California local governments are generally required to notify employee unions before contracting for work traditionally performed by bargaining unit members.
This notice is part of the obligation to engage in good faith bargaining and allows the union to negotiate the decision or the impacts of contracting out represented employees. However, since the beginning of the privatization movement, local governments have rarely complied with this requirement. As local governments have increasingly shifted public services to the private sector, union density has declined, SENATE HEALTH https://ctweb.capitoltrack.com/Bills/25Bills/asm/ab_0301-0350/ab_339... 3 of 8 7/21/2025, 10:38 AM
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resulting in lower wages and working conditions for all Californians.
AB 339 would require local governments to notify unions of plans to contract out bargaining unit work 60 days before engaging in an RFP or RFQ process. This notification will allow unions to exercise their right to bargain over the decision or impacts of contracting out before employers begin the process to do so. The 60-day timeframe will allow both parties to schedule and complete multiple negotiation sessions, if needed.”
According to California Federation of Labor Unions:
“Contracting out by local government has eliminated good union public sector jobs that provide a path to the middle class. Large-scale privatization has led to the decline of public sector union density and a reduction in working conditions and lower wages. Contracting out practices that fail to adhere to responsible contracting standards further undermine collective bargaining rights of public sector workers while simultaneously reducing the quality of essential services and increasing the cost of public service delivery.”
4. Opponent Arguments:
According to the County of Los Angeles:
“AB 339 undermines timely service delivery and creates disincentives for finalizing labor agreements. It applies to contracts overlapping with represented job classifications, impacting a vast majority of LA County contracts. It also expands obligations under the Meyers-Milias-Brown Act (MMBA), interfering with longstanding contracting practices and provisions in Memoranda of Understanding (MOUs), ultimately harming public services.
The bill’s lack of a clear definition for emergencies weakens emergency contracting authority and creates inefficiencies. In disasters, such as the January wildfires in Los Angeles, AB 339 would delay recovery, increase costs, and worsen community suffering.”
According to the California Association of Nonprofits:
“AB 339 would require nearly every contract proposed by local agencies to be subject to notice and possibly meet-and-confer requirements. This is impractical in execution, and unworkable for ensuring provision of public services, which are often carried out faithfully by nonprofit organizations.
Furthermore, there is a lack of clarity about what topics are allowed to be discussed during the ‘demand to meet-and-confer’, such as limiting discussion purely to the RFP language. As written, AB 339 could deter local agencies from working in partnership with local community organizations like nonprofits, who are at the front lines of providing critical local services, and who are already under attack by the federal government, adding considerable uncertainty to our sector’s ongoing financial viability.” According to a coalition of contracting organization representatives, including the American Council of Engineering Companies:
“AB 339 will significantly delay public works projects and could grind building permit processing, design, and construction of needed housing or infrastructure projects to a halt. Public works projects involve multiple phases of design, which require a diverse array of services – including site assessments, geotechnical services, land surveys, plan check, and traffic studies, to name just a few – that cannot be fully known until earlier phases have [been] completed, making it impossible for agencies to complete all of AB 339's notification pauses at the outset of a project. These notices would therefore be compounded, causing projects to be delayed by multiples of the 60-day pause before a shovel ever touches the ground.” SENATE HEALTH https://ctweb.capitoltrack.com/Bills/25Bills/asm/ab_0301-0350/ab_339... 4 of 8 7/21/2025, 10:38 AM
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5. Prior Legislation:
AB 2557 (Ortega, 2024) would have placed requirements on local governmental agencies related to contracting out services, as specified. This bill died in the Senate Appropriations Committee.
AB 2561 (McKinnor, Chapter 409, Statutes of 2024) required a public agency to present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year and entitles the union for a bargaining unit to make a presentation at the public hearing, as specified.
AB 2489 (Ward, 2024) would have required a local government that wants to contract for special services or temporary help already performed by union employees to notify, in writing, the exclusive representative of the workforce, at least 10 months before beginning a procurement process to contract for special services that are currently, or were in the previous 10 years, performed by employees of the county, any county officer or department, or any district court in the county represented by an employee organization, of its determination to begin that process. This bill died in the Assembly Appropriations Committee.
AB 1250 (Jones-Sawyer, 2017) would have prohibited a county from contracting for personal services currently or customarily performed by that county’s employees unless it made specified findings. The Senate Rules Committee held this bill in committee.
SUPPORT
Service Employees International Union, California (Co-sponsor) American Federation of State, County and Municipal Employees (Co-sponsor) California Federation of Labor Unions (Co-sponsor)
California Nurses Association
California Professional Firefighters
California Safety and Legislative Board, Smart – Transportation Division California School Employees Association
California Teachers Association
Center for Biological Diversity
Central Coast Alliance United for a Sustainable Economy Courage California
Echo Park United Methodist Church
Equal Rights Advocates
Greenpeace USA
IATSE Local 33
LA Plaza United Methodist Church
Los Angeles Alliance for a New Economy
Los Angeles Black Worker Center
Lutheran Office of Public Policy - California
National Union of Healthcare Workers
Peace Officers Research Association of California
Professional Engineers in California Government
Public Advocates INC.
Santa Barbara County Action Network
Tech Equity Action
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UAW Region 6
Union of American Physicians and Dentists
Urban Habitat
OPPOSITION
Abrazar, INC.
Advocate Association of California Water Agencies
American Council of Engineering Companies
American Institute of Architects California
American Society of Civil Engineers, Region 9
American Staffing Association
Aresis Ensemble (City Garage Theatre)
Association of California Healthcare Districts
Association of California Water Agencies
Association of Community Human Service Agencies
Bay Area Air Quality Management District
Bay Area Bioscience Education Community
Building a Generation
C&A: Social Impact Consulting
Cal Chamber
California & Nevada Civil Engineers and Land Surveyors Association California Alliance of Child and Family Services
California Animal Welfare Association
California Association for Local Economic Development
California Association of Nonprofits
California Association of Public Hospitals & Health Systems California Association of Recreation & Park Districts
California Association of Sanitation Agencies
California Behavioral Health Association
California Building Officials
California Chapters of the American Public Works Association California Contract Cities Association
California Geotechnical Engineers Association
California Landscape Contractors Association
California Parks & Recreation Society
California Special Districts Association
California Staffing Professionals
California State Association of Counties
California State Sheriffs' Association
California Transit Association
California-Nevada Section, American Water Works Association Ceres Community Project
Children's Institute
City of Bakersfield
City of Barstow
City of Beaumont
City of Chino Hills
City of Colton
City of Eureka
City of Fortuna
City of Foster City
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City of Inglewood
City of Kerman
City of La Habra
City of La Verne
City of Lakeport
City of Lincoln
City of Livermore
City of Lomita
City of Los Banos
City of Madera
City of Manteca
City of Martinez
City of Montclair
City of Newport Beach
City of Norwalk
City of Pittsburg
City of Redwood City
City of Simi Valley
City of Upland
City of Vernon
City of Vista
City of Waterford
City of Whittier
Coastal Nonprofit Consulting
Collective Resilience
Community Bridges
Contra Costa Water District
County Health Executives Association of California
County of Butte
County of Contra Costa
County of Fresno
County of Humboldt
County of Kern
County of Kings
County of Lake
County of Los Angeles
County of Mendocino
County of Merced
County of Nevada
County of Orange
County of Placer
County of Riverside
County of Sacramento
County of San Benito
County of San Bernardino
County of San Joaquin
County of San Mateo
County of Santa Clara
County of Santa Clara Office of the County Counsel
County of Siskiyou
County of Sutter
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County of Tulare
County of Ventura
Creative Alternatives
DUC Learning Center
Elsinore Valley Municipal Water District
Family Service Association
Helix Water District
Immigrant Legal Defense
Jewish Family Service of San Diego
Jurupa Community Services District
Kidstream Children's Museum
League of California Cities
Mend-Meet Each Need With Dignity
Mountain Homeless Coalition
Office of Samoan Affairs
Open Heart Kitchen
Orange County Business Council
Orange County Sanitation District
Oxnard Performing Arts Center Corporation
PATH
Peninsula Family Service
Public Risk Innovation, Solutions, and Management
Queen of Hearts Therapeutic Riding Center, INC.
Raíces Y Cariño
Richmond Community Foundation
Rural County Representatives of California
SACRA/PROFANA
San Diego Humane Society
San Francisco Study Center
Silicon Valley Council of Nonprofits
South San Joaquin Irrigation District
The Aresis Ensemble INC.
The Can Man
The Nonprofit Partnership
Town of Apple Valley
Town of Truckee
Transportation California
Tree People
Turning Point
Turning Point Community Programs
Urban Counties of California
VistAbility
Waymakers
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C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
[email protected]
July 21, 2025
The Honorable Liz Ortega
California State Assembly
1021 O Street, Suite 5120
Sacramento, CA 95814
RE: AB 339 (Ortega): Local Public Employee Organizations: Notice Requirements – OPPOSE
Dear Assembly Member Ortega:
On behalf of the City of Palm Desert, I must respectfully oppose AB 339, which would require the governing body of a local public agency to provide no less than 60 days’ written notice to a recognized employee organization before issuing a request for proposals, request for quotes, or renewing or extending a contract to perform services within the scope of job classifications represented by that organization.
While the City supports transparency and good-faith engagement with our labor partners, AB 339 is overly broad, imposes impractical obligations, and undermines the City’s ability to deliver timely and responsive public services.
Unworkable for Routine and Emergency Operations
AB 339 would apply to virtually any contract that overlaps with represented job classifications, encompassing a vast portion of our service contracts. Palm Desert, like many cities, contracts for specialized and seasonal services, ranging from IT support to event management and landscape maintenance. Under this bill, these would require a mandatory 60-day delay and potentially a meet-and-confer process, even when the service is non-controversial, longstanding, or expressly permitted under a current MOU.
Moreover, the bill’s emergency exemption is narrow and undefined. Palm Desert must retain flexibility to respond quickly to unanticipated emergencies, such as storm recovery, public safety incidents, or facility failures, where delays could endanger public health or safety. AB 339 could delay our ability to procure critical services, even when lives or property are at risk.
Disincentivizes Labor Agreements and Discourages Innovation The bill creates a disincentive for finalizing labor agreements by authorizing the reopening of negotiations with no clear boundaries. This undermines labor stability and conflicts with the foundational intent of the Meyers-Milias-Brown Act—to provide a framework for concluding agreements and avoiding continuous negotiation cycles.
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Additionally, the City partners with local nonprofits and community-based organizations to deliver services that government cannot efficiently perform alone. AB 339 creates barriers to these partnerships, potentially chilling collaboration with trusted community providers who offer flexible, responsive, and cost-effective services.
Conclusion
AB 339 imposes unnecessary procedural burdens, reduces operational agility, and disrupts well-functioning partnerships without improving public service delivery. The City of Palm Desert respectfully urges you to reconsider this measure and instead work collaboratively with local governments and labor groups to address specific concerns through targeted reforms.
Sincerely,
Jan C. Harnik
Mayor, City of Palm Desert
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CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: RATIFICATION OF LETTER OPPOSING SENATE BILL 445 (WIENER) –
SUSTAINABLE TRANSPORTATION PROJECT DELIVERY REFORM ACT
RECOMMENDATION:
Ratify the issuance of the letter opposing Senate Bill 445 (Wiener) – Sustainable Transportation Project Delivery Reform Act.
BACKGROUND/ANALYSIS:
Senate Bill 445 (Wiener), the Sustainable Transportation Project Delivery Reform Act, would establish a new, state-controlled permitting and coordination framework for sustainable transportation projects, bypassing many existing local processes. Specifically, the bill would:
Authorize the Secretary of Transportation to waive locally adopted standards and conditions imposed by cities or utilities;
Require cities and other local agencies to publish and comply with detailed permitting standards and strict timelines, regardless of local staffing capacity or procedural needs; Impose a prescriptive, multi-stage coordination process for project design and delivery, limiting local flexibility;
Establish a binding dispute resolution process managed by the state, allowing project proponents to override local decisions in cases of disagreement.
On July 10, 2025, the City submitted a letter opposing the bill. The letter outlines concerns related to local control, administrative burden, coordination with utilities, and implications on public infrastructure and charter city authority.
The ad hoc City Council Subcommittee on Legislative Affairs, comprised of Mayor Harnik and Mayor Pro Tem Trubee, reviewed and approved the letter in advance of formal ratification by the City Council.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
There is no financial impact associated with the issuance of this letter.
ATTACHMENTS:
1. SB 445 Bill Text
2. SB 445 Legislative Analysis
3. Letter of Opposition to SB 445
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SB 445
SENATE RULES COMMITTEE
Office of Senate Floor Analyses
(916) 651-1520 Fax: (916) 327-4478
SB 445
THIRD READING
Bill No: SB 445
Author: Wiener (D), et al.
Amended: 4/10/25
Vote: 21
SENATE TRANSPORTATION COMMITTEE: 13-0, 4/22/25
AYES: Cortese, Strickland, Archuleta, Arreguín, Blakespear, Cervantes, Dahle, Gonzalez, Grayson, Limón, Menjivar, Richardson, Umberg
NO VOTE RECORDED: Seyarto, Valladares
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Transportation: planning: complete streets facilities: sustainable transportation projects
SOURCE: Streets for All
DIGEST: This bill (1) requires the California Department of Transportation (Caltrans) on or before February 1, 2027, instead of January 1, 2027, to develop and adopt a project intake, evaluation, and encroachment permit review process for complete streets facilities that are sponsored by a local jurisdiction or a transit agency. (2) Expresses the intent of the Legislature to amend this bill with legislation that accelerates and makes more reliable thirdparty permits and approvals for preconstruction and construction activities on sustainable transportation projects, as specified.
ANALYSIS:
Existing law:
1) Vests Caltrans with the full possession and control of all state highways and all property and rights in property acquired for state highway purposes.
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2) Authorizes Caltrans to issue encroachment permits and requires Caltrans to either approve or deny an application from an applicant for an encroachment permit within 60 days of receiving a completed application, as provided.
3) Requires Caltrans when notifying the applicant of the denial of an encroachment permit to furnish the applicant a detailed explanation of the reason for the denial. 4) Requires Caltrans, on or before January 1, 2027, to develop and adopt a project intake, evaluation, and encroachment permit review process for complete streets facilities that are sponsored by a local jurisdiction or a transit agency.
5) Requires Caltrans to annually report to the California Transportation Commission information about project applications pursuant to this process, including the number of applications submitted, permits issued, and days required to process each application. 6) Requires Caltrans to appoint an encroachment permit manager in each district to ensure that applications for complete streets facilities are reviewed through the process adopted.
Requires the encroachment permit manager to have expertise in bicycle, pedestrian, and transit priority facilities.
This bill:
1) Finds and declares that sustainable transportation projects are critical for the growth of the state in a manner that reduces greenhouse gas emissions and helps address the state’s housing shortage. It is in the interest of the state to accelerate the construction of sustainable transportation projects and avoid cost escalation, ensuring that more projects are built in a cost-effective manner.
2) Finds and declares that third-party permits and approvals for preconstruction and construction activities, including utility relocations, design review, and issuance of encroachment or other similar permits, can be a source of delay for sustainable transportation projects, potentially resulting in cost escalations and projects being built late and over budget.
3) Expresses the intent of the Legislature to amend this bill with legislation that accelerates and makes more reliable third-party permits and approvals for preconstruction and construction activities on sustainable transportation projects, including through requiring lead agencies engage early with third parties, setting timelines on design review activities to ensure prompt responses between parties, and limiting third-party requirements associated with permits and other approvals.
4) Requires Caltrans on or before February 1, 2027, instead of January 1, 2027, to develop Senate Floor Analysis - Third Reading https://ctweb.capitoltrack.com/Bills/25Bills/sen/sb_0401-0450/sb_445_... 2 of 6 7/3/2025, 1:21 PM
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and adopt a project intake, evaluation, and encroachment permit review process for complete streets facilities that are sponsored by a local jurisdiction or a transit agency.
Comments
1) Purpose of this bill. According to the author, “Sustainable transportation projects – including public transportation projects like bus rapid transit, light rail, and passenger rail – are essential for an abundant, affordable, zero-emission future. However, these projects are often plagued by delays as lead agencies navigate a balkanized post-environmental permitting and construction process. Getting approvals and negotiating with 3rd-party entities for utility relocations and other work needed to support a project increases project risk and means we get less clean transportation improvements for more money. “In its initial form, SB 445 cut red tape to streamline and improve 3rd-party permitting and approval timelines, reducing and containing project costs. Out of a desire to work more closely with the agencies that deliver these projects, the 3rd-party stakeholders whose approvals are necessary for projects to proceed, and the relevant policy committees, I have amended this bill for now to just make a minor change to an existing Caltrans complete streets encroachment permitting code section.” 2) Transportation and climate change. Emissions from the transportation sector, the state’s largest source of greenhouse gases (GHGs), are still on the rise despite statewide GHG emission reduction efforts and increasingly ambitious targets. Shifting people to cleaner modes of transportation, such as transit or bicycle and walking, also serves as a major component of the state’s goal to reach carbon neutrality by 2045. According to the California Air Resource Board’s 2022 Scoping Plan, including the transition to cleaner vehicles and low-carbon fuels, the path to carbon neutrality by 2045 also depends on reducing the amount people drive or vehicle miles traveled by 25% by 2030 and 30% by 2045.
3) Caltrans Encroachment permits. California has a large network of highways and local streets and roads, consisting of almost 400,000 lane-miles of pavement and over 25,000 bridges. The state highway system, owned and managed by Caltrans, is made up of roughly 50,000 lane miles and 13,000 bridges, including both federal and state highways.
Whenever anyone, such as a local government, developer, utility company, or a private citizen wants to do work on any portion of the state’s right-of-way, they must obtain an encroachment permit from Caltrans. Caltrans must either approve or deny an encroachment permit application within 60 calendar days, upon determination that the application is complete. However, the actual time of the total permit process can take much longer based upon the scope and complexity of the proposed work and the completeness of all necessary environmental and other statutory requirements prior to official submittal of the application.
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In practice, Caltrans, usually through one of the districts, works directly with the entity applying for the permit. In most instances the length of time for the development of the project and the application for the permit depends on the complexity of the proposed activity. Generally, if a project request is under $1 million in cost, the permit would be issued or denied within the 60 day time period. If a project is over $1 million, it would likely constitute a more complex oversight project, which would bring Caltrans into the project process earlier, such as assisting with design and environmental review, which can cause the permit process to take much longer.
4) More complete streets and transit priority facilities on the state highway system. In an effort to facilitate mode shift, the Legislature approved and Governor Newsom signed into law SB 960 (Wiener, Chapter 630, Statutes of 2024), requiring Caltrans to better incorporate complete streets facilities into planning, design, and construction on the state highway system. Complete streets include bicycle and pedestrian facilities and transit priority facilities. Transit priority facilities are changes to the roadway layout and operations to improve transit efficiency, speed, and reliability.
SB 960 requires Caltrans to develop a transit priority policy and adopt guidance for defining performance measures to support the fast movement of transit vehicles on the state highway system. SB 960 also requires Caltrans to build complete streets into its project planning and asset management program. Additionally, Caltrans must commit to specific targets to incorporate complete streets into state highway reconstruction projects, including on entrances and exits that interact with local streets. 5) Keeping up with the permits. As detailed above, Caltrans is required to approve or deny an encroachment permit in 60 days, but in practice it may take much longer depending on the size and scope of the project. To help expedite locally-sponsored complete street projects, SB 960 requires Caltrans, on or before January 1, 2027, to develop and adopt a process for project intake, project evaluation, and encroachment permit review for complete streets facilities. The projects must be sponsored by a local jurisdiction or a transit agency.
Additionally, Caltrans must report annually to the California Transportation Commission regarding project applications submitted through the new process. The report must include: the number of completed applications submitted, the number of encroachment permits issued, and the number of days required to process each application. Finally, Caltrans is required to designate an encroachment permit manager in each district to ensure that applications for complete streets facilities are reviewed through the new process. The encroachment permit manager must have expertise in bicycle, pedestrian, and transit priority facilities. SB 445 changes the date Caltrans has to develop and adopt the new process from January 1 to February 1, 2027.
6) Author intends to continue working on project delivery streamlining. SB 445 contains findings and declarations regarding the critical need for sustainable transportation projects, Senate Floor Analysis - Third Reading https://ctweb.capitoltrack.com/Bills/25Bills/sen/sb_0401-0450/sb_445_... 4 of 6 7/3/2025, 1:21 PM
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including that it is the intent of the state to accelerate the construction of these projects and avoid costs escalations. Additionally, this bill declares that so-called third party permits and approvals for activities, such as utility relocations, design review, and the issuance of permits can be a source of delay for a project. Recent amendments to SB 445 removed language to require certain timeframes for third party agreements and permit and project approvals.
SB 445 also expresses the intent of the Legislature to amend this bill with legislation that accelerates and makes more reliable third-party permits and approvals for preconstruction and construction activities on sustainable transportation projects, including through requiring lead agencies engage early with third parties, setting timelines on design review activities to ensure prompt responses between parties, and limiting third-party requirements associated with permits and other approvals.
After SB 445 was substantially amended on April 9, 2025, the committee reached out to stakeholders to verify their position on this bill. Many stakeholders confirmed their position on the amended bill; however, those writing in support and opposition still speak to the original provisions of SB 445. The issues raised will help serve as the basis for further work as noted by the author. The organizations listed in this analysis confirmed to the committee their position on the amended bill.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: (Verified 5/5/25)
Streets for All (Source)
California Yimby
Climate Action California
Move LA
U.S. High Speed Rail Association
OPPOSITION: (Verified 5/5/25)
Calbroadband
Pacific Gas and Electric Company
San Diego Gas and Electric Company
Southern California Edison
Southern California Gas Company
United States Telecom Association DBA UStelecom - the Broadband Association Prepared by: Melissa White / TRANS. / (916) 651-4121
5/7/25 16:05:25
**** END ****
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C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
[email protected]
July 10, 2025
The Honorable Lori Wilson
Chair, Assembly Committee on Transportation
1020 N Street, Suite 112
Sacramento, CA 95814
RE: SB 445 (Wiener) – Transportation Projects: Permitting – Notice of OPPOSITION (As amended 6/30/2025)
Dear Chair Wilson,
The City of Palm Desert must respectfully oppose SB 445 (Wiener), which proposes to establish a new state-dominated permitting and project delivery scheme that would severely constrain local governments’ ability to responsibly manage public rights-of-way and protect community interests.
While we recognize and share the goal of advancing sustainable transportation, SB 445 would impose sweeping changes to existing coordination processes between state agencies, cities, and utilities. Specifically, it mandates rigid timelines, prescriptive procedures, and binding dispute resolution requirements that are ill-suited to the complexity of infrastructure delivery in diverse local contexts.
SB 445 will significantly impact Palm Desert in several ways:
• Erosion of Local Control Over State Highway Corridors. Our City contains major state highways such as Highway 111, which are integral to local commerce, tourism, and public safety. Under SB 445, Caltrans and project proponents could override local standards and approvals for any project deemed “sustainable transportation,” including transit priority lanes and bike infrastructure, regardless of community concerns. • Capacity Constraints. The bill requires cities to publish extensive objective standards, manage detailed pre-notice processes, and comply with strict review timelines that exceed the staffing capacity of many mid-sized cities. For Palm Desert, which must already coordinate with Caltrans and utilities on routine encroachment permits, this represents a substantial new administrative burden without commensurate funding or technical support.
• Risk to Public Infrastructure and Safety. SB 445 effectively empowers third parties to proceed with complex relocations or modifications to critical infrastructure, such as water, sewer, and electrical facilities, in the public right-of-way without meaningful opportunity for cities to ensure adequate safeguards for service continuity and environmental protection. 343
• Unprecedented Preemption. This measure declares itself a matter of statewide concern, overriding charter city authority and decades of established precedent respecting local land use and permitting discretion. It would set a precedent for state agencies to unilaterally dictate project parameters in our community.
While we appreciate efforts to improve project delivery, these benefits should not come at the expense of thoughtful planning, infrastructure integrity, and local accountability. Rather than solving coordination challenges, SB 445 simply shifts the burden and risk onto cities like Palm Desert while sidelining the very agencies responsible for protecting public infrastructure and community quality of life.
For these reasons, the City of Palm Desert respectfully urges that SB 445 be made a two-year bill to allow for more collaboration with local governments. We stand ready to work with you to develop a more balanced approach that expedites sustainable transportation improvements while respecting local capacity and authority.
Sincerely,
Jan C. Harnik
Mayor, City of Palm Desert
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AMENDED IN ASSEMBLY JUNE 30, 2025
AMENDED IN SENATE APRIL 10, 2025
AMENDED IN SENATE APRIL 9, 2025
SENATE BILL No. 445
Introduced by Senator Wiener
(Coauthor: Assembly Member Wilson)
February 18, 2025
An act to amend Section 671.5 of the Streets and Highways Code, relating to transportation. An act to add Section 13985 to the Government Code, and to add Division 21 (commencing with Section 19001) to the Public Utilities Code, relating to transportation.
legislative counsel’s digest
SB 445, as amended, Wiener. Transportation: planning: complete streets facilities: sustainable transportation projects. Sustainable Transportation Project Delivery Reform Act.
Existing law establishes the Transportation Agency in state government with various duties and responsibilities. The agency is under the supervision of the Secretary of Transportation, who has the power of general supervision over specified departments and offices.
Existing law requires a local agency to comply with all applicable building ordinances and zoning ordinances of the county or city in which the territory of the local agency is situated and, for purposes of that requirement, excludes rapid transit districts and certain rail transit districts from the definition of a local agency.
This bill would enact the Sustainable Transportation Project Delivery Reform Act. The bill would authorize the secretary to grant a waiver to a local agency, as defined, that is seeking to design and construct a
96 345
sustainable transportation project, as defined, from any standards, criteria, specifications, requirements, or other conditions of a third party, as defined, applicable to the sustainable transportation project if the secretary determines that granting the waiver will assist the local agency in delivering the sustainable transportation project in a cost-efficient and timely manner.
This bill would also require a third party, which is defined as a local agency or utility, to publish online by July 1, 2026, a list of every permit or approval that it may require for a facility rearrangement, as defined, and all objective standards, criteria, specifications, and requirements used in evaluating requests by lead agencies, as defined, for delivery of facility rearrangements, as specified. The bill would require the lead agency to provide a specified notice to each third party it reasonably expects it will need to get permits or approvals from or otherwise coordinate with to deliver the facility rearrangements. The bill would set forth a process for delivering the notice and responding to the notices, including by entering into a cooperative agreement or entering into a streamlined project delivery process, as described. The bill would, as part of the streamlined project delivery process, set forth timelines and specifications for submitting and responding to various information and documents for the facility rearrangements, among other things.
