Agenda packet, regular meeting — Palm Desert City Council, March 26, 2026 (part 2 of 2)

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: March 26, 2026
PREPARED BY: Mariela Salazar, Management Analyst
SUBJECT: AMENDMENTS TO THE EL PASEO VILLAGE PUBLIC PARKING

EASEMENT AGREEMENT AND THE PARKING MANAGEMENT PLAN

FOR THE EL PASEO VILLAGE SHOPPING CENTER
RECOMMENDATION:

1. Approve the Second Amendment to the El Paseo Village Public Parking Easement Agreement between the City of Palm Desert and The Gardens on El Paseo LLC.

2. Approve the Second Amendment to the Parking Management Plan (PMP) for the El Paseo Village Shopping Center Public Parking Easement.

3. Authorize the City Manager to execute all documents necessary to implement the project.

BACKGROUND:

The Public Parking Easement Agreement (Agreement) for the El Paseo Village Shopping Center (Shopping Center), located on the south side of El Paseo between San Pablo Avenue and Lupine Lane, (see map below) was approved on September 8, 2008, and recorded on October 2, 2008. The Agreement established a public parking easement within the Shopping Center parking lot to support the El Paseo Commercial District. A First Amendment to the Agreement and Parking Management Plan (PMP) was approved by City Council on June 11, 2009, updating parking operations.

Ownership of the property has since been transferred to The Gardens on El Paseo LLC, which is responsible for maintaining the parking facilities governed by the public parking easement and PMP. The agreement ensures a specified number of parking spaces remain available to the public and that operations align with City parking requirements for the El Paseo area.

ANALYSIS:

The Gardens on El Paseo LLC has requested amendments to allow installation of electric vehicle (EV) charging infrastructure within the Shopping Center parking lot. The proposed amendments would allow:
 Installation of ten (10) EV charging stations.
 Designation of ten EV charging stalls, including two (2) ADA-compliant spaces.  A net reduction of six (6) parking spaces due to installation and circulation adjustments.

The reduction will not affect the required number of public parking spaces established under the original agreement, or the required number of parking spaces for the Shopping Center. The amendments primarily update the parking site plan exhibits to reflect the revised layout and EV charging locations. All other terms of the agreement remain unchanged. 183
City of Palm Desert

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This project supports City and State sustainability goals by promoting EV infrastructure while maintaining adequate parking in the El Paseo commercial district.

ENVIRONMENTAL REVIEW:

This action qualifies for a CEQA exemption under Section 15301 (Existing Facilities), as it involves minor modifications to an existing developed site with no expansion of use.

FISCAL IMPACT:

There is no fiscal impact to the City’s General Fund with this action. All costs for installation, operation, and maintenance of the EV charging infrastructure will be the responsibility of the property owner.

Per Electric America, the City may receive sales tax revenue from the EV charging stations; however, the amount cannot be determined at this time.

Legal Review:

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

ATTACHMENTS:

1. El Paseo Village Public Parking Easement Agreement

2. El Paseo Village Public Parking Easement Agreement-First Amendment

3. Second Amendment to the El Paseo Village Public Parking Agreement Easement

4. Second Amendment to the Parking Management Agreement Plan

5. Electrify America-EV Charging Stations
184
City of Palm Desert

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CONFLICT OF INTEREST AWARENESS CHECKLIST:
☒ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2).

Project Site: 73-405 El Paseo, APN 627-252-004-4 & 627-252-005-5 -☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts.

Applicant(s)/Appellant(s): Not Applicable
Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308).

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Recorded in Official Records
County of Riverside
Larry W. Ward
Assessor, County Clerk & Reeorder
WH N RECORDED RETURN TOND I IIIIII IIIIIII III IIIII IIIIII IlIII IIIIII III IIIII IIII IIII City of Palm Desert
73- 510 Fred Waring Drive
Palm Desert, California 92260
Attn: City Clerk

S R U PAGE SIZE DA MISC LONG RFD COPY
I
M A L 465 426 PCOR NCOR SMF C
EXAM
C ; , AI i n6f G le y X' 1 T: CTY UNI
This instrument is exempt from Documentary Transfer Tax pursuant to Revenue and Taxation 053 Code Section 11922 and is exempt from Recorder' s Fees pursuant to Government Code Sections 6103 and 27383J

EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT
This El Paseo Village Public Parking Easement Agreement ( this " Easement" or Agreement") is made as of the8th day of September, 2008, by and between the CITY OF PALM DESERT, a California Charter law city and municipal corporation organized and existing under the laws of the State of California (" City") and EL PASEO LAND COMPANY, LLC, a Delaware Limited Liability Company( the " Developer").

RECITALS
WHEREAS, Developer is the owner of that certain real property ( the " Property"), located in the City of Palm Desert, California and more completely described in Exhibit " A" attached hereto and hereby made a part hereof; and
WHEREAS, On February 28, 2008, May 22, 2008 and June 12, 2008, the City adopted a series of approvals and entitlements ( the " Approvals") to permit Developer to construct and operate upon the Property an office, restaurant and retail shopping center ( the " El Paseo Village Shopping Center") which includes, among other features, a one- story parking deck as more completely described in the Parking Site Plan shown on Exhibit " B" attached hereto and hereby made a part hereof (" Parking Deck"). Included within such Approvals was the approval, execution and recording of a certain Development Agreement by and between the City of Palm Desert and Developer ( the " Development Agreement") adopted pursuant to City Ordinance no. 1156 on June 12, 2008; and
WHEREAS, the Approvals require the Parking Deck to consist of a minimum 295 total parking spaces, which total is allowed to fluctuate over time by 5%. Within this total, Developer is providing 150 public parking spaces which satisfies the required number of spaces to be set aside for the public under the Approvals; and
EPV Public Parking Easement. 9. 02. 08. FINAL
187
WHEREAS, this El Paseo Village Public Parking Easement Agreement satisfies certain obligations of the Developer under the Approvals, including without limitation Section 5( d) of the Development Agreement regarding the provision of reciprocal parking to customers of the Gardens on El Paseo Shopping Center and Section 5( of the Development Agreement regarding a recordable easement for public parking within the El Paseo Village Shopping Center; and WHEREAS, Developer desires to grant City this El Paseo Public Parking Easement over a portion of the Property and the City desires to accept such easement in accordance with the terms contained herein.

NOW, THEREFORE, in consideration of the foregoing, the covenants and promises as set forth herein, and other good and valuable consideration, Developer and City agree as follows:

1. Public Parking Easement. Developer hereby grants to City a non- exclusive easement solely for the purpose of providing passenger vehicle parking to one hundred fifty 150) public parking spaces within the Parking Deck of the El Paseo Village Shopping Center.

The majority of the public parking spaces shall be located on the lower, ground level of the Parking Deck ( Level One on Exhibit B). This Easement inures to the benefit of the general public, the Developer and Developer' s tenants, occupants, employees, customers, invitees, and licensees. Developer, on behalf of itself and all future owners of the Property, expressly reserves all of its rights which are not inconsistent with the use and enjoyment of the Easement herein granted, including without limitation, the right to operate a private commercial development.

There shall be no residential parking nor parking provided for employees of other businesses within the El Paseo Village Business District.

2. Effective Date and Term of Easement. The term of the Easement and this Agreement shall commence upon the date which the City issues a certificate of occupancy for the Parking Deck and the City delivers to Developer the amount specified in Section 5( fl of the Development Agreement ( the " Effective Date"). The term of the Easement and this Agreement shall expire and be of no further force and effect on January 1, 2049, unless prior to the expiration date, the parties ( or their successors and assigns) in writing terminate this Easement and Agreement.

3. Parkin gement Plan. Developer shall operate, maintain and repair the Easement in accordance with the written Parking Management Plan adopted concurrently herewith, as may be amended from time to time. Public use of the Easement shall be subject to compliance with this Parking Management Plan, as amended, as well as any rules and regulations that may be adopted pursuant thereto.

4. Reservations. Construction of the El Paseo Village Shopping Center and Parking Deck has not been completed at the time of preparation of this Easement. Therefore, in connection therewith, Developer reserves unto itself and for the benefit of its successors and assigns the right to construct the Shopping Center and Parking Deck in accordance with the Approvals, and to make such adjustments or relocations of parking spaces as may be necessary to accommodate the same, so long as any such adjustments or relocations do not reduce the amount of public parking provided through the Easement.

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188

5. Prioritv of Easement Agreement. In the event of any inconsistency between the terms of this Agreement and the terms of the Development Agreement, the terms of the Development Agreement shall govern and control.

6. Mortgagee Protections. Developer shall be permitted to encumber the Property and the rights under this Agreement with mortgages, deeds of trust, ground leases and other financing instruments ( collectively, " Mortgage"). The Easement shall be superior to any Mortgage, and any Mortgage shall be subordinate to this Easement and survive foreclosure of an such Mortgage. However, no breach of the covenants, conditions, terms and provisions herein contained shall affect, impair, defeat or render invalid the lien or charge of any Mortgage made in good faith and for value encumbering the Property.

7. Ci . Acceptance of Easement. City certifies that, pursuant to its laws and regulations, that the City fully consents to entering into the Agreement and accepts the Easement, inclusive of consenting to the recordation of this instrument by its duly authorized officer.

8. Mutual Release, Hold Harmless and Indemnification. Developer shall release, hold harmless, defend and indemnify the City, its officials, employees and agents including without limitation the Palm Desert Redevelopment Agency from and against any and all claims, demands, liabilities, judgments, costs, damages and expenses including attorneys' fees and costs (" claims") solely relating to, or solely arising from, the negligence or intentional wrongdoing of Developer, its officers, employees or agents with respect to the private parking spaces within the Parking Deck not set aside herein for public parking purposes. City shall release, hold harmless, defend and indemnify the Developer, its officers, employees and agents from and against any and all claims, demands, liabilities, judgments, costs, damages and expenses including attorneys' fees and costs (" claims") solely relating to, or solely arising from, the negligence or intentional wrongdoing of the City, its officials, employees ar agents with respect to the public parking spaces within the Parking Deck set aside herein for public parking purposes. These release, hold harmless, defense and indemnity obligations shall only arise if prompt written notice of any covered claim is delivered to the party to whom such protections are sought. The parties shall cooperate in the defense of any covered claim.

9. Miscellaneous.

A. Amendment. This Agreement may be modified only in writing approved by the City Manager and Developer, or its successors in interest.

B. Severability. The invalidity or unenforceability of any provision of this Agreement, as determined by a court of competent jurisdiction, shall in no way affect the validity or enforceability of any other provision hereof.

C. Recordation. Promptly following the execution of this Agreement, City shall cause this Agreement to be recorded in the Official Records of Riverside County, California.

D. Notice. Any written notice required to be given under this Agreement may be given by either personal delivery, by Federal Express ( or other reputable overnight courier

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189
service ( collectively, " Courier")), or by maiL If given by Courier, such notice shall be deemed to have been properly given on the business day immediately following the date same is deposited with such Courier for next- day delivery. If given by mail, such notice shall be deemed to have been properly given forty- eight ( 48) hours after the time that the same is deposited in the United States mail, certified, or registered, return receipt requested, postage prepaid, addressed as follows ( or at such address as either Party may otherwise designate in writing to the other Party):

To Developer: El Paseo Land Company, LLC
c/ o Davis Street Land Company
622 Davis Street, Suite 200
Evanston, Illinois 60201
Attn: Robert Perlmutter
To City: City of Palm Desert
73- 510 Fred Waring Drive
Palm Desert, California 92260
Attn: City Manager
E. Entire Agreement. This Agreement contains the entire agreement between Developer and City as to the subject matter hereof and supersedes all prior agreements, oral or written, with respect thereto.

F. Authority. Each Party represents and warrants that it has the sole right and exclusive authority to enter into this Agreement.

G. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same instrument.

H. Constructive Notice and Acceptance. Every person who now or in the future owns or acquires any right, title or interest in ar to the Property, or to any portion thereof, is and shall be deemed conclusively to have consented and agreed to every term contained in this Agreement, whether or not reference to these terms is contained in any instrument by which such person acquired such right, title or interest.

I. Successors and Assigns; Covenants Run With the Land. All of the covenants, conditions and obligations contained in this Agreement shall be binding upon and shall burden each of the parties hereto and each of their successors and assigns, devisees, administrators and representatives. All of the provisions of this Agreement shall constitute covenants running with the land pursuant to applicable law, including, but not limited to, Sections 1462 and 1468 of the Civil Code of the State of California. Upon transfer of title to the Property, a owner shall be relieved of its obligations under this Agreement arising from and after the date of the transfer.

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IN WITNESS WHEREOF, the parties have caused this El Paseo Public Parking Easement Agreement to be executed by their duly authorized representatives as of the date first above written.

DEVELOPER:

El Paseo Land Company, LLC, a Delaware limited
liability company
BY/ i L`
Robert Perlmutter
Its: Manager
CITY:

CITY OF PALM DESERT, CALIFORNIA, a
public Cityi organized and existing under the laws of
the State o' California
By: C{ i'.

Jean 1f son, Mayor
r`
Attest:

Rachelle D. Klassen, City Clerk

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191

STATE OF ILLINOIS

COUNTY OF COOK
On SEnr-c-+B c , 2008 before me, here insert name
and title of notary), personally appeared 12o3 se7 , urr c-( personally known to me to be the person( s) whose name( s) is/ are subscribed to the within instrument and acknowledged to me that he/ she/they executed the same in his/her/their authorized capacity(ies), and that by his/ her/ their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.

WITNESS my hand and official seal.

OFFICIAL SEAL

KIMBERLY A MARTIN

NOTARY PUBLIC- STATE OF ILLINOIS
MY COI IISSION EXWRES: 02I18112
Signature JA cu,

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE
On 08 before me, here insert name
and title of notary), personally app d personally
known to me to be the person( s) whose n e( s) is/ are subscribed to the within instrument and acknowledged to me that he/ she/they execute same in his/ her/their authorized capacity( ies), and that by his/ her/their signature( s) on the instrume e person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.

WITNESS my hand and official seal.
e
Signature

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192
State of California
SS.

County of Riverside
On September 9, 2008 , before me, M. Gloria Martinez , a Notary Public, personally appeared Jean M. Benson and Rachelle D. Klassen , who proved to me on the basis of satisfactory evidence to be the person s,' whose name 's i/ re subscribed to the within instrument and acknowledged to me that h/ e hey executed the same in f is,` ier authorized capacit ies), and that by h e the' signature on the instrument the persor s or the entity upon behalf of which the persor s acted, executed the instrument.

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

M. GLORIA MARTINEZ
WITNESS my hand and official seal. Commisslon# 1697036
s Notary Publlc- CaHfornia
Rlverslde Counry
My Comm. Expires Oct 29, 2010
Si 9 natur l/ seal

OP ONAL -
DESCRIPTION OF ATTACHED DOCUMENT:

EI Paseo Village Public Parking Easement Agreement as it Relates to Ordinance No. 1156 Development Agreement 07- 03
Between the Citv of Palm Desert and EI Paseo Land Company, LLC

TITLE OR TYPE OF DOCUMENT)

NUMBER OF PAGES)
September 8, 2008

DATE OF DOCUMENT)
Robert Perlmutter

SIGNER( S) OTHER THAN NAMED ABOVE)
Right Thumbprint ot Signer

OTHER INFORMATION)

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193
EXHIBIT " A"

LEGAL DESCRIPTION OF DEVELOPER' S PROPERTY
The El Paseo Village Shopping Center:

LOT 2 OF TRACT NO. 11881, IN THE CITY OF PALM DESERT, AS SHOWN BY MAP ON FILE IN BOOK 99, PAGE( S) 48 AND 49 OF MAPS, IN THE OFFICE OF THE COLTNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA.

EXCEPTING ONE- SIXTEENTH OF ALL COAL, OIL, GAS AND OTHER MINERAL DEPOSITS 1N SAID LAND AS RESERVED 1N PATENT FROM THE STATE OF CALIFORNIA, RECORDED JULY 17, 1925, IN BOOK 9, PAGE 102 OF PATENTS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

Assessor Parcel Numbers: 627- 252- 004- 4 and 627- 252- 005- 5

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LARRY W. WARD
Recorder
r.o. BoX s i
COUNTY OF RIVERSIDE x ers ae, CA 92502- 0751
4 ASSESSOR- COUNTY CLERK-RECORDER 9si 4s6- oo0
Sf' Yky,
co E,.
www. riversideacr. com

CERTIFICATION
Pursuant to the provisions of Government Code 27361. 7, I certify under the penalty of perjury that the following is a true copy of illegible wording found in the attached document:

Print or tvpe the paqe number( s) and wording below):

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Exhibit B - Parking Site Plan Level One

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Exhibit B - Parking Site Plan Level Two
A clarity copy is attached for each page.

Date: September 24, 2008
Signature:
1 Print Name: M. clori Martinez
ACR 601P- AS4RE0( Rev. 09/ 2005) Available in Alternate Formats 197

CITY OF PHI I DE ERT
73- 5 o FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260- 25'] H
TEL: 60 346— o6ii
F: 760 340- 0574
infoC palm- desert. org
EI Paseo Village Public Parking
Easement Agreement

EXHIBIT

CERTIFICATE OF ACCEPTANCE
THIS IS TO CERTIFY that the interest in real property conveyed by the EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT dated September 8, 2008, by and between THE CITY OF PALM DESERT, A CALIFORNIA CHARTER LAW CITY AND MUNICIPAL CORPORATION, and EL PASEO LAND COMPANY, LLC, A DELAWARE LIMITED LIABILITY COMPANY, is hereby accepted pursuant to City of Palm Desert Resolution No. 77-48, adopted May 12, 1977.

R CHELLE D. AS N, CITY CLE K

CITY OF PALM DESERT, CALIFORNIA
September 24, 2008
L PRINiEDONRF( Y( LFOPAPEA

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198
RESOLUTION N0. 17- 48 EXHIBIT
A RESOLUTION OF THE CITY OF PLAM DESERT, CALI ORNIA, AUTHORIZING THE CITY CLERK TO ACCEPT OFFERS OF RIGHT- OF- WAY ON BEHALF OF THE CI7Y UPON THE RECOMMENOATION OF THE CITY ATTORNEY AND CITY ENGINEER he City Council of the C ty of Palm Desert does hereby
resolve that the City Clerk is authorized to accept and record on behalf of the City all offers of dedication, easements, and other grants of right- of-way offered to the City for public purposes when such acceptance is recommended by both the City Attorney and the City Engineer.

PASSED, APPROVED, and AOOPTED on this T2th day of May, 1977, by the following vote:

AYES: Brush, McPherson, Newbrander, Wilsan & Mullins .

NOES:

ABSENT;
A6STAIN:

EACH DOCUMENT TO WHiCH TH1S CERTIFtCA' 1' E iS
ATTACHED. IS CERTIFIED T BE A FULL, TRUE AND
CORRECT COPY OF THE ORlGINAI. ON FII. E AND ON
RECORD IN MY OFFICE.

Dat •
tiiA HEIL D. KLASSEN, City Clerk .

Ci esert. Cai' fornis J .
ar: n ',
RD 0. MULLI VS, MAYOR
ATTEST:

SHEII.R R. GILLIGAN, City flerk City of P31m Desert, California

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CONSENT OF MORTGAGEE
LASALLE BANK NATIONAL ASSOCIATION, holder of a Promissory Note secured by that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement, Fixture Filing and Financing Statement recorded on July 16, 2008 with the County of Riverside, California as Document No. 2008- 0389515, hereby consents to the execution of and recording of the foregoing EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT dated as of September 8, 2008, and hereby agrees that the aforesaid loan documents are subject and subordinate to the provisions thereof.

IN WITNESS WHEREOF, LaSalle Bank National Association has caused this instrument to be signed by its duly authorized officer on its behalf on this / day of September, 2008.

LASALLE BANK NATIONAL ASSOCIATION
By: U i tSv a-ns.. v
Name: ( il-j- Lt,t, ds v s
Title: /

STATE OF ILLINOIS
SS

COUNTY OF COOK )
I, the undersi ned a Notary Public in and f i said ounty and State, do hereby certify that/ C,,, ,. i
he f LaSalle Bank National
Association, who is personally known to me to be the me person whose name is subscribed to the foregoing instrument as suc peared before me this day in person and acknowledged that such person signed and delivered said instrument as such person' s free and voluntary act, and as the free and voluntary act of such Bank, for the uses and purposes therein set forth.

GIVEN under my hand and Notarial Seal thi day of September, 2008.

No ary P lic
SEAL)

OFFICIALSEL

GEORGIA A AKERS
NOTARY PUBLIC- STATE OF IlLINOiS
MY COMMISSION EXPIRES: 06/ 21/ 09
4608 I 8. 1 044497- 3 983 5
CHICAG0 2521665. 1
ID\ HA 200
DOC # 2@@9- @443477
08/ 25/ 2009 08: 00A Fee: NC
Recording requested by, and when Page i of a
Recorded in Official Reeords
recorded, mailto: County of Riverside
Larry W. Ward
Assessor, County Clerk & Recorder
City of Palm Desert I IIIIII IIIIIII IIIII IIIII IIII IIII IIIIIII III IIIII IIII IIII 73- 510 Fred Waring Drive
Palm Desert, CA 92260
Attn: City Clerk

S R U PAGE SIZE DA MISC LONG RFD COPY
M A L 465 426 PCOR NCOR SMF CHG
ExAM
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T: CTY UNI W
This instrument is exemptfYom Documentary TYansfer Tax pursuant to Revenue and Taxation Code Section 11922 and is exempt from Recorder' s Fees pursuant to Government Code Sections 6103 and 27383J
0 2

FIRST AMENDMENT
TO

EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT
by and between the

CITY OF PALM DESERT, CALIFORNIA
and
EL PASEO LAND COMPANY, L.L.C.
of
June 11 2009
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FIRST AMENDMENT
TO

EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT

THIS FIRST AMENDMENT TO EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT is made and entered into as of this 11 thday of June 2009, by and between the CITY OF PALM DESERT, CALIFORNIA, a municipal corporation organized and existing under the laws of the State of California ( the " City"), and EL PASEO LAND COMPANY, L.L.C., a Delawaxe limited liability company ( the ` Developer"). All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the El Paseo Village Public Parking Easement Agreeinent.