This bill would require the lead agency to reimburse the third party for all reasonable third party review activities required by the streamlined project delivery process, among other things. The bill would also authorize a lead agency to invoke a binding dispute resolution process, as described, if a third party does not issue a permit or approval to a lead agency or does not take any other action that is necessary to facilitate the delivery of part or all of a sustainable transportation project. The bill would make its provisions severable and would make related legislative findings and declarations.
By imposing additional duties on local entities, this bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
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This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law requires the Department of Transportation to improve and maintain the state’s highways. Existing law authorizes the department to issue encroachment permits and requires the department to either approve or deny an application from an applicant for an encroachment permit within 60 days of receiving a completed application, as provided. Existing law also requires the department, on or before January 1, 2027, to develop and adopt a project intake, evaluation, and encroachment permit review process for complete streets facilities that are sponsored by a local jurisdiction or a transit agency.
This bill would instead require the department to develop and adopt the above-described project intake, evaluation, and encroachment review process on or before February 1, 2027. The bill would also state the intent of the Legislature to amend this bill with legislation that accelerates and makes more reliable third-party permits and approvals for preconstruction and construction activities on sustainable transportation projects. The bill would make related findings and declarations.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. This act shall be known, and may be cited, as the line 2 Sustainable Transportation Project Delivery Reform Act. line 3 SEC. 2. The Legislature finds and declares all of the following:
line 4 (a) Sustainable transportation projects are critical for the line 5 growth of the state in a manner that reduces greenhouse gas line 6 emissions and helps address the state’s housing shortage. line 7 (b) Third-party permits and approvals for preconstruction and line 8 construction activities, including utility relocations, design review, line 9 and issuance of encroachment or other similar permits, can be a line 10 source of delay for sustainable transportation projects, potentially line 11 resulting in cost escalations and projects being built late and over line 12 budget.
line 13 SEC. 3. Section 13985 is added to the Government Code, to line 14 read:
line 15 13985. (a) The secretary may grant a waiver to a local agency line 16 that is seeking to design and construct a sustainable transportation 96 — 3 — SB 445
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line 1 project from any standards, criteria, specifications, requirements, line 2 or other conditions of a third party applicable to the sustainable line 3 transportation project if the secretary determines that granting line 4 the waiver will assist the local agency in delivering the sustainable line 5 transportation project in a cost-efficient and timely manner. line 6 (b) The agency shall develop an application for local agencies line 7 to seek a waiver described in subdivision (a).
line 8 (c) For purposes of this section, the following definitions apply:
line 9 (1) “Local agency” has the same meaning as defined in Section line 10 19001 of the Public Utilities Code.
line 11 (2) “Sustainable transportation project” has the same meaning line 12 as defined in Section 19001 of the Public Utilities Code. line 13 (3) “Third party” has the same meaning as defined in Section line 14 19001 of the Public Utilities Code.
line 15 SEC. 4. Division 21 (commencing with Section 19001) is added line 16 to the Public Utilities Code, to read:
line 17
line 18 DIVISION 21. SUSTAINABLE TRANSPORTATION PROJECT line 19 DELIVERY REQUIREMENTS
line 20
line 21 Chapter 1. Definitions
line 22
line 23 19001. For purposes of this division, the following definitions line 24 shall apply:
line 25 (a) “Advanced partial design unit” means a portion of the line 26 design documentation for a facility rearrangement submitted to line 27 the third party for review and approval prior to submittal or line 28 approval of completed design documentation for that facility line 29 rearrangement.
line 30 (b) (1) “Betterment” means work performed for a facility line 31 rearrangement that comprises an upgrade, change, or addition to line 32 a third-party facility, or to part of a third-party facility, that is line 33 requested by the third party, that provides for greater capacity, line 34 capability, durability, appearance, efficiency, or function or for line 35 another improvement of that third-party facility over that which line 36 is currently provided by the third-party facility, and that satisfies line 37 at least either of the following:
line 38 (A) The third-party objective standards or third-party design line 39 and construction requirements applicable to that work are changed 96 SB 445 — 4 —
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line 1 or supplemented after the date of the notice required by subdivision line 2 (a) of Section 19005.02.
line 3 (B) Any other criteria, specifications, and requirements for line 4 facility rearrangements that the lead agency and third party line 5 mutually agree to are changed or supplemented after the date of line 6 the notice described in subdivision (c) of Section 19005.01. line 7 (2) “Betterment” shall exclude all of the following:
line 8 (A) An upgrade, change, or addition to which the lead agency line 9 and third party agree will be of direct and principal benefit to the line 10 construction, operation, or maintenance of the sustainable line 11 transportation project.
line 12 (B) An upgrade, change, or addition resulting from design or line 13 construction in accordance with the applicable third-party line 14 standards as of the date of the notice described in subdivision (a) line 15 of Section 19005.02, to the extent those third-party standards have line 16 not been adopted by the third party in breach of subdivision (f) of line 17 Section 19002.
line 18 (C) An upgrade, change, or addition resulting from design or line 19 construction in accordance with the criteria, specifications, and line 20 requirements mutually agreed to and documented in the Stage 1 line 21 project scope document required by Stage 1.
line 22 (D) Measures to mitigate environmental impacts required by a line 23 final environmental document pursuant to the California line 24 Environmental Quality Act (Division 13 (commencing with Section line 25 21000) of the Public Resources Code) or National Environmental line 26 Policy Act of 1969 (42 U.S.C. 4321 et seq.).
line 27 (E) Replacement of devices or materials no longer regularly line 28 manufactured with the next highest grade or size. line 29 (F) An upgrade, change, or addition that is the consequence of line 30 changes made by the lead agency after the finalization of the Stage line 31 1 project document for the sustainable transportation project. line 32 (c) “Cooperative agreement” means an agreement between a line 33 lead agency and one or more third parties establishing the entities’ line 34 respective obligations, roles and responsibilities, and processes line 35 and procedures to support the efficient, timely, and safe delivery line 36 of one or more sustainable transportation projects. The line 37 agreement’s provisions shall include, but are not limited to, the line 38 following:
line 39 (1) Duration and scope of the agreement.
line 40 (2) Governance for executing the cooperative agreement. 96 — 5 — SB 445
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line 1 (3) Provisions for cooperation and coordination to identify line 2 utility conflicts and ensure utility owners implement utility line 3 adjustments required to address utility conflicts. line 4 (4) Early involvement and coordination.
line 5 (5) Responsibilities for design and construction. line 6 (6) Procedures for issue resolution.
line 7 (7) Clear establishment of permitting or approval processes for line 8 facility rearrangements.
line 9 (8) Evaluation of betterments within the project scope. line 10 (9) Inspection of work completed in compliance with applicable line 11 standards.
line 12 (d) “Coordination meeting” means an informal meeting for the line 13 lead agency and third party to discuss the sustainable line 14 transportation project.
line 15 (e) “Design documentation” means all specifications, reports, line 16 studies, working drawings, shop drawings, calculations, electronic line 17 files, records, submittals, and drawings, including plans, profiles, line 18 cross sections, notes, elevations, typical sections, details, and line 19 diagrams, that are necessary for, or related to, the design of facility line 20 rearrangements.
line 21 (f) “Facility rearrangement” means the removal, restoration, line 22 alteration, reconstruction, support, or relocation of all or a portion line 23 of a third-party facility.
line 24 (g) “Final design documentation” means design documentation line 25 for a facility rearrangement that is at 100-percent design level. line 26 Elements of final design documentation include final construction line 27 drawings, including plans, profiles, cross sections, notes, line 28 elevations, typical sections, details, diagrams, design criteria, line 29 specifications, reports, studies, calculations, electronic files, and line 30 other records.
line 31 (h) “Stage 1” means the process set forth in Article 1 line 32 (commencing with Section 19005.01) of Chapter 5 of this division. line 33 (i) “Stage 1 design documentation” means the design line 34 documentation required to be prepared in Stage 1, representing line 35 up to 15-percent design level.
line 36 (j) “Stage 2” means the process set forth in Article 2 line 37 (commencing with Section 19005.02) of Chapter 5 of this division. line 38 (k) “Stage 2 design documentation” means the design line 39 documentation required to be prepared in Stage 2, which advances line 40 design documentation from the design level required in Stage 1 96 SB 445 — 6 —
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line 1 design documentation, which is up to a 15-percent design level, line 2 to a 100-percent design level.
line 3 (l) “Sustainable transportation project” means a project that line 4 consists of one or more of the following:
line 5 (1) Any project identified in subdivision (b) of Section 21080.25 line 6 of the Public Resources Code.
line 7 (2) A project whose primary purpose is the institution or line 8 improvement of public transit infrastructure, including, but not line 9 limited to, transit priority facilities, bus service, bus rapid transit, line 10 and passenger rail. For purposes of this paragraph, “passenger line 11 rail” includes, but is not limited to, light rail, commuter rail, line 12 regional rail, intercity rail, or heavy rail. Heavy rail includes rail line 13 transit, as defined in Section 99602.
line 14 (m) “Third party” means a local agency or utility, including, line 15 but not limited to, an electrical corporation, public utility, or line 16 private telecommunications provider.
line 17 (n) “Third-party facility” means a facility owned by a third line 18 party.
line 19 (o) “Lead agency” means the public agency which has the line 20 principal responsibility for carrying out or approving a project. line 21 “Lead agency” also includes other parties whose services are line 22 procured by the lead agency, including, but not limited to, a private line 23 contractor or consultant.
line 24 (p) “Local agency” means any public agency other than a state line 25 agency.
line 26 (q) “Third-party-located section” means a portion of a line 27 sustainable transportation project that is located in the line 28 right-of-way of a third party.
line 29 (r) “Working day” means any date that is not a Saturday, line 30 Sunday, or federal or state holiday.
line 31
line 32 Chapter 2. Transparent Objective Permitting and line 33 Approval Standards
line 34
line 35 19002. (a) By July 1, 2026, a third party shall publish online line 36 a list of every permit or approval that it may require for a facility line 37 rearrangement. For each permit or approval, it shall publish online line 38 all objective standards, criteria, specifications, and requirements line 39 used by the third party when evaluating requests by lead agencies 96 — 7 — SB 445
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line 1 for delivery of facility rearrangements. These permits or approvals line 2 may include, but are not limited to, the following:
line 3 (1) An encroachment permit.
line 4 (2) A grading permit.
line 5 (3) A tree removal permit.
line 6 (4) A stormwater permit.
line 7 (5) Construction staging plan approval.
line 8 (b) If the third party modifies any of the above required permits line 9 or approvals, or objective standards, criteria, specifications, and line 10 requirements used by the third party when evaluating requests by line 11 lead agencies for delivery of facility rearrangements, the third line 12 party shall publish the modifications online promptly, but no later line 13 than within 15 working days of any modifications. line 14 (c) Except as otherwise provided by this division, a third party line 15 shall not inhibit a lead agency’s delivery of a facility line 16 rearrangement that is consistent with the applicable objective line 17 standards, criteria, specifications, and requirements for permits line 18 or approvals it is required to identify pursuant to subdivision (a). line 19 (d) A third party shall not establish any standards, criteria, line 20 specifications, or requirements that are not objective in nature for line 21 purposes of evaluating requests by lead agencies for delivery of line 22 facility rearrangements.
line 23 (e) Nothing in this act prohibits a lead agency and third party line 24 from mutually agreeing to construction conditions or facility line 25 rearrangements that are inconsistent with the applicable objective line 26 standards, criteria, specifications, and requirements for permits line 27 or approvals it is required to identify pursuant to subdivision (a). line 28 (f) A third party shall not adopt any new third-party standards line 29 or otherwise apply, amend, or supplement any existing third-party line 30 standards for the sole or primary purpose of affecting one or more line 31 sustainable transportation projects.
line 32
line 33 Chapter 3. Binding Dispute Resolution
line 34
line 35 19003. (a) If a third party does not issue a permit or approval line 36 to a lead agency, or does not take any other action that is necessary line 37 to facilitate the delivery of part or all of a sustainable line 38 transportation project, the lead agency may elect to invoke the line 39 binding dispute resolution process described in subdivision (b). 96 SB 445 — 8 —
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line 1 (b) The following binding dispute resolution process shall be line 2 administered by the Transportation Agency, which shall determine line 3 the schedule and duration of binding dispute resolution activities line 4 pursuant to this subdivision:
line 5 (1) The state transportation agency shall designate a neutral line 6 mediator to work with the lead agency and third party to resolve line 7 the dispute or disputes that caused the lead agency to invoke the line 8 binding dispute resolution process described in this subdivision. line 9 If the dispute or disputes that caused the lead agency to invoke the line 10 binding dispute resolution process described in this subdivision line 11 involve matters related to utilities, the Public Utilities Commission line 12 shall designate an advisor with relevant experience to provide line 13 technical assistance to the neutral mediator for utility-related line 14 disputes. The resolution shall be recorded in a binding settlement line 15 agreement.
line 16 (2) For the dispute or disputes that caused the lead agency to line 17 invoke the binding dispute resolution process described in this line 18 subdivision that were unresolved after the process described in line 19 paragraph (1), the neutral mediator shall become a neutral line 20 arbitrator, and shall resolve the remaining dispute or disputes line 21 following the arbitration processes described in Title 9 line 22 (commencing with Section 1280) of Part 3 of the Code of Civil line 23 Procedure, except as otherwise provided for in this subdivision. line 24 (3) The decision of the arbitrator shall be binding upon the lead line 25 agency and third party.
line 26 (4) By mutual agreement, the lead agency and third party may line 27 select a different entity to serve as the neutral mediator and line 28 arbitrator pursuant to this subdivision.
line 29 (5) By mutual agreement, the lead agency and third party may line 30 instead undergo the process described in paragraph (2), followed line 31 by the process described in paragraph (1). The judgment of the line 32 neutral arbitrator pursuant to paragraph (2) shall be sealed, and line 33 only unsealed and made binding if the subsequent process line 34 described in paragraph (1) does not result in resolution of the line 35 dispute or disputes.
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line 1 Chapter 4. Pathways for Sustainable Transportation line 2 Project Delivery
line 3
line 4 19004. (a) Once a lead agency is ready to transmit the notice line 5 described in subdivision (c) of Section 19005.01 for a specific line 6 sustainable transportation project, the lead agency shall compile line 7 a list of all third parties that it reasonably expects it will need to line 8 get permits or approvals from, or otherwise coordinate with, in line 9 order to deliver facility rearrangements.
line 10 (b) Once the lead agency has compiled the list pursuant to line 11 subdivision (a), it shall elect one of the following courses of action line 12 for engagement with each listed third party:
line 13 (1) Enter into a cooperative agreement related to the sustainable line 14 transportation project if it has not done so already. line 15 (2) Commence the streamlined project delivery process line 16 described in Chapter 5 (commencing with Section 19005.1) of this line 17 division.
line 18 (3) Follow neither paragraph (1) nor paragraph (2). line 19
line 20 Chapter 5. Streamlined Sustainable Transportation line 21 Project Delivery Process
line 22
line 23 Article 1. Early Engagement and Initial Design
line 24
line 25 19005.01. (a) The lead agency shall reimburse the third party line 26 for all reasonable third-party review activities required by the line 27 streamlined project delivery process outlined in this chapter. The line 28 lead agency and third party shall agree to a reasonable rate of line 29 reimbursement for staff time.
line 30 (b) The lead agency shall designate a point of contact to engage line 31 with the relevant third-party staff.
line 32 (c) The lead agency shall provide a notice to each third party line 33 it identified pursuant to Section 19004. The notice shall contain line 34 at least all of the following:
line 35 (1) Lead agency name.
line 36 (2) Name of the sustainable transportation project. line 37 (3) Name and contact information for the point of contact line 38 described in subdivision (b).
line 39 (4) A brief description of the sustainable transportation project. 96 SB 445 — 10 —
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line 1 (5) An online link to the sustainable transportation project line 2 website, if one exists.
line 3 (6) The current environmental review status of the sustainable line 4 transportation project under the California Environmental Quality line 5 Act (Division 13 (commencing with Section 21000) of the Public line 6 Resources Code) and National Environmental Policy Act of 1969 line 7 (42 U.S.C 4321 et seq.).
line 8 (7) A high-level description or map, or both, of the anticipated line 9 project right-of-way in third-party-located sections. line 10 (8) Any other conceptual plans or maps relevant to the line 11 third-party-located sections.
line 12 (9) The lead agency’s probable project delivery method. line 13 (10) Proposed date for an initial coordination meeting. line 14 (11) Proposed date for finalizing the Stage 1 project scope line 15 document.
line 16 (12) Anticipated date for issuance of the notice required in line 17 subdivision (a) of Section 19005.02.
line 18 (13) A declaration of whether or not the lead agency seeks entry line 19 into a cooperative agreement with the third party. This does not line 20 preclude the lead agency from seeking entry into a cooperative line 21 agreement at any time later in the project delivery process. This line 22 also does not preclude the lead agency from continuing to engage line 23 in the streamlined project delivery process set forth in this division. line 24 (d) The lead agency shall forward a copy of each notice line 25 described in subdivision (c) to the Transportation Agency. For line 26 those notices issued to a third party regulated by the Public line 27 Utilities Commission, the lead agency shall also forward the notice line 28 to the Public Utilities Commission.
line 29 19005.01.1. (a) (1) Within 10 working days of transmittal of line 30 the notice described in subdivision (c) of Section 19005.01, the line 31 third party shall respond to the lead agency and confirm whether line 32 the notice described in subdivision (c) of Section 19005.01 was line 33 complete. If incomplete, it will describe what information is line 34 necessary for the notice to be complete.
line 35 (2) In its response, the third party shall inform the lead agency line 36 if it wishes to enter into a cooperative agreement with the lead line 37 agency. This does not preclude the third party from seeking entry line 38 into a cooperative agreement with the lead agency at any time line 39 later in the project delivery process.
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line 1 (b) The lead agency shall submit the information identified in line 2 subdivision (a) to make the notice described in subdivision (c) of line 3 Section 19005.01 complete, and the third party shall be required line 4 to review the notice for completeness pursuant to subdivision (a) line 5 of this section.
line 6 (c) (1) No sooner than 5 working days and no later than 20 line 7 working days, or a different date as mutually agreed to by the lead line 8 agency and third party, after the third party finds the notice line 9 described in subdivision (c) of Section 19005.01 complete pursuant line 10 to subdivision (a) of this section, the lead agency shall convene line 11 the initial coordinating meeting described in paragraph (10) of line 12 subdivision (c) of Section 19005.01.
line 13 (2) The third party may request a reasonable extension to the line 14 deadline to have the initial coordination meeting, which the lead line 15 agency shall reasonably accommodate. If the initial coordination line 16 meeting does not occur within 20 working days of delivery, or as line 17 otherwise mutually agreed to by the lead agency and third party, line 18 the requirement for the initial coordination meeting will be deemed line 19 met.
line 20 (d) Within 10 working days after the third party confirms line 21 completeness of the notice described in subdivision (c) of Section line 22 19005.01 pursuant to subdivision (a) of this section, it shall line 23 respond to the lead agency with all of the following:
line 24 (1) Identification of any existing or planned third-party facilities line 25 in third-party-located sections of the sustainable transportation line 26 project that may conflict with the sustainable transportation project line 27 based on the level of information provided as required by this line 28 article. This requirement does not preclude the identification of line 29 additional conflicts as the lead agency updates the project scope, line 30 or advances design, in the third-party-located sections of the line 31 sustainable transportation project, provided that the identification line 32 of those third-party facilities is based on new information or design line 33 documentation from the lead agency and the third party could not line 34 have reasonably anticipated the conflicting facility with line 35 information previously provided by the lead agency. line 36 (2) Any as-built plans, utility maps, or other drawings and line 37 information regarding the conflicting third-party facilities that it line 38 is otherwise legally permitted by federal and state law to provide line 39 to the lead agency.
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line 1 (3) A written checklist of any information or documents line 2 necessary to review and approve preliminary and final designs line 3 necessary for facility rearrangements. This does not preclude the line 4 identification of additional information or documents necessary line 5 to review and approve preliminary and final designs as the lead line 6 agency updates the project scope, or advances design, in the line 7 third-party-located sections of the sustainable transportation line 8 project.
line 9 (e) Failure of the third party to respond pursuant to subdivision line 10 (d) of Section 19005.01 shall relieve the lead agency of the line 11 responsibility to include the third party’s information required by line 12 subdivision (d) of Section 19005.01 in the draft Stage 1 project line 13 scope document specified in subdivision (a) of Section 19005.01.2. line 14 (f) At its discretion, the lead agency may still include information line 15 provided in subdivision (d) of Section 19005.01 if provided by the line 16 third party after the deadline and prior to the completion of the line 17 draft Stage 1 project scope specified in subdivision (a) of Section line 18 19005.01.2.
line 19 (g) The lead agency shall submit advanced conceptual line 20 engineering design documentation for the sustainable line 21 transportation project. No later than 20 working days, or a line 22 different date as mutually agreed to by the lead agency and third line 23 party, after the lead agency submits advanced conceptual line 24 engineering design documentation, the lead agency will convene line 25 a preliminary design workshop. The third party may request a line 26 reasonable extension to the deadline to have the preliminary design line 27 workshop, which the lead agency shall reasonably accommodate. line 28 If the preliminary design workshop does not occur within 20 line 29 working days of delivery, or as otherwise mutually agreed to by line 30 the lead agency and third party, the requirement for the initial line 31 coordination meeting will be deemed met. In the preliminary design line 32 workshop, the lead agency and third party shall discuss all of the line 33 following:
line 34 (1) The key aspects of the design or construction of the line 35 sustainable transportation project that impact the scope, objective line 36 standards, criteria, specifications, or requirements for those line 37 proposed facility rearrangements that form or are intended to form line 38 the basis of the project scope. Those shall include all of the line 39 following:
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line 1 (A) Any facility rearrangements which are necessary for the line 2 sustainable transportation project to comply with applicable law. line 3 (B) Any facility rearrangements which are necessary for the line 4 lead agency or third party to construct, operate, maintain, or line 5 remove for the sustainable transportation project. line 6 (C) Any new and required third-party facilities which are line 7 necessary to install in order for the sustainable transportation line 8 project to comply with applicable law and for any facility line 9 rearrangements to comply with applicable law and third-party line 10 objective standards, criteria, specifications, or requirements. line 11 (D) Any deviations from the third-party standards or design line 12 and construction requirements mutually agreed to by the lead line 13 agency and third party.
line 14 (2) Identification of betterments.
line 15 (3) Initial identification of utility conflicts. line 16 (A) The third party shall provide the lead agency with any line 17 location data or other information already in its possession line 18 regarding the location of utilities within the third-party-located line 19 section of the sustainable transportation project. line 20 (B) Discussion of objections by the lead agency to third-party line 21 standards on the basis of the standard being adopted, amended, line 22 supplemented, or applied, for the sole or primary purpose of line 23 affecting one or more sustainable transportation projects, or line 24 requests for deviations from third-party standards. line 25 (C) Construction requirements for delivery of the sustainable line 26 transportation project.
line 27 (4) Anticipated schedule and timeline for project delivery line 28 activities, including the following:
line 29 (A) Key milestones for percentage of design completion when line 30 the lead agency shall submit the design documentation described line 31 in subparagraphs (B) to (D), inclusive.
line 32 (B) When the lead agency shall submit design documentation line 33 for each identified facility rearrangement.
line 34 (C) Whether the lead agency’s submission of design line 35 documentation for any given facility rearrangement shall be line 36 segmented into the submission of design documentation for more line 37 than one advanced partial design unit, and what the schedule of line 38 submission by the lead agency of each advanced partial design line 39 unit to the third party shall be.
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line 1 (D) When, provided timely submittal by the lead agency of the line 2 design documentation as identified in subparagraphs (B) and (C), line 3 the third party shall return comments on each design line 4 documentation and advanced partial design unit for each line 5 submission identified in subparagraphs (B) and (C), respectively, line 6 for each facility rearrangement.
line 7 (E) Anticipated schedule for right-of-way acquisition, line 8 construction, testing, and commissioning, of the third-party-located line 9 section or sections of the sustainable transportation project. line 10 (h) Within 30 working days of the workshop described in line 11 subdivision (g), the third party shall submit in writing to the lead line 12 agency all written comments regarding the topics described in line 13 subdivision (g).
line 14 19005.01.2. (a) (1) Following receipt of the comments line 15 described in subdivision (h) of Section 19005.01.1, and as informed line 16 by the information provided by each third party that the lead line 17 agency is required to engage with pursuant to this chapter, the line 18 lead agency shall prepare a draft Stage 1 project scope document. line 19 The document shall include the draft project scope, including all line 20 identified facility rearrangements, utility adjustments, and line 21 betterments, as determined by the early engagement required line 22 pursuant to this chapter. The document shall also include the lead line 23 agency’s probable project delivery method, anticipated schedule line 24 of design, right-of-way acquisition, and construction activities, line 25 and as-built plans for third-party facilities or utilities, as line 26 applicable.
line 27 (2) The lead agency shall circulate the draft Stage 1 project line 28 scope document to each third party for review.
line 29 (3) Each third party shall have 60 working days to review the line 30 draft Stage 1 project scope document to confirm all the relevant line 31 information and comments are included and shall provide any line 32 additional comments on the document.
line 33 (4) Failure of the third party to respond to the relevant line 34 information within the expected timeframe shall be considered line 35 confirmation that all relevant information provided by the third line 36 party pursuant to this chapter was accounted for. line 37 (b) (1) After the 60-working-day circulation period, the lead line 38 agency shall finalize the Stage 1 project scope document and line 39 circulate the final document with each identified third party, the line 40 Transportation Agency, and, if relevant, the Public Utilities 96 — 15 — SB 445
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line 1 Commission. The lead agency shall record any additional line 2 comments provided by the third party pursuant to subdivision (a) line 3 in the record of the final Stage 1 project scope, and may line 4 incorporate any of those comments into the final Stage 1 project line 5 scope at its discretion.
line 6 (2) The finalized Stage 1 project scope document shall identify line 7 matters or issues not yet resolved between the lead agency and line 8 each third party. This may include any comments provided by each line 9 third party pursuant to paragraph (3) of subdivision (a) that the line 10 lead agency did not incorporate into the project scope at its line 11 discretion.
line 12 (3) The Transportation Agency shall develop a standardized line 13 form for the relevant fields required by this section, and other line 14 relevant fields determined by the Transportation Agency, for the line 15 finalized Stage 1 project scope document.
line 16 (c) If more than two years transpires between the time the lead line 17 agency received responses from all relevant third parties pursuant line 18 to subdivision (h) of Section 19005.01.1 and the lead agency takes line 19 the step in subdivision (b) of this section, the lead agency shall be line 20 required to repeat the steps in this section, including reaching out line 21 to third parties it already received responses from pursuant to this line 22 section.
line 23
line 24 Article 2. Design Engineering and Design Review line 25
line 26 19005.02. (a) After the lead agency finalizes the Stage 1 line 27 project scope document pursuant to the requirements of Stage 1, line 28 the lead agency shall provide a notice to the third party of its intent line 29 to prepare and submit Stage 2 design documentation, whether line 30 through its own staff or through procurement of design services, line 31 to the third party for its review, based on the requirements line 32 stipulated in the finalized Stage 1 project scope document. line 33 (b) The standards, criteria, and specifications adopted by the line 34 third party at the time the lead agency transmits the notice line 35 described in subdivision (a) shall be the applicable standards, line 36 criteria, and specifications that the third party shall use when line 37 reviewing, commenting, and approving Stage 2 design line 38 documentation, except where the lead agency and third party have line 39 mutually agreed to deviate from those standards, criteria, and line 40 specifications.
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line 1 (c) The lead agency shall be responsible for ensuring that it line 2 submits design documentation, including advanced partial design line 3 units, consistent with the level of detail required for that level of line 4 design development identified in the schedule included in the line 5 finalized Stage 1 project scope document, and the third party is line 6 responsible for reviewing submitted design documentation, line 7 including advanced partial design units, for compliance with the line 8 applicable third-party standards as agreed to in the finalized Stage line 9 1 project scope document. The lead agency shall also ensure that line 10 each submission of design documentation, including advanced line 11 partial design units, identifies any material amendments made line 12 since any earlier submittal of that design documentation or line 13 advanced partial design unit.
line 14 (d) Within 10 working days, or as otherwise prescribed in the line 15 schedule identified in the finalized Stage 1 project scope document, line 16 of receipt of design documentation or advanced partial design line 17 unit, the third party shall review each submission of design line 18 documentation or advanced partial design unit, and inform the line 19 lead agency if the submission does not meet appropriate line 20 agreed-upon design requirements, relevant third-party standards, line 21 or the scope, criteria, specifications, and requirements for the line 22 applicable facility rearrangements.
line 23 (e) If the third party is reasonably able to commence its review line 24 of the design documentation or advanced partial design unit absent line 25 resubmitted materials from the lead agency, it shall do so. line 26 (f) The lead agency shall promptly resubmit the design line 27 documentation or advanced partial design unit and correct the line 28 deficiencies identified by the third party pursuant to subdivision line 29 (d). The third party shall review the documentation for line 30 completeness pursuant to subdivision (d).
line 31 (g) If the third party does not deliver a notice of incomplete line 32 information pursuant to subdivision (d), the submission of design line 33 documentation or advanced partial design unit shall be deemed line 34 complete and acceptable for the purposes of design review. line 35 (h) (1) Once the design documentation or advanced partial line 36 design unit is considered complete pursuant to subdivision (d), the line 37 third party shall review it in accordance with the schedule line 38 identified in the finalized Stage 1 project scope document. line 39 (2) If the lead agency believes a third party’s comment on the line 40 design of the sustainable transportation project that was not 96 — 17 — SB 445
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line 1 already identified as constituting a facility rearrangement or line 2 modification to the design documentation or advanced partial line 3 design unit that constitutes a betterment constitutes a betterment, line 4 it shall notify the third party of that within 20 working days of line 5 receipt of those comments.
line 6 (3) Within 20 working days of this notice, the third party shall line 7 do one of the following:
line 8 (A) Withdraw or amend the relevant comment.
line 9 (B) Acknowledge the comment as a betterment.
line 10 (C) Dispute the basis of the betterment. If the lead agency and line 11 third party cannot agree as to whether the facility is a betterment, line 12 the issue shall be resolved through the binding dispute resolution line 13 process described in Section 19003.
line 14 (4) If the third party fails to respond within 20 working days of line 15 the notice, the comment shall be considered a betterment. line 16 (i) For all review of design documentation or advanced partial line 17 design units that require final approval by the third party, the third line 18 party shall determine the completeness of the design line 19 documentation, complete its review and do all of the following line 20 pursuant to the schedule identified in the Stage 1 project scope line 21 document, or as otherwise agreed between the parties:
line 22 (1) Issue comments.
line 23 (2) Confirm approval or rejection of final design documentation. line 24 (3) The third party may only reject the final design line 25 documentation if the documentation is incomplete or fails to comply line 26 with the requirements of this part. The third party must provide line 27 comments on the design documentation documenting the reason line 28 for the rejection pursuant to this part.
line 29 (j) The lead agency must respond to a third-party rejection of line 30 final design documentation in one of the following ways:
line 31 (1) Address the comments provided pursuant to paragraph (3) line 32 of subdivision (i) and resubmit the design documentation or line 33 advanced partial design unit.
line 34 (2) Notify the third party that it objects to the rejection. If the line 35 third party and lead agency are unable to mutually agree on a line 36 path forward to a modification to the design to address the line 37 rejection, the issue shall be resolved through the binding dispute line 38 resolution process in Section 19003.
line 39 (k) For design documentation or advanced partial design units line 40 described in subdivision (i), the third party shall not raise any new 96 SB 445 — 18 —
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line 1 issues, or make any comments, which are inconsistent with its line 2 comments on earlier submittals, or with any changes already line 3 agreed to by the third party.
line 4 (l) The third party shall not withhold approval of design line 5 documentation or advanced partial design units described in line 6 subdivision (i) if the submittal is complete and consistent with the line 7 most recent prior submittal for such facility rearrangement, line 8 modified as appropriate to respond to the third party’s comments line 9 to such prior submittal, to the extent those comments were made line 10 pursuant to the requirements of this stage, and to reflect any line 11 subsequent changes agreed to by the lead agency and the third line 12 party.
line 13 (m) The third party may raise new comments on design line 14 documentation or advanced partial design units described in line 15 subdivision (i) as a consequence of design changes made by the line 16 lead agency after the third party’s review of the most recent prior line 17 submittal of designs for such rearrangement.
line 18 (n) A betterment shall not be required to be constructed if it is line 19 not approved by the lead agency. The lead agency shall have a line 20 right to refuse a betterment that meets any of the following:
line 21 (1) The betterment is incompatible with the sustainable line 22 transportation project.
line 23 (2) The betterment cannot be constructed within the constraints line 24 of applicable law or the project schedule.
line 25 (3) The betterment is a facility rearrangement that is requested line 26 after the finalization of the Stage 1 project scope document, unless line 27 the facility rearrangement was requested in accordance with the line 28 third party’s objective standards, criteria, and specifications in line 29 effect at the time of the notice described in subdivision (a), and line 30 was requested in response to new information that was not line 31 available to the third party during the Stage 1 process. line 32 The cost of approved betterments shall be borne by the third line 33 party. This includes any increase in costs over the estimation of line 34 the cost of the betterment by the lead agency and cost of any line 35 mitigations of the betterment required as a result of the line 36 environmental review process.
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line 1 Article 3. Permitting and Construction
line 2
line 3 19005.03. (a) An approved-for-construction design is a design line 4 that meets all of the following:
line 5 (1) The lead agency has approved the final design line 6 documentation.
line 7 (2) The third party has approved the final design documentation. line 8 (3) The final design document has been signed and sealed by line 9 the engineer of record that is responsible for that final design line 10 documentation.
line 11 (4) Any other conditions for the final design documentation to line 12 be ready for construction set out under the requirements of this line 13 act have been satisfied.
line 14 (b) Commencement of a single or set of facility rearrangements line 15 for which an advanced partial design unit is at the final design line 16 stage may be approved for construction without all of the final line 17 design being approved for construction.
line 18 (c) Prior to the commencement of construction of a facility line 19 rearrangement, the lead agency shall transmit a proposed line 20 construction staging plan for any construction work to be line 21 performed within the public rights-of-way in the third party’s line 22 jurisdiction. The plan shall include, but not be limited to:
line 23 (1) The handling of vehicular and pedestrian traffic, cyclist line 24 access, and circulation on streets adjacent to the construction with line 25 the construction phasing showing street closures, detours, warning line 26 devices, and temporary traffic signals.
line 27 (2) Accessible routes for pedestrians with physical disabilities line 28 in compliance with applicable law.
line 29 (3) Actions to maintain access to businesses, schools, and line 30 residences adjacent to the construction areas, as possible, and line 31 actions to ensure safe access and circulation for pedestrians and line 32 vehicular traffic as described in the traffic management plan. line 33 (4) Elements of public awareness as well as mechanisms to line 34 assist affected parties in complaint resolutions. line 35 (d) The third party shall review the submitted construction line 36 staging plan in accordance with its objective design standards line 37 and policies for such construction staging plans, and respond to line 38 the lead agency with a determination of whether the plan is line 39 complete or not. If incomplete, the third party will notify the lead line 40 agency of what aspects of the construction staging plan must be 96 SB 445 — 20 —
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line 1 refined in order for the construction staging plan to be complete line 2 pursuant to the third party’s applicable standards and policies. line 3 This response shall occur within 10 working days of receipt of the line 4 notice described in subdivision (c).
line 5 (e) The lead agency shall promptly modify the construction line 6 staging plan based on the information cited in subdivision (d) and line 7 resubmit it to the third party. The third party shall review the line 8 resubmittal for completeness pursuant to subdivision (d). line 9 (f) Within 10 working days of the acknowledgment of line 10 completeness identified in subdivision (d), the third party shall line 11 provide comments, approve, or reject the construction staging line 12 plan.
line 13 (g) The lead agency may update the construction staging plan line 14 after it has been approved by the third party and must promptly line 15 submit each updated construction staging plan to the third party line 16 for review in accordance with subdivision (d).
line 17 (h) The third party shall impose only the minimum requirements line 18 for traffic management planning and construction sequencing that line 19 are necessary in order to provide for public health and safety, line 20 including, but not limited to, pedestrian and vehicular safety, and line 21 functionality, including, but not limited to, public and business line 22 access and circulation. This does not preclude the lead agency line 23 and third party from agreeing to additional traffic management line 24 planning and construction sequencing activities. line 25 (i) The lead agency shall provide 10 working days of advance line 26 written notice where construction work is to be performed in the line 27 public rights-of-way for approved street, traffic lane, or sidewalk line 28 closures.
line 29 (j) If the lead agency fails to perform any construction work line 30 within the third party’s public rights-of-way in accordance with line 31 the approved-for-construction final design documentation or line 32 construction staging plans approved by the third party pursuant line 33 to this section, the third party may issue a written notice of line 34 noncompliance from the third party and the lead agency must cure line 35 the noncompliance. If the lead agency and third party are unable line 36 to agree whether the work was performed correctly, the dispute line 37 shall be resolved via the binding dispute resolution process line 38 outlined in Section 19003.
line 39 (k) For third-party communication facilities, the lead agency line 40 and third party shall agree to a schedule for such work that 96 — 21 — SB 445
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line 1 balances minimal system downtime and third-party network line 2 disruption while maintaining a reasonable project schedule. If the line 3 lead agency and third party are unable to agree on such a line 4 schedule, the matter will be resolved by the binding dispute line 5 resolution process described in Section 19003.
line 6 (l) (1) A third party shall not unreasonably withhold the line 7 approval of the availability, location, and duration of the use of line 8 a third-party facility as a temporary facility to facilitate the line 9 construction of the sustainable transportation project, as otherwise line 10 permitted by state and federal law. Such approved use of a line 11 third-party facility shall be made in writing and without cost to line 12 the lead agency.
line 13 (2) Upon completion of the related construction and lead line 14 agency’s determination that the temporary facilities are no longer line 15 needed, the lead agency shall remove all temporary facilities and line 16 restore the area as nearly as practicable to its original condition line 17 unless the lead agency and third party agree to another line 18 arrangement.
line 19 (3) If the lead agency believes that a third party is unreasonably line 20 withholding the approvals described in this subdivision and is line 21 unable to come to agreement with the third party on these line 22 approvals, it may elect to resolve the dispute through the binding line 23 dispute resolution process described in Section 19003. line 24 (m) For any other third-party permit or approval, identified in line 25 the finalized Stage 1 project scope document as necessary for the line 26 lead agency to construct the sustainable transportation project as line 27 identified in the project schedule, the lead agency shall submit a line 28 completed permit or approval request to the third party. line 29 (n) Within 10 working days of receipt of the permit or approval line 30 request, the third party shall review the permit or approval request line 31 in accordance with its objective standards and determine whether line 32 the permit or approval request is complete. If incomplete, the third line 33 party shall respond to the lead agency and notify the lead agency line 34 of what information is needed to make the request complete. line 35 (o) If determined incomplete pursuant to subdivision (n), the line 36 lead agency shall promptly respond with the relevant information line 37 noted by the third party in subdivision (n). The third party shall line 38 review the permit or approval request and respond to the lead line 39 agency pursuant to subdivision (n).
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line 1 (p) Within 20 working days of determining the request complete line 2 pursuant to subdivision (n), the third party shall review the relevant line 3 permit for compliance with all relevant written objective standards, line 4 specifications, and criteria that are applicable to the permit or line 5 approval request, or have been agreed to between the lead agency line 6 and third party, and shall grant approval of the permit or approval line 7 request, issue comments, or reject the permit or approval request. line 8 (q) The permit request may only be rejected for failure to meet line 9 the relevant objective standards, criteria, or specifications that line 10 apply to that permit or approval and are consistent with this line 11 section.
line 12 SEC. 5. The provisions of this measure are severable. If any line 13 provision of this measure or its application is held invalid, that line 14 invalidity shall not affect other provisions or applications that can line 15 be given effect without the invalid provision or application. line 16 SEC. 6. The Legislature finds and declares that sustainable line 17 transportation projects foster the movement of people on a local line 18 and regional level for the benefit of the entire state and, for that line 19 reason, authorizing the Secretary of Transportation to expedite line 20 the implementation of sustainable transportation projects by line 21 waiving local regulation of the design and construction of those line 22 projects is a matter of statewide concern and is not a municipal line 23 affair as that term is used in Section 5 of Article XI of the line 24 California Constitution. Therefore, Sections 3 and 4 of this act line 25 adding Section 13985 to the Government Code and adding Division line 26 21 (commencing with Section 19001) to the Public Utilities Code, line 27 respectively, apply to all cities, including charter cities. line 28 SEC. 7. No reimbursement is required by this act pursuant to line 29 Section 6 of Article XIII B of the California Constitution because line 30 a local agency or school district has the authority to levy service line 31 charges, fees, or assessments sufficient to pay for the program or line 32 level of service mandated by this act, within the meaning of Section line 33 17556 of the Government Code.
line 34 SECTION 1. (a) The Legislature finds and declares the line 35 following:
line 36 (1) Sustainable transportation projects are critical for the growth line 37 of the state in a manner that reduces greenhouse gas emissions and line 38 helps address the state’s housing shortage. It is in the interest of line 39 the state to accelerate the construction of sustainable transportation 96 — 23 — SB 445
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line 1 projects and avoid cost escalation, ensuring that more projects are line 2 built in a cost-effective manner.
line 3 (2) Third-party permits and approvals for preconstruction and line 4 construction activities, including utility relocations, design review, line 5 and issuance of encroachment or other similar permits, can be a line 6 source of delay for sustainable transportation projects, potentially line 7 resulting in cost escalations and projects being built late and over line 8 budget.
line 9 (b) It is the intent of the Legislature to amend this bill with line 10 legislation that accelerates and makes more reliable third-party line 11 permits and approvals for preconstruction and construction line 12 activities on sustainable transportation projects, including through line 13 requiring lead agencies engage early with third parties, setting line 14 timelines on design review activities to ensure prompt responses line 15 between parties, and limiting third-party requirements associated line 16 with permits and other approvals.
line 17 SEC. 2. Section 671.5 of the Streets and Highways Code is line 18 amended to read:
line 19 671.5. (a) The department shall either approve or deny an line 20 application from an applicant for an encroachment permit within line 21 60 days of receiving a completed application, as determined by line 22 the department. An application for an encroachment permit is line 23 complete when all other statutory requirements, including the line 24 California Environmental Quality Act (Division 13 (commencing line 25 with Section 21000) of the Public Resources Code), have been line 26 complied with. The department’s failure to notify the applicant line 27 within that 60-day period that the permit is denied shall be deemed line 28 to constitute approval of the permit. Thereafter, upon notifying line 29 the department, the applicant may act in accordance with its permit line 30 application, as if the permit had been approved. line 31 (b) All of the following shall apply to the department’s review line 32 of an application for an encroachment permit for a broadband line 33 facility:
line 34 (1) The department shall specify in writing all permit application line 35 criteria. It is the intent of the Legislature to ensure a streamlined, line 36 predictable, and expeditious process by which the department line 37 reviews broadband facility permit applications in order to achieve line 38 the rapid deployment of broadband facilities on highways. line 39 (2) Within 30 days after an application for an encroachment line 40 permit for a broadband facility is submitted, the department shall 96 SB 445 — 24 —
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line 1 notify the applicant in writing whether the permit application is line 2 deemed complete. If the department does not notify the applicant line 3 within that 30-day period that the application is incomplete, the line 4 failure to notify shall be deemed to constitute a finding that the line 5 permit application is complete.
line 6 (3) If the department deems a permit application incomplete, line 7 the department shall do all of the following:
line 8 (A) At the time of notifying the applicant that the application line 9 is incomplete, furnish to the applicant a detailed explanation why line 10 the application is incomplete, with reference to the specific line 11 application criteria that the application does not meet. line 12 (B) Identify all supplemental information necessary to complete line 13 the application.
line 14 (C) In a timely manner and no later than 14 days after a meeting line 15 is requested by the applicant, meet with the applicant to discuss line 16 any outstanding supplemental information necessary to complete line 17 the application. The department shall not be required to participate line 18 in more than three individual meetings with the applicant and shall line 19 not be required to meet in excess of four hours for each permit line 20 application.
line 21 (D) Provide the applicant with no less than 30 days to resubmit line 22 its application with the supplemental information that the line 23 department identified in the notice. The applicant’s failure to line 24 respond with additional information during that period shall be line 25 deemed to constitute a withdrawal of the application. line 26 (4) Within 30 days after receiving supplemental information line 27 from an applicant pursuant to paragraph (3), the department shall line 28 approve or deny the application.
line 29 (c) If the department denies an application for an encroachment line 30 permit, the department shall, at the time of notifying the applicant line 31 of the denial, furnish to the applicant a detailed explanation of the line 32 reason for the denial.
line 33 (d) The department shall adopt regulations prescribing line 34 procedures for an applicant to appeal to the director for a final line 35 determination of the department’s denial of an application. The line 36 appeal shall be made in writing to the director. There shall be a line 37 final written determination by the director within 60 calendar days line 38 after receipt of the applicant’s written appeal. The adopted line 39 regulations shall require the appellant to pay to the department a 96 — 25 — SB 445
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line 1 fee of not more than 50 percent of the estimated administrative line 2 cost to the department of conducting the appeal. line 3 (e) This section does not preclude an applicant and the line 4 department from mutually agreeing to an extension of any time line 5 limit provided by this section.
line 6 (f) (1) On or before February 1, 2027, the department shall line 7 develop and adopt a process for project intake, project evaluation, line 8 and encroachment permit review for complete streets facilities, line 9 including pedestrian, bicycle, and transit priority facilities, that line 10 are sponsored by a local jurisdiction or a transit agency. The line 11 department shall design this process to enable the department to line 12 comply with subdivision (a).
line 13 (2) The department shall report annually to the commission line 14 regarding project applications submitted pursuant to the process line 15 adopted pursuant to paragraph (1). The report shall include, but line 16 not be limited to, all of the following information:
line 17 (A) The number of completed applications submitted. line 18 (B) The number of encroachment permits issued. line 19 (C) The number of days required to process each application. line 20 (3) The department shall post the report described in paragraph line 21 (2) on the department’s internet website.
line 22 (4) The department shall designate an encroachment permit line 23 manager in each district to ensure that applications for complete line 24 streets facilities are reviewed through the process adopted pursuant line 25 to paragraph (1). The encroachment permit manager shall have line 26 expertise in bicycle, pedestrian, and transit priority facilities.
O
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CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Anthony J. Mejia
SUBJECT: RATIFICATION OF LETTER SUPPORTING EXPANSION OF U.S.
CUSTOMS AND BORDER PROTECTION SERVICES AT PALM SPRINGS
INTERNATIONAL AIRPORT
RECOMMENDATION:
Ratify the issuance of the letter supporting expansion of U.S. Customs and Border Protection services at Palm Springs International Airport (PSP).
BACKGROUND/ANALYSIS:
The City of Palm Springs requested regional support for the expansion of U.S. Customs and Border Protection (CBP) services at Palm Springs International Airport (PSP). In response to this request, the City of Palm Desert submitted a letter to the CBP Los Angeles Field Office on July 23, 2025, expressing support for the proposed expansion.
The letter expresses support for expanded CBP services as a means to increase international connectivity, improve travel efficiency for residents and visitors, and support local businesses that rely on tourism and international trade. It highlights PSP’s role as a central gateway to the Coachella Valley and emphasizes the importance of aligning infrastructure with regional growth.
The ad hoc City Council Subcommittee on Legislative Affairs, composed of Mayor Harnik and Mayor Pro Tem Trubee, reviewed and approved the issuance of the letter in advance of formal ratification by the City Council.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
There is no financial impact associated with the issuance of this letter.
ATTACHMENTS:
1. Letter of Support
371
372
C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
[email protected]
July 23, 2025
Andrew Douglas
Acting Director, Field Operations
Los Angeles Field Office
U.S. Customs & Border Protection
1 World Trade Center, Suite 741
Long Beach, CA 90831
RE: Support for Expanded CBP Services at Palm Springs International Airport (PSP) Dear Director Douglas:
On behalf of the City of Palm Desert, I am pleased to express our support for the expansion of U.S. Customs and Border Protection (CBP) services at Palm Springs International Airport (PSP). As a central gateway to the Coachella Valley and a vital link to international travel and commerce, PSP plays a significant role in supporting the economic vitality of our region.
Expanded CBP services at PSP would provide a meaningful opportunity to increase international connectivity, improve travel efficiency for residents and visitors, and support local businesses reliant on tourism and international trade. As the region continues to grow, enhanced CBP services will help ensure that infrastructure keeps pace with demand and further strengthens the airport’s ability to serve as a hub for economic development.
The City of Palm Desert values regional partnerships that improve access, foster economic opportunity, and support quality of life across the Coachella Valley. We appreciate the efforts of CBP to evaluate this proposal and respectfully encourage your favorable consideration.
Sincerely,
Jan C. Harnik
Mayor, City of Palm Desert
373
374
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: RATIFICATION OF LETTER SUPPORTING SUNLINE TRANSIT AGENCY’S
GRANT APPLICATION FOR MAINTENANCE FACILITY REPLACEMENT
RECOMMENDATION:
Ratify the issuance of the letter supporting SunLine Transit Agency’s grant application under the Federal Transit Administration’s Section 5339 Low or No Emission Grant Program and the Grants for Buses and Bus Facilities Competitive Program.
BACKGROUND/ANALYSIS:
SunLine Transit Agency has submitted a funding request of $25,684,211 through the Federal Transit Administration’s Section 5339 Low or No Emission Grant Program and the Buses and Bus Facilities Competitive Program. The proposed grant would fund the replacement of SunLine’s 39-year-old maintenance facility located in Thousand Palms.
The current maintenance facility, which also serves as the agency’s primary fueling and service location, is no longer adequate to support the expansion of SunLine’s low- and zero-emission fleet. The site lacks the infrastructure and climate control needed for efficient operations, particularly during extreme summer temperatures.
On July 14, 2025, the City submitted a letter in support of SunLine’s grant application. The letter emphasizes the regional importance of SunLine’s services and outlines the operational and safety challenges posed by the aging facility. The ad hoc City Council Subcommittee on Legislative Affairs, comprised of Mayor Harnik and Mayor Pro Tem Trubee, reviewed and approved the letter in advance of formal ratification by the City Council.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
There is no financial impact associated with the issuance of this letter.
ATTACHMENTS:
1. Letter of Support
375
376
C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
[email protected]
July 14, 2025
Federal Transit Administration
U.S. Department of Transportation
1200 New Jersey Ave, SE
Washington, DC 20590
RE: Letter of Support – SunLine Transit Agency’s Section 5339 Application for Maintenance Facility Replacement through the FY 2025 Low or No Emission Grant Program and the Grants for Buses and Bus Facilities Competitive Program Dear Federal Transit Administration Review Committee,
On behalf of the City of Palm Desert, I am pleased to express our support for SunLine Transit Agency’s grant application under the Federal Transit Administration’s Section 5339 Low or No Emission Grant Program and the Buses and Bus Facilities Competitive Program.
The requested funding would support the replacement of SunLine’s 39-year-old maintenance facility located in Thousand Palms.
SunLine plays a vital role in the Coachella Valley’s regional transit system, serving over 450,000 residents across a 1,120-square-mile area. The agency provides nearly 3 million passenger trips annually, offering essential access to employment, healthcare, education, and other critical services. Through its Commuter Link service, SunLine also connects our valley to broader regional hubs, enhancing mobility and opportunity throughout the region.
SunLine has been recognized nationally for its innovation in zero-emission technology and commitment to sustainable transit. Its ability to maintain these high standards, however, is increasingly challenged by its aging maintenance facility. The Thousand Palms site, which serves as the primary fueling and service location for the agency’s fleet, lacks the infrastructure needed to support an expanding number of low- and zero-emission vehicles. In addition, the absence of adequate climate control presents operational challenges, particularly during extreme summer temperatures, and affects both employee safety and retention.
Investing in a modern maintenance facility will support SunLine’s continued leadership in clean transit, while strengthening the reliability and resilience of public transportation throughout the region, including Palm Desert.
377
For these reasons, the City of Palm Desert respectfully urges your favorable consideration of SunLine Transit Agency’s application. If you have any questions or require additional information, please contact City Manager Chris Escobedo at (760) 776-6319 or [email protected].
Sincerely,
Jan C. Harnik, Mayor
City of Palm Desert
378
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Michelle Nance, Acting Assistant City Clerk SUBJECT: ADOPTION OF ORDINANCE NO. 1430, AMENDING PALM DESERT MUNICIPAL CODE SECTION 2.34.050 RELATED TO ADVISORY BODY
OFFICERS
RECOMMENDATION:
Adoption of Ordinance No. 1430 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF PALM DESERT, CALIFORNIA, AMENDING PALM DESERT MUNICIPAL CODE SECTION 2.34.050 RELATED TO ADVISORY BODY OFFICERS.”