RECITALS

1. The City and the Developer did enter into that certain El Paseo Village Public Parking Easement Agreement dated September 8, 2008 and recorded on October 2, 2008 as Doc 2008- 0537024, in Riverside County, California( the" Agreement").

2. The City and the Developer are not in default oftheir respective obligations under the Agreement principally because the Easement is not yet in effect.

3. The City and the Developer desire to amend the Agreement to reflect certain approved changes to the Project, including, inter alia, that the Project will not have a parking deck, but will have only a surface parking area and that the total number of parking spaces will be 182 and not the 295 spaces originally contemplated.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:

1. The Parking Site Plan attached to the Agreement as Exhibit " B" is deleted in its entirety and is replaced with the First Amended Parking Site Plan attached to this First Amendment as Exhibit" A".

2. Section 1 of the Agreement is deleted in its entirety and is replaced with the following: " Public Parking Easement. Developer hereby grants to City a non- exclusive easement solely for the purpose of providing passenger vehicle parking to one hundred fifty 150) public parking spaces within the surface parking lot of the El Paseo Village Shopping Center. This Easement inures to the benefit of the general public, the Developer and developer' s tenants, occupants, employees, customers, invitees and licensees. Developer, on behalf of itself and all future owners of the Property, expressly reserves all of its rights which are not inconsistent with the use and enjoyment of the Easement herein granted, including without limitation, the right to operate a private commercial development. There shall be no residential 2 202
parking nor parking provided for employees of other businesses within the El Paseo Village Business District."

3. Section 2 of the El Paseo Village Public Parking Easement Agreement is deleted in its entirety and replaced with the following: " Effective Date and Term of Easement. The term of the Easement and this Agreement shall commence upon the date which the City issues a certificate of occupancy for the project inclusive of the surface parking lot and the City delivers to Developer the amount specified as consideration for this Easement in Development Agreement 07- 03, as may be amended ( the " Effective Date"). Should the aforementioned conditions not occur, the Easement and this Agreement shall be void ab initio and of no legal force and effect. Should the aforementioned conditions occur, the term of the Easement and this Agreement shall expire and be of no further force and effect on January 1, 2050, unless prior to the expiration date, the parties ( or their successors and assigns) in writing terminate this Easement and Agreement."

4. Wherever the term " Parking Deck" appears in the Agreement and Easement, the term shall be replaced with" surface parking lot."

5. Except as expressly set forth in this First Amendment, the terms, provisions and covenants ofthe Agreement remain unmodified and in full force and effect.

6. This First Amendment may be executed in counterparts, each of which shall be deemed an original and shall constitute one and the same instrument.

IN WITNESS WHEREOF, the City and the Developer have caused this First Amendment to the El Paseo Village Public Parking Easement Agreement to be executed by their duly authorized representatives and the City has caused its seal to be affixed thereto, and attested as to the date first above written.

CITY": CITY OF PALM DESERT, CALIFORNIA
By: o' d.c"" C
Robert A. Spie el, y r
Attest:

Rachelle D. Klassen, City Clerk
DEVELOPER"; EL PASEO LAND COMPANY, LLC
a Delaware limited liability company
B : Y
i%
Robert Perimutter, Manager
3 203
y _

STATE OF CALIFORNIA
SS
COUNTY OF RIVERSIDE }
n
August 18 2QQ9, before me, M. Gloria Martinez
a
Notary Public, personally appeared
Robert A. Spiegel and Rachelle D. Klassen
who proved to me on the basis of satisfactory evidence to be the person whose namq(s ' s
re subscribed to the within instrument and acknowledged to me that h l'ie he executed the same in f i's e th` authorized capacity e , and that by h/ Se t iei signature on the instrument the person s or the entity upon behalf of which the person acted, executed the instrument.

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

WITNESS my hand and officiai seal.

M. oRwnnAar n, Ez
Commisslon# 1697036
e> : Notary Pubiic- Californla
Rlverside Counry
Signature F
MyComm. ExpireaOct29, 2oi
r

STATE OF ILLIN S
SS.

COUNTY OF C 0
On this / 0 day of G, S 2009, before me appeared
j 03Ee j I. v-r f2 to me personally known, who being by me duly sworn, did say that he is the Manager of EI Paseo Land Company, L. L. C., a Delaware limited liability company, and that he is authorized to sign the instrument on behalf of said company, and acknowledged to me that he executed the within instrument as said company's free act and deed.

IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written.

Signature OF CWL SEAL

KIA ERLY A MARTIN
ota ry P I ic tv Pt euc- srA oF iwnias
MY COfYM 810N&' G a112
My Commission Expires: / f r32c( Z Z._.
4 204
72500.00000\44514983.2

RECORDING REQUESTED BY AND
AFTER RECORDATION MAIL TO:

City of Palm Desert
73510 Fred Waring Drive
Palm Desert, California 92260
Attention: City Clerk
This document is exempt from the payment of
a recording fee pursuant to Government Code
§§ 6103, 27383

EXEMPT FROM DOCUMENTARY

TRANSFER TAXES PURSUANT TO R & T
CODE SECTION 11922
(Space Above This Line for Recorder’s Use Only)

SECOND AMENDMENT
TO

EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT
by and between the

CITY OF PALM DESERT, CALIFORNIA
And

THE GARDENS ON EL PASEO LLC
of
__________________ 2026
205
72500.00000\44514983.2
2 SECOND AMENDMENT
TO

EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT

THIS SECOND AMENDMENT TO EL PASEO VILLAGE PUBLIC PARKING EASEMENT AGREEMENT (this “Second Amendment”) is made and entered into as of this ______ day of ______________, 2026, by and between the CITY OF PALM DESERT, CALIFORNIA, a municipal corporation organized and existing under the laws of the State of California (the "City"), and THE GARDENS ON EL PASEO LLC, a Delaware limited liability company (the "Developer"). All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the El Paseo Village Public Parking Easement Agreement (as described below).

RECITALS
A. The City and El Paseo Land Company, L.L.C., a Delaware limited liability company (the “Original Developer”) previously entered into that certain El Paseo Village Public Parking Easement Agreement dated September 8, 2008 and recorded on October 2, 2008 as Document No. 2008- 0537024, in Riverside County, California, as amended by that certain First Amendment to El Paseo Village Public Parking Easement Agreement dated as of June 11, 2009, and recorded on August 25, 2009 as Document No. 2009-0443477, in Riverside County, California (as amended, the "Agreement").

B. Developer is the current owner of the real property described in the Agreement and is the present successor in interest of the Original Developer to said real property.

C. The City and the Developer desire to amend the Agreement to allow the Developer to install ten (10) electrical vehicle charging stations (“Charging Parking Spaces”) and related equipment, which will result in a reduction of the total number of parking spaces by six (6) spaces.

D. The Charging Parking Spaces will include two (2) spaces which are ADA compliant parking stalls.

E. The reduction of the total number of parking spaces will not reduce the required number of public parking spaces as set forth in the Agreement.

1. Each of the above recitals is incorporated herein and deemed to be the agreement of City and Developer and is relied upon by each party to this Second Amendment in agreeing to the terms of this Second Amendment.
206
72500.00000\44514983.2
3 2. The Parking Site Plan attached to the Agreement as Exhibit "B" is deleted in its entirety and is replaced with the Second Amended Parking Site Plan attached to this Second Amendment as Exhibit "A".

3. Except as expressly set forth in this Second Amendment, the terms, provisions and covenants of the Agreement remain unmodified and in full force and effect.

4. This Second Amendment may be executed in counterparts, each of which shall be deemed an original and shall constitute one and the same instrument.

IN WITNESS WHEREOF, the City and the Developer have caused this Second Amendment to the El Paseo Village Public Parking Easement Agreement to be executed by their duly authorized representatives and the City has caused its seal to be affixed thereto, and attested as to the date first above written.
“City” CITY OF PALM DESERT,
a California municipal corporation
By: __________________________________
Chris Escobedo, City Manager
ATTEST:

By: ____________________________
Anthony Mejia, MMC, City Clerk
“Developer” THE GARDENS ON EL PASEO LLC,
a Delaware limited liability company
By: __________________________________
Name: ______________________________
Its: _________________________________
207
72500.00000\44514983.2

EXHIBIT A

SITE PLAN
208
72500.00000\44514777.3

SECOND AMENDMENT
TO
PARKING MANAGEMENT PLAN ("PMP") FOR THE EL PASEO VILLAGE

SHOPPING CENTER PUBLIC PARKING EASEMENT
by and between the

CITY OF PALM DESERT, CALIFORNIA
and

THE GARDENS ON EL PASEO LLC
of
__________________ 2026
209
72500.00000\44514777.3
2 SECOND AMENDMENT
TO
PARKING MANAGEMENT PLAN ("PMP") FOR THE EL PASEO VILLAGE

SHOPPING CENTER PUBLIC PARKING EASEMENT
THIS SECOND AMENDMENT TO PARKING MANAGEMENT PLAN ("PMP") FOR THE EL PASEO VILLAGE SHOPPING CENTER PUBLIC PARKING EASEMENT (this “Second Amendment”) is made and entered into as of this ______ day of ______________ 2026, by and between the CITY OF PALM DESERT, CALIFORNIA, a municipal corporation organized and existing under the laws of the State of California (the "City"), and THE GARDENS ON EL PASEO LLC, a Delaware limited liability company (the "Developer"). All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the PMP.

RECITALS
A. The City and El Paseo Land Company, L.L.C., a Delaware limited liability company (the “Original Developer”) previously entered into that certain Parking Management Plan ("PMP") For The El Paseo Village Shopping Center Public Parking Easement dated September 8, 2008, as amended by that certain First Amendment to Parking Management Plan (“PMP”) for the El Paseo Village Shopping Center Public Parking Easement dated as of June 11, 2009 (as amended, the "Agreement").

B. Developer is the current owner of the real property described in the Agreement and is the present successor in interest of the Original Developer to said real property.

C. The City and the Developer desire to amend the Agreement to allow the Developer to install ten (10) electrical charging stations (“Charging Parking Spaces”) and related equipment, which will result in a reduction of the total number of parking spaces by six (6) spaces.

D. The Charging Parking Spaces will include two (2) spaces which are ADA compliant parking stalls.

E. The reduction of the total number of parking spaces will not reduce the required number of public parking spaces as set forth in the Agreement.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

2. Section 1.3 of the Agreement is deleted in its entirety and replaced with the following: "The Parking Site Plan defines all parking improvements, areas and spaces within the Parking Lot at the El Paseo Village Shopping Center, inclusive of those Improvements for 210
72500.00000\44514777.3
3 public parking, as may be amended. The current Parking Site Plan is the Second Amended Parking Site Plan attached as Exhibit A to the Second Amendment to Parking Management Plan ("PMP")."

3. The Parking Site Plan attached to the PMP as Exhibit A is deleted in its entirety and replaced with the Second Amended Parking Site Plan attached to the Second Amendment to the PMP as Exhibit "A".

4. Except as expressly set forth in this Second Amendment, the terms, provisions, covenants and agreements of the PMP remain unmodified and in full force and effect.

5. This Second Amendment may be executed in counterparts, each of which shall be deemed an original and shall constitute on and the same document.

IN WITNESS WHEREOF, the City and the Developer have caused this Second Amendment to the Parking Management Plan ("PMP") For The El Paseo Village Shopping Center Public Parking Easement to be executed in their respective names and the City has caused its seal to be affixed thereto, and attested as to the date first above written. “City” CITY OF PALM DESERT,
a California municipal corporation
By: __________________________________
Chris Escobedo, City Manager
ATTEST:

EXHIBIT A

SITE PLAN
212
Hello, freedom
213

HELLO, FREEDOM
214
Freedom,
empowered
Electrify America is unlocking the freedom of the open road for electric vehicle (EV) drivers. We are building one of the largest public DC ultra-fast charging network in the United States. With Electrify America, EV drivers have the freedom to go just about anywhere. They can explore more destinations, travel across the country, or recharge while they are out and about. Our ultra-fast chargers can power capable EVs in as little as 30 minutes—just enough time to run an errand or two and get back on the road fast. With Electrify America, EVs represent freedom like never before.

Now you can join Electrify America’s mission. We are teaming with leading property owners and top brands to deliver the most advanced coast-to-coast network of EV charging stations. Electrify America plans to have more than 1,800 fast charging stations and 10,000 individual chargers either installed or in construction by the end of 2025. Leveraging scale, technology, and a universal access approach, Electrify America is best positioned to serve the majority of current and future EV models.
02 215
Locate
a charger
Pay Charge Go
03 H E L L O ,
Plug in
216
Our team is comprised of industry
leaders who understand what electric
vehicle charging station hosts need
to outfit their businesses.
49 states, plus Washington, DC,
targeted to have charging
stations by the end of 2025
1,700
stations and 9,500
chargers by 2025
Many stations are at
retail locations so that
drivers can shop, eat,
or run errands
Easy payment access
and open standards for
compatibility with other
charging network providers
Electrify America expects to install
or have under development approximately
1,700 total charging stations with about
9,500 chargers by 2025.

Current Charging Stations
Future Charging Stations
04 217

HELLO, FREEDOM
05 218
Current real estate site hosts include:*
* List is non-exhaustive.
06 219
Optimal
site criteria
24/7 ACCESS

PARKING SPACES POWER PROXIMITY

RE TAIL PROXIMIT Y
07 HELLO, FREEDOM
220
Standard Electrify America stations require 5–12 parking spaces—or fewer where landscaping is available.

Design Standard A-4 End-Zone: 4 Dispensers California — Design Standard GC End-Zone: 4 Dispensers OPTION 1: ACCESSIBLE ROUTE THROUGH PARKING SURFACE
OPTION 2: ACCESSIBLE ROUTE THROUGH SIDEWALK
Sample design
layout
08 221
EVs are projected to be
on U.S. roads by 2030.1

18.7m
of consumers are motivated
to purchase from companies
committed to making
the world better.2
77%
of EV owners report that
the availability of a charger
makes them more loyal
to a business.3
81%
Claim #1: https://www.eei.org/resourcesandmedia/energytalk/Pages/Issue-In-Depth-11-1-2018.html Claim #2: https://www.aflac.com/docs/about-aflac/csr-survey-assets/2019-aflac-csr-infographic-and-survey.pdf Claim #3: https://www.linkedin.com/pulse/do-ev-charging-stations-make-more-loyal-customers-survey-leavitt/

HELLO, FREEDOM
222
Gain
visibility and
consumer
loyalty
How one parking space and less than
30 minutes becomes 250+ miles
With Electrify America’s fast chargers, one parking space and 30 minutes can provide over 250+ miles of range
to capable electric vehicles.

Electrify America has developed multiple layout options to accommodate unique parking lot configurations. A custom design will be developed for your property.
10 223
Creating
consumer
habits
The EV charging opportunity for retail and mixed use
Electrify America is collaborating with site hosts to create a national network of EV charging stations, without asking property owners and retail brands to shoulder the capital costs to site and maintain high-value infrastructure.

As a retailer or shopping center owner, outfitting your business and creating lifestyle habits that keep consumers coming back for more are critical. With so many options of new technologies and amenities, it can be difficult to predict the potential return of any investment.

One thing is certain, the consumer landscape is changing before our eyes as online shopping redefines how
consumers buy products. As the volume of digital
transactions continues to rise, retail and mixed-use
properties need to be thoughtfully redesigned to get
ahead of the changing tides.

Industry leaders are programming new touchpoints
in an effort to integrate with consumer lifestyles and
to create new consumer habits. Careful curation
of businesses and amenities that serve every aspect
of a consumer’s lifestyle is essential for outfitting
retail properties.

HELLO, FREEDOM
11 224
225
Speed and
intelligence

FASTEST CHARGE AND FUTURE PROOFED
Electrify America is future-proofing charging
technology by deploying charging stations with
the fastest charging speeds available today
to accommodate electric vehicles for today
and the future case.

ZERO CAPITAL COSTS
Electrify America pays 100% of the upfront
capital investment for the design and installation
of new charging stations.

O P E R AT I O N A N D M A I N T E N A N C E
We stay with you even after contracts are signed
and hardware is installed: delivering reliability,
uptime, and industry-leading PlugShare scores.

24/7 CUSTOMER CARE
Electrify America handles all customer care
responsibilities, including assistance on how to
use the chargers, with our 24/7 customer care.

Charging capabilities
Level 2 charging provides
a full charge in approximately
8 to 12 hours.*

3.3kW
to

9.6kW
50kW
150kW
to
350kW
50kW DC fast chargers
provide a full charge
in approximately 1 hour.*
Electrify America stations
provide this charging capability
in as little as 30 minutes.*
*
Time is dependent on the vehicle model and external conditions. 13 HELLO, FREEDOM
226
Let's make
a difference
together

01. HOST AGREEMENT
You agree to be a host for Electrify America DC fast chargers.

02. SITE ASSESSMENT AND PLAN
Electrify America reviews your property and performs
a site assessment. If your property meets the criteria, we’ll develop a plan and schedule a survey.

03. DESIGN AND PERMITTING
Final design plans for the site are approved by you, applications for permits are submitted, and Electrify America plans the installation of a new dedicated electrical service.

04. CONSTRUCTION PROCESS
The construction process is managed by experienced
contractors, with all costs being covered by Electrify America.

05. INSTALL ATION AND COMMISSIONING
Experienced contractors install and commission
the charging station.

06. OPER ATION, MAINTENANCE, AND CUSTOMER SERVICE
Electrify America is responsible for the operation,
maintenance, and electricity costs of the charging
stations; we provide 24/7 customer service.

I N M O S T C A S E S ,
10-12 MONTHS
TODAY
14 227

ELECTRIFY AMERICA
[email protected]
ELECTRIFYAMERICA.COM
FACEBOOK.COM/ELECTRIFYAMERICA
@ELECTRIFYAM
@ELECTRIFYAMERICA

ELECTRIFY AMERICA
228

Page 1 of 3 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: March 26, 2026
PREPARED BY: James Bounds, Finance Supervisor
SUBJECT: AMENDMENT NO. 1 TO CONTRACT NO. C44960 WITH PFM ASSET MANAGEMENT, A DIVISION OF U.S. BANCORP ASSET MANAGEMENT, INC. TO EXTEND THE CONTRACT FOR INVESTMENT MANAGEMENT

AND ADVISORY SERVICES
RECOMMENDATION:

1. Approve Amendment 1 to Contract No. C44960 with PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc. to extend the contract term for investment management and advisory services through June 30, 2027.

2. Authorize the City Attorney to make necessary non-monetary changes to the amendment.

3. Authorize the City Manager to execute the amendment and all documents necessary to effectuate this action.

BACKGROUND/ANALYSIS:

On March 23, 2023, the City Council approved the award of Contract No. C44960 to PFM Asset Management LLC for the provision of investment advisory services. In late 2024 PFM Asset Management’s accounts were consolidated under their parent company U.S. Bancorp Asset Management, Inc., and C44960 was reassigned to U.S. Bancorp Asset Management, Inc (PFM).

Under the current agreement, PFM provides the City with comprehensive investment advisory services. These services include portfolio management, ensuring compliance with applicable investment policies, conducting market analysis, and offering ongoing consultation to support the prudent stewardship of City funds.

PFM has successfully reduced the City’s interest rate risk through portfolio diversification and the strategic laddering of maturities. Prior to this partnership, the City employed a passive “buyand-hold” investment approach, purchasing securities to hold until maturity. Under PFM’s active investment strategy, they now actively monitor market conditions and reallocate assets to sectors demonstrating stronger growth potential, thereby enhancing portfolio performance and resilience.

For comparison, a key metric for evaluating investment performance is total dollar return. Total dollar return is a measure that tells how much money has been made or lost from investments over a specific period, expressed in dollar terms. The table and chart below shows the change and increase in earnings over the past 3 years with PFM. 229
City of Palm Desert____________________________________________________________

Page 2 of 3 ends

Portfolio Analysis 3 Months Year 1 Cumulative
Total Dollar Return $862,065 $4,117,554 $8,432,610
Return Rate 1.19% 5.95% 5.73%
Benchmark 1.10% 5.44% 5.34%
The portfolio’s benchmark is the U.S. Treasury Index
The current contract is scheduled to expire on March 30, 2026. To ensure continuity of investment advisory services and to avoid any disruption to the City’s financial operations, staff recommends extending the contract term by an additional 15 months. The proposed extension would revise the contract expiration date to June 30, 2027. No other changes to the scope of services or compensation structure are proposed as part of this action.

Approval of the recommended extension will allow the City to continue to benefit from receiving consistent and experienced investment advisory services.

FINANCIAL IMPACT:

Approval of the proposed extension of Contract No. C44960 with PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc. will result in a fiscal impact in line with prior year expenditures. Compensation for investment advisory services will continue in accordance with the existing fee structure and contractual terms.

The recommended extension does not require additional appropriations for the current Fiscal Year (FY), and the cost for FY 2026-27 will be included in the annual budget request. Extending the contract term through June 30, 2027, allows the City to align the contract with our fiscal year cycle.

ATTACHMENTS:

1. Amendment No. 1 to C44960

2. C44960 Executed Agreement

3. Quarterly Investment Report – City of Palm Desert Q4 25 230
City of Palm Desert____________________________________________________________

Page 3 of 3 ends

CONFLICT OF INTEREST AWARENESS CHECKLIST:
☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2).