BACKGROUND/ANALYSIS:
On July 10, 2025, the City Council introduced Ordinance No. 1430 for first reading. This report is provided for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30 days from adoption.
FINANCIAL IMPACT:
There is no direct financial impact with this action
ATTACHMENTS:
1. Ordinance No. 1430
379
380
ORDINANCE NO. 1430
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, AMENDING PALM DESERT MUNICIPAL CODE SECTION 2.34.050 RELATED TO ADVISORY BODY OFFICERS
THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Amendment to Municipal Code. Palm Desert Municipal Code Section
2.34.050(A), Officers, is hereby amended to read as follows:
Officers. At the first meeting following July 1st, appointed bodies shall elect a chairperson and vice chairperson for a one-year term. The chairperson shall preside over all meetings. The vice chairperson shall preside in the chairperson's absence. In the chairperson's and vice chairperson's absence, the appointed body may designate a presiding officer. Vacancies in either the chairperson or vice chairperson position occurring prior to July may be filled at any time by a majority vote of the appointed body.
The chairperson and vice chairperson positions shall rotate annually in accordance with a numeric seat-based system established by the City Clerk. Each member shall be assigned a seat number that determines the sequence in which they will serve as chairperson. When a seat's scheduled turn occurs, the member occupying that seat shall be appointed chairperson. If a member is in their first year of service or elects to defer serving as chairperson when their turn occurs, their appointment shall be moved to the end of the rotation sequence, and the next eligible seat shall advance. Members may serve as vice chairperson in any year, regardless of their length of service. No member may serve consecutive terms in the same officer position.
ADOPTED ON ___________________, 2025.
JAN C. HARNIK
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
381
Ordinance No. 1430 Page 2
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1430 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on July 10, 2025, and adopted at a regular meeting of the City Council held on __________, 2025, 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
382
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Shawn Muir, Community Services Manager
SUBJECT: REQUEST TO EXEMPT THE PARKS AND RECREATION COMMITTEE
FROM PALM DESERT MUNICIPAL CODE RELATED TO THE
APPOINTMENT OF ADVISORY BODY OFFICERS
RECOMMENDATION:
Consider the Parks and Recreation Committee’s request to be exempted from Palm Desert Municipal Code related to the appointment of advisory body officers (Ordinance 1430).
BACKGROUND/ANALYSIS:
At its July 10, 2025, meeting, the City Council introduced Ordinance 1430 amending Palm Desert Municipal Code Section 2.34.050(A) (second reading August 28, 2025). The action directed the City Clerk to immediately implement a policy establishing an annual rotation of advisory body chairperson and vice chairperson positions using a numeric seat-based system.
At the August 5, 2025, Parks and Recreation Committee meeting, staff presented the new ordinance. As outlined in a memo from the City Clerk included in the meeting agenda packet, Mr. Ralph Perry would be appointed Chairperson and Mr. Randy Guyer appointed Vice Chairperson, as shown in the chart below:
Seat Member Chairperson Term
1 Ralph Perry July 2025 – June 2026
2 Randy Guyer July 2026 – June 2027
3 Rob Langford July 2027 – June 2028
4 Paul Murphy July 2028 – June 2029
5 David O’Donnell July 2029 – June 2030
6 Tim Skogen July 2030 – June 2031
7 John Maldonado July 2031 – June 2032
After discussion, the Committee concluded that the rotational appointment process was not favorable and expressed a preference for the previous nomination and voting system, under which members submit nominations for each position and appointments are determined by majority vote. While following this system, the Parks and Recreation Committee has generally paired a longer-serving member as Chair with a newer member as Vice Chair, though this has been treated as a guiding practice rather than a formal rule.
There was consensus on appointing Ralph Perry as the new Chairperson. A motion to appoint Mr. Perry as Chairperson for FY 2025/26 and to defer the Vice Chairperson appointment pending the City Council’s decision on a request to exempt the Committee from Palm Desert Municipal 383
City of Palm Desert
Approve Request to Exempt the Parks & Recreation Committee from Rotational Appointment
Code Section 2.34.050(A) was unanimously approved, with the motion made by Committee Member Paul Murphy and seconded by Chair Maldonado.
Staff is submitting this request to the City Council for consideration. Should the request be approved, staff will return with a staff report presenting a revised ordinance allowing for this exemption.
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 Minutes of Parks and Recreation Committee
2. Officer Elections Memo from City Clerk
3. Ordinance No. 1430
384
PARKS AND RECREATION COMMITTEE
CITY OF PALM DESERT
REGULAR MEETING MINUTES
August 5, 2025, 8:30 a.m.
Present: Committee Member Randy Guyer, Committee Member Rob Langford, Committee Member Paul Murphy, Committee Member David O'Donnell, Committee Member Tim Skogen*, Vice-Chair Ralph Perry, and Chair John Maldonado
Staff Present: Community Services Manager Shawn Muir, Project Manager Kevin Swartz, Management Analyst Maria Gonzalez, Director of Public Works Randy Chavez, Recording Secretary Michelle Nance
*Participated remotely in accordance with AB2449
1. CALL TO ORDER
A Regular Meeting of the Parks and Recreation Committee was called to order by ViceChair Perry on August 5, 2025, at 8:30 a.m. in the Administrative Conference Room, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California.
2. ROLL CALL
3. APPOINTMENT OF CHAIRPERSON AND VICE-CHAIRPERSON FOR FISCAL YEAR 2025-2026
Committee Member Murphy expressed disagreement with the new rotational process and advised the Committee of a pending request for exemption.
Motion by: Committee Member Murphy
Seconded by: Chair Maldonado
To appoint Ralph Perry as Chairperson of the Parks and Recreation Committee for Fiscal Year 2025–2026, and to defer the appointment of a Vice-Chairperson pending the City Council’s decision on a request to exempt the Committee from the rotational appointment process.
Motion Carried (7 to 0)
4. NON-AGENDA PUBLIC COMMENTS
None.
385
Parks and Recreation Committee Regular Meeting Minutes
August 5, 2025
2 5. CONSENT CALENDAR
Motion by: Committee Member Guyer
Seconded by: Committee Member O'Donnell
To approve the consent calendar as presented.
Motion Carried (7 to 0)
5.a APPROVAL OF MINUTES
Motion by: Committee Member Guyer
Seconded by: Committee Member O'Donnell
Approve the Minutes of June 3, 2025.
Motion Carried (7 to 0)
6. BUSINESS ITEMS
6.a ASSIGN PARKS AND RECREATION COMMITTEE MEMBERS TO PARKS Community Services Manager Shawn Muir provided a staff report and responded to Committee Member's inquiries.
Director of Public Works Randy Chavez responded to Committee Member inquiries and provided information regarding the intent of the proposed assignments.
Motion by: Chair Perry
Assign Parks and Recreation Committee members to certain parks to work with vendors on park and trailhead designs.
Motion failed due to lack of second. The Committee declined to provide an alternate motion.
7. INFORMATIONAL REPORTS
7.a UPDATES FROM PARTNER ORGANIZATIONS
7.a.1 Palm Desert Aquatic Center
David Keyes provided a verbal and written report and responded to Committee Member's inquiries. Committee Member Guyer made the following requests:
• A presentation on the PDAC renovations
• That staff initiate an item to have the PDAC Subcommittee meet more regularly
• Improved communication between City staff and PDAC staff regarding facility repairs
• An update on recent and upcoming walk-throughs
386
Parks and Recreation Committee Regular Meeting Minutes
August 5, 2025
3 7.a.2 First Tee - Coachella Valley
Chief Executive Officer Teal Thron provided a verbal report on summer programming and upcoming events.
7.a.3 Friends of the Desert Mountains
Report was provided with the agenda materials.
7.a.4 Family YMCA of the Desert
Executive Director Paula Simmonds provided a written and verbal report regarding upcoming events and ongoing summer programs.
7.a.5 Desert Recreation District
Interim General Manager Lindsey Woods reported on the temporary closure of the Palm Desert Community Center Gymnasium, which is currently being used as a Red Cross center in support of local firefighting efforts. She also provided an update on recent and upcoming events.
7.b CITY STAFF
7.b.1 Public Art Presentation for Civic Center and Ironwood Parks Management Analyst Erica Powell narrated a PowerPoint presentation and responded to Committee Member's inquiries.
7.b.2 Staff Liaison Transition
Project Manager Kevin Swartz introduced Maria Gonzalez as the new staff liaison to the Parks and Recreation Committee.
Recording Secretary Nance reported that a new Planning Commission Liaison Josh Nickerson will begin in September 2025.
7.c CITY COUNCIL LIAISON
City Council Liaison Evan Trubee reported attendance at the July 4th event at Civic Park and commended landscaping crews for the timely clean up.
8. REQUESTS FOR ACTION
Committee Member Guyer requested a discussion regarding better utilization of the skate park and an update on the construction progress at Baja Park.
9. ATTENDANCE REPORT
Report provided; no action taken on this item.
10. ADJOURNMENT
The Parks and Recreation Committee adjourned at 9:51 a.m. 387
Parks and Recreation Committee Regular Meeting Minutes
August 5, 2025
4 11. PUBLIC NOTICES
_________________________
Monique Lomeli, Senior Deputy Clerk
Recording Secretary
_________________________
Kevin Swartz, Project Manager
Secretary
_________________________
DATE APPROVED BY PARKS AND RECREATION COMMITTEE
388
CITY OF PALM DESERT
CITY CLERK’S OFFICE
MEMORANDUM
From: Anthony J. Mejia, City Clerk
To: Boards, Commissions, Committees & Task Forces (“Appointed Bodies”) Date: July 7, 2025
Subject: Implementation of Annual Officer Rotation and Numeric Seat-Based System The City Council recently took action to ensure that all appointed body members have an opportunity to serve in leadership roles as Vice Chairperson and Chairperson. To further refine the process, the City Council Subcommittee on Boards and Committees has directed staff to implement a new procedure that establishes a clear and consistent rotation system to provide broader opportunities for all members.
As such, effective immediately, the following procedures will be followed:
Key Provisions:
• Annual Rotation – Chairperson and Vice Chairperson positions shall rotate each year. • One-Year Term – Each officer serves a one-year term.
• No Consecutive Terms – No member may serve consecutive terms in the same officer role. • Numeric Seat-Based System – A numeric rotation schedule is used to determine the order in which members serve as Chairperson.
How the Numeric Rotation Works:
Each member will be assigned a numbered seat. The current Chairperson will be designated as Seat 7 (end of the rotation), and the current Vice Chairperson will be designated as Seat 1 (start of the rotation).
All remaining members will be assigned seat numbers alphabetically. The seat number determines when a member’s turn to serve as Chairperson arrives (for example, Seat 1 first, followed by Seat 2, and so on). If a member is in their first year of service when their scheduled turn occurs, their appointment as Chairperson will be deferred to the end of the sequence, and the next eligible seat will advance. Members may serve as Vice Chairperson in any year, regardless of tenure. Members may also defer their turn as Chairperson or Vice Chairperson, in which case their appointment will be moved to the end of the rotation.
Please note: While deferment is permitted, it is the City Council’s strong desire that all members participate in leadership when eligible. Serving as Vice Chairperson and Chairperson is encouraged.
ATTACHMENT:
A. Annual Chairperson Rotation and Numeric Seat-Based System 389
ATTACHMENT A
Annual Chairperson Rotation and Numeric Seat-Based System This list reflects the current roster of members serving on the City’s appointed bodies and includes newly assigned seat numbers that determine the rotation schedule for service as Chairperson under the recently adopted numeric seat-based system. As outlined in the City Clerk’s July 2025 memo, each seat is scheduled to rotate into the Chairperson role in sequential order, beginning with Seat 1. Members may refer to their assigned seat to identify their expected Chair term and position in the rotation.
ARCHITECTURAL REVIEW COMMISSION
Seat Member Chairperson Term
1 James G. McIntosh July 2025 – June 2026
2 James Edward Blakley July 2026 – June 2027
3 Dean Wallace Colvard July 2027 – June 2028
4 Geoff Gregory July 2028 – June 2029
5 Nicholas Latkovic July 2029 – June 2030
6 Francisco Sanchez July 2030 – June 2031
7 John Vuksic July 2031 – June 2032
BUILDING BOARD OF APPEALS
Seat Member Chairperson Term
1 Joseph Gaugush July 2025 – June 2026
2 Lindsay Holt July 2026 – June 2027
3 Allan Levin July 2027 – June 2028
4 Faith Messenger July 2028 – June 2029
5 Vacancy July 2029 – June 2030
CIVIC ENGAGEMENT COMMITTEE
Seat Member Chairperson Term
1 Kristy Giraud July 2025 – June 2026
2 Joyce Haraughty July 2026 – June 2027
3 Stacie Hedges July 2027 – June 2028
4 Jon Holan July 2028 – June 2029
5 Nancy Provost July 2029 – June 2030
6 Franchon-Marie Siddiq July 2030 – June 2031
7 Robin Stewart July 2031 – June 2032
8 Emily Vogt July 2032 – June 2033
CITY OF PALM DESERT
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
[email protected]
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CITY OF PALM DESERT • LOCAL APPOINTMENTS LIST Page 2 of 4
CULTURAL ARTS COMMITTEE
Seat Member Chairperson Term
1 Maureen Boren July 2025 – June 2026
2 Lori Flint July 2026 – June 2027
3 Aaron Grant July 2027 – June 2028
4 Thomas Mitze July 2028 – June 2029
5 Pia Rose July 2029 – June 2030
6 Ann Simley July 2030 – June 2031
7 Elizabeth Hauer July 2031 – June 2032
CULTURAL RESOURCES PRESERVATION COMMITTEE
Seat Member Chairperson Term
1 Linda Vassalli July 2025 – June 2026
2 Kim Housken July 2026 – June 2027
3 Carol Marcuse July 2027 – June 2028
4 Carrie Mcleod July 2028 – June 2029
5 Thomas Mortensen July 2029 – June 2030
6 David Toltzmann July 2030 – June 2031
7 Rochelle McCune July 2031 – June 2032
EL PASEO BUSINESS IMPROVEMENT DISTRICT BOARD
Seat Member Chairperson Term
1 Rebecca Elliott July 2025 – June 2026
2 David Fletcher July 2026 – June 2027
3 Mahasti Islami July 2027 – June 2028
4 Alexander Longmuir July 2028 – June 2029
5 Michelle Maspero July 2029 – June 2030
6 Angela Rafferty July 2030 – June 2031
7 Patrick Klein July 2031 – June 2032
FINANCE COMMITTEE
Seat Member Chairperson Term
1 Gretchen Heuring July 2025 – June 2026
2 Faith Messenger July 2026 – June 2027
3 Bob McCauley July 2027 – June 2028
4 Michael Morsch July 2028 – June 2029
5 Robert Leo July 2029 – June 2030
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CITY OF PALM DESERT • LOCAL APPOINTMENTS LIST Page 3 of 4
HOMELESSNESS TASK FORCE
Seat Member Chairperson Term
1 Scott Marks (At-Large) July 2025 – June 2026
2 Joseph Butts (PSC) July 2026 – June 2027
3 Davis Meyer (Community) July 2027 – June 2028
4 Brett Moscrop (Business) July 2028 – June 2029
5 Amando Sanders (Lived Exp.) July 2029 – June 2030
6 Franchon-Marie Siddiq (HC) July 2030 – June 2031
7 Diane Vines (Business) July 2031 – June 2032
HOUSING COMMISSION
Seat Member Chairperson Term
1 Franchon-Marie Siddiq July 2025 – June 2026
2 Jann Buller July 2026 – June 2027
3 Olivia Docken July 2027 – June 2028
4 Andrew Firestine July 2028 – June 2029
5 Dominic Moore (HA Tenant) July 2029 – June 2030
6 Melody Morrison (Sr. HA Tenant) July 2030 – June 2031 7 Kathleen Bauer July 2031 – June 2032
N/A Patricia Pyle (Alternate)
LIBRARY ADVISORY COMMITTEE
Seat Member Chairperson Term
1 Matthew Johnson July 2025 – June 2026
2 Jann Buller July 2026 – June 2027
3 Risa Lumley July 2027 – June 2028
4 Cathy Malone July 2028 – June 2029
5 Paul Murphy July 2029 – June 2030
6 Ralph Perry July 2030 – June 2031
7 Robin Stewart July 2031 – June 2032
PARKS AND RECREATION COMMITTEE
Seat Member Chairperson Term
1 Ralph Perry July 2025 – June 2026
2 Randy Guyer July 2026 – June 2027
3 Rob Langford July 2027 – June 2028
4 Paul Murphy July 2028 – June 2029
5 David O’Donnell July 2029 – June 2030
6 Tim Skogen July 2030 – June 2031
7 John Maldonado July 2031 – June 2032
392
CITY OF PALM DESERT • LOCAL APPOINTMENTS LIST Page 4 of 4
PLANNING COMMISSION
Seat Member Chairperson Term
1 Lindsay Holt July 2025 – June 2026
2 John Collum July 2026 – June 2027
3 John Greenwood July 2027 – June 2028
4 Alex Meyerhoff July 2028 – June 2029
5 Josh Nickerson July 2029 – June 2030
PUBLIC SAFETY COMMITTEE
Seat Member Chairperson Term
1 Terry Kramer July 2025 – June 2026
2 Jeff Alley July 2026 – June 2027
3 Joseph A. Butts July 2027 – June 2028
4 Douglas Luhring July 2028 – June 2029
5 Stephen Nelson July 2029 – June 2030
6 Frank Taylor July 2030 – June 2031
7 Kevin Wahlstrom July 2031 – June 2032
RESOURCE PRESERVATION & ENHANCEMENT COMMITTEE
Seat Member Chairperson Term
1 Estelle Dahl July 2025 – June 2026
2 Lizze Ferrari July 2026 – June 2027
3 Dean Lee Gatons July 2027 – June 2028
4 Geoffrey Gregory July 2028 – June 2029
5 Michael Morsch July 2029 – June 2030
6 Donald Zeigler July 2030 – June 2031
7 Berlinda Blackburn July 2031 – June 2032
393
394
ORDINANCE NO. 1430
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, AMENDING PALM DESERT MUNICIPAL CODE SECTION 2.34.050 RELATED TO ADVISORY BODY OFFICERS
THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Amendment to Municipal Code. Palm Desert Municipal Code Section
2.34.050(A), Officers, is hereby amended to read as follows:
Officers. At the first meeting following July 1st, appointed bodies shall elect a chairperson and vice chairperson for a one-year term. The chairperson shall preside over all meetings. The vice chairperson shall preside in the chairperson's absence. In the chairperson's and vice chairperson's absence, the appointed body may designate a presiding officer. Vacancies in either the chairperson or vice chairperson position occurring prior to July may be filled at any time by a majority vote of the appointed body.
The chairperson and vice chairperson positions shall rotate annually in accordance with a numeric seat-based system established by the City Clerk. Each member shall be assigned a seat number that determines the sequence in which they will serve as chairperson. When a seat's scheduled turn occurs, the member occupying that seat shall be appointed chairperson. If a member is in their first year of service or elects to defer serving as chairperson when their turn occurs, their appointment shall be moved to the end of the rotation sequence, and the next eligible seat shall advance. Members may serve as vice chairperson in any year, regardless of their length of service. No member may serve consecutive terms in the same officer position.
ADOPTED ON ___________________, 2025.
JAN C. HARNIK
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
395
Ordinance No. 1430 Page 2
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1430 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on June 26, 2025, and adopted at a regular meeting of the City Council held on __________, 2025, 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
396
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Monique M. Lomeli, Senior Deputy Clerk
SUBJECT: ACCEPTANCE OF A RESIGNATION FROM THE FINANCE COMMITTEE RECOMMENDATION:
With regret, accept the resignation of Robert Leo from the Finance Committee effective July 25, 2025.
BACKGROUND/ANALYSIS:
On June 23, 2022, Robert Leo was appointed to the Finance Committee for a term ending June 30, 2026. On July 25, 2025, Mr. Leo notified the City of his resignation effective immediately.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
There is no fiscal impact associated with the acceptance of this resignation. 397
398
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Thomas Soule, Public Affairs Manager
SUBJECT: APPOINTMENTS TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT BOARD OF DIRECTORS
RECOMMENDATION:
Reappoint David Fletcher, Patrick Klein, and Angela Rafferty to serve on the El Paseo Parking & Business Improvement District (EPPBID) Board of Directors for terms ending June 30, 2028.
BACKGROUND/ANALYSIS:
The El Paseo Parking and Business Improvement District is a business-based assessment district established to fund marketing initiatives and programs that benefit businesses along El Paseo. Because the EPPBID Board of Directors is governed by its own bylaws, it follows an appointment and reappointment process that differs from the City’s standard procedure for its committees and commissions.
Under this process, the EPPBID Board considers potential appointments and reappointments to its membership. Following careful review and deliberation, the Board votes to make a formal recommendation to the City Council. This process ensures that the Board’s membership reflects the interests of businesses and stakeholders within the district.
Terms for three current Board members expired on June 30, 2025. At its June 19, 2025, meeting, the EPPBID Board of Directors, by majority vote, recommended the reappointment of David Fletcher, Patrick Klein, and Angela Rafferty to serve additional terms. If approved by the City Council, each reappointment would extend the member’s service through June 30, 2028, maintaining continuity in leadership and ongoing district initiatives.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
There is no fiscal impact as a result of this action.
399
400
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: AMENDMENT NO. 5 TO CONTRACT NO. C28880 WITH BEST BEST &
KRIEGER LLP FOR CITY ATTORNEY SERVICES, EXTENDING THE
TERM TO DECEMBER 31, 2025
RECOMMENDATION:
1. Approve Amendment No. 5 to Contract No. C28880 with Best Best & Krieger LLP for City Attorney Services, extending the term to December 31, 2025.
2. Authorize the City Attorney to make necessary nonmonetary changes to the Agreement.
3. Authorize the Mayor to execute the Agreement.
BACKGROUND/ANALYSIS:
In November 1973, the City Council adopted Resolution No. 73-03, appointing David Erwin, Esq., as City Attorney. In 1986, Mr. Erwin joined the law firm of Best Best & Krieger (BB&K) and continued to serve as City Attorney.
In 2009, the City issued a Request for Proposals for City Attorney Services and selected Best Best & Krieger, along with Mr. Erwin, to continue as City Attorney for a five-year term ending in August 2014.
In August 2014, the City Council approved Amendment No. 1 to Contract No. C28880, extending the term through August 31, 2019.
Following Mr. Erwin’s passing in November 2015, after 42 years of service, the City Council appointed Robert Hargreaves, Esq., of BB&K as City Attorney. Mr. Hargreaves had previously served as Deputy City Attorney since 2009.
In March 2019, the City Council approved Amendment No. 2 to Contract C28880, extending the term for another five years, through August 31, 2024.
In December 2023, Mr. Hargreaves announced his retirement after 14 years of service. On December 14, 2023, the City Council approved Amendment No. 3 to Contract No. C28880, appointing Isra Shah, Esq., as City Attorney.
On August 22, 2024, the City Council conducted a performance evaluation of the City Attorney and directed staff to prepare a contract amendment to extend the term for an additional year.
On September 12, 2024, the City Council approved Amendment No. 4 to Contract No. C28880, extending the term through August 31, 2025.
401
City of Palm Desert
Amendment No. 5 to Contract No. C28880 for City Attorney Services
The City Council is now requested to approve Amendment No. 5 to Contract No. C28880, extending the term for an additional four months, through December 31, 2025. This extension will allow the City Council to complete a performance evaluation of the City Attorney and provide further direction.
FINANCIAL IMPACT:
There are no additional monetary changes to the terms of the agreements as a result of this amendment.
ATTACHMENTS:
1. Amendment No. 5 to Contract No. C28880
2. Executed Contract No. C28880
402
Contract No. 28885
Revised 08-2023
BBK 72500.00001\32445060.1
AMENDMENT NO. 5 TO AGREEMENT FOR
CITY ATTORNEY SERVICES
CONTRACT NO. C28885
1. Parties and Date.
This Amendment No. 5 is made and entered into as of this 28th day of August 2025, by and between the CITY OF PALM DESERT (“City”) and BEST BEST & KRIEGER LLP (BB&K), a Limited Liability Company.
2. Recitals.
2.1 The City has retained Best Best & Krieger LLP ("BB&K") to perform legal services as City Attorney since 1988.
2.2 Effective August 27, 2009, the City and BB&K entered into an agreement for City Attorney services through August 31, 2014 (Contract No. C28880, the "2009 Agreement").
2.3 On August 28, 2014, the City extended the 2009 Agreement for an additional five years, through August 31, 2019 (Amendment No. 1, Contract No. C28881).
2.4 On August 14, 2015, following the passing of City Attorney David Erwin, the City Council appointed Robert Hargreaves to serve as City Attorney.
2.5 On March 28, 2019, the City extended the 2009 Agreement for an additional five years, through August 31, 2024 (Amendment No. 2, Contract No. C28882).
2.6 On December 14, 2023, upon the retirement of Robert Hargreaves, the City Council appointed Isra Shah to serve as City Attorney (Amendment No. 3, Contract No. C28883).
2.7 On September 12, 2024, the City extended the 2009 Agreement for an additional one year, through August 31, 2025 (Amendment No. 4, Contract No. C28884).
2.8 On August 28, 2025, the City extended the 2009 Agreement for an additional four months, through December 31, 2025 (Amendment No. 5, Contract No. C28885).
3. Terms.
3.1 Section 13 of the 2009 Agreement is amended to provide that the Agreement will continue until December 31, 2025, subject to the City’s termination rights provided in that section.
3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 5, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 5. From and after the date of this Amendment No. 5, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 5.
403
Contract No. 28885
Revised 08-2023
BBK 72500.00001\32445060.1
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 5 to the Agreement for City Attorney Services, Contract No. C28880, as of the day and year first above written.
CITY OF PALM DESERT
By:
Kathleen Kelly
Mayor
Attest:
By:
Anthony J. Mejia
City Clerk
BEST BEST & KRIEGER, a Limited Liability
Company
By:
Its:
Printed Name:
City Clerk QC:
_____
Contracts QC:
_____
Insurance:
_____
Initial Review
_____
Final Approval
404
Contract No. C28884
Revised 08-2023
BBK 72500. 00001\ 32445060. 1
AMENDMENT NO. 4 TO AGREEMENT FOR
CITY ATTORNEY SERVICES
CONTRACT NO. C28884
1. Parties and Date.
This Amendment No. 4 is made and entered into as of this 12th day of September 2024, by and between the CITY OF PALM DESERT (“City”) and BEST BEST & KRIEGER LLP (BB&K), a Limited Liability Company.
2. Recitals.
2.1 City has retained BB&K to perform legal services as City Attorney since 1988.
2.2 Effective August 27, 2009, City and BB&K entered into the 2009 Agreement to perform those services until August 31, 2014. (C28880)
2.3 On August 28, 2014, City extended the 2009 Agreement ( via letter) for an additional five years, until August 31, 2019. (Amendment No. 1, C28881)
2.5 On August 14, 2015, with thepassing of City Attorney David Erwin, the City Council appointed Robert Hargreaves to that position.
2.6 On March 28, 2019, City extended the2009 Agreement for anadditional fiveyears, until August 31, 2024. (Amendment No. 2, C28882)
2.7 On December 14, 2024, upon the retirement of Robert Hargreaves, the City Council appointed Isra Shah to that position. (Amendment No. 3, C28883)
2.8 On September 12, 2024, City extended the 2009 Agreement for an additional one year, until August 31, 2025. (Amendment No. 4, C28884)
3. Terms.
3.1 Section 13 of the 2009 Agreement is amended to provide that the Agreement will continue until August 31, 2025, subject to the City’s termination rights provided in that section.
3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 4, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 4. From and after the date of this Amendment No. 4, whenever the term “ Agreement” or “ Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4.
Docusign Envelope ID: B8C44516- 76AE- 412B-817D-B753731A066E 405
Contract No. C28884
Revised 08-2023
BBK 72500. 00001\ 32445060. 1
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 4 to the Agreement for City Attorney Services, Contract No. C28880, as ofthe day and year first above written.
CITY OF PALM DESERT
By:
Karina Quintanilla
Mayor
Attest:
By:
Anthony J. Mejia
City Clerk
BEST BEST & KRIEGER, a Limited Liability
Company
By:
Isra Shah
Partner
City Clerk QC: _____
Contracts QC: _____
Insurance:
Initial Review
Final Approval
Docusign Envelope ID: B8C44516- 76AE- 412B-817D-B753731A066E 406
Contract No. C28883
Revised 08-2023
BBK 72500. 00001\ 32445060. 1
AMENDMENT NO. 3 TO AGREEMENT FOR CITY ATTORNEY SERVICES CONTRACT NO. C28880
1. Parties and Date.
This Amendment No. 3 is made and entered into as of this 14th day of December 2023, by and between the CITY OF PALM DESERT (“City”) and BEST BEST & KRIEGER LLP (BB&K), a Limited Liability Company.
2. Recitals.
2.1 City has retained BB&K to perform legal services as City Attorney since 1988.
2.2 Effective August 27, 2009, City and BB&K entered into the 2009 Agreement to perform those services until August 31, 2014. (C28880)
2.3 On August 28, 2014, City extended the 2009 Agreement ( via letter) for an additional five years, until August 31, 2019. (Amendment No. 1, C28881)
2.5 On August 14, 2015, with thepassing of City Attorney David Erwin, the City Council appointed Robert Hargreaves to that position.
2.6 On March 28, 2019, City extended the2009 Agreement for anadditional fiveyears, until August 31, 2024. (Amendment No. 2, C28882)
3. Terms.
3.1 The 2009 Agreement ( C28880) is amended throughout to reflect that Isra Shah is the designated City Attorney.
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.
DocuSign Envelope ID: 01B36532- 0F8B-4C5A-B773-238D4C972E0A 407
Contract No. C28883
Revised 08-2023
BBK 72500. 00001\ 32445060. 1
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 3 to the Agreement for City Attorney Services, Contract No. C28880, as of the day and year first above written.
CITY OF PALM DESERT
By:
Karina Quintanilla
Mayor
Attest:
By:
Anthony J. Mejia
City Clerk
BEST BEST & KRIEGER, a Limited Liability
Company
By:
Its:
Printed Name:
QC: MN
Insurance:
Initial Review
Final Approval
DocuSign Envelope ID: 01B36532- 0F8B-4C5A-B773-238D4C972E0A Isra Shah
Partner
408
EXTENSION AND AMENDMENT OF AGREEMENT
FOR CITY ATTORNEY SERVICES CONTRACT NO. C28882
This Extension and Amendment of Agreement for City Attorney Service dated August 27, 2009, (" 2009 Agreement") is made effective March 28, 2019, by and between the CITY OF PALM DESERT (" CITY"), a California municipal corporation and charter city, and BEST BEST & KRIEGER LLP (" BB& K"), a California limited liability partnership.
RECITALS
l. CITY has retained BB& K to perform legal services as City Attorney since 1988.
2. Effective August 27, 2009, CITY and BB& K entered into the 2009 Agreement to perform those service until August 31, 2014.
3. On August 28, 2014 CITY extended the 2009 Agreement for an additional five years, until August 31, 2019.
4. On November 14, 2015, with the passing of City Attorney David Erwin, the City Council appointed Robert Hargreaves to that position.
5. On March 28, 2019, CITY extended the 2009 Agreement an additional five years, until August 31, 2024.
EXTENSION AND AMENDMENT
NOW, THEREFORE, CITY AND BB& K agree as follows:
1. The 2009 Agreement is amended throughout to reflect that Robert Hargreaves is the designated City Attorney.
2. Section 13 ofthe 2009 Agreement is amended to provide that the Agreement will continue until August 31, 2024, subject to the CITY' s termination rights provided in that section.
3. All other provisions ofthe 2009 Agreement shall remain the same.
BB& K: CITY:
e er LP City of Palm Desert
By: ust
obert W. Ha gre ves, P ner Susan Marie Weber, Mayor
By:
Lauri Aylaian, City Manager
Attest:
By:
R he e D. Klassen, ity Clerk
72500. 00001\ 31940328. I
DRAFT 4/ 1/ 19
Amendment No. 2 to C28880
409
l ES
i o FeEn Wna Nv lleivr:
i7i- 5
I AI. M I) liSlilt' t", . ALIfO12N1A < 22 0- 2g S
TEL: 760 34.6—O II i
i inFuC' rcityofpalmdcsert. urg
I):'C131 f` ,; ; .
September 5, 2014
David J. Erwin, Esq.
Best, Best & Krieger, LLP
74- 760 Highway 111, Suite 200
Indian Wells, California 92210
Dear Dave:
Subject: Contract No. C28881 - Extension of Contract for Citv Attornev Services With the Firm of Best. Best, & Krieqer LLP
At its regular meeting of August 28, 2014, the Palm Desert City Council, by Minute Motion, extended the City Attorney Contract with Best, Best, & Krieger LLP, for five ( 5) years under the same terms and conditions as the existing ( Contract No. C28880).
Enclosed for your records is a copy of the staff report with City Council Action stamp affixed thereto. If you have any questions or require additional information, please do not hesitate to contact us.
Sincerely,
RACHELLE D. KLASSEN, MMC
CITY CLERK
RDK:mgs
Enclosure ( as noted)
cc/enc: John M. Wohlmuth, City Manager
Finance Department
F$ r PPIN' FDONAkiv( lEOPAYfP
Amendment No. 1 to C28880
410
CITY OF PALM DESERT
CITY MANAGER' S OFFICE
STAFF REPORT
REQUEST: ClTY ATTORNEY CONTRACT EXTENSION
SUBMITTED BY: John M. Wohlmuth, City Manager
DATE: August 28, 2014
CONTENTS: Letter from David J. Erwin dated July 8, 2014 Contract No. C28880 from Best, Best and Krieger LLC
Letter from Best, Best and Krieger dated June 20, 2014
Recommendation
Extend the City Attorney contract with Best, Best and Krieger LLP for five years under the same terms and conditions as the existing contract.
Backqround
In 2009, the City of Palm Desert released a Request for Proposal for City Attomey Services. The City received nine proposals and interviewed the three top firms with a committee comprised of:
1. Mr. Bob Spiegel, Mayor
2. Mr. Jim Ferguson, Councilmember
3. Mr. John M. Wohlmuth, City Manager
4. Judge Rob Taylor; and
5. Mr. Larry Parrish, retired Riverside County CEO
The three firms that were interviewed by the Selection Committee were:
1. Best, Best and Krieger
2. Richard Watson and Gershon
3. Aleshire and Wynder
The committee chose Best, Best and Krieger as the top proposal and interview. During the month of July 2009, a contract was negotiated culminating in a five- year contract awarded by the City Council on August 27, 2009. The contract terminates on August 27, 2014.
411
Staff Report
City Attorney Contract E ension
August 28, 2014
Please find attached a letter from Dave Erwin dated July 8, 2014 requesting a five-year e ension.
If approved by Council the contract would consist of the same terms and conditions as the August 27, 2009 contract. The only modifications to the contract is the retainer amount and Special Services billing rate. The contract allows for Cost of Living Adjustments once per year. Best, Best and Krieger voluntarily waved two COLA' s in 2011 and 2012; therefore, the price in the original contract reflects an increase equal to two out of four COLA adjustments. Other than the two 2% COLA adjustments the price, terms and conditions are all the same as the 2009 contract.
Submitted By/Approval: Reviewed:
hn M. Wohlmuth, City Manager Paul S. Gibson, Director of Finance i
CITY COITivCIL CTION
AI' I' ROVED DENiF. D
RCCEIVED OTH; R
MF,ET GDATE
AYk: S: '" n r C Q n i"
NUES:
ABSENT:
ABSTAIN: -
VERIFIED I3Y: m S
Original on File with City CI k's Office
412
Contract No. C28881
Irvine I• 11 Sacramento
949) 263- 2600 916) 325- 4000
Los Angeles BEST BEST & KRIEGER San Diego
213) 617- 8100 A T T O R N E Y S A T L A W 619) 525- 1300 Ontario Walnut Creek
sos) ses-s5ea Post Office Box 13650, Palm Desert, CA 92255- 3650 925) 977- 3300 Riverside 74- 760 Highway 111, Suite 200, Indian Wells, CA 92210 wash ngton, DC se sss- aso Phone: ( 760j 568- 2611 Fax: ( 760j 340- 6698 www. bbklaw. com 202 7s5- osoo David J. Erwin
760) 837- 1607
david. erwin@bbklaw. com
July 8, 2014
John Wohlmuth
City Manager
City of Palm Desert
73- 510 i'red Waring Drive
Palm Desert, CA 92260
Re: City Attorney Contract
Dear John:
I he Contract with Best Best & Krieger currently has an expiration date of August 27, 2014. The provisions for a five ( 5) year Contract were placed in the Contract for the Council to revicw and determine whether to send out a request for proposals.
I would specifically request that the Contract be extended for an additional five ( 5) year period. It is my considered opinion that we at QB& K have provided an excellent service to the City for many years and wish to continuc to do so into the f'uture. As a matter of information, the Contract allows the City to terminate the Contract on 30 days' notice without a reason stated.
Your aftirmative action to assist in the extension is appreciated and hopefully the Council will agrec.
Sinc e ,
Gavid J ' rw n
of BES7' BF,ST & KRIEGFR LI.,P
llJE: alr
72500. 00001\ 9081 0- I
413
AGREEMENT
F O R CTTY ATTORNEY SERVICES
C NTRACT NQ. c2ssso
This Agreement is made as of the?? tt'day of August, 2d09, by and between, on the one hand, the CI"I'Y OF PALM DESERT (" CITY"), a California municipal corporation anci charter city, acting on behalf ofitself, and BES7 BES"1'& KRIF..GF R LT. P(" BB& K"), a limited liability partnership engaged in the practice of law.
CITY and BB& K AGREE AS FOI, LOWS:
l R: CITAI,S
A. CITY has heretofore retaincd BB& K to perfonn legal services as City Attorney.
3. CITY and BB& K desire and intend that BB& K shall continue to providc CITY legal services as city Attorney on the terms set forth hereinafter.
2. SCOPE OF SERVICES
BB& K shall serve as City Attorney and shall perform the Services to include, by way of example, preparation for and attendance at all regular, special and study session meetings of the City Council, the Planning Commission including study sessions, Executive Management meetings, and other boards, commissions, and committees established by CITY, unless otherwise directed by CITY; preparation or review and monitor of all CITY ordinances, resolutions, agrcements, deeds, agenda reports, daily police ( SIR} reports, and other legal documents requested by CITY; provision to all officials, officers, and staff of CITY of legal advice and opinions concerning all matters affecting CITY, as directed by .the City Council, City Manager, and City staff.
3 . BB& K PERSONNEL
David J. Erwin (" Erwin") shall be the individual designated as City Attorncy and shall bc responsible for thc performancc of services by BB& K under this Agrccment and the supervision of any and all other BBBcK professional and support personnel who provide services to CI"1' Y.
RMBUSIDER W C? V 309238. 1
414
ontract No. C28880
No change in this designation shall bc made without the prior consent of CI' Y. CITY and BB& K understand that Erwin may, on occasion, be temporarily unavailable to respond to requests by CITY for specific lega] assistance. Thus, BB& K may from time to time assign ather attorncys and may use paralegals to assist in the provision of City Attorney scrvices pursuant to this Agreement; provided, however, that prior to use of any attorney other than Erwin, BB& K shall seek and, wherever rcasonably possibie, obtain the prior approval of C1TY regarding any attorney who may be asked to pravide assistance to CI' TY. Altorneys and paralegals who receive such approval from CITY shall hereinafter be referred to as " Approved Personne{".
4. OFFICE H4URS AND AVAILABII, ITY OF BR& K PERSONNEL
Erwin shall attend and conduct office hours one half work day ( four hours) twice every week at Yalm Desert City Hall on Monday morning and Wednesday morning. In addition, if and when requested by CI' TY, Erwin shall attend and conduct additional office hours at Palm Desert City Ha11 on any additional day or days of any week, as needed in thc determination of CITY. On any and all days when Erwin is not present at Palm Desert City Hall, Crwin and/ or other Approved Personncl of BB& K shall remain available at all times to provide City Attorncy legal services to CITY from BA& K offices.
5. C MPENSATION
In consideration for the performance of the Services by BB& K, CITY shall pay BB& K a flat- rate, all- inclusive sum of($ 18, SQ0. 00 per month) (" Monthly Compensation"), which shall be payment of fees for the Relainer Services. BB& K LLP shall be reimbursed for reasonable and necessary expenses incurred, subject to approval of City Manager including but not limiteci to, printing, copying, long distance phone and fax charges, court fees, computer research expenses, extraordinary mail or delivery costs and actual fees and cxpenses for subconsultants retained by BA& K I1[, P. CITY and aB& K agree that the Monthly Compensation shall automatically increase effective for the Services provided by BII& K on and after July 1 of each calendar year ( commencing July 1, 2010) in an amount equal to the inerease in the cost of living for the most recently published twelve ( 12) month period as shown by the U. S. Department of Labor in its All Urban Consumers lndex set forth in the I. os Angeles- Anahcim- Riverside area up to a maximum of five percent ( 5%).
RMAl; S1nERW IM309238. 1
415
Co*` Tact No. C28880
Ivotwithstanding any provision herein to the contrary, BB& K may request on or before March 31 of each year an increase in the Monthly Compensation over and above the CYI adjustment upon a showing of good cause for such increase; provided that the approval or disapproval of' any such request shall be made by CITY in its sole and absolute discretion.
6. USE OF SPECiAIa COUNSEL
CI1'Y and BB& K recognize and agrec that Special Services will be required by CITY from time to time. CITY in its sole and absolute discretion shall setect any and all special legal counsel to provide such Special Services. C] TY and AB& K understand and intend that such special legal counsel shall not be attorneys from BB& K unless approved separately by the City Council or City Manager. BB& K shall at the reyuest of CITY, be available to supervise and coordinate the provision of Special Services by special legal counsel.
7. SPECIAL SERVICES
3B8iK through approved personnel shall provide special services for Code Enforcement, Mobile Home Rcnt Control, I,itigation, Administrative Hearing, environmental challenges, endangered species, labor and employment matters, and other items specifically approved by the City Council or City Manager. Bond counsel matters are based upon Section 11 hereof. For any and all such legal services, the fees shall bc billed by BB& K and payable by Palm Desert as follows: $ 255. 00 per hour for attorney partners, $ 245. 00 per hour for Of Counsel attorneys, $ 230. 00 per hour for attorney associates and $ 150. 00 per hour for paralegals and law clerks. Billing shall be in tenth' s of an hour far each billing person. Such hourly fees shall be subject to increase effective 3uty l of each calendar year( commencing 3uly 1, 201 U) in the manner set fi rth in Section 5 hereof. The costs associated with such service, including without limitation, telephone expense, document reproduction expense, mileage expense, computer research, Court and Administrative filing fees, messenger service fees, fees for expert appraisers and other consultants( subject to prior approval of City of Palm Desert) and the like, shall be billed by BB& K and payable by Paim Descrt monthly.
kMBUS: R W lN(} 9238. l
416
Cor ract No. C2880
8. BILI.ING
BB& K shall submit to CI1' Y monthly an invoice in the amount of thc Monthly Compensation, covering the preceding calendar month. " Fhe invoice shall contain a written description of all legal matters for which BB& K performed legal services during the precediilg calendar month. CITY shall make every reasonable effort to pay BB& K for each monthly invoice within twenty-one ( 21) ealendar days following receipt of each im oice. Ifi the Services provided by BB& K during the first or last calendar month of the term of this Agreement ( as set forth in Section 10 hereafter) do not cover an entire calendar month, then the Monthly Compensation due and owing to BB& K shall be prorated for that month and shall be calculated by multiplying the Month( y Compensation by a fraction wherein the numerator is the number or c ays during which BBBcK provided the services in the calendar month and the denominator is the number thirty ( 30).
9. STA: 1llARD AND TIMELINLSS OF SERVICES
BB& K shall adherc to all reasonable and lawful standards and procedures established by CI1'Y for the provision of the Services by }3B& K under this Agreement and for the fulfillment by BB& K of its duties as the City Attorney. BB& K shall work cooperatively at all times with the City Council and the City Manager and shall keep them informed on all matters of imporiance. BB& K shall perform the Services expeditiously and in a timely manner in order to meet the necds and requiremcnts of CI"I'Y.
10. 1NSURANCE COVERAGE
BB& K currently maintains errors and omissions insurance with I, loyd' s of London. Afier a standard deductibility amount, this insurance provides coverage which exceeds the amount required by the State of Caiif'ornia.
11. All Bond counsel and general financial counsel ] egal services would be rendered to CITY at BB& K standard public finance rates set forth in Exhibit " A" attached hereto.
Appropriate adjustments may be made to the rates on file as recommendcd f'rom time to time by underwriters and/ or financiai advisors to the CI' I' Y.
Page A of 5
RMB L`SiDER W ITv130923 8. 1
417
C ~ ract No. C28880
12. Ail legal services provided to CITY for which CITY receives reimbursement or requires deposit in advance from dcveloper or third party and for litigation paid by developer with CITY represented by 13B& K such as review of CC& R' s, establishment of Community Facilities District, Assessment llistricts, Landscaping and l,ights Districts and the like, land use and/ or environmental projects shall be billed at BB& K' s then current standard private rate minus ten percent ( 10%).
13. TERMS Oli AGREEMENT
The provision of the Services under this Agreement shall commence on September 1, 2009 and continue for a period of five years until August 31, 2U14. BB& K understands and agrees that BB& K serves at the wiil and pleasure of CITY, CITY retains BB& K to provide the Services under this Agreement, and BIi& K shall continue to provide the Services under this Agreement until such time as either CITY or I3R& K provides thirty{ 30) days written notice to the other of termination of this Agreement, either with or without cause. In the event of termination of this Af; reement, CIT' Y shall pay BB& K for all of the Services rendered by IIBBcK through and including the effective date of termination.
IN WITNESS WHEREOF, CITY and BB& K have executed this Agreement as of' the date first set forth hereinabove.
CITY OF PALM DESERT
6 By: Mayor
A'I'TES"I':
City Clerk
BEST BES' KRIEGER LT. P
C..._ i
By: David: Erwin, Aartner
Pagc 5 of 5
RMRI; S1nER1'[ M3U9238. 1
418
Co• " Tact No. C28i880
EXHIBIT " A"
TQ
LEGAL SERVICES AGREEMENT
SCHEDULE OF BOND COUNSEL FEES)
1. Certificates of Participation and Revenue Bonds. For services in connection with the issuance and sale of certificates of participation and revenue bonds, BB& K shall be paid a fee which will be the greater of( i) $ 30,U00 or ( ii) an amount based on thc total principal amount of the certificates of participation or bonds to be sold, computed as follows:
50% of the first$ 10 million of the amount
of the ceriificates or bonds issued, plus
25% of the next$ 10 million of the amount
thereaf, plus
125% of the amount thereof, if any, over
20 million.
2. Communitv Pacilities Districts. For services in connection with the issuance and sale of bonds of community facilities districts, BB& K shall be paid its hourly rates for conducting the formation proceedings of the Community Facilities District, and negotiation of funding agreements and other agreements relating to the CPD, payable from the landowner' s initial deposit. Additionally, upon issuance of bonds, BB& K will charge a fee which witl be the greater of{ i) $ 30,000 or ( ii) an amount based on the total principal amount of the bonds lo be sold, computed as follows:
SO% of the first$ 10 million of thc
amount of the bonds issued, plus
25% ofthe next$ 10 million of the amount
thereot; plus
125% of the amount thereot; if any, over
20 million.
3. Assessment Districts. For services in connection with the issuance and sale of bonds of assessment districts, BB& K shall be paid its hourly rates for conducting the formation proceedings of the Community Facilities llistrict, and negotiation of funding agreemcnts and other agreements relating to the assessment district, payable from the landowner' s initial deposit. Additionally, upon issuance of bonds, BB& K will charge a fee which will be the greater of(i) $ 25, 000 or( ii) an amount based on the total principal amount af the bonds to be sold, computed as follows:
54% of the first$ 10 million of the
A- 1
419
Contr t No. C28880
amount ofthe bonds issued, plus
25% of the next$ l0 million of the amount
thercof, pius
125% of the amount thereof, if any, over
16 million.
4. Tax Aliocation Bonds. For services in connection with the issuance and sale of tax allocation bonc3s. BB& K shall be paid a fee which will be the greater of{ i) $ 30, 000, or ( ii) an amount based on the total principal amaunt of thc bonds to be sold, computed as follows:
54% of the first 10 million of the amount
of bonds issued, plus
25% of the next$ 10 million of the amount
of bonds issued, plus
20% of the next$ 10 million of the amount
of bonds issued, plus
15% of the next$ 10 million of the amount
of bonds issued, plus
125% ofthe amount thereof, if any, over
40 million.
5. Gencral Obligation Bonds and Tax and Revenue Anticipation Notes. For services in connection with the issuance and sale of general obligation bonds and tax and revenue anticipation notes of the City, BB& K shall be paid a fee which shall be determined basecl on the time expended by the attorneys and attorney assistants who perform services in connection with the issuance and sale of such bonds or notes at the following hourly rates:
Attarneys (including partners and associates): $ 350; Paralegals and Clerks: $ 110.
6. Conduit Borrowin s. For services in connection with the issuance of bonds for and on behalf of conduit borrowers to finance industrial development facilities, multifamily housing projects and other projects qualifying for tax- exempt financing, BB& K shall be paid a fee which will be $ 30,OOU for any bond issuance of$ 3, 000, 000 or less. Because bond counsel fees for condnit bonds are paid by the conduit borrower, we would expc:ct to negotiate the fee for any transaction over$ 3, 000,000 with the conduit borrower, subject to approval by the City.
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420
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Daniel Hurtado, Public Safety Analyst
SUBJECT: RESOLUTION APPROVING THE APPLICATION FOR THE CANNABIS
TAX FUND GRANT PROGRAM (CTFGP) AND ACCEPTING GRANT
AWARD NUMBER 23348 IN THE AMOUNT OF $120,800 FROM THE
CALIFORNIA HIGHWAY PATROL (PROJECT CODE NO. GCT00001)
RECOMMENDATION:
1. Adopt a resolution entitled ”A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, APPROVING THE APPLICATION FOR THE CANNABIS
TAX FUND GRANT PROGRAM (CTFGP) GRANT FUNDS UNDER AWARD NUMBER 23348.”
2. Authorize the City Manager to execute documents related to the grant application, reporting, and payments.
BACKGROUND/ANALYSIS:
The Cannabis Tax Fund Grant Program (CTFGP) is administered by the California Highway Patrol pursuant to Revenue and Taxation Code section 34019(f)(3)(C), which allocates funding to local governments for education, prevention, and enforcement of laws related to impaired driving, particularly cannabis-impaired driving.
The City of Palm Desert applied for CTFGP funding to address cannabis-impaired driving through a combination of education, public awareness campaigns, and enhanced traffic enforcement operations. Under the Fiscal Year (FY) 2025-26 program cycle, the City was awarded $120,800 under grant award number 23348.
The awarded funds will support the Riverside County Sheriff’s Department, City of Palm Desert’s Police contract service provider, in implementing strategies to reduce cannabis-impaired driving, consistent with the grant’s objectives. Planned activities include:
Conducting high-visibility DUI checkpoints
Providing officer training on Advanced Roadside Impaired Driving Enforcement (ARIDE) Delivering community education and outreach regarding the dangers of cannabisimpaired driving Purchasing materials to support educational messaging The grant agreement (FY25-26 CTFGP Grant Agreement) outlines the approved budget, reimbursement procedures, and reporting requirements. The grant has no local matching requirement and will be reimbursed on an actual cost basis, consistent with state grant management practices.
421
City of Palm Desert
(Cannabis Tax Fund Grant Program Resolution)
As a condition of accepting these funds, the City must adopt a resolution authorizing participation in the grant program, certifying compliance with program requirements, and delegating authority to the City Manager or designee to carry out all grant-related responsibilities.
Legal Review:
This report has been reviewed by the City Attorney’s Office.
FINANCIAL IMPACT:
Since CTFGP is a reimbursement grant program, budget has been included in the Police Services Account No. 1104210-4390400 for this purpose. Upon approval of the submitted documentation, a reimbursement in the total amount of $120,800 will be deposited in the General Fund to recover the associated costs. Matching funds are not required for this grant so there is no additional impact to the General Fund.