Project Site: _________________________
☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts.

Applicant(s)/Appellant(s): _________________________
Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308).

BY AND BETWEEN THE CITY OF PALM DESERT
AND PFM ASSET MANAGEMENT, A DIVISION OF U.S. BANCORP ASSET MANAGEMENT, INC.

1. Parties and Date.

This Amendment No. 1 (“Amendment”) to the Professional Services Agreement, Contract No.C44960, is made and entered into on March 23, 2023, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260-2578 (“City”) and PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc., with its principal place of business at 800 Nicollet Mall, Minneapolis, MN 55402 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

1.1 City Council Approval. On March 26, 2026, City Council approved the award of this Amendment to Consultant named above.

2. Recitals.

2.1 Agreement. The City and Consultant entered into a Professional Services Agreement (“Agreement”) on March 23, 2023, for the purpose of retaining the services of Consultant for investment management and advisory services (“Project”).

2.2 Amendment Authority. This Amendment is authorized pursuant to Section

3.1.2 of the Agreement.

2.3 The purpose of this Amendment No. 1 is to extend the term of the contract to March 30, 2027.

3. Terms. The Agreement is hereby amended as follows:

REMOVE OR ADD LINES AS NEEDED
Section 3 Term. The term of this Agreement shall be from April 1, 2023 to June 30, 2027, unless earlier terminated as
provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement
automatically for no more than one (1) additional oneyear term. Consultant shall complete the Services within the term of this Agreement and shall meet any other
established schedules and deadlines.

3.1 Continuing Effect of Agreement. Except as amended by this Amendment No. 233
Contract No. C44960
2 Rev 09-25
72500.00001\44340560.1
1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1.

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

3.3 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
234
Contract No. C44960
3 Rev 09-25
72500.00001\44340560.1
SIGNATURE PAGE FOR AMENDMENT NO. 1

TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND PFM ASSET MANAGEMENT, A DIVISION OF U.S. BANCORP ASSET MANAGEMENT, INC.

CITY OF PALM DESERT

Chris Escobedo
City Manager
Attest:

Anthony J. Mejia
City Clerk
Approved to form by:
____________________________
Isra Shah
City Attorney

PFM ASSET MANAGEMENT, A DIVISION
OF U.S. Bancorp ASSET MANAGEMENT,
INC.
____________________________
Monique Spyke
Managing Director
Office Use:

Quality Check Insurance Review Bonds
City Clerk Contracts Initial Final
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Page 1 of 2 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: February 26, 2026
PREPARED BY: Anthony J. Mejia, City Clerk
SUBJECT: RESOLUTION ESTABLISHING THE 2026 CITY COUNCIL GOALS RECOMMENDATION:

1. Adopt a resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM DESERT, CALIFORNIA, ESTABLISHING THE CITY COUNCIL GOALS FOR THE 2026 CALENDAR YEAR.”

2. Receive and file the proposed work plans and preliminary funding information.

3. Appoint Councilmember Harnik and Councilmember Nestande to a 2-by-2 subcommittee with the Palm Springs Unified School District.

BACKGROUND/ANALYSIS:

On February 26, 2026, the City Council held a Goal Setting Study Session to discuss and establish priorities for the 2026 calendar year. During this meeting, City staff provided an update on the status of existing goals and outlined next steps, followed by Councilmembers presenting their proposed goals for consideration.

The attached resolution formalizes the adoption of the 2026 City Council Goals, which will serve as the City Council’s policy direction for the 2026 calendar year.

New this year, staff has also prepared accompanying work plans for each goal area. The work plans are intended to serve as an administrative implementation framework aligned with the City Council Goals. They identify lead departments, anticipated work plan items, and preliminary funding information. The work plans are provided to inform the City Council and the public regarding how the adopted goals may be advanced over time. As reflected in the work plan document, the funding ranges are preliminary planning estimates and may be refined during budget development. Inclusion of funding information in the work plans does not constitute authorization or appropriation of funds.

Any funding needed to implement specific work plan items will be brought forward through the annual budget process or presented to the City Council for separate consideration and approval, as applicable.

In addition, the City Council discussed the creation of a 2-by-2 subcommittee with the Palm Springs Unified School District to coordinate educational facility opportunities in the University Area. Mayor Trubee and Mayor Pro Tem Pradetto have nominated Councilmember Harnik and Councilmember Nestande to serve on this subcommittee.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 307
City of Palm Desert
2026 Goal Setting Resolution

Page 2 of 2 ends

FINANCIAL IMPACT:

There is no fiscal impact associated with adoption of the proposed resolution establishing the 2026 City Council Goals. The attached work plans include preliminary funding information intended only to identify potential fiscal implications associated with future implementation activities. Any actual appropriation of funds would occur through the Fiscal Year 2026–27 Annual Budget process or would be presented to the City Council for separate approval, as applicable.

ATTACHMENTS:

1. Draft Resolution

2. Draft Work Plans

3. Study Session Presentation, February 26, 2026
CONFLICT OF INTEREST AWARENESS CHECKLIST:
☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2).

Project Site: Not Applicable
☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM

DESERT, CALIFORNIA, ESTABLISHING CITY COUNCIL GOALS FOR THE 2026 CALENDAR YEAR
WHEREAS, on February 26, 2026, the City Council convened in a Goal Setting Study Session to review progress on prior year goals and to establish City Council Goals for the 2026 calendar year; and
WHEREAS, the City Council desires to formally adopt the 2026 City Council Goals to provide policy direction and organizational focus for the upcoming year.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The 2026 City Council Goals are hereby approved and adopted as shown in Exhibit A attached hereto and incorporated herein by this reference.

ADOPTED ON ________________, 2026.

EVAN TRUBEE
MAYOR
ATTEST:

ANTHONY J. MEJIA

CITY CLERK
309
RESOLUTION NO. 2026-
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2026-__ 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
310
RESOLUTION NO. 2026-

EXHIBIT A

CITY OF PALM DESERT
2026 CITY COUNCIL GOALS
Goal 1: Mall Redevelopment & Family-Friendly Activation Advance redevelopment of the Mall properties to strengthen economic vitality, reinforce long-term fiscal sustainability, enhance regional identity, and expand family-friendly and experience-based activity. Redevelopment opportunities shall be evaluated through the lens of economic performance, community benefit, and the Mall’s role as a central activity hub for Palm Desert.

Goal 2: Citywide Economic Activation & Events
Implement recurring evening market-style activation events to stimulate local entrepreneurship and small business activity, explore establishment of a farmers market within the City, and position Palm Desert to capitalize on the opportunities presented by LA 28, FIFA, and the Paralympics.

Goal 3: North Palm Desert & University Area Development Advance infrastructure, amenities, and economic development in North Palm Desert by securing electrical and sewer capacity, identifying a regional park site, exploring PK–8 education facility options including a charter school concept at CSUSB, evaluating feasibility of an indoor sports facility, and implementing a business attraction strategy for the University and northern area.

Goal 4: Community Resilience & Climate Strategy
Strengthen community resilience by implementing extreme heat mitigation initiatives, pursuing available climate funding opportunities, and enhancing support for the Coachella Valley Disaster Preparedness Network (CVDPN) to expand emergency preparedness and resident self-sufficiency.

Goal 5: Clean, Safe & Attractive City Standards
Enhance community standards by modernizing the City’s lighting ordinance and implementing a Zero Blight rapid response initiative to address graffiti, abandoned carts, illegal dumping, and similar visible deterioration.

Goal 6: Community Engagement & Civic Identity
Improve community engagement and strengthen civic identity by modernizing City communications, including updates to BrightSide and Engage Palm Desert, ensuring ADA compliance of public-facing materials and presentations, and advancing gateway enhancements on El Paseo.
311
312
City of Palm Desert
2026 City Council Goals
Work Plans
This Work Plan is an administrative implementation framework aligned with the adopted 2026 City Council Goals. Funding ranges are preliminary planning estimates and may be refined during budget development. This document does not constitute authorization or appropriation of funds.

Goal 1: Mall Redevelopment & Family-Friendly Activation

1. Establish a redevelopment pathway for the Mall properties, including coordination with property ownership and evaluation of planning or entitlement frameworks necessary to move the site toward implementation.

Lead Department: Economic Development
Preliminary Funding (if applicable):
 Anticipated Funding Range: Financial cost based on market opportunities  Proposed Funding Source: TBD
 Intended Use of Funds: Establish a phased implementation strategy tied to market opportunities, requiring coordination with property owners to prepare the site for redevelopment. This may include infrastructure improvements, updates to the planning framework, and targeted marketing efforts.

2. Identify and evaluate adaptive reuse, experience-based, and family-friendly activation concepts that can increase visitation, attract private investment, and strengthen the Mall’s role as a regional destination.

Lead Department: Economic Development
Preliminary Funding (if applicable):
 Anticipated Funding Range: Financial cost based on market opportunities  Proposed Funding Source: TBD
 Intended Use of Funds: Evaluate and consider potential incentive agreements to catalyze redevelopment and attract key tenants that support the Mall’s redevelopment and long-term viability.
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Goal 2: Citywide Economic Activation & Events
Implement recurring evening market-style activation events to stimulate local entrepreneurship and small-business activity, explore establishing a farmers market within the City, and position Palm Desert to capitalize on the opportunities presented by LA 28, FIFA, and the Paralympics.

1. Implement recurring market-style activation programming to support local vendors, small businesses, and increased community foot traffic.

Lead Department: Economic Development
Preliminary Funding (if applicable):
 Anticipated Funding Range: Estimated $20,000 annually  Proposed Funding Source: General Fund, Contributions
 Intended Use of Funds: Potential sponsorship to assist with costs associated with traffic control setup and other expenses, depending on the selected location.

2. Present a recommended operating model for a farmers market, including location, partnership structure, and fiscal considerations, for Council direction.

Lead Department: Economic Development
Preliminary Funding (if applicable):
 Anticipated Funding Range: Estimated $25,000 annually  Proposed Funding Source: General Fund, Contributions
 Intended Use of Funds: Potential sponsorship to assist with costs associated with weekly traffic control setup and other expenses, depending on the selected location.

3. Develop and return to Council with a global events activation strategy outlining how Palm Desert will leverage LA 28, FIFA, and the Paralympics through targeted activations, partnerships, and branding opportunities.

Lead Department: Economic Development
Preliminary Funding (if applicable):
 Anticipated Funding Range: Funding plan will be presented during strategy Study Session with City Council.
 Proposed Funding Source: General Fund
 Intended Use of Funds: The City is launching a pilot program for FIFA, building on the extensive advertising that Visit Greater Palm Springs will conduct throughout Southern California to attract visitors to the Coachella Valley during that period. The City will conduct a local advertising campaign throughout the Coachella Valley to invite and welcome visitors to Palm Desert to experience its many businesses and 314
City of Palm Desert – 2026 City Council Goals Work Plans

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attractions throughout June and into July, culminating in a community watch party for the FIFA Finals at The Shops at Palm Desert in mid-July.

Goal 3: North Palm Desert & University Area Development

1. Provide an implementation pathway for the electrical capacity and sewer infrastructure necessary to support planned growth in the University Area, including key milestones and funding considerations.

2. Identify and present a regional park site and implementation approach within the University Area.

Lead Department: Development Services and Public Works
Preliminary Funding (if applicable):
 Anticipated Funding Range: Specific Plan update already funded; $300,000 change order requested for indoor park + increase to regional park within the Specific Plan; regional park design and construction
 Proposed Funding Source: Specific Plan partially funded through Interwest contract, Measure G, developer fees, and grants
 Intended Use of Funds: University Neighborhood Specific Plan, park design, and park construction

3. Initiate collaboration with Palm Springs Unified School District and CSUSB to explore PK–8 education facility solutions, including the feasibility of a charter school concept, and return to Council with findings and next-step options.

Lead Department: Library Services
Preliminary Funding (if applicable):
 Anticipated Funding Range: None
 Proposed Funding Source: N/A
 Intended Use of Funds: N/A
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4. Complete and present a feasibility evaluation of an indoor sports facility in partnership with Visit Greater Palm Springs, including demand analysis, site considerations, and fiscal implications.

Lead Department: City Manager’s Office
Preliminary Funding (if applicable):
 Anticipated Funding Range: $50,000
 Proposed Funding Source: General Fund
 Intended Use of Funds: Funding would be used to issue and award a contract through a Request for Qualifications/Request for Proposals (RFQ/RFP) process to a qualified consultant or multidisciplinary team to complete the feasibility evaluation.

5. Develop and return to Council with a targeted business attraction strategy to support walkable, local-serving retail and services for the growing residential population.

Lead Department: Economic Development
Preliminary Funding (if applicable):
 Anticipated Funding Range: None at this time.
 Proposed Funding Source: TBD
 Intended Use of Funds: Strategic public and private investment, along with infrastructure coordination, is necessary to ensure development benefits both residents and businesses while supporting broader economic development goals Goal 4: Community Resilience & Climate Strategy

1. Implement targeted extreme heat mitigation initiatives in City facilities or public spaces and pursue available state or federal funding opportunities to support efforts.

Lead Department: Public Works
Preliminary Funding (if applicable):
 Anticipated Funding Range: $1.5 million-$3 million annually  Proposed Funding Source: Align already budgeted General Fund, Capital (Building Maintenance) Reserve Fund with City Council goal.  Intended Use of Funds: Maintain the urban forest and implement cool surface technology or other feasible strategies.
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2. Expand emergency preparedness programming in partnership with CVDPN, including increased resident training and outreach, and provide Council with an update on participation levels and future opportunities.

Lead Department: City Manager’s Office
Preliminary Funding (if applicable):
 Anticipated Funding Range: Presented based on service partnership.  Proposed Funding Source: General Fund, grant funding, and other eligible climate resilience or emergency preparedness funding sources  Intended Use of Funds: Support implementation of extreme heat mitigation initiatives, expansion of emergency preparedness programming, earthquake preparedness and overall disaster resilience efforts, community outreach and public education, resident training opportunities, preparedness materials, equipment, and supplies, partnership support for CVDPN, and related initiatives that strengthen community resilience, emergency readiness, and resident self-sufficiency Goal 5: Clean, Safe & Attractive City Standards

1. Present a modernized citywide lighting ordinance addressing residential and commercial applications and incorporating current lighting technologies, shielding practices, safety considerations, and protection of community character.

Lead Department: Development Services
Preliminary Funding (if applicable):
 Anticipated Funding Range: Funded through a contract with Goebel Partners for the Unified Development Code
 Proposed Funding Source: General Fund within Current Contract with Goebel Partners
 Intended Use of Funds: Incorporate the modernized ordinance into the Unified Development Code

2. Implement a Zero Blight rapid response initiative with a target to address graffiti, abandoned carts, illegal dumping, and similar visible deterioration within 24 hours where feasible, and report performance results to Council.

Lead Department: Public Works
Preliminary Funding (if applicable):
 Anticipated Funding Range: Will be included in FY 26/27 budget.  Proposed Funding Source: General Fund
 Intended Use of Funds: Additional maintenance staff, equipment, and materials to increase service.
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Goal 6: Community Engagement & Civic Identity

1. Implement improvements to communications and engagement platforms to enhance usability, accessibility, and resident participation.

Lead Department: City Manager’s Office
Preliminary Funding (if applicable):
 Anticipated Funding Range: None
 Proposed Funding Source: N/A
 Intended Use of Funds: N/A

2. Review and improve ADA compliance for public-facing materials and presentations to ensure accessibility standards are consistently met.

Lead Department: City Manager’s Office
Preliminary Funding (if applicable):
 Anticipated Funding Range: $45,000 – $50,000
 Proposed Funding Source: General Fund (Professional Services / Technology  Intended Use of Funds: Engage a qualified accessibility consultant to conduct a comprehensive assessment of the City’s websites, digital documents, and thirdparty applications; establish and implement digital accessibility policies and procedures; and provide staff training on WCAG compliance.

3. Return to Council with a modernization approach for the BrightSide publication, including format, distribution, and cost considerations.

Lead Department: City Manager’s Office
Preliminary Funding (if applicable):
 Anticipated Funding Range: None at this time.
 Proposed Funding Source: General Fund (Communications / Special Programs)  Intended Use of Funds: Develop and implement a modernized BrightSide newsletter that improves accessibility, readability, and overall user experience.

4. Present conceptual options and cost ranges for El Paseo gateway enhancements.

Lead Department: Public Works
Preliminary Funding (if applicable):
 Anticipated Funding Range: Presented once quotes obtained for conceptual design and study effort.
 Proposed Funding Source: Capital Improvement Fund
 Intended Use of Funds: Develop conceptual design and cost estimation 318
Palm Desert City Council
Goal Setting Session
February 26, 2026
319
Review of
2025 City Council Goals
320
C
SUPalmDesertCampus/
AI,BusinessInnovation&EntrepreneurshipHub
PositioningPalmDesertasaregionalcenterforhighereducation,workforcedevelopment,andinnovation SupportedtheEntrepreneurResourceCenter(ERC)
CSUSBpartnershipmaintainedthroughFebruary2027 Infrastructure issues resolved to prevent program delay s
DeliveredMiniMBAandBusinessStartupTraining
AdvancedAI&InnovationProgramming Initiated AI coursework and workforce trainingdiscussionswithCSUSB
CoordinatedwithUCRPalmDesertonAI programalignment
Expandedregional outreachwithChamberandpartners
PositionedforCampusExpansion&StrategicAlignment
CoordinatedeffortstokeeptheStudentSuccessCenterproject
ontrackandalignedwithcampusdevelopmenttimelines
CSUSBexpressed interest inexpandingAI offerings;proposal anticipated Q1 2026 321
North Sphere Development, Infrastructure Planning & Electrification Support continued growth in the North Sphere by coordinating infrastructure, utilities, and long-range planning to remove barriers to residential and commercial development Secured Long-Term Electrical Capacity
Council approved funding and IID reservation agreement for Cook Street Energy Substation Advanced transformer procurement and substation coordination Addressed Water & Sewer Constraints
Coordinated with CVWD and developers on capacity solutions Monterey Crossing sewer improvements in plan check
Evaluated Community Facilities District and private financing options Continued Residential & Commercial Growth
Major projects underway: Agate, Millennium, Vitalia, Meritage, Explorer, Palm Villas Approved Catavina (546 lots) and Portola Springs (156 lots) Ongoing commercial permitting at Monterey Crossing
Advanced Planning & Regional Facilities
Circulation Element adopted, including Portola Interchange Evaluated park options within UNSP
Advanced draft UNSP updates including park allocation
322
Mall Redevelopment / Experience-Based & Family-Friendly Destination Support redevelopment of the mall properties into a vibrant, experience-driven, family-friendly destination that strengthens economic vitality and community engagement Advanced Site Planning & Owner Coordination
Continued coordination with mall ownership on a comprehensive Specific Plan Evaluated residential opportunity on ~10 acres (north portion of site) Explored partnership models to address financial constraints Positioned City-Owned Sears Property
Completed appraisal, survey, and environmental reviews
Issued Notice of Availability to comply with SLA Process; one proposal received Submitted Notice of Determination for the Sears Site to clear the SLA Process Market Outreach & Tenant Interest
Conducted ICSC outreach to experience-based tenants
Identified interest from experiential retail, fitness, furniture, and theaters 323
Update to the Development Code / Fire Prevention by Design Modernize development regulations to improve clarity, efficiency, and flexibility while integrating fire prevention by design to enhance public safety
Advanced Unified Development Code (UDC)
Progressed comprehensive UDC consolidating zoning, subdivision, grading, and related regulations
Completed Draft Regulations Assessment Report and held Council study session Advanced Administration & Procedures section through Subcommittee and Council review Conducted stakeholder outreach (ARC, Planning Commission, development community) Strengthened Fire Prevention by Design
Adopted 2025 California Building Standards Code (effective Jan 1, 2026) Adopted updated Fire Hazard Severity Zone maps
Implemented in-house Fire Marshal model to integrate fire review early in the development process
324
Crime Prevention Technology
Expand technology-driven public safety solutions to enhance crime prevention, situational awareness, and law enforcement effectiveness
Expanded ALPR Network
Council approved expansion of 44 cameras (113 → 157 total planned) 144 cameras installed to date
13 remaining cameras in permitting (El Paseo phase)
Strengthened Operational Integration
Coordinated deployment plan with RSO and Flock Safety
Integrated ALPR data for real-time monitoring and investigations RSO implemented electronic citations to improve field efficiency Interdepartmental Coordination
Worked with Public Works on permitting, median access, and utilities Identified optimized camera locations for El Paseo
325
Assessment of City Medians & Rights-of-Way
Develop a cohesive, cost-effective landscape strategy to improve maintenance efficiency, aesthetics, and long-term functionality of City medians and rights-of-way Initiated Landscape Master Plan
Awarded professional services agreement to Hermann Design Group Completed base plans and citywide analysis using aerial imagery Developed tiered design concepts and plant/material palettes Policy & Stakeholder Engagement
Presented draft plan to Architectural Review Committee
Conducted City Council study session for policy direction Presented refinements to Active Transportation Subcommittee Identified Pilot Projects
Selected three pilot locations representing each design tier Began preparation of construction documents
326
Member Priority 1 Priority 2 Priority 3 Priority 4 Priority 5 Harnik
Charter School
Concept at CSUSB
Palm Desert Campus
Update Citywide
Lighting Ordinance
Business Attraction in
North PD/University
Area
Leverage Upcoming
Global Events
Nestande
North Sphere Planning
& Infrastructure
Mall
Redevelopment
Quintanilla
Extreme Heat
Mitigation
Public Engagement
& Communications
Stimulate
Entrepreneurship and
Local Businesses
Pradetto
North Sphere Planning
& Infrastructure
Mall
Redevelopment
Zero Blight
Challenge
Trubee
Enhance Support of
CVDPN (Emergency
Preparedness)
Palm Desert
Historical Society
Welcome/Gateway
Sign on El Paseo
Farmers Market
Indoor Sports/
Event Facility
2026 Proposed Goals Summary
327
Priority Title Description
01 Charter School Concept at
CSUSB Palm Desert Campus
A charter school on the CSUSB PD campus would serve our community and region and provide relevant and accessible education for students of all ages and academic tracks - from the Pre-K students to the CSU students working towards any and all degrees. The symbiotic relationship is evident, and the benefits are abundant.