ATTACHMENTS:
1. Draft Resolution
2. Grant Agreement
422
RESOLUTION NO. 2025-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, APPROVING THE APPLICATION FOR
CANNABIS TAX FUND GRANT PROGRAM (CTFGP) GRANT FUNDS
UNDER AWARD NUMBER 23348
WHEREAS, the California Highway Patrol has been delegated the responsibility by the Legislature of the State of California for administering the Cannabis Tax Fund Grant Program, establishing necessary procedures governing the grant application process; and
WHEREAS, such procedures require applicants to certify by resolution the approval of the application to the State of California; and
WHEREAS, the City of Palm Desert applied for the Cannabis Tax Fund Grant Program funds to support education, prevention, and enforcement activities addressing cannabisimpaired driving; and WHEREAS, the City of Palm Desert has been awarded $120,800.00 under award number 23348 to carry out these program objectives; and
WHEREAS, the City of Palm Desert will enter into an agreement with the California Highway Patrol to implement the grant-funded program activities described in the grant scope;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT AS FOLLOWS:
1. The City Council hereby approves the filing of an application for the Cannabis Tax Fund Grant Program and the acceptance of the awarded amount of $120,800.00 under award number 23348.
2. The City certifies that it has, or will have available prior to the commencement of any work under this grant, sufficient funds to complete the project if required.
3. The City certifies that it has reviewed, understands, and agrees to the General Provisions contained in the program regulations.
4. The City certifies that it will comply with all applicable federal, state, and local laws, ordinances, rules, regulations, and guidelines as a condition of grant acceptance.
5. The City Council hereby delegates authority to the City Manager, or their designee, to conduct all negotiations, and to sign and submit all documents, including but not 423
Resolution No. 2025-___ Page 2
limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the grant scope.
ADOPTED ON ___________.
___________________________________
JAN C. HARNIK
MAYOR
ATTEST:
___________________________________
Anthony J. Mejia
City Clerk
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2025-__ 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
424
Chris Escobedo
Digitally signed by Chris
Escobedo
Date: 2025.07.07 09:27:09
-07'00' 7/7/25
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427
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430
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436
CITY OF PALM DESERT HOUSING AUTHORITY
STAFF REPORT
MEETING DATE: August 28, 2025
PREPARED BY: Jessica Gonzales, Housing Manager
SUBJECT: RESOLUTION AMENDING AND RESTATING THE ADMINISTRATIVE
PLAN FOR THE HOUSING AUTHORITY'S AFFORDABLE RESIDENTIAL
COMMUNITIES AND AUTHORIZING THE EXECUTIVE DIRECTOR TO
TAKE APPROPRIATE ACTIONS FOR IMPLEMENTATION
RECOMMENDATION:
1. Adopt Resolution entitled “A RESOLUTION OF THE PALM DESERT HOUSING
AUTHORITY AMENDING AND RESTATING THE ADMINISTRATIVE PLAN FOR THE
PALM DESERT HOUSING AUTHORITY PERTAINING TO THE MANAGEMENT AND OPERATION OF ITS AFFORDABLE HOUSING PROPERTIES.”
2. Authorize the Executive Director, or designee, to make any necessary corrections and take all actions required to administer, facilitate, modify, establish, and implement the Administrative Plan, provided such actions are consistent with its terms or all applicable local, state, and federal regulations.
BACKGROUND/ANALYSIS:
As a Public Housing Agency (PHA), the Palm Desert Housing Authority (Authority) is required by the California Department of Housing and Community Development (HCD) to adopt and maintain an Administrative Plan that governs specific policies applicable solely to the rental units owned, operated, or managed by the Authority (“Restricted Units”). In 2008, the Authority Board considered and adopted the Authority's Administrative Plan (the Plan). The Plan does not require annual review but is returned to the Authority Board for further review and approval when there are substantial changes suggested by Authority staff or the property manager, or changes issued by the HCD that require action by the Authority.
The purpose of the Plan is to establish program guidelines, policies, and procedures as they pertain to the Restricted Units. This Plan serves as the management plan for the leasing, improvement, preservation, maintenance, and affordability of the Authority's Restricted Units. As defined under California law and consistent with the Palm Desert Municipal Code, the Authority functions as a PHA for its owned or managed properties. Therefore, policies in the Plan apply only to PDHA’s rental units and are not applicable to other affordable housing programs or developments within the city that are not owned or managed by the Authority This Administrative Plan establishes the Authority’s commitment to fair, transparent, and consistent management of its rental housing portfolio. It ensures compliance with applicable local, state, and federal regulations and supports the Authority’s goal of maintaining long-term housing affordability for very low, low, and moderate-income households. 437
City of Palm Desert Housing Authority
Restating and Amending the Authority’s Admin Plan__________________________________
The Authority is responsible for the day-to-day operations of the Restricted Units and is further authorized to do all acts necessary or appropriate in connection with the operation, management, repairs, and rehabilitation. Consequently, instituting and maintaining the Plan as a means of communicating policies and procedures to very low, low, and moderate-income households of the restricted units will assist in promoting an affordable housing program pursuant to the Fair Housing Act, as well as the enforcement of the requirements thereof.
The Authority's policies are derived mainly from state law, including fair housing law and regulations issued by HCD. As affordable housing program regulations and/or local policy are revised, the Plan will continue to be amended. In the absence of legal requirements or HCD guidance, industry best practices may lead to additional changes in Authority policy.
The Executive Director of the Authority or his/her designee shall have the authority to implement and administer the Plan in accordance with the terms therein, as well as the authorizations provided in the Authority Bylaws and resolutions. In matters where the Authority has discretion, waivers to existing policy shall be determined by the Executive Director or his/her designee.
On November 19, 2020, the Authority Board approved revisions to the Plan to update various policies. The updates included policies and procedures regarding resident selection, wait list procedures, household qualification, leasing policies and procedures, recertification requirements, and termination of tenancy. Since then, staff has made additional revisions to the Plan and there have been substantial changes issued by the United States Department of Housing and Urban Development (HUD) and HCD that require action by the Authority.
Summary of Proposed Policy Revisions
The proposed revisions are highlighted in redline format in Attachment 2. Below is a summary of the key changes made:
ADMIN PLAN SECTION CURRENT POLICY PROPOSED CHANGES
Section 3. Fair Housing
– Reasonable
Accommodations
Existed as a general
guideline.
Created as a separate section
and includes more details on
the process reasonable
accommodations will be
considered.
Section 4. Resident
Selection and Waiting
List Procedures
Prospective interested
households complete a
guest card to be placed
on the waiting list.
Prospective interested
household will now complete an
application (no fee) to be placed
on the waiting list.
Section 4. Resident
Selection and Waiting
List Procedures
Two waiting lists are
being maintained for
interested households
and transfer requests.
One waiting list will now be
maintained that includes
interested households and
transfer requests.
438
City of Palm Desert Housing Authority
Restating and Amending the Authority’s Admin Plan__________________________________
Section 4. Resident
Selection and Waiting
List Procedures
Waiting list
maintenance is
currently purged every
two years.
Waiting list maintenance will
now be purged annually and
includes more systematic
criteria.
Section 4. Applications
and Household
Qualification
Criminal Background
outdated.
Criminal Background
updated pursuant to
Federal and State
requirements.
Section 8. Grievance
Process
Grievance Process
includes a third party
arbitration.
Grievance process proposed
does not include arbitration.
Exhibit D – Animal Policy
Allows pets as a
reasonable
accommodation or a
senior companion.
Proposed changes are pursuant
to new state law allowing pets in
apartment communities.
Exhibit E –
Zero Tolerance
Policy
Zero Tolerance Policy
outdated.
Zero Tolerance Policy updated
pursuant to Federal and State
requirements.
The proposed revisions to the Plan, if approved, will be effective September 1, 2025, for all new residents and within thirty (30) days for all existing residents upon proper notice being provided (from the effective date of the Policy).
The management company, pursuant to its contract with the Authority, must implement any management or administrative plan provided by the Authority. Given that the Plan memorializes the existing policies, it is expected that implementation will be seamless. The Plan incorporates comments received from the incoming management company, National Community Renaissance of California (National CORE).
Legal Review:
This report has been reviewed by the City’s special counsel.
Housing Commission:
At its regular meeting of July 9, 2025, the City of Palm Desert Housing Commission recommended the Palm Desert Housing Authority adopt a resolution approving the amended and restated Administrative Plan.
The Plan has had a minor update to Exhibit D - Animal Policy since that approval, including:
- Adding a definition for “Pet” under Section 1.4
- Amending Section 3.3 to clarify that animals shall be licensed, if applicable.
FINANCIAL IMPACT:
439
City of Palm Desert Housing Authority
Restating and Amending the Authority’s Admin Plan__________________________________
There is not direct financial impact with this action. Any expenditure necessary to implement the Plan will not affect the General Fund nor exceed the Housing Authority funds in the approved FY 2025-26 Financial Plan.
ATTACHMENTS:
1. Draft Housing Authority Resolution
a. Exhibit A Draft PDHA Administrative Plan
2. Draft PDHA Administrative Plan Redlined
440
RESOLUTION NO. HAA RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY
AMENDING AND RESTATING THE ADMINISTRATIVE PLAN FOR THE
PALM DESERT HOUSING AUTHORITY PERTAINING TO THE
MANAGEMENT AND OPERATION OF ITS AFFORDABLE HOUSING
PROPERTIES
WHEREAS, the Palm Desert Housing Authority (the "Authority") has established an affordable housing rental program (the "Program") for very low, low, and moderate income households in the City of Palm Desert; and
WHEREAS, the Authority has approved an Administrative Plan (the "Plan") establishing the policies and procedures under which the Authority currently operates for the administration, management and operations of the Program; and WHEREAS, the Administrator of the Plan shall be the Authority regardless of funding source or ownership of the properties; and
WHEREAS, the Authority wishes to amend and restate the Plan to update the policies and procedures under which the Authority operates.
NOW, THEREFORE, BE IT RESOLVED by the Palm Desert Housing Authority, as follows:
SECTION 1. The Authority hereby approves and accepts the amended and restated Plan, as attached hereto as “Exhibit A” and incorporated herein by this reference, and grants all necessary authority for the management and operation of all properties that may be owned, operated, restricted or otherwise controlled by the Authority from time to time.
SECTION 2. The Executive Director of the Authority or his/her designee shall have the authority to consider on a case-by-case basis waivers to existing policy in matters where the Authority has discretion, so long as such action complies with local, state and federal regulations.
SECTION 3. The Executive Director of the Authority or his/her designee shall have the authority to take any other actions that he or she deems necessary to administer, facilitate, modify, establish and implement the Administrative Plan, so long as such action is not inconsistent with the terms thereof or any applicable local, state and federal regulations.
441
Resolution No. HA- Page 2
ADOPTED ON AUGUST 28, 2025.
ATTEST:
JAN C. HARNIK
CHAIRPERSON
ANTHONY J. MEJIA
SECRETARY
442
Resolution No. HA- Page 3
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 Authority Board on August 28, 2025, 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
443
Resolution No. HA- Page 4
Exhibit A
444
ADMINISTRATIVE PLAN
ADMINISTRATIVE POLICIES AND PROCEDURES
of the
PALM DESERT HOUSING AUTHORITY
for the Management and Operation of its
AFFORDABLE HOUSING RENTAL UNITS
73-510 Fred Waring Drive
Palm Desert, CA 92260
Phone: (760) 346-0611
www.cityofpalmdesert.org
Effective September 1, 2025
Version 4.0
445
TABLE OF CONTENTS
ABOUT THE AUTHORITY ................................................................................................................. 1
1.0 DEFINITIONS ......................................................................................................................... 3
2.0 ABOUT THE PLAN .............................................................................................................. 11
2.1 PURPOSE OF PLAN ..................................................................................................... 11
2.2 APPLICABILITY OF THE PLAN ................................................................................... 11
2.3 ADMINISTRATOR OF THE PLAN................................................................................. 11
2.4 FISCAL RESPONSIBILITIES......................................................................................... 11
2.5 EQUAL OPPORTUNITY................................................................................................ 11
2.6 LIMITED ENGLISH PROFICIENCY............................................................................... 11
2.7 PROPERTIES................................................................................................................ 11
3.0 FAIR HOUSING – REASONABLE ACCOMODATIONS ..................................................... 14
3.1 REASONABLE ACCOMODATIONS ............................................................................ 14
3.2 REQUEST FOR ACCOMODATIONS........................................................................... 14
4.0 RESIDENT SELECTION AND WAITING LIST PROCEDURES .......................................... 17
4.1 WAITING LIST APPLICATION ..................................................................................... 17
4.2 ESTABLISHMENT OF WAITING LISTS....................................................................... 17
4.3 ELIGIBILITY FOR WAITING LIST ................................................................................ 17
4.4 PLACEMENT ON THE WAITING LIST ........................................................................ 17
4.5 NOTIFICATION OF AVAILABLE UNIT......................................................................... 18
4.6 NOTIFICATION BY WAIT LIST ELIGIBLE HOUSEHOLD OF INCOME OR HOUSEHOLD CHANGES ............................................................................................ 18
4.7 WAITING LIST MAINTENANCE AND NOTIFICATION OF CONTINUED INTEREST.................................................................................................................... 18
4.8 ALL UNITS ARE AFFORDABLE .................................................................................. 19
4.9 PREFERENCES........................................................................................................... 19
4.10 SELECTION FROM THE WAIT LIST UPON UNIT AVAILABILITY .............................. 19
4.10.1 Property Income Composition and Income by Unit Allocation ........................ 20
4.10.2 Unit Under/Over Utilization ............................................................................. 20
4.10.3 Offer and Acceptance of a Restricted Unit ..................................................... 20
4.10.4 Unit Availability and Transfers ........................................................................ 20
4.10.4a Emergency Transfer........................................................................................ 21
4.10.4b Disabled Person Accommodation ................................................................... 21
4.10.4c Required Transfer ........................................................................................... 21
4.10.4d Medical Transfer ............................................................................................. 21
4.10.4e Requested Transfers....................................................................................... 21
4.11 Conflicts Prohibited ....................................................................................................... 21
5.0 APPLICATIONS AND HOUSEHOLD QUALIFICATION...................................................... 23
5.1 APPLICATION.............................................................................................................. 23
5.1.1 Contact Information ........................................................................................ 23
5.1.2 Income............................................................................................................ 23
5.1.3 Assets............................................................................................................. 25
5.1.4 Affordable Requirements................................................................................ 25
5.1.5 Applicant Lease Requirements....................................................................... 25
5.1.6 Identification ................................................................................................... 25
5.1.7 Consent/Verification Forms ............................................................................ 25
5.1.8 Application Fee............................................................................................... 25
5.1.9 Other Information............................................................................................ 25
5.2 APPLICANT LEASE REQUIREMENTS ....................................................................... 25 446
5.2.1 Age Requirements.......................................................................................... 25
5.2.2 Income History/Verification............................................................................. 26
5.2.3 Self-Employment ............................................................................................ 26
5.2.4 Lease Income Requirement ........................................................................... 26
5.2.5 Rental History................................................................................................. 26
5.2.6 Criminal Background Check ............................................................................................... 26
5.3 AFFORD QUALIFICATION REQUIREMENTS............................................................. 26
5.3.1 Household Income Criteria ............................................................................. 26
5.3.2 No Ownership in Real Property or Mobilehomes............................................ 27
5.3.3 Certification and Recertification of Eligibility ................................................... 27
5.3.4 Proof of Income .............................................................................................. 27
5.3.5 Changes in Income......................................................................................... 27
5.3.6 Primary Residence Requirement.................................................................... 27
5.3.7 Other Housing Assistance .............................................................................. 27
5.4 CREDIT CHECKS, BACKGROUND CHECKS, AND DOCUMENTATION VERIFICATIONS .................................................................................................................. 27
5.4.1 Applicant Certifications and Verifications........................................................ 27
5.4.2 Credit Reports/Background Checks ............................................................... 29
5.5 ADDITIONAL DOCUMENT SUBMITTAL...................................................................... 30
5.6 APPLICATION ACCURACY....................................................................................... 310
5.7 APPLICATION APPROVAL/DENIAL.......................................................................... 310
6.0 LEASING POLICIES AND PROCEDURES ......................................................................... 32
6.1 RESIDENTIAL LEASE AND ADDENDA....................................................................... 32
6.2 RESIDENTIAL LEASE POLICIES AND NOTICES....................................................... 34
6.3 LEASE DEPOSITS.......................................................................................................... 34
6.4 LEASE PAYMENTS AND LATE CHARGES................................................................... 34
6.5 LEASE ADDENDA IN WRITING ..................................................................................... 35
6.6 LEASE MODIFICATIONS ............................................................................................... 35
6.7 PRE-OCCUPANCY INSPECTION .................................................................................. 35
6.8 RENTAL RATES ............................................................................................................. 35
6.8.1 Setting Rental Rates....................................................................................... 35
6.8.2 Rental Rents Based on Standard Occupancy ................................................ 35
6.8.3 Household Rent.............................................................................................. 36
6.9 MAINTENANCE AND ENTRY TO RESTRICTED UNITS ............................................... 36
6.10 LEASE RENEWALS...................................................................................................... 36
6.11 NO SUBLETTING.......................................................................................................... 36
6.12 LIVE-IN AIDES .............................................................................................................. 36
6.13 ANIMALS……………………………………………………………………………....... 37
6.14 RESIDENTIAL LEASE ENFORCEMENT...................................................................... 37
7.0 RECERTIFICATION REQUIREMENTS ............................................................................... 38
7.1 REQUIRED ANNUAL RECERTIFICATION.................................................................. 38
7.1.1 Recertification Appointments.......................................................................... 38
7.1.2 Recertification Documentation........................................................................ 38
7.1.3 Annual Recertification Confirmation as a Qualified Household ...................... 39
7.2 CIRCUMSTANTIAL OR INTERIM RECERTIFICATION............................................... 39
7.2.1 Changes in Household Size ........................................................................... 39
7.2.2 Change of Household Income ........................................................................ 39
7.2.3 Temporary Recertification ………………………………………………........ 40
7.3 ANNUAL INSPECTIONS.............................................................................................. 40 7.4
8.0 TERMINATION OF TENANCIES AND MOVE-OUT PROCEDURES .................................. 41
8.1 TERMINATION OF TENANCIES OTHER THAN BY EVICTION.................................. 41
8.1.1 End of Lease Term......................................................................................... 41
8.1.2 During a Lease Term...................................................................................... 41 447
8.1.3 Notices to Vacate for Termination of Tenancies Other than by Eviction......... 41
8.1.3a Resident Notices to Vacate ............................................................................ 41
8.1.3b Management Notices to Vacate...................................................................... 41
8.1.4 Move-out Procedures ..................................................................................... 41
8.1.4a Initial Pre-Inspection Request......................................................................... 41
8.1.4b Scheduling the Move-out Inspection............................................................... 42
8.1.4c Opting Out of a Move-Out Inspection ............................................................. 42
8.1.4d Inspection Exceptions..................................................................................... 42
8.1.4e Inspection Findings......................................................................................... 42
8.1.4f Final Inspection .............................................................................................. 42
8.1.4g Resident Presence......................................................................................... 42
8.1.5 Maintenance and Repairs Necessary Due to Impending Move-out................ 43
8.2 TERMINATION OF TENANCY THROUGH TO EVICTION .......................................... 43
8.2.1 Reasons for Eviction................................................................................... 4343
8.2.1a Violations of the Lease ................................................................................... 43
8.2.1b Non-Payment of Rent..................................................................................... 43
8.2.1c Misrepresentation of Eligibility Under the Plan ............................................... 43
8.2.2 Eviction Process............................................................................................. 43
8.2.2a Eviction Notice................................................................................................ 43
8.2.2b Verification of Occupancy............................................................................... 43
8.2.2c Unlawful Detainer ........................................................................................... 44
8.3 REFUND OF SECURITY DEPOSIT............................................................................. 44
8.3.1 Notification of Itemized Security Deposit Disposition...................................... 44
8.3.2 Resident’s Entitlement to Security Deposit..................................................... 44
9.0 GRIEVANCE PROCESS...................................................................................................... 45
9.1 GRIEVANCE APPLICABILITY...................................................................................... 45
9.2 GRIEVANCES PROCEDURES.................................................................................... 45
9.2.1 Informal Grievance ......................................................................................... 45
9.2.2 Procedures for Appeal and Grievance............................................................ 45
9.2.3 Grievance Process ......................................................................................... 45
EXHIBITS
EXHIBIT A ....................................................................................................................... 48 EXHIBIT B ....................................................................................................................... 49 EXHIBIT C ....................................................................................................................... 51 EXHIBIT D ....................................................................................................................... 52 EXHIBIT E ....................................................................................................................... 55 EXHIBIT F ....................................................................................................................... 57 EXHIBIT G ....................................................................................................................... 62 448
Management and Operations – Rental Units Effective September 1, 2025
ABOUT THE AUTHORITY
“The mission of the Palm Desert Housing Authority is to serve the citizens of Palm Desert by providing decent, safe, sanitary, and affordable housing to qualifying households whose incomes are very low to moderate including publicprivate partnerships.” The Palm Desert Housing Authority (Authority) was created in December of 1997 by the Palm Desert City Council to manage certain affordable rental properties located in the City. These properties were acquired by the former Palm Desert Redevelopment Agency (former RDA) from the Riverside County Housing Authority (RCHA). Before the acquisition, the RCHA owned and operated the 725 affordable units in Palm Desert. In 2012, as part of statewide legislation that dissolved redevelopment agencies, the City of Palm Desert (City) designated the Authority as the successor housing entity. Today the Authority, now owns more than 1,000 affordable rental units with income levels ranging from very low (20 percent of the Riverside County Area Median Income) to moderate (up to 120 percent of the Riverside County Area Median Income). The members of the City Council serve as the Authority’s Board (the Board or Authority Board), And the Authority Board established a Housing Commission made up of community members to provide review and advise on matters to come before the Authority Board.
The Authority collaborates closely with the City to uphold the goals and policies outlined in the City’s Housing Element:
Goal 1: Provide a range of housing types that meet the needs of all income groups within the City.
Goal 2: Preserve and maintain the City’s high quality affordable housing stock.
The success of the Authority’s affordable housing programs can be attributed to the strong foundation of policies, procedures and regulations in place. These programs ensure that all residents are treated fairly under fair housing laws, and equitably based on income and family size. The Authority’s rental properties, along with other housing initiatives, are managed by a contracted professional property management company, working in coordination with staff, and adhering to the guidelines in this Administrative Plan.
The policies, guidelines and standards outlined in this Administrative Plan shall apply to rental properties owned, operated or controlled by the Authority. They are designed to promote the maintain and preservation of affordable housing in Palm Desert, enhance the condition of these properties, and ensure compatibility with the community, as expected by both the City Council and the Authority Board.
NOTICE: This Plan is intended to establish policies where the Authority has discretion under the applicable law. This Plan does not purport to change any of the requirements of Federal or State Law. In the event any discrepancy between this Plan and applicable law, the law will prevail. 449
PDHA Administrative Plan Section 1: Definitions
Management and Operations – Rental Units Effective September 1, 2025
Section 1. DEFINITIONS
Unless the context explicitly requires otherwise, the following terms are defined as follows.
References to statutory or regulatory provisions include any subsequent amendments unless sated otherwise. Capitalized terms used herein shall have the following meanings unless the context in which they are used clearly requires otherwise. Code Sections or statutes that are referenced herein may be amended from time to time and shall be subject to the then current law unless stated otherwise.
Section 1.1 Adjusted for Family Size – shall mean a standardized household size for renting units appropriate for family size as defined in Health and Safety Code Section 50052.5, as amended.
Section 1.2 Affordable Housing Cost – shall mean the cost of housing as defined by Title 25 CCR Section 6920, calculated under California Health and Safety Code Section 50052.5, as amended.
Section 1.3 Area Median Income (AMI) – shall mean the Area Median Income for Riverside County, determined annually by the Department of Housing and Community Development for the State of California (“HCD”), under California Health and Safety Code Section 50093, as amended. Adjustment for family size shall align with California Health and Safety Code Section 50052.5, as amended. If HCD ceases publishing AMI, a comparable index approved by the Authority or funding source will be used.
Section 1.4 Applicant – shall mean a person or household applying for tenancy at an Authority Property. Related terms: Interested Household, Wait List Eligible Household, and Qualified Household.
Section 1.5 Assets – see Household Assets.
Section 1.6 Authority – shall mean the Palm Desert Housing Authority.
Section 1.7 Authority Board – shall mean the governing body for the Authority.
Section 1.8 Caretaker – see Live-in Aide.
Section 1.9 CCR – shall mean the California Code of Regulations.
Section 1.10 CFR – shall mean the Code of Federal Regulations.
Section 1.11 Child – see Minor.
Section 1.12 Child Care Expenses – shall mean a reasonable costs paid by a Household for the care of Minors under age 13 when necessary to enable a family member to work.
Section 1.13 City – shall mean the City of Palm Desert. 450
PDHA Administrative Plan Section 1: Definitions
Management and Operations – Rental Units Effective September 1, 2025
Section 1.14 City Manager – shall mean the City Manager for the City of Palm Desert or his or her designee.
Section 1.15 County – shall mean the County of Riverside, California.
Section 1.16 Disability – shall mean a physical or mental impairment that substantially limits major life activities defined by under the Americans with Disabilities Act.
Section 1.17 Disability Program Participant – shall mean a Household member who has been determined by the Commissioner of Social Security to be unable to engage in any substantial gainful activity due to a medically determinable physical or mental impairment that has lasted or can be expected to last for a continuous period of at least 12 months, or as more particularly defined in Section 223 of the Social Security Act.
Section 1.18 Elderly Household – shall mean a Household that consists of one or two persons, one of which is a Senior, or otherwise is qualified in accordance with California Civil Code Section 51.11.
Section 1.19 Emergency Condition – shall mean any condition in the Restricted Unit or applicable Property that poses an immediate, verifiable threat to the life, health or safety of the Resident that cannot be repaired or abated within 24 hours.
Section 1.20 Exceptional medical or other expenses – shall mean medical expenses, and/or unusual expenses, as defined in this Section, which exceed 25 percent of the gross annual income.
Section 1.21 Executive Director – shall mean the Executive Director of the Palm Desert Housing Authority.
Section 1.22 Family – shall also mean ‘Household’ within the Plan unless otherwise stated. See also Household.
Section 1.23 Grievance – A Resident’s or Applicant’s right to seek review of a decision by an impartial panel concerning the Management Company’s action or failure to act in accordance with the individual Resident’s lease or the Authority’s policy and procedures herein described that adversely affect the individual’s rights, duties, welfare, or status.
Section 1.24 HCD – shall mean the Department of Housing and Community Development for the State of California.
Section 1.25 HOME funds – shall mean financial allocations under a block grant funding program made available through HUD aimed at fostering public-private partnerships and increasing the supply of decent, safe, sanitary and affordable housing with a focus on very low-income and low-income families in accordance with the HOME Investment Partnerships Program regulations (24 CFR Part 92, as amended). 451
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Section 1.26 Household – shall mean one or more persons intending to occupy or occupying the same Restricted Unit, as more particularly described in the Occupancy Standards Policy. Household shall also mean ‘Family’ within this Plan unless stated otherwise.