Justification:

The north (University area) side of Palm Desert is experiencing significant growth, yet educational offerings have not kept pace. An educated community is a strong community. We must provide extraordinary and innovative education to maintain a strong, relevant, and viable community. An investment in our students will pay dividends for the future. 02 Update Citywide
Lighting Ordinance
Palm Desert's lighting ordinances have not been updated since... before LEDs! Maintaining the aesthetic quality that is aligned with the Palm Desert brand, as well as safety considerations, is foundational to Palm Desert's emphasis on quality of living and the character that is projected visually.

Justification:

A drive through Palm Desert highlights the need for updated ordinances. Glaring neon in windows, poorly installed string and tube lighting, imposing lamps shedding light offensively, etc., call out the need for a review and modernization of ordinances. The ambience of well-applied lighting attracts visitors, guests, customers, and business investors, and generally refines any location. With the types of lighting available, directional and shading applications, lighting can enhance architecture, landscaping, and protect the natural emphasis and beauty of our dark skies. A well-written lighting ordinance is a gift to developers, designers, and businesses.
2026 Proposed Goals - Councilmember Harnik
328
Priority Title Description
03 Business Attraction in
North PD/University Area
Develop programs, messaging, marketing plans, etc., to attract businesses to fulfill the needs of the rapidly growing population in the university/northern area of Palm Desert.

Justification:

Palm Desert has worked diligently to foster a community environment that encourages home development. Palm Desert has, and is, successful in that effort. Current and future residents need businesses, e.g., clothing stores, grocery stores, drug stores, etc., in their neighborhoods. Creating walkable neighborhoods is important to the Palm Desert community and brand. Creating the "15-minute neighborhood' where residents can access daily needs, either by walking or biking, builds a sustainable and healthy community, by myriad definitions.
04 Leverage Upcoming Global
Events
The events coming to Los Angeles within the next few years will offer international recognition. People around the world are paying attention! Justification:

The opportunity presented by the number of world-class events that will be hosted by Los Angeles in the immediate future must be seized upon. Viewing gatherings and parties, themed events, creative adventures and experiences, etc., offer motivation to visit surrounding areas and to elevate recognition of Palm Desert. This is a marketing and business opportunity. 2026 Proposed Goals - Councilmember Harnik
329
Priority Title Description
01 North Sphere Planning &
Infrastructure
The population in the North Sphere is growing quickly with more than 6,000 housing units over the coming years.

Justification: Ensure the North Sphere has the infrastructure needed to support its growth and public amenities including a regional park. 02 Mall Redevelopment Continue to evaluate options for adaptive reuse of the Mall.

Justification: It is the center of our region and key to economic stability and growth. 2026 Proposed Goals - Councilmember Nestande
330
Priority Title Description
01 Extreme Heat Mitigation
Utilize innovative technologies that refract heat, reduce surface temperatures, and mitigate extreme heat in parks, at bus stops, and buildings owned by the City of Palm Desert.

Justification:

Proposition 4, the Climate Bond, funds extreme heat projects. The revised Governor's Budget Summary allocates $110 million for extreme heat in 2025-26 and proposes $241 million for 2026-27. This can lead to greater energy efficiency, with the potential to reduce the cost of living. There are a variety of products and coating materials that will increase safety in public spaces and improve the overall quality of life. 02 Public Engagement &
Communications
Improve community engagement by modernizing City communications and expanding accessible programming. Ensure all materials and presentations are ADA compliant, reduce barriers to participation on Engage Palm Desert by allowing submissions without registration, redesign the BrightSide to improve relevance and cost-effectiveness, and expand public events, activating the new Library as a central gathering space Justification:

Current engagement tools are underutilized and create unnecessary barriers to participation. Registration limits interaction on Engage Palm Desert, and BrightSide’s low readership raises concerns about cost-effectiveness.

Streamlining communication and expanding programming will strengthen participation and community connection. 2026 Proposed Goals - Councilmember Quintanilla
331
Priority Title Description
03 Stimulate Entrepreneurship and
Local Businesses
Stimulate local small businesses and online entrepreneurs with monthly evening markets, featuring live music.

Justification:

San Pablo was designed to be "Downtown" Palm Desert. Closing the street once a month for evening markets gives local vendors, farmers, food trucks, and online entrepreneurs the opportunity to work with the Economic Development Department and increase their chances of success. This will bring people from across the valley and visitors seeking local experiences. This is an opportunity to develop Palm Desert's character by building a unique social, gastronomic, cultural, and economic event in the middle of the Coachella Valley, accessible to locals and guests. 2026 Proposed Goals - Councilmember Quintanilla
332
Priority Title Description
01 North Sphere Planning &
Infrastructure
We've made significant progress by signing an agreement and funding a portion of a new IID substation in Thousand Palms. Now, we can shift our attention to the sewer infrastructure in the area.

Justification:

Development in parts of the City's North Sphere has languished due to a lack of sewer and electrical infrastructure. We have a solution for the electrical part of the equation and may now focus more attention on the sewer side. 02 Mall Redevelopment /
Increase Experienced
Based & Family Friendly
Activities
Continuation of last year's goal of the same name
Justification:

We have not yet accomplished the goal, and it remains an important component of the City's economic development potential.
2026 Proposed Goals - Mayor Pro Tem Pradetto
333
Priority Title Description
03 Zero Blight Challenge
Abandoned shopping carts, graffiti, and littered trash are examples of blight. The Zero The Blight Challenge aims to reduce and eliminate blight by providing a rapid response to clean or repair blight reported through the city app or any other reporting method to the city. At present, our city app notification states a remediation goal within 48 hours. I would like to improve that to 24 hours, or even 12 hours.

Justification:

A clean and well-maintained community is inviting and attracts visitors and businesses. It gives residents pride in their community. Keeping public spaces safe and clean is a core function of local municipal government. 2026 Proposed Goals - Mayor Pro Tem Pradetto
334
Priority Title Description
01 Enhance Support of CVDPN
(Emergency Preparednesss)
Provide material and/or financial support for this organization so that more of our residents will be prepared for an emergency situation and less reliant on governmental help during times of crisis when our emergency services would potentially be overwhelmed.

Justification: Resilient and independent residents are the end goals, as well as taking the burden off of our public safety services 02 Palm Desert
Historical Society
Fold the Historical Society operations into our Library Services.

Justification:

The Historical Society is currently at a crossroads. They will be without leadership starting this June, and no other Board Members are willing to step up to assume the role of President or Vice President. Their board and staff are all volunteers, and the workload has become overwhelming for their membership, most of whom are retired and over 70. A community that forgets its history risks losing its vision for future growth and its identity. This is what we need to avoid. 03 Welcome/Gateway
Sign on El Paseo
Solicit estimates for a welcome sign to El Paseo that would be placed across the street at one or both ends.

Justification:

El Paseo is already a well-known boulevard, but by adding a cross street welcome sign/archway, we can further enhance the sense of place, appeal, and recognition that El Paseo deserves. Funding sources could be private donors, El Paseo BID, the City, or any combination thereof.
2026 Proposed Goals - Mayor Trubee
335
Priority Title Description
04 Farmers Market Solicit bids and interest from farmers markets to begin operating in our city.

Justification:

A thriving farmers market has a multitude of benefits.... it offers our residents healthy food choices that may not be available in traditional grocery stores. It supports traditionally sustainable farming and locally owned and operated farmers, their families, and employees. And it attracts shoppers and tourists from outside Palm Desert, helping generate revenue and foot traffic in our city. 05 Indoor Sports/Events Facility
The VGPS is spearheading an effort to bring a 200,000 square foot indoor event space to the Valley to attract year-round scholastic sports tournaments. This will provide a positive economic impact on our sales tax and TOT revenue streams.

Justification:

VGPS has already conducted a feasibility study and a funding study... they are simply looking for a logistically sound location to build it, and I believe Palm Desert is that place. I have faith in Scott White and his team, and I believe that Palm Desert is the ideal location for this venue due to our proximity to the interstate as well as the number and quality of amenities and services that we offer. The added revenue will provide an indirect benefit to our residents, but they will also enjoy a direct benefit by having a venue where Local youth can participate in sports year-round and have opportunities to compete in tournaments closer to home. 2026 Proposed Goals - Mayor Trubee
336
01 Charter School Concept at CSU Palm Desert Campus
02 Update Citywide Lighting Ordinance
03 Business Attraction in North PD/University Area
04 Leverage Upcoming Global Events
05 North Sphere Planning & Infrastructure
06 Mall Redevelopment
07 Extreme Heat Mitigation
08 Public Engagement & Communications
2026 City Council Proposed Goals
09 Stimulate Entrepreneurship and Local Businesses
10 Zero Blight Challenge
11 Enhance Support of CVDPN (Emergency Preparedness)
12 Palm Desert Historical Society
13 Welcome/Gateway Sign on El Paseo
14 Farmers Market
15 Indoor Sports/Event Facility
337
01 North Sphere & University Area Development
(Nestande #1, Pradetto #1, Harnik #1 & #3)
Infrastructure readiness (electric + sewer)
Regional park and amenities
Charter school feasibility at CSU Palm Desert
Indoor sports/event facility feasibility
Business attraction strategy for the university/northern area 02 Mall Redevelopment & Family-Friendly Activation
(Nestande #2, Pradetto #2)
Adaptive reuse of the Mall
Experience-based redevelopment
Family-friendly and community-oriented uses
03 Citywide Economic Activation & Events
(Quintanilla #3, Trubee #4 & #5, Harnik #4)
Monthly evening markets/entrepreneurship activation
Farmers market exploration
Leverage LA 28, FIFA, and Paralympics for tourism and brand positioning 2026 City Council Goals - Proposed
338
04 Community Engagement & Civic Identity
(Quintanilla #2, Trubee #2, Trubee #3)
Modernize communications (BrightSide, Engage PD, ADA compliance) Historical Society integration into Library Services
El Paseo gateway enhancements
05 Community Resilience & Climate Strategy
(Quintanilla #1, Trubee #1)
Extreme heat mitigation and climate funding strategy
CVDPN support and emergency preparedness
06 Clean, Safe & Attractive City Standards
(Harnik #2, Pradetto #3)
Lighting ordinance modernization
Zero Blight rapid response initiative
2026 City Council Goals - Proposed
339
340

Page 1 of 2 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: March 26, 2026
PREPARED BY: Andrea Staehle, Human Resources Director
SUBJECT: APPROVAL OF MEMORANDUM OF UNDERSTANDING (MOU)

BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT

EMPLOYEES ORGANIZATION (PDEO) AND AGREEMENT BETWEEN

THE CITY OF PALM DESERT AND UNREPRESENTED EMPLOYEES
RECOMMENDATION:

1. Approve the Memorandum of Understanding (MOU) between the City of Palm Desert and the Palm Desert Employee Organization (PDEO), effective July 1, 2026, through June 30, 2031.

2. Approve the Agreement between the City of Palm Desert and Unrepresented Employees effective July 1, 2026, through June 30, 2031.

3. Authorize the City Manager to take actions to implement the MOU and agreement between the City of Palm Desert, PDEO, and Unrepresented Employees.

BACKGROUND/ANALYSIS:

The City recognizes the Palm Desert Employees Organization (PDEO) as the bargaining unit representing general non-exempt and exempt non-supervisory employees. The current Memorandum of Understanding (MOU) between the City of Palm Desert and PDEO, covering compensation, benefits, and other terms and conditions of employment, expires on July 1, 2026.

In anticipation of the expiration, the City and PDEO began negotiations in January 2026 for a new MOU.

Additionally, the City maintains established terms and conditions of employment for unrepresented employees, which include supervisors, managers, and confidential employees.

The current terms are set to expire July 1, 2026. In anticipation of the expiration, the City met with representatives of the unrepresented employee group to discuss updates to compensation, benefits, and other working conditions. The proposed terms align with the Memorandum of Understanding (MOU) between the City and the Palm Desert Employees Organization (PDEO).

Following several meetings, the parties reached tentative agreements with PDEO in February 2026. PDEO members approved the tentative agreements on March 6, 2026. The City met with the unrepresented employees to discuss terms and conditions of employment and finalized the agreement in mid-March 2026.

For both groups, negotiations were collaborative and conducted in good faith, with all parties engaging in open discussions to address key issues. The tentative agreements and unrepresented agreement reflect a balanced approach that supports fiscal responsibility while helping the City retain and support its highly valued employees. 341
City of Palm Desert____________________________________________________________

Page 2 of 2 ends

A summary of the tentative agreements:
 Five-Year Term: July 1, 2026, through June 30, 2031
 Cost of Living Adjustment (COLA):
o July 1, 2026: 3.5% COLA + $3,500 stipend
 $2,000 upon approval from City Council
 $1,500 July 1, 2026
o July 1, 2027: 3.5% COLA
o July 1, 2028: 3.0% COLA
o July 1, 2029: 3.0% COLA
o July 1, 2030: 3.0% COLA
 Boot Allowance: $300 every 6 months
 Bilingual Pay: $50 per pay period (verbal); $100 per pay period (verbal & written); both require a test to confirm eligibility
 457 (Deferred Compensation) Match: $200 per month
 Vacation buyback: Employees can purchase up to 160 hours of vacation  Sick leave buyback: Employees hired on or before June 30, 2017, can cash out 80 hours of sick leave
 Part-time employees will receive 16 hours of vacation, which must be used by the end of the calendar year
 Employees will receive two city-issued shirts per year The City is requesting approval of the MOU and the unrepresented agreement, as well as authority for the City Manager to implement them.

Legal Review:

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

FINANCIAL IMPACT:

The fiscal impact of the MOU for all employees is estimated at $4,338,786 over a five-year period. The funds for the approved MOU will be budgeted within the appropriate fiscal year.

Funds are currently available in the FY 2025-26 Annual Budget to cover the portion of the stipend paid upon approval by City Council.

ATTACHMENTS:

1. City of Palm Desert and PDEO Memorandum of Understanding

2. City of Palm Desert and Unrepresented Employees Agreement 342
City of Palm Desert and PDEO MOU
July 1, 2026 – June 30, 2031

Page 1 of 14 ends

ARTICLE 1 – TERMS OF AGREEMENT
This Memorandum of Understanding (MOU) shall be binding on the City and the PDEO when approved by the PDEO general membership and the City Council.

Except as otherwise provided herein, this MOU shall be in full force and effect for a term of five years, from July 1, 2026 through June 30, 2031.

Any employment policies, practices and/or benefits that were in effect as of the date of signing of this MOU shall be deemed incorporated into this MOU, unless otherwise stated herein.

The parties agree that the disciplinary and grievance procedures set forth in the City’s Personnel Ordinance shall govern during the term of this Memorandum of Understanding.

In the event of a conflict between the MOU and an existing policy and/or practice, this MOU provision shall govern.

The City and the PDEO agree that this MOU contains all of the covenants, stipulations, and agreements of the parties.

The City shall meet and confer in good faith with the PDEO on all matters related to the salaries, benefits and other terms and conditions of employment, in accordance with the Myers-Milias-Brown Act.

ARTICLE 2 – AMENDMENTS AND MODIFICATIONS

2.1 Modification
The City and the PDEO agree, understand and reserve the right, to meet and confer in good faith, at any time, with respect to any subject or matter covered in this MOU in order to amend or make modifications to this MOU. Any changes to this MOU must be approved by the PDEO general membership and City Council.

2.2 Severance Clause
In the event that a court finds any provision(s) of this MOU to be invalid, unenforceable, or contrary to law, such provision shall be severed from this MOU and will not be applicable, performed, or enforced, except to the extent permitted by law. The parties agree that all the other provisions of this MOU shall remain in effect.

The parties further agree to meet and confer in good faith for purposes of negotiating an alternative to any severed provision.
343
City of Palm Desert and PDEO MOU
July 1, 2026 – June 30, 2031

Page 2 of 14 ends

ARTICLE 3 - REPRESENTATION
In accordance with the MMBA and the EERO, the City of Palm Desert recognizes the PDEO as the exclusive representative of all general and non-supervisory employees as listed in Appendix A of this agreement.

The PDEO recognizes the City Manager as the exclusive representative for the City for purposes of entering into this MOU.

ARTICLE 4 - COMPENSATION

4.1 Compensation
The Grade, Step and Wage Rates Schedule for employees covered by this Agreement is set forth in the Allocated Positions and Salary Resolution adopted by the City Council.

Salaries will be increased by the following amounts on the first full pay period following the effective date:

A. July 1, 2026: The salary schedule will increase by 3.5% and employees employed by the City on the effective dates will receive a total of $3,500 flat stipend distributed in the following way:
a. $2,000 will be paid to employees who are employed on the date this MOU is approved by the PDEO membership and City Council.

Employees hired after the approval date are not eligible for payment b. $1,500 will be paid effective July 1, 2026 to employees employed on that date.

B. July 1, 2027: The salary schedule will increase by 3.5%.

C. July 1, 2028: The salary schedule will increase by 3.0%.

D. July 1, 2029: The salary schedule will increase by 3.0%.

E. July 1, 2030: The salary schedule will increase by 3.0%.

4.2 Night Differential Pay
Employees who are assigned to perform their duties between the hours of 6:00 p.m. and 6:00 a.m. for a special project (and for whom the majority of hours fall after 6:00 p.m.) are eligible for night differential pay at the rate of $2.50 per hour. 344
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This does not apply to employees assigned to standby duty and receiving standby pay.

Night differential pay will be subject to the following regulations:
• Night Differential schedules must be pre-approved by the Department Head;
• Night Differential amount paid will be $2.50 per hour; • Employees on “stand-by” and receiving stand-by pay who are called back to work are not eligible for Night Differential, because they have already been compensated through the ‘stand-by’ and ‘call-back’ provisions;
• In order to qualify, the majority (greater than 50%) of the work must be performed between the hours of 6:00 p.m. and 6:00 a.m.

4.3 Working on Holidays
A. Non-exempt employees may be paid at the overtime rate when required to work on a scheduled holiday. In order to receive the overtime rate for holiday work the following conditions must be met:
• The employee must work at least forty (40) hours in the same workweek the holiday falls in (holiday hours count towards hours worked when computing the total for the workweek);
• The employee cannot have been scheduled an alternate day off in the same workweek;
• If the employee takes sick or vacation time during the same workweek, such time shall not be counted as hours worked for the computation of overtime.

B. Employees scheduled to work on the July 4 holiday shall be credited with an additional floating holiday, which must be used during the same calendar year.

C. Compensation for holidays and floating holidays will be based on the employees schedule.

4.4 Stand By and Call Back Pay
When a nonexempt employee is scheduled for uncontrolled standby duty, such employee will be considered to be on-call. “On-call” means and includes that period of time, other than regularly scheduled work time, during which an 345
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employee may be called back to provide services that are the responsibility of the department in which the employee is employed.

During this period of “on-call”, the employee is free to engage in the employee’s regular activities so long as the employee is available to respond by phone or email within a reasonable period of time, typically one hour, and is in a condition to work.

Such employee shall be compensated by a payment at the employee’s regular rate of pay in the workweek in which standby duty was incurred in accordance with the following:

A. Two hours per day, each weekday;
B. Three hours per day, each Saturday, Sunday or holiday. “Callback” means and includes those occasions when a nonexempt employee reports to duty during off-duty hours responding to a city request made after the employee has completed the normal shift and left the workstation.

When a nonexempt employee is called back for duty during off hours, such employee shall receive a minimum of two hours for all work performed plus time worked in excess of two hours. Such employee shall be compensated by a payment at the rate of one and one-half times the employee’s regular rate of pay in the workweek that callback duty incurred.

For purposes of callback, time spent by the employee in traveling to and from the employee’s place of residence to the work area shall not be considered hours worked.

4.4 Bilingual Pay
Employees who have the ability to provide bilingual services in Spanish or a City Manager-approved second language may be designated as a bilingual employee required to use their skills as a part of their City employment. This designation must be made by the appropriate department head and approved by the City Manager or designee in writing. Designated employees shall receive a stipend of $50 for verbal communication and $100 for written and verbal communication per pay period. Eligible employees must successfully complete an initial assessment test to receive such designation. An employee who fails the assessment test may retake the test every six (6) months. Employees on any form of leave time in excess of (1) month shall be ineligible to receive bilingual pay until the employee returns to duty.

Employees receiving bilingual pay may be used by any department to provide bilingual services.
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4.4 Deferred Compensation (457b) Match
The City shall provide a 457b plan intended to assist in planning for retirement.

The City agrees to match unit members’ contributions up to $200 per month (NTE $2,400 per calendar year).

ARTICLE 5 – BENEFITS
The City’s Personnel Ordinance shall govern eligibility for benefits. Benefits in place on July 1, 2026 shall continue during the term of this agreement unless the PDEO and City meet and confer, and reach agreement, on proposed changes.

5.1 Employee Flexible Benefits – “Cafeteria Plan”
The City shall provide its employees with health, vision, and dental plan benefits through an IRS Section 125 Flexible Benefits Plan. This plan is referred to as the “Cafeteria Plan” because it offers a “menu” of benefits choices. The plan provides premium coverage for health, dental and vision insurance plans. In addition, the City will provide a flat $75.00 monthly flex plan credit to the cafeteria plan which can be used toward the purchase of benefits, placed in a Flexible Spending Account or received as taxable cash via payroll. Employees who choose the lowest cost health plan available are eligible for additional flex plan credits, with the amount based on family size as follows:

Single: $50 monthly
Two-Party: $75 monthly
Family: $100 monthly
Those employees who ‘opt out’ of the City provided health plans and provide proof of coverage elsewhere and coverage participants, shall receive a flat monthly stipend as followed:

Single: $250 monthly
Employee +1 or more: $500 monthly
(a) Health Insurance Benefits
The Flexible Benefits Plan will provide premium coverage (with no employee contribution) for employees and their dependents who choose a plan other than the most expensive plan offered. Employees who choose the most expensive plan will be responsible for paying the difference in premium the 2nd most expensive plan and the selected plan.
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Eligible dependents for Health Care Coverage are defined by CalPERS and include spouse, domestic partner, and children (including foster, step and economically dependent) up to age 26.
(b) Dental Benefits
The City shall provide its employees and eligible dependents with Dental Benefits.

Eligible dependents for Dental coverage are spouse, domestic partner and children (including foster, step and economically dependent) up to age 26.

The basic Dental benefit shall provide a maximum dollar limit of $2,000 per year along with additional orthodontia and implant coverage ($1,000 lifetime benefit at a 50% co-pay).
(c) Vision Benefits
The City shall provide its employees and eligible dependents with Vision benefits.

The plan will provide basic exams and single vision lenses annually. It will also provide frames, up to $180.00, every 24 months. The benefit will include an option for contact lenses. Eligible dependents for Vision coverage are spouse, domestic partner and children (including foster, step and economically dependent) up to age

26. 5.2 Retiree Health Stipend Program
The City offers a Retiree Health Stipend Program to assist long-term employees, hired on or before December 31, 2014, in offsetting the cost of health insurance in retirement. The program’s provisions are dependent on hire date and are set forth in a Resolution adopted by City Council and included here as Appendix B. a. Funding for the Retiree Health Stipend Program
The City maintains an independent trust fund for the purpose of providing retiree health stipend payments. An actuarial report is used to determine the funded status of the plan, which is reported in accordance with Governmental Accounting Standards Board (GASB) Statement 45. Future contributions to the fund will be subject to actuarial reporting and Council approval during the yearly budget process.

5.3 Retiree Health Savings Plan (RHSP) and 401a Plan for Post-Retirement Health Benefits
Employees hired on or after January 1, 2015 are automatically enrolled in the City’s Retiree Health Savings Plan and subject to a mandatory contribution of 1% of base salary. The City will contribute a matching 1% of base salary to the plan. City 348
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contributions are subject to a five-year vesting schedule. The plan is subject to IRS regulations and contributions are non-elective. Employees may direct the investments of their individual accounts. The intended purpose of the plan is to provide employees with a tax advantaged savings vehicle for post-retirement health benefit premiums.

Employees hired after January 1, 2015 are also eligible to participate in a 401A plan for tax deferred savings. Employees may contribute up to 10% of salary and the City will make a matching contribution of up to 2% of salary. This plan is subject to IRS regulations. Elections must be made within thirty (30) days of hire and are non-revocable.

5.4 Short Term Disability Insurance
The City agrees to offer a voluntary program of Short Term Disability Insurance which interested employees may purchase through payroll deduction. This plan is not intended to take the place of accrued sick leave. It is provided as a “safety net” for those employees who choose to purchase it.

5.5 California Public Employees Retirement System (CalPERS) Contract Employees hired BEFORE September 1, 2011:

Regular employees hired prior to September 1, 2011 will be enrolled in CalPERS under the retirement formula of 2.7% at age 55.

Employees shall pay 8% of salary, employee portion, to CalPERS.

Along with the 2.7% @ 55 formula the following benefits are included in the CalPERS contract for employees hired prior to September 1, 2011:
a. Post-Retirement Survivor Allowance (PRSA) 50%. Upon the death of a retiree, the PRSA, 50% of the unmodified allowance, will continue to an eligible survivor. – Section 21624/21626 b. Increased Level of 1959 Survivor Benefits (level 2) (Benefit payable to eligible survivors if the member’s death occurs during employment.) – Section 21572
c. Credit of Unused Sick Leave. Any unused sick leave days will be converted to service credit at the rate of 0.004 years of service for each day of sick leave, provided there is less than 120 days between the member’s separation date and retirement date. – Section 20965 349
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d. Industrial Disability Retirement. A miscellaneous member may qualify for an Industrial Disability Retirement (IDR) if they are unable to perform the duties of their job because of a job-related injury or illness. – Section 21151
e. Improved Non-Industrial Disability Allowance. If a member retires on a non-industrial disability, the allowance would be equal to 30% of final compensation for five (5) years of service credit and 1% for each additional year of service credit to a maximum of 50% of final compensation. – Section 21427
f. One-year Final Compensation (Final compensation calculated using the last (or highest) twelve (12) consecutive monthly pay rates.) – Section 20042
g. COLA 2% - Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis of 2% maximum. However, the adjustment may not be greater than the change in the Consumer Price Index. – Section 21329
h. Retired Death Benefit $500 – Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. – Section 21620 Employees hired between September 1, 2011 and December 31, 2012 and Classic Members:

Regular, full-time employees hired between September 1, 2011 and December 31, 2012 and regular part-time employees who worked more than 1,000 hours, as well as Classic Members as referenced below, will be enrolled in CalPERS under the retirement formula of 2% at age 55.

Employees in this tier pay 7% of salary to CalPERS.

Along with the 2% @ 55 formula, the following benefits are included in the CalPERS contract for these employees:
a. Post-Retirement Survivor Allowance (PRSA) 50%. Upon the death of a retiree, the PRSA, 50% of the unmodified allowance, will continue to an eligible survivor. – Section 21624/21626 b. Increased Level of 1959 Survivor Benefits (level 2) (Benefit payable to eligible survivors if the member’s death occurs during employment.) – Section 21572
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c. Credit of Unused Sick Leave. Any unused sick leave days will be converted to service credit at the rate of 0.004 years of service for each day of sick leave provided there is less than 120 days between the member’s separation date and retirement date. – Section 20965 d. Industrial Disability Retirement. A miscellaneous member may qualify for an Industrial Disability Retirement (IDR) if they are unable to perform the duties of their job because of a job-related injury or illness. – Section 21151
e. Improved Non-Industrial Disability Allowance. If a member retires on a non-industrial disability, the allowance would be equal to 30% of final compensation for five (5) years of service credit and 1% for each additional year of service credit to a maximum of 50% of final compensation. – Section 21427
f. COLA 2% - Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis of 2% maximum. However, the adjustment may not be greater than the change in the Consumer Price Index. – Section 21329
g. Retired Death Benefit $500 – Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. – Section 21620 Employees hired AFTER January 1, 2013:

Employees hired on or after January 1, 2013, are subject to the Public Employees Pension Reform Act (PEPRA) and receive benefits as classic or new members based on the terms of PEPRA as defined by CalPERS. .

Those designated as “New” members (no prior CalPERS service or greater than a six-month break in service) are enrolled in the retirement formula 2% @ 62 and subject to the terms outlined in PEPRA.

Members defined by CalPERS as “Classic” (those with qualifying CalPERS service within the prior six months) are enrolled in the retirement formula 2% @ 55 as noted above.

5.5 Sick Leave Accrual and Maximums
All employees hired on or after July 1, 2017, shall be subject to a maximum sick leave accrual of 500 hours. Such employees who reach the maximum shall cease to accrue sick leave until such time as their balance falls below 500 hours, at which time they will begin accruing at the normal accrual rate until they reach the maximum.
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Employees hired on or BEFORE June 30, 2017:

Beginning July 1, 2023, employees hired on or before June 30, 2017, shall be subject to a maximum sick leave accrual of 500 hours with the following provisions:
a. Employees having more than 500 hours will cease to accrue sick leave until such time as their balance falls below 500 hours, at which time they will accrue the regular accrual rate per pay period until they reach the maximum.
b. Hours in excess of 500 will not be forfeited. They will remain in the employee’s account and may be used for paid sick leave or converted to pension service credit at retirement (subject to the rules of both programs.)
c. Only eighty hours per calendar year in excess of 500 will be eligible for “cash-out” on or after July 1, 2023, as agreed upon by both parties. The balance up to 500 hours may be cashed out according the schedule contained in Palm Desert Municipal Code (PDMC) Section 2.52.710.

5.6 Vacation Leave Accrual and Maximums
All employees hired on or after July 1, 2017, shall be subject to the following vacation accrual schedule:
• All employees - two-weeks + 1 day per year of service, up to a maximum of 10 additional days per year (total of 20 days per year); • Group B (mid-management) – additional one week for up to a maximum of 25 days per year;
• Group A (management) – additional two weeks for up to a maximum of 30 days per year.
• Group X – per contract.

All employees hired on or after July 1, 2017 shall be subject to a maximum accrual balance equal to two times their annual accrual rate. At no time may their balance exceed that amount. If the maximum is reached the employee will cease to accrue vacation leave until such time as their balance drops below the maximum (this can occur at any time during the year.)
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Vacation Buy-Back:

All regular full- and part-time employees who are not subject to an employment contract with conflicting provisions may make a written, irrevocable election at the end of each calendar year ("election year") to buy back a portion of their vacation accrued in the next calendar year ("payout year") for monetary compensation:
• Employees with at least two hundred hours of accrued vacation on December 1 of each year may make an irrevocable election to buy back up to one hundred sixty hours of vacation to be accrued and paid out in the next calendar year.
• Employees with at least eighty hours of accrued vacation on December 1 of each year may make an irrevocable election to buy back up to forty hours of vacation to be accrued and paid out in the next calendar year.

In the payout year, employees may submit a written request to buy-back the elected hours. If an employee made an election but has failed to request payment by December 1 of the payout year, then the elected hours will be paid to the employee prior to December 31 of the payout year.

6. Holidays
For the duration of the MOU, Christmas Eve and New Years Eve are declared fullday holidays in accordance with PDMC 2.52.700. City Hall will be closed on these days, and full-time employees shall be credited with holiday pay in accordance with their work schedule.

Additionally, during the duration of the MOU, employees shall receive an additional floating holiday for a total of two floating holidays per calendar year. Employees floating holidays must be used as whole days rather than used as hour increments.

The floating holiday may not be carried over year to year and cannot be cashed out at the end of the year or upon separation of employment. 353
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7. Uniforms
Eligible employees shall receive a boot allowance for up to $300 every six months as allowed in the City of Palm Desert’s safety footwear policy. The allowance will be either a reimbursement or working directly with the City’s vendor.

Employees shall receive two City of Palm Desert logo shirts if the employee is employed during the timeframe the shirts are ordered. The design, material, and shirt options are determined by the Human Resources Division or designee.

8. Part- Time Employees
A. Sick Leave: Part-time employees who are under 20 hours shall receive the required California Paid Sick Leave, currently 40 hours. These employees shall be subject to a maximum sick leave of 80 hours. Such employees who reach the maximum shall cease to receive sick leave until such time as their balance falls below 80 hours, at which time they will begin acquiring hours until they reach the maximum.

B. Vacation Leave: Part-time employees who are under 20 hours per week shall receive 16 hours of vacation per calendar year that must be used by the end of the calendar year.
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Attachment A – Represented Positions
Accountant
Accounting Technician I/II
Administrative Assistant I/II
Assistant Planner I/II
Associate Planner I/II
Business Enterprise Systems Administrator
Building Inspector I/II
Code Compliance Officer I/II
Communications and Marketing Coordinator
Deputy Clerk I/II
Development Services Coordinator
Economic Development Coordinator
Executive Assistant (non-confidential)
Facilities Specialist
GIS Analyst
Human Resources Specialist
Landscape Inspector I/II
Librarian I/II
Library Assistant
Maintenance Worker I/II
Maintenance Worker/Equipment Operator III
Management Aide I/II
Management Analyst I/II
Marketing Specialist
Office Assistant I/II
Payroll Coordinator
Permit Technician I/II
Planning Technician
Project Manager
Project Technician
Public Works Inspector I/II
Purchasing Coordinator
Receptionist
Records Coordinator
Senior Administrative Assistant
Senior Building Inspector
Senior Business Systems Administrator
Senior Code Compliance Officer
Senior Deputy Clerk
Senior Facilities Specialist
Senior GIS Administrator
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Senior Information Systems Administrator
Senior Landscape Inspector
Senior Public Works Inspector
Senior Street Maintenance Worker
Senior Network Engineer
Senior Traffic Signal Specialist
Special Events Coordinator
Traffic Signal Specialist
Traffic Signal Technician I/II
Visitor Services Assistant
Visitor Services Specialist
356
Supervisors, Managers, and Confidential Employees
Five Year Agreement

3.2026
Term: July 1, 2026 – June 30, 2031 (5-year term)
Compensation
• July 1, 2026: 3.5% COLA + $3,500 stipend
o $2,000 upon approval from City Council; employees must be employed on the date the agreement is approved by City Council. o $1,500 July 1, 2026; employees must be employed on July 1, 2026. • July 1, 2027: 3.5% COLA
• July 1, 2028: 3.0% COLA
• July 1, 2029: 3.0% COLA
• July 1, 2030: 3.0% COLA
Boot Allowance
• $300 every 6 months for positions identified in the Safety Footwear Policy Bilingual Pay:
• $50 per pay period (verbal)
• $100 per pay period (verbal and written)
• Testing required for both verbal and written
• Spanish or a City Manager-approved second language
Holidays:
• Christmas Eve and New Years Eve full days off
• Employees scheduled to work on the July 4 holiday will receive an additional floating holiday to use during that calendar year. • Two (2) floating holidays
o Must be taken in full days (8 or 9 hours depending upon schedule) o Must be taken by the end of the calendar year
o Cannot be cashed out
• All holidays are full days (8 or 9 hours depending upon schedule) Vacation Leave Buyback
• Buyback up to 160 hours of vacation with 40 hours remaining 357
Supervisors, Managers, and Confidential Employees
Five Year Agreement

3.2026
Sick Leave Buyback
• Employees hired on or BEFORE June 30, 2017:
o Eighty hours per calendar year in excess of 500 will be eligible for “cash-out” on or after July 1 of each year. The balance up to 500 hours may be cashed out according the schedule contained in Palm Desert Municipal Code (PDMC) Section 2.52.710.

Uniforms
• 2 City logo shirts per fiscal year
Deferred Compensation
• Deferred comp match up to $200 per month
Health Benefits & CalPERS Retirement
• No changes
358

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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: March 26, 2026
PREPARED BY: Shawn Muir, Community Services Manager
SUBJECT: CONSIDERATION OF THE PALM DESERT CIVIC CENTER SKATE PARK

OPERATIONAL MODEL AND POTENTIAL TRANSITION TO AN

UNSUPERVISED PILOT
RECOMMENDATION:

1. Implement a 12-month pilot program for the Civic Center Skate Park as an unsupervised facility, while ensuring compliance with California Health and Safety Code § 115800 through required signage and enforcement of protective equipment requirements.

2. Authorize the City Manager to execute any amendment or related documents to Contract No.

C32410, if necessary, to implement the City Council’s direction, including the 12-month pilot period
BACKGROUND/ANALYSIS:

The Civic Center Skate Park (Skate Park) was constructed in 1999 as part of the City’s efforts to expand recreational amenities within Civic Center Park. The Skate Park currently operates as a supervised facility. The City contracts with Desert Recreation District (DRD), which provides onsite attendants during operating hours.

Hours of Operation
School Year (Days)
Monday – Friday 2:00 p.m. – 9:00 p.m.

Saturday – Sunday 8:00 a.m. – 9:00 p.m.

Summer (Days)
Seven Days Per Week 8:00 a.m. – 9:00 p.m.

Parks and Recreation Committee Discussion
The Parks and Recreation Committee (Committee) has discussed the operational model for the Skate Park at previous meetings, primarily in response to concerns regarding potential underutilization of the facility. As a result, staff prepared an action item for the Committee’s review at the March 3, 2026, meeting.

During that discussion, Committee members relayed feedback from the local skating community indicating that constant supervision may be perceived as a barrier to use. Members noted that some skaters feel the presence of an attendant “watching over” the park may discourage participation and detract from the informal, self-regulated culture typical of skate parks, as well as concerns regarding the strict enforcement of elbow and knee pad requirements. 359
City of Palm Desert
Skate Park Operational Model_______________________________________________

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California Health and Safety Code § 115800
The Skate Park is subject to California Health and Safety Code § 115800, which requires all users of public skate parks to wear helmets, elbow pads, and knee pads. For unsupervised parks, the law allows compliance through:

1. Adoption of a local ordinance mandating protective gear, and

2. Posting clear signage notifying users of the requirement and potential citations for noncompliance.

The City currently complies with these requirements. Implementing these measures, along with ongoing maintenance and routine inspections, satisfies statutory requirements and provides limited liability protection under Government Code Section 831.7 for injuries sustained during hazardous recreational activities, such as performing stunts or tricks on skateboards or other wheeled recreational devices.

Parks and Recreation Committee Recommendation:

The Committee recommends transitioning the Skate Park to unsupervised use through the end of the calendar year as a pilot program. The intent is to evaluate whether this operational change increases accessibility and usage while maintaining acceptable safety and maintenance conditions.

Staff supports the Committee’s recommendation but advises that a 12-month pilot is preferable to capture seasonal variations, weather effects, and school schedules, providing a more complete and reliable assessment.

To support evaluation, the Committee recommends:
 Implementing weekly monitoring of park conditions, usage patterns, and any incidents or maintenance concerns.
 Forming a subcommittee to determine responsibility for conducting weekly monitoring.  Compiling DRD usage data to establish a baseline of attendance under current supervised operations for comparison during the pilot.

Findings from the pilot, including usage data, observed trends, and operational or safety considerations, will be presented to the City Council at the conclusion of the pilot period.

Considerations:

Option 1: Continue Supervised Operations
 Pros: Active safety enforcement, immediate incident response, structured programming, deters vandalism.
 Cons: Ongoing staffing costs, access limited to staff availability, potential staffing challenges.

Option 2: Transition to Unsupervised Operations (Committee Recommendation / Staff 12- Month Pilot)
 Suspend DRD Skate Park Attendant services.
 Update signage for State-required protective gear.
 Implement 12-month pilot with weekly monitoring; form subcommittee to determine monitoring responsibility.
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 DRD continues opening/closing and routine inspections.

Pros: Reduced staffing costs, expanded access, aligns with other municipal skate parks.

Cons: No immediate onsite incident response, reduced direct enforcement, potential vandalism, limited structured programming.

Next Steps / Staff Recommendation
 Transition to unsupervised operations with 12-month pilot.  Ensure signage is installed and maintained, evaluate updates to municipal code, and maintain records of reported incidents and claims to preserve legal protections.  Implement weekly monitoring and reporting; subcommittee to oversee.  Continue DRD support for opening, closing, and routine inspections.  Authorize City Manager to execute contract amendment only if necessary.  Return to City Council with pilot findings and recommendations.

Legal Review:

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

FINANCIAL IMPACT:

Transitioning to unsupervised operations could result in reduced contract costs of approximately $100,000 over the 12-month period. These savings will be evaluated during the pilot period.

Minor administrative costs related to monitoring and data collection are anticipated but are expected to be minimal.

ATTACHMENT:

1. Presentation will be provided prior to the meeting
361
City of Palm Desert
Skate Park Operational Model_______________________________________________

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Note: These indicators are informational and do not constitute a legal determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 362
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March 5, 2013
Desert Recreation District
45- 305 Oasis Street
Indio, California 92201
Dear Sir or Madam:

Subject: Contract No. C32410 - Annual Park Services
At its adjourned regular meeting of November 15, 2012, the Palm Desert City Council, by Minute Motion: 1) Authorized award of the subject contract to Desert Recreation District for Annual Park Services; 2) authorized the Mayor to execute same.

Enclosed is a copy of the fully executed Agreement for your records. If you have any questions or require additional information, please do not hesitate to contact us.

Sincerely,
L
RACHELLE D. KLASSEN, MMC

CITY CLERK
RDK: mgs
Enclosure ( as noted)
cc/ enc: Ryan Stendell, Senior Management Analyst
Finance Department
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363
AGREEMENT NO., C32410

BETWEEN THE CITY OF PALM DESERT AND

THE DESERT RECREATION DISTRICT

FOR CERTAIN PARK AND RECREATIONAL SERVICES
This Agreement is made and entered into by and between the City of Palm Desert, a municipal corporation, hereinafter referred to as " City," and the Desert Recrcation District, a public agency, hereinafter referred to as " DRD."
WITNESETH:

WHEREAS, the City owns or leases property that is used for various recreational, and community activities; and,
WHEREAS, DRD also owns or leases certain property within the City presently used for such activities and is authorized and qualified to provide and administer these activities; and WHEREAS, DRD and the City currently have an agreement regarding part or all of the services addressed in this Agreement and wish to update, clarify and confirm their working relationship; and
WHEREAS, the City desires the DRD to continue to provide and administer certain recreational activities and related services that benefit the residents of Palm Desert; and WHEREAS, the parties have developed a comprehensive scope of services and pricing matrix, as well as Exhibits as follows:

Exhibit" A" — Scope of Services
Exhibit" B" — Pricing Matrix
Exhibit" C" — Listing of City Parks and Facilities and Pazks Services Matrix WHEREAS, this Agreement does not affect the current " Lease/ RD- 447---------" or any agreements between the City or DRD and Desert Sands Unified School District.

NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, and based upon confirmation that the recitals set out above are true and correct, the parties agree as follows:

1. Term. The term of this Agreement shall commence upon its execution by both parties, and shall extend through June 30, 2017. The term thereafter shall be automatically extended in five year increments until either party provides written notice to the other party of its desire that the Agreement terminate on its next , anniversary date. Either party may terminate this 1c
4844- 5656A9 t 2. l 1
364
COrT1 tACT NO. C32410
Agreement without cause upon one year prior written otice to the other party; the length of such notice is intended to allow for budget adjustment for upcoming fiscal years.

2. Scope of Services.

A. The City of Palm Desert owns or leases and operates l3 parks ( hereinafter for purposes of this Agreement referred to as " City Facilities" or " Parks,"). The present list of City Facilities or Parks is described in detail in Exhibit " C," attached and incorporated as if fully set forth herein. This Agreement applies to all Parks even if not listed B. This contract provides for the following services to City Facilities: the administration of a facilities reservations system (" facility reservation services") as set out on Exhibit A, attached and incorporated here; the provision of park supervision services as set out on Exhibit A, attached and incorporated here; and the provision of custodial services, as set out on Exhibit A, attached and incorporated here. The scope of services may be revised as set out in this Section for " Change Orders." Services shall be provided at the level determined by the parties from the Parks Services Matrix, attached and incorporated as Exhibit" B" hereto.

C. Change Orders: The parties may change the level of services provided hereunder by written agreement of the DRD General Manager and City Manager or their designees. The Change Order shall be in the fonn agreed upon by them and shall set out the change in level of services ( increased or decreased}, conesponding change in price, the City Facilities affected, and the beginning( and ending, if applicable) dates of the change.

3. DRD Obligations.

3. 1 DRD shall provide the necessary personnel, supplies, equipment, and transportation to perform the named services at the level set out in this Agreement.

3. 2 DRD shall collect and handle fees as set out in Section 5 below.

3. 3 DRD shall notify City immediately of any potential safety hazards to City from City Facilities. DRD has no obligation in any way to warn third parties, cure or correct potential health, safety or welfare hazards.

3. 4 DRD shall notify City of any damage to or misuse of City Facilities. Examples of reportable incidents include but are not limited to graffiti, vandalism and other types of property damage.

4. City' s Obligations.
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4. 1 The City shall maintain all landscaping, equipment, and buildings in City Parks unless otherwise provided for a subsequent agreement ( i.e. Palm Desert Community Center). City Facilities will be maintained in a clean and safe manner which allows DRD to provide the services set out herein.

4. 2 The City shall provide all utilities for the City Facilities, and specifically shall allow DRD to use City trash receptacles.

4. 3 City further shall have the specific obligations identified in Exhibit " A" and the payment obligations identified in Section 5, below.

5. Compensation The fees charged, retained and billed varies depending upon the type of service provided pursua it to Exhibit " A." The parties have developed a comprehensive Pricing Matrix for City payment to DRD, which Pricing Matrix is attached as Exhibit " B" hereto as if fully set forth herein (the" Pricing Matrix").

5. 1 Annual Fee Review and Adjustment:

5.].] DRD Fees and Charges: Annually, during its preliminary budget process DRD may review, and revise its fees and charges as set out in the Fees and Charges Manual. DRD agrees to incorporate field use fees as determined by the City Council into its Fees and Charges Manual. DRD will notify the City Manager or his designee of any proposed change in fees under this Agreement and shall use its best efforts to obtain City review and ratification prior to adoption of DRD' s final budget.

5. 1. 2 Pricing Matrix: The amounts payable to DRD shall increase annually without further action by either party based upon the Consumer Price Index or other inflator adopted by City for increases in its fees. In the event of an unexpected increase in the cost of supplies or materials ( such as gasoline) DRD may request a one-time increase in fees to meet such increased costs.

5. 2 Fees for facility reservation services:

5. 2. 1 DRD shall collect the City administration fees for facilities use and thereafter remit the amounts of those fees to City on a monthly basis along with a summary/ documentation for the payment provided.

5. 2. 2 FIELD RESERVATION MANAGEMENT FEE. City shall pay DRD a field reservation management fee for the entire period of this Agreement and a.ny extension thereof in the annual amount of set out on Exhibit " B," the Pricing Matrix, and identified as the " Field Reservation Management Fee." DRD shall invoice City monthly for the Field Reservation Management Fee, which shall be paid monthly, in arrears, within 30 calendar days of receipt of the DRD invoice.
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5. 3 For Supervisory, Janitorial, and Skate Park staffing services

5. 3. 1 DRD shall be reimbursed for all expenses incuned on a monthly basis per the hourly rates defined in Exhibit " B," Pricing Matrix. DRD shall invoice the City monthly and provide a documented accounting of hourly charges, which shall be paid monthly, in arrears, within 30 calendar days of the receipt of DRD invoice.

6. Marketing and Promotional Materials: DRD may include City Facilities and activities under this Agreement in its marketing or promotional materials without additional consent from the City. City may include DP D and its personnel, facilities or activities under this A neement in its marketing or promotional materials without additional consent from DRD.

7. Comqliance with Laws/ Non Discrimination. The services under this Agreement shall be provided in accordance with applicable local, state, and federal laws and regulations and specifically without discrimination as to protected categories of users.

8. Insurance.

8. 1 DRD Insurance. DRD shall procure and maintain at all times it performs any portion of the services set out in Exhibit " A" ( the " Services") the following selfinsurance with minimum limits as follows:
i. Commercial General Liabilitv. Commercial General Liability Insurance that shall protect the City, and its officers, employees, officials, agents, and authorized volunteers from all claims of bodily injury, property damage, personal injury, death, advertising injury, and medical payments arising from performing any portion of the Services. ( Form CG 0001 and CA 0001) ( Refer to chart below.) Such insurance shall be placed by insurers authorized to do business in the State of California with an A. M. Best and Company rating level ofA- or better, Class VI or better or as otherwise approved by the City. ii. Automobile LiabilitXInsurance. Commercial Automobile Liability Insurance that is at least as broad as ISO CA 0001 per occurrence which shall protect the City and its officers, employees, officials, agents, and authorized volunteers from all claims of bodily injury, property damage, personal injury, death, and medical payments arising from performing any portion of the Services. Auto liability insurance shall cover owned, non- owned, and hired autos. iii. Workers' Compensation and Emplovers' Liability Insurance. Workers' Compensation Insurance and Employers' Liability Insurance for all of its employees performing any portion of the Services in accordance with the provisions of section 3700 of the California Labor Code (" Workers' Compensation Statute"). If any class of employee or employees engaged in performing any portion of the Services under this Agreement are not protected under the Workers' Compensation Statute, adequate insurance coverage for 4844- 5656- 0912. 1 4 367
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the protection of any employee( s) not otherwise protected must be obtained before any of those employee( s) commence perfonning any portion of the Services. ( Refcr to chart below.)
Type of Coverage Minimum
Requirement
Commercial General Liability Insurance and Any Auto
Automobile Insurance, including Bodily Injury, Personal Injury, Property Damage, Advertising Injury, a ld Medical Payments Each Occurrence
1, 000, 000
General Aggregate
2, 000, 000
Professional Liability—not required 0-
Workers Compensation ( per accident or disease) Statutory Limits Employer' s Liability—not required 0-

8. 2 DRD Proof of Insurance. The DRD shall not commence performing any portion of the Services until all required insurance has been obtained and certificates or equivalent indicating the required coverages have been delivered to the City.

Certificates or equivalent Memoranda of Cover document and insurance policies or equivalent shall include the following:

8. 2. 1 A clause stating: " This policy shall not be canceled or reduced in reyuired limits of liability or amounts of insurance until notice has been mailed to the City Clerk and Risk Manager, stating date of cancellation or reduction.

Date of cancellation or reduction shall not be less than thirty ( 30) days after date of mailing notice."

8. 2. 2 Language stating in particular those insured, extent of insurance, location and operation to which insurance applies expiration date, to which cancellation and reduction notice will be sent, and length of notice period.

8. 2. 3 An endorsement stating that the City and its officers, employees, officials, agents, and authorized volunteers are named additional insured under the Commercial General Liability insurance policy. Coverage shall apply to any and all liability arising out of the work or related to the Contract.

Additional insured stated under the general liability requirement shall be provided on Insurance Services Office Form CG 2010 with an edition prior to 2004, or its exact equivalent.
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8. 2. 4 An endorsement stating that DRD' s insurance policies shall be primary and non- contributing with any insurance or self-insurance maintained by City.

8. 2. 5 With the exception of professional liability insurance, if applicable, all policies shall be written on an occunence forrn.

8. 2. 6 The City and DRD each waive subrogation against the other.

8. 2. 7 DRD agr'ees to deposit with City within fifteen days Notice to Proceed of the Contract, certificates of insurance and required endorsements. There shall be no recourse against the City for payment of premiums or other amounts with respect to the insurance required by the DRD hereunder.

Any failure, actual or alleged, on the part of the City to monitor compliance with these requirements will not be deemed a waiver of any rights on the part of the City. City has no additional obligations by virtue of requiring the insurance set forth herein.

In the event any of said polices of insurance are canceled, DRD shall prior to the cancellation date, submit new evidence of insurance in conformance with this Section to City. In the event any policy of insurance required under this Agreement does not comply with these requirements, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by the DRD, or the City will withhold amount sufficient to pay premium from DRD payments.

8. 2. 8 DRD agrees to provide immediate notice to City of any claim or loss against the DRD arising out of the services performed under this agreement. City assumes no obligation or liability by such notice, but has the right ( but not the duty) to monitor the handling of any such claim or claims ifthey are likely to involve the City.

8. 3. 0 City Insurance. City shall provide to DRD with the following insurance:

8. 3. 1. City shall, at all times during the term of this Agreement, maintain and keep in full force and effect, the following policies of insurance or selfinsurance with minimum limits as indicated below and issued by insurers authorized to do business in the State of Califomia with an A.M. Best and Company rating level of A- or better, Class VI or better or as otherwise approved by the DRD. Commercial general liability at least as broad as ISO CG 0001 ( per occurrence) $ 1, 000, 000 ( general aggregate) 2, 000,000. Workers' compensation in the statutory amount.

8. 3. 2 All insurance required by this section shall apply on a primary basis. City agrees that it will not cancel or reduce said insurance coverage and that if 4844- 5656- 0912. 1 6
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CONTRACT N0. C32410
it does not keep the aforesaid insurance in full force and effect DRD may take out such insurance and pay for it at City' s expense.

8. 3. 3 At all times during the term ofthis Agreement, City shall maintain on file with DRD a certificate of insurance or the equivalent from City insurer, in a form acceptable to DRD, showing that the aforesaid policies are in effect in the required amounts. The general liability policy shall contain or be endorsed to contain a provision including the DRD, its officers, agents, employees and authorized volunteers as additional insureds.

8. 3. 4 City shall promptly file with DRD such certificate or certificates and endorsements if applicable. Coverage for the additional insureds shall apply to the fullest extent permitted by law. No policy required by this section shall prohibit City from waiving azly right ofrecovery prior to loss.

District hereby waives such right with regard to the DRD, its officers, agents, employees and authorized volunteers. All insurance coverage and limits provided by City and available or applicable this agreement is intended to apply to the full extent of the policies. Nothing contained in this Agreement limits the application of such insura.nce coverage

9. Indemnification.

9. 1 To the furthest extent permitted by California law, DRD shall, at its sole expense, defend, indemnify, and hold harmless the City and its officers, employees, officials, agents, and authorized volunteers ( the " indemnified parties") from and against any and all demands, losses, liabilities, claims, suits, and actions ( the claims") of any kind, nature, and description, including, but not limited to, personal injury, death, property damage, and/ or attorneys' fees and costs, directly arising out of, connected with, or resulting from the performance of the DRD' s Services pursuant to this Agreement or from any activity, work, or thing done, permitted, or suffered by the DRD in conjunction with this Agreement, unless the claims are caused wholly by the sole negligence or willful misconduct ofthe City.

The City shall have the right to accept or reject any legal representation that DRD proposes hereunder.

9. 2 To the furthest extent permitted by California law, City shall, at its sole expense, defend, indemnify and hold harmless the DRD and its officers, agents and employees ( the " indemnified parties"), from and against any and all demands, losses, liabilities, claims, suits and actions ( the " claims") of any kind, nature and description, including, but not limited to, personal injury, death, property damage and/ or attorneys' fees and costs, directly arising out of, connected with, or resulting from the provision of or failure to provide facilities and equipment pursuant to this Agreement, unless such claims are caused wholly by the sole negligence or willful misconduct of the DRD. The DRD shall have the right to accept or reject any legal representation that City proposes hereunder. 4844- 5656-0912. 1 7
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10. Personnel. In order to provide the services pursuant to this Agreement, the DRD shall hire and supervise personnel in accordance with the DRD' s personnel policy rules and certification requirement and the specific provisions of this Agreement. This Agreement does not and shall not be deemed to create an employrnent relationship between the City and DRD employees or a joint venture between the City and DRD.

11. Emergencv Contacts. Each party shall provide the other with twenty- four ( 24) hour emergency contacts. .

12. Termination for Default: Subject to the offset provisions of Section 5. 4 hereof, in the event that either party consistently and repeatedly defaults in the performance of a material term or condition of this Agreement, prior to any notice of termination, the non- defaulting party shall give notice to the defaulting party as follows:

12. 1 The representative for the non- defaulting party first orally shall discuss the default with the representative ofthe other party.

12. 2 The non-defaulting party shall give notice of the specific default( s) and the proposed cure and shall allow at least 30 calendar days in which to cure or commence a cure. In the event that public health and safety is at risk the period for cure shall be 5 or fewer calendar days.

12. 3 In the event that the default is not cured or a cure commenced within the time frames in subsection ( b), the non-defaulting party may give 45 days' prior written notice of termination of the Agreement. In the event that public health and safety is at risk, the notice period shall be 10 days.

13. Amendments. Except as otherwise provided for Change Orders in Section 2, or fee changes under Section 5, any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the DRD Board of Directors and the Palm Desert City Council. No waiver of any term or condition of this Agreement shall be a continuing waiver thereof. This Agreement constitutes the entire agreement of the parties as to the subject matter hereof, and supersedes any other agreements, whether written or oral.

14. Contact Persons and Notice. All notices or demands of any kind served by either party to this Agreement by the other will be in writing and will be personally delivered or mailed by registered or certified mail, return receipt requested addressed to the representative of each party as set out here:

City Manager General Manager
City of Palm Desert Desert Recreation District
73- 510 Fred Waring Drive 45- 305 Oasis St.

Palm Desert, CA 92260 Indio, CA 92201
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15. Force Maieure. Performance by either party hereunder shall not be deemed to be in default, or considered to be a default, where delays or defaults are due to the force majeure including, without limitation, events of war, insurrection, strikes, lockouts, riots, floods, earthyuakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes or lack of transportation, weather-caused delays, inability to secure necessary labor, materials or tools, delays of any contractors, subcontractor or supplier which are not attributable to the fault of the party claiming an extension of time to prepare or acts or failure to act of any public or governmental agency or entity) or any delay caused by a third party, including, without limitation, independent vendors and suppliers, whose performance is not within the control of the party. extension of time for any such force majeure cause shall be for the period of the enforced delay and shall commence to run from the date of occurrence of the delay. The party seeking to invoke such force majeure provision shall give written notice to the other party within five business days of the date that the force majeure event has occurred, specifying ( i) the date from which the enforced delay commenced and the actual or the expected final date, as applicable, for which an enforced delay extension of time of performance is then being sought, and ( ii) a description of the particular circuinstances, events, facts or occurrences which have given rise to the force majeure.

16. Liti ation Costs. In the event an action is filed by either party to enforce any rights or obligations under this Agreement, the prevailing party shall be entitled to recover reasonable attorney' s fees and court costs in addition to any other relief granted by the court.

17. Internretation of A reement. The use of the words " shall or " musY' or similar words within this Agreement is not intended to and does not create a mandatory duty of any kind.

18. Authoritv to Execute Agreement. Both the City and the DRD covenant that each individual executing this Agreement on behalf of each party is a person duly authorized to do so. 4844- 5656-0912.1 9
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CONTRACT N0. C32410

CITY OF PALM DESERT
By: w Dated: November 15, 2012
Mayor
ATTEST:

C Cler
Appro , to form:

City Atto y
4844- 5656-0912. 1 1
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CONTRACT N0. C32410

DESERT RECREATION DISTRICT
By: Dated: I Z, i
Presi nt
ATTEST:

C rk of the i trict
Approved as to form:

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General` ounsel
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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Commi lon# 19e2989 I certify under PENALTY OF PERJURY under the laws Nohry Publk- Cuiforni of the State of California that the foregoing paragraph is Rlwralds County true and correct.

M Comm. Explres Jun 2,, 2016
WITNESS m h d and official seal.

Signature
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City of Palm Desert
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CONTRACT NO. C32410

EXHIBIT A - SCOPE OF WORK

FACILITIES RESERVATIONS SYSTEM ADMINISTRATION
l. DRD is responsible for scheduling and reserving use of the City Facilities set out on Exhibit" C."

2. Scheduling shall be done pursuant to DRD Fees and Charges Manual as ratified by the City and other adopted DRD policies and procedures.

DRD shall administer the reservation provisions of Chapter I 1 and specifically 11. 04 of the Palm Desert Municipal Code as those may be amended from time to time. DRD shall adininister the reservation provisions for other City Facilities if not set out in that Chapter. As applicable, DRD shall require users requesting a reservation to use the approved forms or on- line application procedures. Where the City Facility or Park is to be used by 100 people or more, DRD additionally shall require such users to complete and meet the requirements for a " City Facility Reservation Application," including online procedures herein.

3. DRD shall collect a deposit, as well as cleaning and usage fees as required by the City and/ or the DRD Fees and Charges Manual and shall maintain a detailed record of monies collected. DRD shall return deposits once inspection of the premises by DRD staff deems the refund as warranted.

4. With the permit holder, DRD shall inspect all deposit- reserved facilities at the beginning and close of the reserved usage, for the express purpose of verifying deposit return eligibility.

PARK SUPERVISION

1. Opening and Closing Facilities to the Public:
a. The opening and closing of City Facilities is subject to weather conditions and recognized emergencies. DRD shall open and close all locked City Facilities ( such as parks, restrooms, sports fields, and tennis courts) as specified by Palm Desert Municipal Code Section 11. 01. 020 or other ordinances or regulations of the City.

2. Supervision:
a. DRD sha11 provide for supervision ofCity Facilities as follows:
l. One park supervisory employee shall be on duty between 6: 00 AM and 11: 00 PM, Monday through Sunday.

2. One additional supervisory employee shall be on duty from 2: 00 PM to 11: 00 PM Friday, Saturday, Sunday, and CITY designated holidays. 4844- 5656-0912. 1 12 377
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3. Additional pazk supervisory employees may be required as needed during scheduled events, holidays, and at other times as mutually agreed between DRD' s General Manager and City Manager. DRD shall be compensated for additional park supervision staff at the hourly rate established under the Pricing Matrix attached as Exhibit" B."

4. One skate park supervisor will be on duty at the Civic Center skate park during all hours of operation/
b. Park supervision is to be provided based on the City of Palm Desert Park Inventory document, as that may be a nended from time to time, and shall include, but not be limited to, the following duties:
l. Supervision of assigned areas; DRD staff shall maintain a daily log of their activities and hours of supervision provided each City Facility.

2. Post field and shelter reservatiotis daily in designated locations.

3. Perform inspections of City facilities and maintain a written record of such inspections. The inspection form shall include any maintenance needs noted in the course of the inspection, and a log of any actions taken as a result of the inspection.

Inspections shall be made available to the City upon request.

4. Carry a schedule of weekly events occurring in all park facilities at all times.

5. Pick up litter, trash and debris during supervisory visits to all parks or call for pick up, as appropriated.

6. Re- stock restroom supplies as needed.

7. Notify MUSCO Lighting to turn off field lights for energy conservation as needed.

8. Warn patrons as needed, regarding applicable City ordinances.

9. Administer and enforce the pazks facilities reservations system as set out in Section A of this Agreement.

10. Greet all patrons, establish a check in time and verify reservation and instruct patrons on regulations.

11. Inspect reserved facilities after usage to determine any damages which have occurred since the last inspection.
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12. ecific Duties for the skate park:
i. Administer the skate park registration process, and collect user fees. ii. Confirm that all skate park users possess a valid user card. iii.Ensure that all skate park users abide by all rules and regulations, including wearing appropriate safety gear as applicable.
iv.Document all incidents or accidents in accordance with DRD policies and procedures.
c. DRD' s patrol and supervision staff shall:

1. Hold and maintain current certifications in first aid and CPR.

2. DRD' s supervision staff shall be knowledgeable of park rules and regulations as necessary for facilities' use and shall have the ability to warn of such violations.

3. DRD' s supervision staff shall be equipped with communication devices for emergency uses.

4. DRD' s patrol and supervision staff and/ or janitorial staff shall utilize established emergency contact numbers ( including 911) when appropriate to notify public safety and/ or law enforcement officials of any injury to any individual on City property, of any condition that may be considered an immediate threat to public health and safety, or of any violation of City ordinance. After notifying public safety/ law enforcement officials of any incident, DRD shall immediately notify the City Manager and/ or his designee of the occurrence.