Section 1.27 Household Assets – shall mean those Assets defined under Title 25 CCR Section 6914 includable as monthly income as prescribed therein.
Section 1.28 HUD – shall mean the U.S. Department of Housing and Urban Development.
Section 1.29 Income – shall mean income that a person or Household has received or is expected to receive as more particularly categorized and described below:
Section 1.29.1 Annual Income – shall mean the anticipated total annual income of a Household from all sources for the 12-month period following the date of determination of income, computed in accordance with Title 25.
Section 1.29.2 Household Income – shall mean the total of all income received by a Household which is included under Title 25 CCR Section 6914 less deductions and exemptions specified therein.
Section 1.29.3 Gross Income – shall have the meaning ascribed to such term in Title 25 CCR Section 6914, as such regulations may be amended from time to time.
Section 1.29.4 Maximum Household Income – shall mean the Household income calculated based on family size that may be equal to but does not exceed 120 percent of the Riverside County AMI. Household incomes exceeding 120 percent of the Riverside County AMI will not be eligible for the Authority’s program.
Section 1.29.5 Net Income – for the purpose of determining Affordable Housing Cost or affordable rent, "net income" shall be computed as provided by Title 25 CCR Section 6916, as such regulations may be amended from time to time, as follows: the annual gross income less $300 for each minor and medical expenses which exceed 3 percent of the annual gross income and unusual expenses, all divided by 12.
For the purposes of this Plan, “Income” shall not include the income of Live-In Aides.
For the purposes of this Plan, “Income” shall include any employment, benefits, family support and additional bank deposits provided to any member of the Household, except for items listed under subdivision (b) of Title 25 CCR Section 6914, as such regulations may be amended from time to time.
For the purposes of this Plan, “Income” shall include net income from the operation of a business or profession (including self-employment).
For the purposes of this Plan, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business owned by any Household member.
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See also, Income by Unit Allocation, Income Category, Income Level, Low Income Household, Very Low Income Household, Moderate Income Household, and Qualified Household.
Section 1.30 Income by Unit Allocation – shall mean the allocation provided by the Authority to the Management Company for the purposes of blending the Qualified Household and resident incomes among the properties.
Section 1.31 Income Category – shall mean the average income percentages within each income level. In the case of Extremely Low and Very Low Income shall include Household incomes from 20 percent up to 50 percent in the following categories: 20-24, 25-29, 30-34, 35-39, 40-44, 45 up to 50 percent; in the case of Low Income shall include Household incomes from 51 percent up to 80 percent in the following categories: 51-55, 56-60, 61-65, 66-70, 71-75, 76-80 percent; and in the case of Moderate Income shall include Household incomes from 81 percent up to 120 percent as one category.
Section 1.32 Income Level – shall mean a Household determined by income to be either very low, low or moderate income pursuant to the definitions prescribed herein.
Section 1.33 Interested Households – shall mean a person or Household that desires to apply for tenancy at a Property that contains Restricted Units. See also: Applicant.
Section 1.34 Jurisdiction – shall mean the legal jurisdiction of the Authority, which is the city limits of the City of Palm Desert.
Section 1.35 Live-in Aide – shall be defined as provided in Title 24 CFR Section 5.403, and shall mean a person residing with a Seniors or an individuals with disabilities, who provides essential care services as verified by the Authority, is not obligated for the support of the Resident(s), and would not be reside in the Restricted Unit except for providing supportive services. Live-in Aides must (1) certify annually that he or she qualifies as a Live-in Aide under Title 24 CFR Section 5.403 via affidavit; (2) consent to a back-ground check by the Management Company; and (3) acknowledgement that he or she only has right to the Restricted Unit as long as the applicable Resident(s) need supportive services and remains a Resident of the Restricted Unit.
Section 1.36 Low Income Household – shall mean persons and families meeting the income qualification limits set forth in California Health and Safety Code Section 50079.5 and Title 25 of the California Code of Regulations Section 6910, et seq., as the case or context may require, as such statutes and regulations may be amended from time to time.
Section 1.37 Management Company – shall mean the contracted property management company for the Authority.
Section 1.38 Medical Expenses – shall mean those medical expenses not included as extraordinary or unusual expenses, which are to be anticipated during the 12-month period for which the gross income is computed, and which are not covered by insurance (however, premiums for such insurance may be included as medical expenses). 453
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Section 1.39 Minor – shall mean a member of the Household, excluding the head of household or spouse, who is under 18 years of age.
Section 1.40 Moderate Income Household – shall mean persons and families meeting the income qualification limits set forth in California Health and Safety Code Section 50093 and Title 25 of the California Code of Regulations Section 6910, et seq., as the case or context may require, as such statutes and regulations may be amended from time to time.
Section 1.41 Notice of Denial – shall mean the notice provided to the Household when it is ineligible, not qualified or is no longer qualified.
Section 1.42 Occupancy Standards Policy – shall mean the occupancy standards for residential units owned, operated and restricted by the Palm Desert Housing Authority set forth in Resolution No. HA-84 adopted December 14, 2017, as may be amended from time to time.
Section 1.43 Plan – shall mean this Administrative Plan (also referred to as the Plan).
Section 1.44 Property – shall mean a multi-family or senior residential apartment community, or part thereof, that is owned, operated or controlled by the Authority, including properties listed in Exhibit A, as amended.
Section 1.45 Property Manager – shall mean the individual assigned by the Management Company to oversee daily operations at a specific affordable residential property.
Section 1.46 Public Housing Agency – shall mean any State, County, municipal or other government entity or public body (or agency or instrumentality thereof) that is authorized to engage in or assist in the development or operation of housing for Very Low, Low, or Moderate Income Households.
Section 1.47 Qualified Household – shall mean a person or Household whose total household income does not exceed the limits established by the Plan and who have provided documentation as required herein to demonstrate he, she or it is qualified to occupy a Restricted Unit.
Section 1.48 RCHA – shall mean Riverside County Housing Authority.
Section 1.49 Reasonable Accommodation – shall mean a change to a rule, policy, or practice that allows a person with a disability to use and enjoy their housing. This includes access to dwelling units, public areas, laundry rooms and parking.
Section 1.50 Rent – shall mean the amount charged for occupying a Restricted Unit, as outlined in the Rental Rate Policy, or any amendments thereto. The categories are as follows:
Section 1.50.1 Affordable Rent – shall mean rent calculated in accordance with Health and Safety Code Section 50053 for Very Low, Low or Moderate-Income 454
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Households, including a reasonable utility allowance.
Section 1.50.2 Maximum Rent – shall mean the maximum rental rate set for a particular type of unit at a specific Property, without regard to utility allowance, based on a bi-annual market survey. Such rate shall be adjusted in the nonsurveyed year by the AMI percentage change as more particularly described in the Rental Rate Policy or any amendments thereto.
Section 1.50.3 Resident Rent – shall mean the total monthly resident payment to the Authority as determined by certification, recertification, or outside assistance.
Resident Rent may or may not be the total paid as Unit Rent for a particular unit.
Section 1.50.4 Unit Rent – shall mean the total rent charged for a particular Authority owned, operated or controlled unit, including those amounts accepted from a third party for the purposes of rental assistance or housing expense.
Section 1.51 Rent Burdened – shall mean a Household that pays more than 30 percent of its Household Income for rent and utilities.
Section 1.52 Rental Rate Policy – shall mean the rental rates for residential units owned, operated and restricted by the Palm Desert Housing Authority set forth in Resolution No. HA-84 adopted December 14, 2017, as may be amended from time to time.
Section 1.53 Resident – shall mean a person or Household that has signed a residential lease to occupy or is currently occupying a Restricted Unit.
Section 1.54 Restricted Units – shall mean Restricted housing unit occupied by a Qualified Households that is owned by the Authority.
Section 1.55 Senior – shall mean a person who is at least 55 years of age or older.
Section 1.56 Successor Agency – shall mean the Successor Agency to the Palm Desert Redevelopment Agency
Section 1.57 Title 25 – shall mean Title 25 of the California Code of Regulations Section 6910, et seq., as it pertains to income and household size for Households whose income is very low, low or moderate, as may be amended from time to time.
Section 1.58 Unusual expenses – shall be as defined in 25 CCR Section 6912, and shall mean amounts paid by the Household for the care of minors under 13 years of age or for the care of disabled or handicapped household members, but only where such care is necessary to enable a Household member to be gainfully employed, and the amount allowable as unusual expenses shall not exceed the amount of income from such employment.
Section 1.59 Utilities – shall include electricity, gas, other heating (including hot water heating), refrigeration and cooking fuels not paid by the Authority. Utilities may include 455
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water, trash and sewer if not paid by the Authority. Telephone, Cable, Digital Services and Internet Connection costs are not included as utilities.
Section 1.60 Utility Allowance – shall mean the amount, updated annually, equal to the estimate established by the RCHA of the monthly cost of a reasonable consumption of such utilities and other services described in Title 25 CCR Section 6918(c) for the Restricted Unit by an energy-conservative Household consistent with the requirements of a safe, sanitary, and healthful living environment applicable for each unit type and equipment.
Section 1.61 Veteran – shall mean a person who has served in U.S. Armed Forces at any time, and was discharged or released under conditions other than dishonorable, as verified by the Veterans Administration.
Section 1.62 Veterans Preference – shall mean the preference that allows a Wait List Eligible Household that includes a Veteran to be placed on the applicable priority waiting list.
Section 1.63 Very Low Income Household – shall mean persons and families meeting the income qualification limits set forth in California Health and Safety Code Section 50105 and Title 25 of the California Code of Regulations Section 6910, et seq., as the case or context may require, as such statutes and regulations may be amended from time to time; provided, however, that such income is at least 20 percent of AMI.
Section 1.64 Wait List Eligible Households – shall mean persons and families who have provided the documentation and/or information required demonstrating that they meet the minimum eligibility requirements to be placed on a waiting list. (See Section
3.3)
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Section 2. ABOUT THE PLAN
Section 2.1 PURPOSE OF THE PLAN. The Administrative Plan (the Plan) establishes guidelines, policies and procedures governing properties owned, operated, or controlled by the Authority. The plan serves as the management framework to ensure the rental, improvement, preservation, maintenance and affordability of Authority Restricted Units.
Section 2.2 APPLICABILITY OF THE PLAN. The Plan applies to Interested Households, Wait List Eligible Households, Qualified Households, Applicants and Residents applying for or residing in properties listed in Exhibit A and any other properties under the jurisdiction of or management of the Authority. Unless specified otherwise by Federal or State funding guidelines, the procedures outlined in the Plan also apply to Residents of Restricted Unit who receive Federal or State receiving direct or indirect Federal or State funding. In cases of inconsistency between the Plan and Federal or State laws, such the applicable laws shall prevail.
Section 2.3 ADMINISTRATOR OF THE PLAN. The Authority is the administrator of the Plan, regardless of the funding source or ownership of the Restricted Units. The Executive Director shall have the authority for implementing and administering the Plan’s policies. Where the Authority has discretion,, the Executive Director or his or her designee has the authority to approve waivers of existing policies.
Section 2.4 FISCAL RESPONSIBILITIES. Before the start of each fiscal year or as soon as possible following acquisition of property acquisition, the Authority Board will adopt a budget for the property. The budget will include a projected revenues and all expenditures, including management fees prior to any spending. Procurement procedures will adhere to the City’s policies and applicable law.
Section 2.5 EQUAL OPPORTUNITY. The Authority and its agents shall comply with all applicable federal, state, and local anti-discrimination laws, including but not limited to: Title VI of the Civil Rights Act of 1964; Title VIII and Section 3 of the Civil Rights Act of 1968 (amended by the Community Development Act of 1974); Executive Order 11063 as amended in 1992; the Fair Housing Act of 1968, as amended; the Age Discrimination Act of 1975; the Americans with Disabilities Act (ADA) of 1990; the U.S. Department of Housing and Urban Development fair housing regulations .
It is the Authority’s policy to comply with any legislation enacted to protect the rights of Residents, Applicants or staff.
It is the Authority’s policy to post required notices prominently throughout the properties as mandated.
Section 2.6 LIMITED ENGLISH PROFICIENCY. It is the Authority’s policy to ensure meaningful access to programs, services and documents to limited English proficient (LEP) individuals. The Authority may translate certain documents related to the Plan as well as those required by law to assist persons with LEP. Notwithstanding this provision, the English version of all documents signed by the Resident will govern. Reasonable, necessary steps will be 457
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provided in order to make certain that no eligible person has their assistance denied, decreased or terminated simply because they face challenges communicating in English.
Section 2.6.1 ESTABLISHING LANGUAGE ASSISTANCE NEEDS. To determine the appropriate level of language assistance required at each property, this includes providing interpreters and, where necessary, translated documents to applicants and residents ("beneficiaries") at no cost, as required by state law this may include interpretations as necessary, a four-factor analysis shall be conducted as follows:
2.6.1.1 Number or Proportion of LEP Persons: The number of LEP individuals eligible to be served or likely to be encountered at the property.
2.6.1.2 Frequency of Contact: How often LEP individuals interact with the property’s staff or services.
2.6.1.3 Nature and Importance: The significance of the programs, activities, or services provided at the property.
2.6.1.4 Resources and Costs: The availability of resources and associated costs for providing language services.
Section 2.6.2 LANGUAGE ACCESS PLAN
2.6.2.1 Languages Identified. The Language Access Plan (LAP) specifies the language(s) spoken by the proportionate majority of LEP beneficiaries at each property.
2.6.2.2 Interpretation Services. All LEP individuals are entitled to interpretation services, regardless of the language they speak. Staff must provide interpretation services as needed.
2.6.2.3 Document Translation. Translation of vital documents will be considered on a case-by-case basis. (a) Whether the document is vital to ensuring program access or continued assistance for the LEP beneficiary.(b) The cost implications and resources available to the property Section 2.6.3 Authorization Process for Document Translations. Document translations must not be initiated without prior approval from the Management Company Regional Director.
Section 2.6 PROPERTIES. The Plan applies to all Properties currently owned and operated by the Authority, as listed in Exhibit A as well as any properties or development that may be acquired, managed, or controlled by the Authority. Some Authority properties are exclusively designated for Seniors and Elderly Households, while others are available to all Qualified Households.
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Administrative Plan Section 3: Fair Housing – Reasonable Accommodations Management and Operations – Rental Units Effective September 1, 2025
Section 3. FAIR HOUSING – REASONABLE ACCOMODATION
3.1. REASONABLE ACCOMMODATION. Reasonable accommodation can include:(1) Making changes to the interior of units to meet accessibility requirements, such as placing light switches at accessible heights and (2) Changing a bathtub to a “walk in” shower.
3.1.1 Management Company cannot require people with disabilities to pay extra fees or deposits, or impose other special conditions, as a condition of receiving a reasonable accommodation. Failure to provide a reasonable accommodation may be considered discrimination.
3.1.2 The Americans with Disabilities Act (ADA) and the Fair Housing Act (FHA) are laws that seek to ensure equal access to housing opportunities for individuals with disabilities and other protected classes.
3.2. REQUEST FOR ACCOMMODATION. A resident or an applicant for housing makes a reasonable accommodation request whenever they make clear to the Property Manager that they are requesting an exception, change or adjustment to a rule, policy, practice or service because of their disability. The resident or applicant should explain what type of accommodation they are requesting.
3.2.1 An applicant or Resident is not entitled to receive a reasonable accommodation unless they request one. However, the FHA does not require that a request be made in a particular manner or at a particular time. A person with a disability need not personally make the reasonable accommodation request; the request can be made by a family member or someone else who is acting on their behalf. An individual making a reasonable accommodation request does not need to mention the Act or use the words “reasonable accommodation.” However, the requester must make the request in a manner that a reasonable person would understand to be a request for an exception, change, or adjustment to a rule, policy, practice, or service because of a disability.
3.2.2 Although a reasonable accommodation request can be made orally or in writing, it is usually helpful for both the resident and the Property Manager if the request is made in writing. This will help prevent misunderstandings regarding what is being requested, or whether the request was made.
3.2.3 A doctor’s note (written within 3 months of the request) is also required to verify the needs of the reasonable accommodation.
3.2.4 Whether a particular accommodation is reasonable depends on a variety of factors and must be decided on a case-by-case basis.
3.2.5 The determination of whether a requested accommodation is reasonable depends on the answers to two questions. First, does the request impose an undue financial and administrative burden on the Authority? Second, would making the accommodation require a fundamental alteration in the nature of the Authority's 459
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operations? If the answer to either question is yes, the requested accommodation is not reasonable. However, even where a Management Company is not obligated to provide a particular accommodation because the particular accommodation is not reasonable, the Management Company is still obligated to provide other requested accommodations or alternative accommodations to the one initially requested that do qualify as reasonable. 460
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Section 4. RESIDENT SELECTION AND WAITING LIST PROCEDURES The Authority has determined that the demand for affordable rental housing exceeds available supply. To help identify Households that have interest in Restricted Units, waiting lists will be established for each property as outlined below. Households that meet the eligibility requirements will be placed on the waiting list based on their income category, household size, and any allowable preferences.
Section 4.1 WAITING LIST INTEREST REGISTRATION FORM. All Interested Households must complete a ”Waitlist Application”. The Waitlist Application is used by the Authority to assess eligibility for placement on the waiting list based on the information provided.
Waitlist Application can be submitted by phone, by mail or email, RentCafe or delivered in person to the individual property management office.
Section 4.2 ESTABLISHMENT OF WAITING LISTS. Waiting lists will be maintained for each property, with the exception of Palm Village, Santa Rosa, and Carlos Ortega Villa, for each Income Category at or below 120 percent of the Riverside County AMI. For Palm Village, Santa Rosa, and Carlos Ortega Villas waiting lists will be maintained for Income Category at or below 80 percent of the Riverside County AMI. Waiting lists for transfers will also be separately maintained for each property in accordance with this Section 3.
Section 4.3 ELIGIBILITY FOR WAITING LIST. To become a Wait List Eligible Household, and be placed on the waiting list, an Interested Household must meet the income eligibility requirements based on the Riverside County AMI. The Interested Household will be required to meet additional permissible criteria established by the Authority under Title 25 which include but are not limited to:
Section 4.3.1 Must provide Income and Assets information for all Household members aged 18 or older (excluding for Live-In Aides), ensuring the total does not exceed the current published Maximum Household Income for the Household size.
Section 4.3.2 Must provide names and ages of all Household members.
Section 4.3.3 Must disclose any allowable preferences and accommodation needs at the time of interest.
Section 4.3.4 Current address and contact information.
Section 4.4 PLACEMENT ON THE WAITING LIST. All Wait List Eligible Households will be placed on the appropriate affordable waiting list according to allowable preferences, qualifying income, household size, and the date/time order the Wait list Application was received. Wait List Eligible Households must update the information provided to the Management Company as necessary to maintain eligibility during the wait list period and continue on the waiting list.
Section 4.5 NOTIFICATION OF AVAILABLE UNIT. Once the Management Company identifies a Restricted Unit that will become available, Wait List Eligible Households will be notified by phone or email. In the event that the Management Company cannot reach the Wait 462
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List Eligible Household by phone or email, the Management Company will provide notification by U.S. mail. The Wait List Eligible Household will have five (5) business days to respond to this notification. Failure of the Wait List Eligible Household to respond within the time frame above will result in removal from the waiting list. It is the Wait List Eligible Household’s responsibility to keep the waiting list information up to date at all times. In the event contact is not possible due to insufficient or out of date information, the Wait List Eligible Household will no longer be deemed ‘eligible’ and will be removed from the waiting list without further notice.
Section 4.6 NOTIFICATION BY WAIT LIST ELIGIBLE HOUSEHOLD OF INCOME OR HOUSEHOLD CHANGES. Wait List Eligible Household must report any changes to their income or composition to the Property Manager of the individual property to ensure its placement on the waiting list under the correct income category and/or Household size. At the time the updated information is provided, if the revised household income changes the income category for the Wait List Eligible Household but remains under 120 percent of the AMI, the Household will remain ‘eligible’ and will be reassigned to the appropriate new income category while retaining their original placement date on the waiting list. The Wait List Eligible Household will be notified of the change.
Section 4.7 WAITING LIST MAINTENANCE AND NOTIFICATION OF CONTINUED INTEREST. Wait List Eligible Household on the waiting list must confirm their continued interest every year and maintain all information current. The Wait List Eligible Household must notify the individual property management office at least five (5) days but not more than 60 days before the one-year anniversary of placement on the waiting list. Failure to notify the property management office within this time frame will result in removal from the waiting list. The waiting list will be purged annually of Households that no longer meet the applicable requirements. The Wait List Eligible Households will alsobe removed from the waiting list for the following reasons:
Section 4.7.1 The Household has been on the waiting list for more than twelve (12) months without confirming its continued interest ; Section 4.7.2 The Household fails to respond to a written request for information; Section 4.7.3 The Household information becomes outdated, making it impossible for the Management Company to contact the Household; Section 4.7.4 The Household misses a scheduled appointment without notifying the property management office to reschedule;
Section 4.7.5 The Household requests in writing to be removed from the waiting list;
Section 4.7.6 The Household’s income or size has exceeded the limits of the program;
Section 4.7.7 The Household fails to disclose any allowable preferences and accommodation needs at the time of interest.
Section 4.7.8 The Household has been removed from a Property waiting list during an annual purse of the waiting list.
Section 4.7.9 The Applicant has been deemed ineligible previously by the Authority.
Section 4.7.10 The Household fail to provide any information or documentation that deems a Wait List Eligible Household to be ineligible (includes the lack of documentation proving eligibility).
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Section 4.8 ALL UNITS ARE AFFORDABLE. Restricted Units will not be rented to families with income above the moderate income limit as defined in this Plan. If Restricted Units are no longer required to be affordable, then those units will be made available on a first come, first served basis regardless of income and family size, at the maximum rent set forth in the Rental Rate Policy. Policies outlined in this Plan apply to all Residents regardless of income or family size.
Section 4.9 PREFERENCES. Each Wait List Eligible Household will be placed on the appropriate affordable waiting list based on their income category, household size, the Veterans Preference, court order, and any other preference required under state or federal law. These preferences must be disclosed at the time as the Interested Household has completed the Waiting List Application or when they become eligible for such preference, whichever occurs first. An existing Resident that qualifies for an Emergency Transfer, Disabled Person Accommodation, Required Transfer, or Medical Transfer pursuant to Section 3.10.4 will be prioritized over a Waiting List Eligible Household.
Section 4.10 SELECTION FROM THE WAIT LIST UPON UNIT AVAILABILITY.
Notwithstanding Section 3.10.4 herein, when a vacancy occurs, a Restricted Unit becomes available after restoration, or a Resident submits a 30 day notice, a Wait List Eligible Household will be selected to apply as an Applicant for tenancy in the following manner: first from the appropriate income waiting list that satisfies the property’s Income by Unit Allocation, then by household size appropriate for the Restricted Unit in accordance with the Occupancy Standards Policy.
The household income of an Applicant at the time a Restricted Unit becomes available will be used to determine the appropriate income category for the Applicant. If at the time a Restricted Unit becomes available, the Applicant’s income is different than the waiting list income category they are selected from, they will be returned to a ‘Wait List Eligible Household’ status and placed on the appropriate income category waiting list in accordance with the waiting list procedures. The Household will be placed at the ‘bottom’ of the new income category list and notified of the change.
If there are no Wait List Eligible Households in the appropriate income category for the available Restricted Unit, the next Wait List Eligible Household will be selected from the next lower income category or an income category of need for housing.
Upon being selected to apply for tenancy the Applicant will then be required to complete the application process to determine whether they are a Qualified Household under the Plan as more particularly described in Section 4 and 5.
Section 4.10.1 Property Income Composition and Income by Unit Allocation. The Authority may periodically adjust the Resident Income composition of the property to ensure that no single income level is overly concentrated in a given Property. Selection of Residents will be made in a way that promotes a diverse, economically balanced community and ensures decent, safe and sanitary housing. This process is managed through an allocation system called Income by Unit Allocation. 464
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Section 4.10.2 Unit Under/Over Utilization. To prevent overcrowding and underutilization of Restricted Units, Households will be selected according to the Occupancy Standards Policy.
Section 4.10.3 Offer and Acceptance of a Restricted Unit. Once an Applicant is deemed a Qualified Household, the Household will be offered an available Restricted Unit appropriate for the household composition. The Qualified Household has an option to accept or decline once, without affecting their position on the waiting list. A Qualified Household that declines more than one offer, they will be removed from the waiting list, unless the refusal is based on disability or other legally protected reasons.
The Authority will consider individual Household’s needs and Fair Housing guidelines when identifying suitable Restricted Units.
Upon acceptance, the Qualified Household will be notified, by telephone and email or in writing of the anticipated availability. After accepting the Restricted Unit, the Qualified Household will be removed from the waitlist for all other Authority Communities.
Section 4.10.4 Unit Availability and Transfers. The type of Restricted Unit that becomes available will determine whether the next Wait List Eligible Household is selected or if special accommodation are made, including transfers for existing Resident.
When a Restricted Unit becomes available, existing Resident that qualifies for an Emergency Transfer, Disabled Person Accommodation, Required Transfer, or Medical Transfer will have priority over a Waiting List Eligible Household. Emergency Transfers will have first priority when an appropriate Restricted Unit becomes available. If no existing Resident requests and qualifies for an Emergency Transfer when an appropriate Restricted Unit becomes available, Disabled Person Accommodations, Required Transfers and Medical Transfers will have priority in that respective order. Requested Transfers will be added to the bottom of the appropriate waiting list for the requested property unless the request is being considered both by management and the Resident for purposes of mutual benefit to the parties.
4.10.4.a Emergency Transfer: A transfer of an existing Resident that is necessary due to an urgent, emergency situation.
4.10.4.b Disabled Person Accommodation: A reasonable
accommodation in accordance with the Americans with Disabilities Act, Section 503 of the Rehabilitation Act of 1973, the Fair Housing Act or applicable state disability laws.
4.10.4.c Required Transfer: A mandatory transfer when a Resident’s Restricted Unit no longer meets the Authority’s occupancy standards, is undergoing rehabilitation, or is being demolished
4.10.4.d Medical Transfer: A transfer due to a verifiable medical reason.
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4.10.4.e Requested Transfers: A transfer requested by an existing Resident to alleviate hardship such as reducing the distance to their workplace or any other requested transfer at the Authority’s discretion. All costs associated with a requested Transfer are the responsibility of the Resident.