5. CITY is responsible for notifying DRD of any changes to the Municipal Code.

CUSTODIAL SERVICES
Janitorial and custodial services are to be provided based on the City of Palm Desert Park Listing of Properties and Park Service Matrix ( Exhibit " C"), and may include, but not be limited to, the following duties:

1. Restrooms:
a. Daily, DRD custodial staff shall clean and sanitize a11 toilets, urinals, and sinks; clean and stock all paper and liquid soap dispensers; remove all stickers, tape, strings, balloons, gum, spider webs, or other debris or material attached to floors, walls, ceilings or fixtures; empty and re- line trash receptacles; and hose- wash floors and surrounding hardscapes.
b. Bi- weekly, DRD shall pressure- wash the entire interior of each restroom and its surrounding hardscape.
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c. The restrooms at the following parks shall be considered a priority and shall be cleaned prior to other City Facilities: Civic Center Park ( excluding the ball fields and skate park); Ironwood Park; Palma Village; Joe Mann Park; Freedom Park. Ball field restrooms shall move to the priority list when there is a scheduled event or tournament.

2. Record- keeping:
a. DRD' s custodial staff shall maintain a written record of daily work activities. DRD staff shall document their activities and hours of' work in each park. All documentation shall be available to the City upon request.

3. Skate Parks:
a. As needed, DRD shall remove litter, sweep, remove all stickers, tape, strings, balloons, gum, spider webs, or other debris or material attached to floors, walls, ceilings or fixtures; and empty and re- line trash receptacles. b. DRD shall wash tables and benches, DRD shall pressure wash all concrete surfaces at the Civic Center skate park as needed.
c. Changes Order Provisions for change and revisions to services under Exhibit " A": In the event the parties wish to add services to those already provided under Exhibit A," or to revise the nature of the services provided, the DRD General Manager and City Manager may agree to such changes in writing subject to the procedural requirements of each public agency. Such changes and the effective date thereof shall be shown on a revised and dated Exhibit " A" which shall be attached to this Agreement with the signatures of the General Manager and City Manager. All additional services provided shall be compensated at the rate set out on Exhibit" B." 4844- 5656- 0912. 1 1 5
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EXHIBIT B— PRICING MATRIX
Facility Reservation Mana ement Fee ( Annually): 40, 644. 68 Supervision Fee ( Hourly Rate): 20. 93
Janitorial Fee( Hourly Rate): 28. 36
Skate Park Fee( Hourly Rate): 14. 75
EXTRA WORK:

CONTRACTOR shall provide the staff and equipment to perform the following additional work at the prices indicated below.

1. Pressure wash restroom interior 75. 22

2. Pressure wash Dog Park 62. 61

3. Clean a tennis court with a water broom 52. 61 per ct.

4. Clean a basketball court with a water broom 52. 61 per ct.

5. Drag and water baseball field infield 62. 61 per field

6. Pressure wash a playground 145. 22

7. Additional labor( per hour)
Position: See Billable Rates above
Position:

Position:

Position:
4844- 5656-0912. 1 16
381
EXHIBIT C— PARK SERVICES MATRIX
Corrrt CT xo. C32410
Park
Facility Park Classitication Acrcagc
Owncr!
qmen(ttes
Nnme
Administrator
Currcnt
Parks
Cahuill Hill
Up S ace 26+/- ily 5, 6. II, IA, 16, 20 Park
Cap Hommc /
Ralph Adnms Opcn Space 27 F/- C' ily 14, 16, 2O
Park
Civic Cenler
Regional 70+/- City 1, 2, 3, 4, 5, 6, 8, 11, 12, 13, 14, 15, 17, 18, 19, 22 Park Co mnuniry Ncighborhood 1 +/- City i 1, 14, 23 Gai dens Freedom Pnrk Regional 14+/- City/ School Dislrict 1, 2, 3, 4, 5, 7, 8, 11, 13, 14, IS, 17, 18 Hovley Soccer Community I5+/- City 2, 7, 8;), l0, il, i3, 14, 15, 21 Park
lronwoodPark Coinmunity 9+/- Ciry R, 11, 14, I5,20
Joe Mann Park Neighborhood l. 5-/- City 2, 4, 8, 1 I, 14, I5, 17 Magnesia
Neighborliood 8+/- City/School District 1, 3, 7, 8, 1 I, 14, 15 Falls Park Palina Village
Neighboiiiood 1. 37+/- City 2, 4, 8, 11, 14, 15 Park
University Neighborhood 2. 25-/- City 1 I, 17
Dog Park
University Ncighborhood 2+/- City 2, 8,( 1, 14, 15 Park East Washington
Charter School Neighborhood 2+ I- 5chool District 2, 7, 8, 14, 15 Park
Future Perks
Portola& I- 10
Regional 20+/- City TBD Park
University Neighborhood 4. 2+/- City TBD Park Central
University Ncighborhood 2. 1+/- City TBD
Park West
Amenities
1= Baseball 6= Pickleball 11= Restrooms 16= HikingTrails 21= FrisbceGolf 2= Basketball 7= Soccer 12= r1mplutheater l7= Dog Park 22= Commuivty Center 3= Football 8= 0pen Grass/ I'urf 13= Concessions 18= Skate/ BMX 23= Garden Plots 4= Volleyball 9= Hotseshoes 14= Picnic Area 19= Aquetic Center S= Tennis 10= Petanque 15= Playground 20= Native Open Space 4844- 5656-0912. 1 17
382
CONTRACT N0. C32410
t
1, 2, 3, 4
Neighborhood Park:

Upen Space Park:

N/ A
2 3, 4
Community Park
l, 3
1, 2, 3, 4, 5, 6, 7, 8, 9
3 1, 2, 3, 4, 5, 6, 7, 8, 9
Regional Park
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14
2 3 15, 1b
Regional- Civic- Center Park:

Janitorial Services: Ambassador Activities:
1= Daily Restroom j nitori l services including 10= Provide dedic ted skate park but not limitc:cl to: cicaning all toilets, sinks, 1= Continously monitor& patrol city attendant during skate park floors, wells, stnll dividcrs, cmptying trash p. ky operating hours receptacles, stocking of supplies, and
documcntation of all activitics.
2= 1. 5 Daily Rcstroom janitorial scrviccs 11= Remove litter, trash and debris including bul not limited to: cleaning all toilets, 2 Pickup trash, litter and debris during attached to any floors or walls at sinks, floors, walls, stall dividcrs, cmptying trash supervisory visits skate park. receptacles, stocking of supplies, and
locumentation of all activities.
3= Event driven or as needed Restroom 3= lnfomi park users of all applicable ciry janitorial scrvices including but iot limited to: ordinances, when necessary coordinate 12= Pawerwash entire skate park cleaning all toilets, sinks, floors, walls, stall with local authorities( i. e. Code facility quatYerly dividers, emptying trash receptacles, stocking of Compliance, Police, Animal Control) supplies, and documentatian of all activities.
4= Thoroughly document, and reporc to f 3= r h skate park tables and the City all supervision activites and benches every other day. accurrences
S= Administer and enforce the pa ics 14= Administer the skate park facilities reservations system
registration card process.
6= Make contact with all guests with 15= p yre that all skate park users reservations and instruct guests on posses a valid user card. regulations
16= Assure that all skate park users
7= Post field and shelter reservations abide by all rules and regulations. 8= Inspect reserveci facilities after
usage to determine compliance
9= Coordinate sports lighting with
Musco, based on field useage
4844- 5656-0912. 1
1 g
383
F---., -:. C I 1 V 0 f L M D E S E R
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I O FRED V ARING DRIVE 73 5
PALM DESERT, CALIFORNIA 922G0- 25 7 g
rEL: 7Go 34G—oGii Pr
g
infoC cityofpalmdesert. org
rlw
March 9, 2018
Mr. Kevin Kalman
Desert Recreation District
45- 305 Oasis Street
Indio, California 92201
Dear i tr- C-m n' lr
J J
Subject: Contract No. C32410 - Contract with Desert Recreation District for Annual Park Services - Amendment No. 1
At its cegular meeting of February 22, 2018, the Palm Desert City Council, by Minute Motion, approved Amendment No. 1 to subject contract with Desert Recreation District, incorporating the following revisions: a) Removed Section 5. 2. 2 — Field Reservation Management Fee; . b) replaced Exhibit B — Contract Labor Pricing Matrix with a revised five-year pricing matrix that incorporates increased labor costs resulting from increases in the California minimum wage; c) revised Exhibit A to include Portola Community Center staffing services.

Enclosed for your records is a copy of the fully executed Amendment. If you have any questions or require additional information, please do not hesitate to contact us.

Sincerely,
RACHELLE D. KLASSEf 1, MMC

CITY CLERK
RDK: rIm
Enclosure (as noted)
cc/ enc: Johnny Terfehr, Management Analyst .

Finance Department
i PNINTfD ON RECY( lED PAPER
384
i'
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CONTRACT NO. C32410
AMENDMENT NO. 1
WHEREAS, the City of Palm Desert (" City") and Desert Recreation District Contractor"), entered into an agreement, . dated November 15, 2012, to provide park supervision and custodial services at City Facilities and Parks (" Agreement"), the parties wish to amend the Agreement effective February 22, 2018.

NOW, THEREFORE, the parties agree as follows:

A. Add section to Exhibit " A".entitled " Portola Staffing Services" and; Provide secretarial services from 8: OOam to 8: 30pm, Monday through Friday.

Organize and schedule all non- profit groups at the Portola Community Center, collect required paperwork, initiate and administer service agreements and send complete reports every 6 months.

Assist Citizens on Patrol program with all vacation check paperwork.

Administer facility use agreements and schedule field space for Palm Desert fields, including; 8 baseball fields, 7 soccer fields, 1 football field Daily cash handling and daily deposits.

Light housekeeping on a daily basis.

B. Replace Exhibit " B" — Pricing Matrix with revised Exhibit " B" — Pricing Matrix dated February 1, 2018.

C. Remove section 5. 2.2. FIELD RESERVATION MANAGEMENT FEE D. Modify section 5. 3 to read " For Supervisory, Janitorial, Portola staffing, and Skate Park staffing services"
E. All other terms and conditions of the Agreement shall remain unchanged, and shall remain in full force and effect.

Page 1 of 2 ends

385
f
ii
1 CONTRACT NO. C32410
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the 22 day of Februarv, 2018.

CITY OF PALM DESERT DESERT RECREATION DISTRICT
A Municipal Corporation
Sabby Jo athan Ke n Kalman
Mayor General Manager
Attest:

I 1
Ra hel e . Klassen
City Clerk \
Approved as to Content:
yan Stendell
Director of Community Development
A roved as t orm:
q n
r m ' D y
D-t -
a -`."
G'tt . clf a S 3'n
CitY orne a,.:, '. av
n
R
tn
O. _C3
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Page 2 of 2 ends

386
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CALIFORNIA ALL- PURPOSE ACKI fOiPIiLEDGMENT CIVIL CODE § 1189 r,_ _
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of e. rOn Q_ c z, T before me,
Date Here Insert Name and Title of the tficer
personally appeared a . .. a v
Name() of Signer(
who proved to me on the basis of satisfactory evidence to be the person whose name is/arsubscribed to the within instrument and acknowledged to me that he/sk e!#ie executed the same in his/ e t eir authorized capacity ies), and that by his/ beNtbe r signature' j on the instrument the person(, or the entity upon behalf of which the person( acted, executed the instrument.

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

DELI'A GRANADOS WITNESS my hand and official seal.

Notary PubHc- Cplifornfe =
Rfrerside County D
Commission 2155041
M Comm..: Ex ires Jun 29, 2020
Signature
Signa ure of otary Public
Place Notary Seal Above

OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Documentr I
Title or Type of Document: {' w, o,nhn/1nn l Document Date: Z ' Number of Pages: _ Signer( s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer' s Name: Signer' s Name:

Corporate Officer — Title(s): Corporate Officer — Title( s):

Partner — Limited General Partner — Limited General
Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: Other:

Signer Is Representing: Signer Is Representing:
02014 National Notary Association • www.NationalNotary. org • 1- 800- US NOTARY( 1- 800- 876- 6827) Item# 5907 387
EXHIBIT B - PRICING MATRIX ( FEBRUARY 1, 2018)
Service 1/ 1/ 17 1/ 1/ 18 1/ 1/ 19 1/ 1/ 20 1/ 1/ 21 1/ 1/ 22 Park Ambassador( hourly $ 21. 78 22. 32 22. 88 23. 45 24. 04 24. 64 fees)
Janitorial Fee Custodian 34. 14 34. 99 35. 87 36. 76 37. 68 38. 62 hourly fees)
Skate Park Fee 16. 12 16. 92 17. 77 18. 66 19. 59 20. 57 Recreation Leader( hourly
fees)
Lead Park Ambassador 33. 18 34. 00 34. 86 35. 73 36. 62 37. 53 hourly fees)
Recreation Specialist 35. 78 36. 67 37. 58 38. 51 39. 47 40. 45 hourly fees)
Senior Recreation Leader $ 20. 34 20. 84 21. 36 21. 89 22. 43 22. 99 hourly fees)
Recreation Leader( hourly $ 19. 26 19. 74 20. 23 20. 73 21. 24 21. 77 fees)
EXTRA WORK: CONTRACTOR shall provide the staff and equipment to perform the following additional work at the prices indicated below.

Additional service 1/ 1/ 17 1/ 1/ 18 1/ 1/ 19 1/ 1/ 20 1/ 1/ 21 1/ 1/ 22 Pressure wash restroom interior 75. 22 $ 77. 10 79. 02 81. 00 $ 83. 02 $ 85. 10 Pressure wash Dog Park 62. 61 $ 64. 17 65. 78 67. 42 $ 69. 11 $ 70. 84 Clean a tennis court with a water $ 52. 61 $ 53. 92 55. 27 55. 66 $ 58. 07 $ 59. 52 broom per ct. per ct. per ct. per ct. per ct. per ct.

Clean a basketball court with a 52. 61 $ 53. 92 55. 27 55. 66 $ 58. 07 $ 59. 52 water broom per ct. per ct. per ct. per ct. per ct. per ct.

Drag and water baseball field infield $ 62. 61 $ 64. 17 65. 78 67. 42 $ 69. 11 $ 70. 84 per field per field per field per field per field per field Pressure wash playground 145. 22 $ 148. 85 $ 152. 57 $ 156. 38 $ 160. 29 $ 164. 30 Additional labor( per hour)
388
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City of Palm Desert
Lauri Aylaian, Ci#y Manager
73510 Fred Waring Drive
Palm Desert, CA 92260
RE: Cor tract No. C3241d, impacts of minimum wage
Dear Mrs. Aylaian:

The City of Pa1m Desert and the Desert Recreation District{ DRD) have for many years shared a successful partnership in providing recreation services to our constituents. This letter intends to reaffirm DRd' s interest in continuing our formal working partnership with the City of Palm Desert and the contracted services isted in Agreement number C324 0.

District- wide the DRD i as been evaluating the impacts of mandated rises in minimum wages. Our studies have indicated there are several billing rates which need to be amended. Attached is an amended Exhibit 8 from our operations contract reflectin our proposed 5-year plan, which we are transmitting for your review. ! a changes have been praposed to the Facility Reservation Management Fee. Below yau will nd the pertinent language refated to pricing increases found in our operations agreement:

Agreement Nurr ber C32410
Between the City of Palm Desert and the Desert Recreation District or Certain Park and Recreatianal Services
Section 5. 1. 2 Pricing Matrix anc! Exhibit B
The amounts payable to DRD shall increase annually withoutfurther action by either party based upon the Consumer Price Index ar inflatflr adopted by City for intreases in its fees.

In the event of an unexpected increase in the suppl3es or materials{ such as gasoline) DRD my request a one- time 3ncrease in fees ta meet such increased costs. want to thank the City for our continued partnership with the DRD and would be happy to discuss this matter with yau further if so desired.
incer ly,
Kevin Kafman
General Manager, Desert Re reation Qistrict
389
CITY Of PflLM DESERT
73- 5 I O FRED WARING DRIVE
PALM DESERT CALIFORNIA 922 i0- 257$
TEL: 760 34G—oGi i
infoC cityofpalmdcsert. org
April 19, 2019
Mr. Kevin Kalman
Desert Recreation District
45- 305 Oasis Street
Indio, California 92201
Dear fb4f- K t/ r
J
Subject: Contract No. C32410 — Amendment No. 2 to Annual Park Services
At its regular meeting of March 28, 2019, the Palm Desert City Council, by Minute Motion, approved Amendment No. 2 to subject contract with Desert Recreation District, Indio, California, for Annual Park Services as it relates to reimbursable expenses.

Enclosed is a fully executed Contract Amendment No. 2 for your records. If you have any questions or require any additional information, please do not hesitate to contact us.

Sincerely,
S
RACHELLE D. KLASSEN, MMC

CITY CLERK
RDK: mm
Enclosure ( as noted)
cc/ enc: Johnny Terfehr, Management Analyst
Finance Department
i~.• r IPIRi[ D OM P[[ 1Yl[ O Y I( R
390
tECEI' dE

Y CIER' S OF A
E CONTRACT NO. C32410
pt LM DESER
2019 APR I 1 A ' 8
AMENDMENT NO. 2
WHEREAS, the City of ,Palm Desert (" City") and Desert Recreation District Contractor"), entered into an agreement, dated November 15, 2012, to provide park supervision and custodial services at City Facilities and Parks, as amended in 2018 by Amendment No. 1 ( collectively "Agreement"), the parties wish to amend the Agreement effective February 28, 2019.

NOW, THEREFORE, the parties agree as follows:

A. Add to section 5. 3. 1 at end of paragraph as follows:

City shall reimburse DRD for all vehicle mileage incurred by DRD vehicles in the performance of supervisory, janitorial, and skate park staffing services consistent with this contract for Palm Desert City properties at the current IRS mileage reimbursement rate. The City will not reimburse for any other motor vehicle expenses including but not limited to maintenance, repairs, purchase, and outfitting of motor vehicles. DRD will provide mileage documentation as part of its normal monthly billing. The City will reimburse actual costs for routine maintenance of golf carts used exclusively in the performance of supervisory, janitorial, and skate park staffing services for the City consistent with this contract for Palm Desert properties."
B. All other terms and conditions of the Agreement shall remain unchanged, and shall remain in full force and effect.

SIGNATURES ON NEXT PAGE]

Page 1 of 2 ends

391
CONTRACT NO. C32410
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the 28 day of March, 2019.

CITY OF PALM DESERT DESERT RECREATION DISTRICT
A Municipal Corporation
H-. -^-` w.,J~
Susan Marie Weber K n Kalman
Mayor General Manager
Attest:

Rac e le D: Klasserr
City ClerkApproved as to Content:

Ryan Stendell
Director of Community Development
Approved as to Form:

Robert . ar eaves
City Atto ney

Page 2 of 2 ends

392
CALIFORNIA ACKNOWlEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity ofthe individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of 1. P_ r.(
On 9 before me,
D te Here Ins rt Nome and Ti e of the Officer
personally appeared Q, i / I!( a
Name(gJ of Signe)
who proved to me on the basis of satisfactory evidence to be the person( whose name( is/ subscribed to the within instrument and acknowledged to me that he/sk e{ Hey executed the same in his/'!`.".— authorized capacity(' tes`), and that by his/ er/threir signature( on the instrument the person(), or the entity upon behalf of which the person( acted, executed the instrument.

I certify under PENALTY OF PERJURY under the
DEL A GRANADOS laws of the State of California that the foregoing NOury Public- Calti6rnia paragraph is true and correct.

Rfwrside County =
Commisaion 2155041 WITNESS my hand and official seal.

M Comm. Expires Jun 24, 2020
Signature
Place Notary Seal ond/ or Stamp Above Signature of Notary Public

OPTIONAL
Completing this information can deter a/ ceration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Docu ent
Title or Type of Docume t: D
V '
Document Date: o Number of Pages:

Signer( s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer' s Name: Signer' s Name:

Corporate Officer— Title( s): Corporate Officer— Title( s):

Partner— Limited General Partner— Limited General
Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator qYOther: Other:

Signer is Representing: Signer is Representing:
02018 National Notary Association
393
Cl1Y P l D
73- 5 o FREn W, tirrc I k vr
r PAL 1 DESERT, C iroR i, qzzGo- z578
7' EL: ] GO 346— o6 i
F, x: 76o 34i- 637z
infoCapalm- desert. org
April 1, 2019
Mr. Kevin Kalman
Desert Recreation District
45- 305 Oasis Street
Indio, California 92201
Dear f 1- Kairrr Pt: t n r
Subject: Contract No. C32410 — Amendment No. 2 to Annual Park Services
At its regular meeting of March 28, 2019, the Palm Desert City Council, by Minute Motion, approved Amendment No. 2 to subject contract with Desert Recreation District, Indio, California, for Annual Park Services as it relates to reimbursable expenses.

Enclosed are two original Contract Amendments. Please sign where indicated, have notarized , (California All- Purpose Acknowledgment) and return them to us at your earliest convenience. We will then forward to you a fully executed Amendment for your records. If you have any questions or require additional information, please do not hesitate to contact us.

Sincerely,
RACHELLE D. KLASSEN, MMC

CITY CLERK
RDK:mm
Enclosure ( as noted)
cc/ enc: Johnny Terfehr, Management Analyst
Finance Department
V rcmoo. nnmm rt
394
395
396
397
398
399
YES: 5
NO: 0
ABSTAIN: 0
CONFLICT: 0
ABSENT: 0

ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES Minute Action Summary
Palm Desert City Council - Regular Meeting
Agenda Number: 13.q.

Title: APPROVE AMENDMENT NO. 4 TO CONTRACT NO. C32410 WITH DESERT

RECREATION DISTRICT FOR PARK AND PORTOLA COMMUNITY CENTER

SERVICES
Date: Thursday, September 11, 2025
Motion by: Mayor Pro Tem Trubee
Seconded by: Councilmember Pradetto
Approve Amendment No. 4 to Contract No. C32410 with Desert Recreation District to incorporate the updated Pricing Matrix ( Exhibit B), reflecting revised labor and material rates for Park and Portola Community Center services.