Emergency Transfers will have first priority when an appropriate Restricted Unit becomes available. If no existing Resident requests and qualifies for an Emergency Transfer when an appropriate Restricted Unit becomes available, Disabled Person Accommodations, Required Transfers and Medical Transfers will have priority in that respective order. Existing residents requesting transfers will be placed at the bottom of the appropriate waiting list, unless management and the resident mutually agree to a transfer beneficial to both parties.
Section 4.11 Conflicts Prohibited. No employee, contractor, subcontractor, or agent of the Authority involved in formulating policy or influencing decisions regarding the Properties and programs governed by this Plan, nor their immediate family members may apply for or occupy a Restricted Unit within the Properties governed by this Plan during their employment or for one year after their employment ends. For this Section, “immediate family member” means spouse, domestic partner, child, stepchild, sibling, and others defined by law.
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Section 5. APPLICATIONS AND HOUSEHOLD QUALIFICATION
Once a Wait List Eligible Household is selected as an Applicant in accordance with Section 3, the Applicant must submit a completed application, in a format acceptable to the Management Company. This application must include all required documentation, verifications, authorizations and certifications as outlined in this Section.
Section 5.1 APPLICATION. The completed application will require that the Applicant provide the following:
Section 5.1.1 Contact Information. Current address and contact information for the Applicant.
Section 5.1.2 Income. All Household members over 18 (except for Live-In Aides), must submit income documentation, which may include but is not limited to tax returns, pay stubs, bank statements, unemployment earnings, Social Security or disability earnings statements, and any other records requested by the Authority.
Contributions or gifts from outside sources must be documented in an affidavit and recertified annually.
5.1.2 (a). Except as provided in subdivision (b), all payments from all sources received by the family head (even if temporarily absent) and each additional member of the family household who is not a minor shall be included in the annual income of a family. Income shall include, but not be limited to:
(1) The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses; (2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business);
(3) Interest and dividends;
(4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts; (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (but see subdivision (b)(3)).
(6) Public Assistance. If the public assistance payment includes an amount specifically designated for shelter and utilities which is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus (B) The maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities, (7) Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling;
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(8) All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family or spouse (but see subdivision (b)(5)).
Where a family has net family assets in excess of $5,000, income shall include the actual amount of income, if any, derived from all of the net family assets or 10 percent of the value of all such assets, whichever is greater. For purposes of this section, net family assets means value of equity in real property other than the household's full-time residence, savings, stocks, bonds, and other forms of capital investment. The value of necessary items such as furniture and automobiles shall be excluded.
5.1.2 (b) The following items shall not be considered as income:
(1) Casual, sporadic or irregular gifts;
(2) Amounts which are specifically for or in reimbursement of the cost of medical expenses (including, without limitation funds received as flex benefits from an employer that are actually used for medical expenses);
(3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses;
(4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans not us
ed for the above purposes of which are available for subsistence are to be included in income;
(5) The special pay to a serviceman head of a family away from home and exposed to hostile fire;
(6) Relocation payments made pursuant to federal, state, or local relocation law;
(7) Foster child care payments;
(8) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is in excess of the amount actually charged the eligible household;
(9) Payments received pursuant to participation in the following volunteer programs under the ACTION Agency:
(10) National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer
Programs.
(11) National Older American Volunteer Programs for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Program, Older American
Community Services Program, and National Volunteer Program to Assist Small Business Experience, Service Corps of Retired Executive (SCORE) and Active Corps of Executives (ACE). 468
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5.1.2 (c) Proof of Income is required of all occupants over 18 (except for Live-In Aides), this includes but is not limited to: Last three (3) consecutive pay stubs (current & consecutive), Social Security Award Letter (within 60 days), Unemployment Claim Award Letter (current), 2 years Tax returns if self-employed (current), Child support documents (current), County Assistance (Cal-Works, current letter), Retirement Income.
Section 5.1.3 Assets. Asset information for all Household members over the age of 18 (except for Live-In Aides) which includes but is not limited to documentation of any interest in real property other than a primary residence, three (3) months’ bank statements for all accounts savings accounts records, and current statements for stocks, bonds, crypto currency, CD accounts or money market account, full copy of life insurance policy, and other forms of capital investments.
Section 5.1.4 Affordable Requirements. Necessary documentation to verify affordable criteria has been met by all Household members in accordance with Section
4.3. Section 5.1.5 Applicant Lease Requirements. Necessary documentation to verify applicant lease requirements have been met by all Household members in accordance with Section 4.2.
Section 5.1.6 Identification. Proof of identification, birth documents for each family member, and a current driver’s license, or equivalent, for copying.
Section 5.1.7 Consent/Verification Forms. All Household members over the age of 18 must authorize the Authority, through written authorization or signed consent form, to verify or obtain information regarding Income, Assets, Resident history, conduct background checks (including criminal) and obtain credit reports. All Household members who authorize the release of information or background checks have the right to privacy in accordance with federal law.
Section 5.1.8 Application Fee. Except as provided in that certain Stipulation for Entry of Judgment, Riverside County Superior Court Case No. INDIO 51124, each Applicant and every Household member over 18 years or older shall pay a nonrefundable one-time application fee. The Executive Director shall establish the application fee annually concurrently with the annual rental rates as more particularly described in the Rental Rate Policy.
Section 5.1.9 Other Information. Any other information reasonably deemed necessary by the Authority to determine eligibility.
Section 5.2 APPLICANT LEASE REQUIREMENTS. The following lease requirements will apply to all members of Interested Households, Wait List Eligible Households, and Applicants:
Section 5.2.1 Age Requirements. Lease holder(s) must be 18 years or older.
All household member(s) 18 years or older (except for Live-In Aides) must sign the lease for the Restricted Unit and comply with all requirements of the Plan. 469
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Section 5.2.2 Income History/Verification. Lease holder(s), must provide proof of income. If the Lease holder(s) are retired or receiving government assistance, they must submit an award letter. If Lease holder(s) are employed, they must submit three months of pay stubs.
Section 5.2.3 Self-Employment. Lease holder(s) that are self-employed must provide a complete copy of the previous year’s personal tax returns, copies of business and personal bank statements for the six months, and a profit and loss statement prior to the submittal of the completed application.
Section 5.2.4 Lease Income Requirement. Lease holder(s)must have an income of at least 2 ½ times (250 percent) the rental rate for the Restricted Unit at the time of application, but not less than 20 percent of the AMI.
Section 5.2.5 Rental History. Must provide 3 years of verifiable rental history.
Rental history can be verified by a notarized letter from a prior landlord, proof of payment (i.e., cancelled checks), or similar documentation.
Section 5.2.6 Criminal Background Check. A nationwide criminal background check is required for all Household members over 18(minimum criteria in accordance with Exhibit B). The Authority enforces a Zero Tolerance Policy for drug-related and violent criminal activity (see Exhibit E). Any conviction related to such offenses, or any behavior that threatens Residents’ safety and peaceful enjoyment, will result in application denial.
Section 5.3 AFFORDABLE QUALIFICATION REQUIREMENTS. All Households must meet the affordable qualification requirements listed in this Section as well as those lease requirements listed under Section 4.2 in order to become a Qualified Household under this Plan.
Section 5.3.1 Household Income Criteria. Households applying for tenancy in a Restricted Unit must have a Household Income (not including that of Live-in Aides) of not less than 20 percent of the AMI and not more than 120 percent of the AMI.
Household Income will be categorized as very low, low, or moderate pursuant to the definitions applied herein.
Section 5.3.2 No Ownership in Real Property or Mobilehomes. No intended occupant of the Restricted Unit may have owned real property that includes a habitable dwelling unit within the last two years. The only allowable exception is where the Applicant has filed court documents for dissolution of marriage or legal separation.
Proof of the court’s disposition as to the habitable dwelling unit must be submitted to the Management Company upon receipt by Applicant. Proceeds from the sale of real property will be considered as part of the Household Income pursuant to Title 25.
Section 5.3.3 Certification And Recertification Of Eligibility. Applicants and/or Residents must agree to provide the documentation prior to lease signing and again prior to lease renewal to certify that the Household remains eligible within these guidelines.
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Section 5.3.4 Proof Of Income. Proof of Income is required of all occupants over the age of 18 (except for Live-In Aides).
Section 5.3.5 Changes In Income. Applicants and Residents must agree to notify management of any increase or decrease in monthly Household Income in excess of 30 percent.
Section 5.3.6 Primary Residence Requirement. Applicants must agree that the Restricted Unit will be the primary and sole residence of all occupants listed on the lease agreement.
Section 5.3.7 Other Housing Assistance. Applicants, Residents, or Households receiving other housing assistance must disclose the source and amount at the time of application or immediately upon receiving such aid. Resident rent will be adjusted accordingly. Households in this category follow the same waitlist policies and procedures.
Section 5.4 CREDIT CHECKS, BACKGROUND CHECKS, AND DOCUMENTATION VERIFICATIONS. Pursuant to Section 4.1.7, all Household members over the age of 18 are required to sign documents authorizing the Management Company to complete a review of the requirements of this Section. The Management Company is required to follow state and federal regulations when conducting credit checks, background checks, and document verification for prospective Residents. These processes help ensure that applicants meet the eligibility criteria for affordable housing programs, while also maintaining fairness, transparency, and compliance with housing laws.
Section 5.4.1 Applicant Certifications and Verifications:
5.4.1.a Authorization for Release of Information Form. California Consumer Credit Reporting Agencies Act (CCRAA) requires written consent from the applicant before conducting a credit check, and applicants are entitled to receive a copy of the credit report if requested.
5.4.1.b Application and/or Resident Income Certification. Consideration of Credit History, while the credit report may be reviewed, California law prohibits from automatically denying applicants based solely on poor credit. The credit report should be used as one factor among others, such as income, rental history, and compliance with program requirements.
5.4.1.c Exemptions. Applicants with no credit history or those who have faced economic hardships may be considered on a case-by-case basis, allowing for alternative screening criteria.;HUD defines economic hardship as follows:
5.4.1.c (i) An individual or family with an annual income below 30 percent of median family income for the area.
5.4.1.c (ii) Temporary hardship requires reinstating the minimum rent and offering a reasonable repayment agreement.
5.4.1.c (iii) Long-term hardship suspends the minimum rent until it ends. 471
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5.4.1.c (iv) Financial hardship includes loss of eligibility for federal, state, or local assistance programs.
5.4.1.c (v) Hardship requests must follow specific criteria and procedures.
5.4.1.d Certification and Release of Information. Applicants for a Restricted Unit must provide the following certifications and authorizations to ensure that all information submitted is accurate and complete and to comply with applicable laws and regulations.
5.4.1.d (i) The Applicant must certify that all information provided in the application is true and complete. This includes the responsibility to report any changes in Income, Household composition or any other factors that may affect eligibility. Additionally, the applicant must confirm that any prior housing assistance has been fully disclosed and that the Restricted Unit will not be a duplicate residence (i.e., not claiming multiple units as primary residence). The Applicant acknowledges that providing false or misleading information could result in criminal and administrative actions, including fines or disqualification from receiving assistance.
5.4.1.e Release of Information for Rental Verification. The Applicant must authorize the release of information from their current or previous landords to verify rental history, including but not limited to payment history, lease compliance, and rental references. This release is necessary for the Management Company to confirm the applicant's qualifications for the Restricted Unit.
4.4.1.f Certification of Child Support Income. The Applicant must certify whether they receive child support Income. If child support is received, the Applicant is required to disclose the total amount of Income received from child support . If no child support income is received, the applicant must provide certification to this effect. Any discrepancies or omissions in reporting child support income may affect eligibility or result in corrective actions.
5.4.1.g Certification of Alimony, Family Support, or Additional Deposits.
The Applicant must certify whether they or any member of the Household receive alimony, family support, or other forms of financial assistance not already disclosed in Income. if applicable, any additional sources of Income, including bank deposits or other financial contributions, must be disclosed and (e.g., bank statements, court orders, etc.) must be provided to substantiate the claims. This ensures that all financial resources are considered in determining eligibility.
5.4.1.h Other Required Certifications or Verifications. The Applicant agrees to complete any additional certification or verification forms that the Management Company deems necessary to meet the requirements of the affordable housing program. This may include documents related to income verification, residency status, or other factors affecting eligibility.
Section 5.4.2 Credit Reports/Background Checks. In accordance with Exhibit B, credit reports and background checks will be obtained for all Household members aged 18 years or older in as part of the eligibility determination process for a Restricted Unit.
The information provided these reports will be used to assess the Applicant suitability for 472
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housing. Any one or more of the following findings for any of the intended occupants may result in the denial of the rental application or continued tenancy.
5.4.2.a Amounts Owed to Government Entities. Any outstanding amounts owed to any Public Housing Authority (PHA),or any Federal, State or Local housing assistance programs, may result in the denial of the application. Applicants are required to disclose all prior housing assistance debts, including those owed to any housing authority or assistance program.
5.4.2.b Fraud in Connection with Housing Assistance Programs. Any history of fraud or misrepresentation involving any Public Housing Authority, or Federal, State, or Local housing assistance programs will result in the denial of the application.
This includes instances of providing false information or concealing information related to housing assistance.
5.4.2.c Eviction from Agency-Controlled Property. An eviction from any Agency property, Authority property, Public Housing Authority, or property under the control of the Agency, Authority or Public Housing Authority at the time of tenancy will be considered grounds for denial. This includes any evictions from properties managed or owned by the housing provider or any affiliated authority.
5.4.2.d Eviction from Other Rental Housing. An eviction from any previous rental housing, including private rentals or other public housing, may result in the denial of the application if deemed relevant to the applicant's ability to maintain tenancy.
5.4.2.e Violation of the Authority’s Zero Tolerance Policy. Any conviction for activities that violate the Authority’s Zero Tolerance Policy (as outlined in Exhibit E) will result in denial. This includes, but is not limited to, violent crimes, drug offenses, or other activities that threaten the safety and well-being of the housing community.
5.4.2.f Sex Offender Registration. Any person who is subject to a lifetime registration requirement under a Federal, State or County sex offenders’ registration program will be denied tenancy. Due to the proximity of Restricted Units to schools and playgrounds, individuals subject to a temporary or permanent registration requirement under such programs will be denied during such registration period, as required by law.
5.4.2.g Falsification of Identification. Falsification or manipulation of identification documents (including but not limited to birth certificates, government issued identification, driver licenses, social security numbers or cards, and any other official documents) will result in the denial of the application. Any attempt to use fraudulent documents will be taken seriously and may lead to legal action.
5.4.2.h Falsification or Concealment of Income or Asset. Applicants who falsify or conceal Income, Assets or related documentation for the purpose of obtaining housing assistance or qualifying for a Restricted Unit will have their application denied.
Full and accurate financial disclosure is required for eligibility. 473
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5.4.2.i False Statements or Omissions During Application Process. Any false statements or willful omissions made at any point during the application process, eligibility determination, or tenancy, with the intent to mislead or obtain housing assistance fraudulently, will result in the denial of the application and potential criminal actions..
5.4.2.j Outstanding Judgement or Bankruptcy Filings. Any outstanding judgments, or bankruptcies filed within two (2) years prior to the submission of the completed application will be considered ineligibility factors. This includes personal or business bankruptcies and any legal judgments that have not been resolved.
Section 5.5 ADDITIONAL DOCUMENT SUBMITTAL. After submitting the initial application, any additional documents reasonably required by the Management Company must be provided within ten (10) days of the request. If the Eligible Household is unable to obtain the required documents within this timeframe, a one-time extension of ten (10) days may be requested. Failure to submit, authorize, or obtain the necessary documentation or background checks within the specified or extended timeframe will result in the denial of the application. In the event of a denial pursuant to this Section, the Household may contact the Property Manager and request to be added to the bottom of the appropriate waiting list as an Interested Household.
Section 5.6 APPLICATION ACCURACY. All information provided in the completed application must be accurate and complete to the best of the Applicant’s knowledge.
Discrepancies, omissions, or inaccuracies in the application may result in the denial of application or, if discovered later, termination of tenancy. Applicants are advised to carefully review all submitted information to ensure compliance.
Section 5.7 APPLICATION APPROVAL/DENIAL. Upon receipt of a completed application, the Management Company will conduct a thorough review, including verifications of Income, Assets, rental histories, background checks and credit reports. If the Applicant satisfies all the requirements, the Applicant will be notified of approval for tenancy via phone, mail or email, with written confirmation provided thereafter. At this stage, the Household will be officially deemed a Qualified Household.
If the application is denied, the Applicant will receive written notice of ineligibility including specific reasons for the denial. The Applicant has the right to dispute the denial, by responding within ten days of the notices mailing date. Upon receiving a dispute, the Management Company will conduct an individualized assessment of the Applicant’s claims to ensure that (1) the application was evaluated objectively and without bias, and (2) the denial was based on correct and verified information.
If the application is denied, the Applicant will receive a written notice of ineligibility, including specific reasons for the denial.
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Administrative Plan Section 6: Leasing Policies and Procedures Management and Operations – Rental Units Effective September 1, 2025
Section 6. LEASING POLICIES AND PROCEDURES
The Authority operates the Restricted Units with leasing standards that will ensure the continued success of our affordable programs as well as comply with fair housing laws. The Authority and its representatives, including Management Company personnel, will not discriminate against any person on the basis of race, creed, color, sex, religion, national origin, familial status, sexual orientation, political beliefs, disability, handicap, or any other status that is protected under federal or state law. Prior to admission into a Restricted Unit, all adult Household members that will be residing in the Restricted Unit must sign a lease.
Section 6.1 RESIDENTIAL LEASE AND ADDENDA. Once an Applicant qualifies becomes a Qualified Household, the Household members listed in Section 5 shall sign a residential lease. The lease may include addenda that meet the requirements of this Section, and these addenda will be considered part of the lease. A unit may not be occupied without a fully executed lease. The lease becomes enforceable only after all parties have signed.
The residential lease will include the following information:
Section 6.1.1 Lease Term and Effective Dates. This section outlines the start and end dates or the term of the lease.
Section 6.1.2 Parties to the lease. This section lists all individuals included in the lease, categorized as either adults or minors.
Section 6.1.3 Unit location. This section specifies the apartment number or location of the unit.
Section 6.1.4 Maximum occupancy. This section indicates the maximum number of occupants allowed in the units.
Section 6.1.5 Lease Terms. This section includes details such as the rental rate, due dates, late fees, returned check charges, payment methods, locations for submitting rental payments, prorations, deposit requirements, cable cost, gate access, utility payment requirements or adjustments, and any rent incentives that may apply.
Section 6.1.6 The policies of the property as updated from time to time, also known as the House Rules and Regulations, which may address ̶ among other things ̶ the following topics:
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Antenna & Satellite Dish
Balconies/Patios/Windows
Cleaning of Bathtub/Blinds &
Windows/Carpet/Premises
Countertops
Community Amenities
Crime Free & Drug Free Housing
Dress in Public Areas
Earthquake Procedures
Electric Personal Assistive Mobility Devices
(Scooters & Wheelchairs)
Emergency Information Sheet
Energy and Water Conservation
Fire Procedures
Garbage Disposal
Guest and Occupancy
Income Recertification
Inspections
Insurance
Laundry
Light Bulbs
Locks and Keys
Maintenance – Fault Repairs
Modifying the Premises
Mold
Moving Out
Only Place of Residence
Parking
Peaceful Enjoyment
Package Delivery
Parking
Peaceful Enjoyment
Plumbing
Radios and Television
Pest
Shopping Carts
Smoke Detectors/Alarms
Smoke-Free Apartment
Telephones
Use
Vacations
Waterbeds
Section 6.1.7 Acknowledgment of Rules and Regulations. All Residents and members of the Household over the age of 18 must acknowledge receipt of these rules and regulations.
Section 6.1.8 Violations. The Management Company will notify Residents in writing of any violations of the House Rules, Lease Agreement, or any other applicable regulations, as required by law.
Section 6.2 RESIDENTIAL LEASE POLICIES AND NOTICES.
Section 6.2.1 Policies for vacatingnotices.
Section 6.2.2 Policies regarding condemnation.
Section 6.2.3 Policies regarding attorney’s fees and costs.
Section 6.2.4 Notification of laws, like Megan’s Law, lead-based paint, and mold regulations.
Section 6.2.5 Policies for affordable housing program participation, such as annual recertification.
Section 6.2.6 Policies on maintenance, Restricted Units acces, smoke detector/alarm responsibilities, and definitions of normal wear and tear.
Section 6.2.7 Policies on standard and emergency maintenance.
Section 6.2.8 Policies on renter’s insurance and personal property. 476
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Section 6.2.9 Signatures required of both the Resident(s) (and all members ) and Management Company representative.
Section 6.3 LEASE DEPOSITS. Balance of deposit, move-in prorates and the first full month of rent must be in the form of a money order or cashier’s check.
Section 6.4 LEASE PAYMENTS AND LATE CHARGES. Rent payments and late fees are to be made at the location specified in the lease agreement.
Section 6.4.1 Rent is due on the first day of each month.
Section 6.4.2 Rent is considered late after 5:00 p.m. PST on the 5th day of each month unless otherwise specified.
Section 6.4.3 Late fees apply after 5:01 p.m. PST on the 5th day of each month.
Section 6.4.4 Rent and fees must be paid by personal check (if no “nonsufficient funds” checks have been issued in the previous three months), money order, or cashier’s checks directly to the management office.
Section 6.4.5 Payments will be accepted only at the location outlined in the lease, unless otherwise specified in writing at least ten (10) days beforethe rent due date.
Section 5.5 LEASE ADDENDA IN WRITING. Any changes or addition to the lease must be in writing and signed by both parties. Oral modifications will not be valid.
Section 6.6 LEASE MODIFICATIONS. Changes to the lease may be made to reflect changes in the affordable program, applicable laws or policy clarifications.
Section 6.7 PRE-OCCUPANCY INSPECTION. Before move-in an authorized representative of the Management Company and an adult Household member will inspect the Restricted Unit and complete a move-in inspection form, noting the conditions of the Restricted Unit will be signed, and filed in Applicant file.
Section 6.8 RENTAL RATES.
Section 6.8.1 Setting Rental Rates. Rents will be established annually as set forth in the Rental Rate Policy.
Section 6.8.2 Rental Rents Based on Standard Occupancy. Rental Rents will follow the California Health and Safety Code Section 50053 guidelines, as it relates to standardized occupancy based on unit size, (e.g., one person in the case of a studio unit, two persons in the case of a one-bedroom unit,, etc.). Actual occupancy will align 477
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with the Occupancy Policy.
Section 6.8.3 Household Rent. Individual Household rent shall be established for a Qualified Household after compilation of all Household members’ sources of Incomes, Assets and allowable deductions, and proper notification.
Section 6.9 MAINTENANCE AND ENTRY TO RESTRICTED UNITS.
Section 6.9.1 Inspection. The Management Company or its agent or agents shall be allowed to enter the apartment as provided by state law. Upon 24-hour notice, an authorized representative of the Management Company may enter to inspect the condition of the premises and/or appliances therein. In the event of an emergency, an authorized representative of the Management Company has the right to enter the Restricted Unit without notice.
Section 6.9.2 Service Request. It is the Resident’s responsibility to call in all service requests to the property office location. Residents must allow maintenance staff permission to enter the Restricted Unit to perform a maintenance request in the event the Resident is not home or schedule an appointment during the maintenance hours Monday through Friday, between 8:00 a.m. and 5:00 p.m. All service requests will be responded to within a 24-hour period. After hours emergency service is available.
Section 6.10 LEASE RENEWALS. Leases under consideration for renewal by the Management Company must be renewed prior to the stated expiration of the residential lease or the Resident reverts to a month-to-month tenancy at the maximum rental rate for the Restricted Unit.
Leases under consideration for renewal by the Management Company for Residents that were previously deemed a Qualified Household must recertify their eligibility status annually in accordance with Section 6 below.
Section 6.11 NO SUBLETTING. The leases shall prohibit subleasing of Restricted Units in whole or in part.
Section 6.12 LIVE-IN AIDES. A Live-In Aide will be allowed, provided he or she is essential to the care and well-being of an elderly or disabled person who resides within a Restricted Unit. The Live-In Aide will be subject to this Plan except where noted and will be required to sign a consent for the purposes of a background check and an affidavit certifying annually that he or she qualifies as a Live-in Aide under Title 24 CFR Section 5.403. The LiveIn Aide will also acknowledge acceptance of the terms of occupancy in a Restricted Unit. The addition of a Live-In Aide must not overcrowd the Restricted Unit as prescribed in the Occupancy Standards Policy.
Section 6.13 ANIMALS. The leases shall require Residents to comply with the Animal Policy (attached as Exhibit D).
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Section 6.14 RESIDENTIAL LEASE ENFORCEMENT.
Property Management shall enforce the terms of the Residential Lease as they apply to the eviction policies and procedures.
Section 6.2.2.a Cases involving nonpayment of rent shall be handled as follows:
6.2.2.a (i) Residents having financial problems that affect payment of their rent may be referred to an appropriate social agency for assistance with remedying their problems. Any rent payment workouts resulting from the above will be in writing and signed by the Community Manager and by the resident(s). Such documentation will become part of the resident's permanent file.
6.2.2.a (ii) Notwithstanding the above, residents who do not pay their rents by the fifth day of the month shall receive a three (3) day notice to pay or quit.
Such notice shall be in accordance with the appropriate State Code of Civil Procedures.
If the notice is not complied with and the Community Manager is unable to work out a suitable rent payment program with the resident, an unlawful detainer action will be filed and the matter will be referred to a professional eviction service or attorney specializing in this area of the law. Once such procedures are initiated, the eviction process should take between thirty (30) and sixty (60), days.
Section 6.2.2.b Cases involving a violation of the Residential Lease or House Rules shall be handled as follows:
Section 6.2.2.b (i) The Community Manager's staff will keep residents advised, through newsletters, reminder posters, or written warning notices, of policies in place at “The Apartments”. Management staff will work with residents and enlist the support of service agencies as required to prevent recurrent violations. Evictions will take place as a last resort.
Section 6.2.2.b (iii) Residents shall receive, in person or by U. S. mail, written notice of minor infractions of the Lease and House Rules. The initial notice shall advise residents that such infractions are violations of the Lease and/or House Rules and that upon issuance of the third warning notice for the same violation, management will issue a 60-day notice of Intent to Terminate Tenancy.
Any notice of termination or eviction shall contain a statement of the facts constituting the cause for the termination or eviction and a statement of the resident's rights under the grievance and appeal procedure if applicable. 479
Administrative Plan Section 7: Recertification Requirements Management and Operations – Rental Units Effective September 1, 2025