1. Authorize the City Attorney to make any necessary non- monetary changes to the amendments.

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

3. YES: 5 NO: 0 ABSTAIN: 0 CONFLICT: 0 ABSENT: 0
Motion Carried
Mayor Harnik
Councilmember
Pradetto
Councilmember
Nestande
Mayor Pro Tem Trubee Councilmember
Quintanilla
400

Page 1 of 2 ends

CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: September 11, 2025
PREPARED BY: Shawn Muir, Community Services Manager
SUBJECT: APPROVE AMENDMENT NO. 4 TO CONTRACT NO. C32410 WITH

DESERT RECREATION DISTRICT FOR PARK AND PORTOLA

COMMUNITY CENTER SERVICES
RECOMMENDATION:

1. Approve Amendment No. 4 to Contract No. C32410 with Desert Recreation District to incorporate the updated Pricing Matrix (Exhibit B), reflecting revised labor and material rates for Park and Portola Community Center services.

2. Authorize the City Attorney to make any necessary non -monetary changes to the amendments.

3. Authorize the City Manager to execute the amendments and any documents necessary to effectuate the actions taken herewith.

BACKGROUND/ ANALYSIS:

The City of Palm Desert (City) has maintained a partnership with the Desert Recreation District DRD) for nearly 30 years to provide recreational programming, facility staffing, and community services. DRD supports the City as a facilities operator and provider of sports programming, activities, and special park events.

The contract includes park attendants, janitorial services, and other facility staff to monitor daily activities. At the Portola Community Center (PCC), DRD provides on -site administrative staff who manage reservations for City parks and fields. They are open from 8:00 a.m. to 8:30 p.m., serving as a liaison between the City and the public.

The current cost-plus-15% agreement was originally executed in November 2012 and automatically renews in five-year increments unless terminated with one year’s notice. Since the last contract amendment, the scope and cost of services have grown due to increased programming demands, expanded maintenance responsibilities, and higher labor costs. In response, DRD has submitted an updated Pricing Matrix (Exhibit B) that reflects revised labor rates and materials costs.

Amendment No. 4 incorporates this new matrix, effective July 1, 2025, with a 2.5% increase applied in each subsequent fiscal year. Acceptance of the updated matrix ensures that the City’s reimbursement aligns with current service costs while maintaining continuity in recreational services. City staff will continue to monitor performance under the agreement and evaluate potential cost adjustments as new park facilities are added in future years.

Legal Review:

This report has been reviewed by the City Attorney’s Office. 271 401
City of Palm Desert
Amendment No. 4 to Contract No. C34210

Page 2 of 2 ends

FINANCIAL IMPACT:

The Public Works Operations Budget for Fiscal Year (FY) 2025-26 includes a total of $755,000 in Account No. 1104610-4309200 (Civic Center Park / Professional - Contract), and Account No. 1104344-4309000 (Portola Community Center / Professional – Other) for reimbursement of services pursuant to this contract. The increased cost labor costs passed through to the City take effect July 1, 2025. The operational costs beginning in FY 2025-26 are estimated as follows:

Services FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Estimated Cost for Service $ 689,191 $ 706,417 $ 724,076 $ 742,177 $ 760,732 Mileage Reimbursement $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 Average Cost for Materials $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 Total Estimated Cost $ 739,191 $ 756,417 $ 774,076 $ 792,177 $ 810,732 Sufficient funds have been budgeted for FY 2025-26; therefore, this action has no further impact on the General Fund. Staff will budget accordingly for subsequent years during the annual budget approval process, and adjust other expense accounts, if necessary, to help offset the increase.

ATTACHMENTS:

1. Proposed Amendment No. 4

2. Proposed Exhibit B
272 402
Contract No. C32410
AMENDMENT NO. 4 TO THE AGREEMENT FOR CERTAIN PARK AND RECREATIONAL

SERVICES BETWEEN THE CITY OF PALM DESERT AND DESERT RECREATION DISTRICT

1. Parties and Date.

This Amendment No. 4 (“Amendment”) to the AGREEMENT FOR CERTAIN PARK AND RECREATIONAL SERVICES is made and entered into as of this 11TH day of September, 2025 by and between the City of Palm Desert, a municipal corporation organized and operating under the laws of the State of California (“City”), and DESERT RECREATION DISTRICT, a NONPROFIT ORGANIZATION with its principal place of business at 45-305 OASIS STREET, INDIO, CA 92201, Vendor”. City and Vendor are sometimes individually referred to as “Party” and collectively as Parties.”

1.1 City Council Approval.

On February 22, 2018, City Council approved the award of this Agreement to the vendor above.

2. Recitals.

The Parties entered into an agreement titled AGREEMENT FOR CERTAIN PARK AND RECREATIONAL SERVICES dated February 22, 2018 (“Agreement”) for the purpose of retaining the services of DESERT RECREATION DISTRICT.

Amendment Authority. This Amendment is authorized pursuant to Section 13 of the Agreement.

3. Terms.

Amendment. The Agreement is hereby amended as follows:

EXHIBIT “B” – PRICING
MATRIX.

Exhibit “B” – Pricing Matrix is hereby deleted in its entirety and replaced with revised Exhibit “B” – Pricing Matrix attached hereto and incorporated herein by reference.

Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment. From and after the date of this Amendment, whenever the term Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment.

Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment.

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

Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

Signatures on Following Page]
273 403
Contract No. C32410

SIGNATURE PAGE TO AGREEMENT FOR CERTAIN PARK AND RECREATIONAL SERVICES

BY AND BETWEEN THE CITY OF PALM DESERT AND DESERT RECREATION DISTRICT IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

Clerk QC: ________
Contracts QC: ________
Insurance:

Initial Review
Final Approval

CITY OF PALM DESERT DESERT RECREATION DISTRICT
274 404
EXHIBIT B – PRICING MATRIX
Service 2025/ 2026 2026/ 2027 2027/ 2028 2028/ 2029 2029/ 2030 Park Attendant l $ 27.88 $ 28.58 $ 29.30 $ 30.04 $ 30.80 Park Attendant ll $ 43.69 $ 44.79 $ 45.91 $ 47.06 $ 48.24 Skate Park Recreation
Leader

24.63 $ 25.25 $ 25.89 $ 26.54 $ 27.21
Supervising Park
Attendant

46.49 $ 47.66 $ 48.86 $ 50.09 $ 51.35
Administrative Assistant $ 44.76 $ 45.88 $ 47.03 $ 48.21 $ 49.42 Senior Facility Attendant $ 26.01 $ 26.66 $ 27.33 $ 28.02 $ 28.72 Facilities Attendant $ 24.63 $ 25.25 $ 25.89 $ 26.54 $ 27.21 Service Annually 7/ 1/ 2025 7/ 1/ 2026 7/ 1/ 2027 7/ 1/ 2028 7/ 1/ 2029 Park Attendant l $ 155,292 $ 159,174 $ 163,153 $ 167,232 $ 171,413 Park Attendant ll $ 210,884 $ 216,156 $ 221,560 $ 227,099 $ 232,776 Skate Park Recreation
Leader
98,470 $ 100,931 $ 103,454 $ 106,040 $ 108,691
Supervising Park
Attendant
96,673 $ 99,089 $ 101,566 $ 104,105 $ 106,708
Administrative Assistant $ 95,150 $ 97,528 $ 99,966 $ 102,465 $ 105,027 Senior Facility Attendant $ 14,296 $ 14,653 $ 15,019 $ 15,394 $ 15,779 Facilities Attendant $ 18,426 $ 18,886 $ 19,358 $ 19,842 $ 20,338 Total $ 689,191 $ 706,417 $ 724,076 $ 742,177 $ 760,732 Mileage Reimbursement Rate
The average monthly milage is 3600. At the GSA rate of .70 per mile, the annual reimbursement is estimated at $30,000 a year.

Materials and Supplies
The cost of materials has increased over the last two years. The average monthly expense is approximately $ 1667.00., therefore the annual reimbursement is estimated at $20,000 Park Attendant ll
There are increased hours for Park Attendant ll , during busy season by 10 hours a week, for 6 months in the evenings in order to fulfill contract obligations as all 16 sets of restrooms need to be washed out on a daily basis.

Park Attendant l
There are increased hours for an additional Park Attendant 1 to monitor Hovely Soccer Park 20 hours a week for 4 months.
275 405
276 406

CITY OF PALM DESERT
CITY MANAGER’S OFFICE

INTEROFFICE MEMORANDUM
Date: September 11, 2025
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of September 11, 2025
Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting:

ITEM 13j: INFORMATIONAL REPORT ON ROAD CLOSURES SCHEDULED TO OCCUR ON EL PASEO ASSOCIATED WITH FISCAL YEAR 2025-26 ROUTINE SPECIAL EVENTS Q1: Which events, and what dates, are expected to close Magnesia Falls and/or San Pablo in 2025?
A1: Currently, there are no additional events scheduled in 2025 that will impact Magnesia Falls or San Pablo.

ITEM 13k: INFORMATIONAL REPORT ON ROAD CLOSURES ASSOCIATED WITH THE RUN

TRAVIS RUN EVENT
Q1: Is there a projection for possible attendance?
A1: The event organizer has estimated about 2,000 participants.

Q2: What other locations have hosted prior to 2025?
A2: The Run Travis Run concept was developed in 2024 and events have been held in Los Angeles, New Orleans, and New York.

ITEM 13q: APPROVE AMENDMENT NO. 4 TO CONTRACT NO. C32410 WITH DESERT

RECREATION DISTRICT FOR PARK AND PORTOLA COMMUNITY CENTER SERVICES Q1: How many people are available on weekends to supervise in parks? A1: Park Supervisors work Monday through Friday, however there are at least two Desert Recreation District attendants (Park Attendant I or II) at the parks 7 days a week.

ITEM 14b: 2026 CALIFORNIA DESERT PLEIN AIR FESTIVAL SPONSORSHIP REQUEST Q1: Are there examples of other festivals in California, including attendance and profits? A1: California is home to 7–10 established plein air festivals, including well-known events in Laguna Beach, Carmel, Sonoma, and Oceanside. Most report participation by 20–60 artists, but typically do not publish attendance figures or financial data. Their longevity, some running for decades, points to strong community support and long-term sustainability Q2: Outside of advertising value, what is the estimated economic impact? A2: While a formal economic impact study has not yet been conducted, we can reasonably estimate significant per-person spending based on data from other local events. With over 3,000 attendees, 277 407
09/11/2025 Question & Answer Memo

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including both local and out-of-area visitors, participating across multiple days and venues, the festival likely generated meaningful economic activity for hotels, restaurants, shops, and other businesses in Palm Desert and throughout the Coachella Valley.

Q3: How many ofthe selected artists live outside the valley? Did they collect any data onpeople who attended and stayed/ate/shopped in the Palm Desert? Coachella Valley? A3: Of the 175 participating artists, more than 50 traveled from outside the Coachella Valley. In addition, the majority of VIP guests also came from out of the area. This mirrors other plein air festivals in California, which regularly attract a mix of local and visiting artists, contributing to both cultural exchange and tourism.

Q4: Was data collected on visitor spending?
A4: No formal visitor spending survey was conducted, but many events took place at the Artists Center at El Paseo and nearby cultural and retail areas. Based on location and attendance patterns, it’s reasonable to conclude that visitors dined, shopped, and explored attractions throughout Palm Desert, contributing to local economic activity.
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CITY OF PALM DESERT

STAFF REPORT
MEETING DATE: March 26, 2026
PREPARED BY: Ryan Lamb, Sr. Project Manager
Jess Culpeper, Director of Capital Projects
SUBJECT: APPROVE AMENDMENT NO. 1 TO CONTRACT NO. C49180C WITH TILDEN-COIL CONSTRUCTORS, INC., FOR NEW LIBRARY FACILITY (PROJECT NO. CFA00027)
RECOMMENDATION:

1. Approve Amendment No. 1 to Contract No. C49180C with Tilden-Coil Constructors, Inc. on the New Library Facility Project, to compensate completed preconstruction and design services, and add demolition of the Parkview Office Building to the contract, reducing the total compensation from $1,737,227 to $1,068,460 ($86,451 Progressive Design-Build Services plus $982,009 Demolition) as Tilden-Coil’s final scope of work for the project.

2. Authorize maintaining contingency in the amount of $170,000 for unforeseen expenses related to demolition.

3. Authorize the City Attorney to make any necessary non-monetary changes to the amendments.

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

BACKGROUND/ANALYSIS:

On March 28, 2024, Richärd Kennedy Architects was awarded the contract for Conceptual Design Services for a New Library Facility. Richärd Kennedy advanced the project through Schematic Design. At the conclusion of Schematic Design in June 2025, cost estimates were prepared by Richärd Kennedy and independently by the Construction Manager, Accenture.

These estimates identified approximately $23 million in construction costs and were used as the basis for establishing the City’s approved total project budget of $30 million.

On November 13, 2025, Tilden-Coil Constructors, Inc. was awarded a Progressive Design-Build contract for the New Library Facility Project with a Progressive Design-Build budget of $25 million. The $25 million budget was derived from the $23 million estimated construction cost plus $2 million for professional services fees. The Schematic Design package, prepared by Richärd Kennedy Architects, was provided to Tilden-Coil as part of the Request for Proposals (RFP) for the Design-Builder and subsequently used as the baseline for validation and advancement into Design Development.

As part of the Progressive Design-Build process, Tilden-Coil completed a Design Validation Report that evaluates the Schematic Design against the City’s program requirements, site conditions, constructability, and project budget to confirm the feasibility of the proposed 409
City of Palm Desert
Approve Amendment No. 1 to C49180C for Tilden-Coil Constructors, Inc. (CFA00027)

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approach before advancing to further design. Through this validation, Tilden-Coil developed a cost estimate of approximately $49.2 million for the Progressive Design-Build scope of work, which would serve as the basis for establishing a Guaranteed Maximum Price (GMP) for construction.

Following receipt of the validation findings, staff conducted follow-up discussions with Richärd Kennedy, who remain confident that the project can be delivered within the previously established budget. In parallel, the City engaged independent reviews by TKE Engineering and Accenture to validate cost assumptions, escalation, and overall budget alignment. This combined review process confirmed that the project remains viable within the City’s $30 million budget, acknowledging potential impacts from market conditions and construction cost escalation since completion of the Schematic Design phase.

Cost Variance Considerations
The difference between the estimates prepared during Schematic Design and those developed through the validation process appears to be influenced by several factors, including:
 Interpretation of schematic design intent. Many building systems and materials remain conceptual at the schematic level. Differences in interpretation of the Schematic Design documents are contributing to elevated pricing assumptions.  Conservative early-phase estimating. Tilden-Coil has indicated its estimate includes elevated contingencies and risk allowances consistent with early-stage design and current market conditions.
 Conflicting benchmarking data. Tilden-Coil has provided examples of recent civic projects reflecting higher cost-per-square-foot metrics; however, these projects are not directly comparable in scope, scale, or program complexity to the Richärd Kennedy design. Conversely, Richärd Kennedy has cited comparable projects delivered within cost parameters aligned with the City’s approved budget.

Importantly, Tilden-Coil’s Design Validation Report produced a cost estimate of approximately $49.2 million, which is significantly higher than the City’s approved Progressive Design-Build budget of $25 million. While some cost challenges could potentially be addressed through design refinements, the magnitude of this variance cannot be resolved without materially altering the project’s intended design and program elements. This discrepancy reinforces the need to conclude Tilden-Coil’s contract after demolition and issue a new RFP to procure a DesignBuilder capable of delivering the project within budget.

Tilden-Coil has mobilized to the site in preparation for demolition activities and has installed construction fencing. The City and Tilden-Coil have negotiated an amendment to the existing agreement that would compensate Tilden-Coil for its completed preconstruction and design services while adding demolition of the Parkview Office Building. This scope of work is consistent with the City’s approved project budget. Demolition activities could commence as early as April 6, 2026.
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Approve Amendment No. 1 to C49180C for Tilden-Coil Constructors, Inc. (CFA00027)

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The originally approved $170,000 contingency represented approximately 10% of the design services contract and now equates to roughly 17% for the demolition scope. This higher percentage is appropriate given the increased likelihood of unforeseen conditions during demo, and maintaining it is prudent to manage risk and avoid delays.

Next Steps
Following execution of this amendment, which concludes Tilden-Coil’s preconstruction and design services, staff will issue a new RFP to procure a Design-Builder to complete the New Library Facility Project and will return to the City Council with a recommendation for award. Staff anticipates this process will take approximately two months and will actively pursue opportunities to recover time and accelerate the overall project schedule where feasible.

Legal Review:

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

The remainder of this page intentionally left blank.
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FINANCIAL IMPACT:

Funding for this project is included in the approved FY 2025/26 Financial Plan and Five-Year Capital Improvement Project (CIP) list, utilizing Library Capital and Measure G Fund Transfer (4524136-4400100); and Capital Bond Funds (4514136-4400100). This action will have no additional fiscal impact to the General Fund. The table below outlines project budget and expenses:

New Library:

Authorized Budgets
Date
Authorized Total
Library
Capital
Funds
Measure
G
Funds
Capital
Bond
Funds
FY 2024-25 CIP Budget 7/1/2024 4,000,000 - - -
Less: COD Library Reno Costs 7/1/2024 (98,932) (98,932) - - FY 2025-26 CIP Budget 7/1/2025 26,000,000 - 6,000,000 20,000,000 Total Authorized Budget to Date 29,901,068 3,901,068 6,000,000 20,000,000 Authorized Expenditures
Date
Authorized Total
Library
Capital
Funds
Measure
G
Funds
Capital
Bond
Funds
Conceptual Design 4/15/2024 642,865 642,865 - -
Cost Estimating 4/1/2024 70,295 70,295 - -
Surveying 5/1/2024 67,500 67,500 - -
Traffic Study 7/23/2024 50,169 50,169 - -
Geotechnical Engineering 4/21/2025 9,500 6,280 2,800 -
Lead & Asbestos Survey 9/4/2025 15,650 - 15,650 -
Staff Time for FY 2024-25 6/30/2025 48,874 - 48,874 -
Various Fees 7/1/2025 1,009 - 1,009 -
On-Call Landscaping Svcs 3/1/2026 25,000 - 25,000 -
Const Management Svcs. 12/11/2025 1,662,627 - 1,662,627 - Progressive Design-Build:

Tilden-Coil Constructors 11/13/2025
Phase 1 1,737,227 1,737,227 - -
Early Const. Package Amendment 1,326,732 1,326,732 - -
Contingency*** 170,000 - 170,000 -
Total Authorized Expenditures to Date 5,827,448 3,901,068 1,926,380 - *Less: Early Const. Package Amendment (1,326,732) (1,326,732) - - *Tilden-Coil Constructors Amendment #1:
*Progressive Design-Build Savings** (1,650,776) (1,650,776) - - *Demolition of Parkview Office Building 982,009 982,009 - - Remaining Project Budget Available 26,069,119 1,995,499 4,073,620 20,000,000 *This request
** $1,737,227 less $86,451 Services Rendered to Date
***Previously approved contingency amount appropriate for demolition scope of work 412
City of Palm Desert
Approve Amendment No. 1 to C49180C for Tilden-Coil Constructors, Inc. (CFA00027)

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ATTACHMENTS:

1. C49180C Amendment No. 1

2. Tilden-Coil Constructors, Inc., Proposal

3. C49180C Contract

4. Presentation
CONFLICT OF INTEREST AWARENESS CHECKLIST:
☒ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2).

Project Site: 73710 Fred Waring Drive, Palm Desert, CA
☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts.

Note: These indicators are informational and do not constitute a legal determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 413
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Contract No. C49180C
Amendment
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AMENDMENT NO.1
Project: NEW LIBRARY FACILITY
Contract #: C49180C
Date of Contract: November 13, 2025
Effective Date: March 26, 2026
This Amendment No. 1 is made and entered into this 26th day of March, 2026 (“Amendment No. 1 Effective Date”), in accordance with and subject to the terms and conditions set forth in the Progressive Design-Build Contract (“Contract”) entered into by and between the City of Palm Desert (“City”) and Tilden-Coil Constructors, Inc. (“Design-Builder”) for the Project. Capitalized terms not defined in this Amendment No. 1 shall have meanings given to them in the Contract.

RECITALS
WHEREAS, City and Design-Builder entered into the Contract with an effective date of November 13, 2025, for the New Library Facility (“Project”); WHEREAS, the Contract permits City and Design-Builder to amend the Contract upon the mutual agreement of the Parties;
WHEREAS, City and Design-Builder now desire to amend the Contract to compensate Design-Builder for Design Work completed on the Project and finalize and memorialize the Design-Builder’s scope of Work for the entirety of the Project through this Amendment No. 1 as more particularly described herein; and WHEREAS, amending the Contract pursuant to this Amendment No. 1 will allow the Project Work described herein to commence in accordance with the terms and conditions the Parties have agreed to as set forth below.

AGREEMENT
NOW, THEREFORE, in good and valuable consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

1. CONTRACT DOCUMENTS FOR AMENDMENT NO. 1.

This Amendment No. 1 shall be a Contract Document and is subject to all terms and conditions of the Contract Documents. This Amendment No. 1 includes the following documents attached hereto and incorporated by this reference:
 Exhibit “A” – Amendment No. 1 Special Conditions
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 Exhibit “B” – Amendment No. 1 Scope of Work
 Exhibit “C” – Breakdown of Amendment No. 1 Fee
 Exhibit “D” – Amendment No. 1 Schedule
 Exhibit “E” – Special Events Schedule
 Exhibit “F” – Site Boundary and Parking Area Definition  Exhibit “G” – Hazardous Materials Survey & Supplemental Survey  Exhibit “H” – Demolition Plans

2. CONSTRUCTION WORK.

This Amendment No. 1 shall revise the Phase 1 Services to include the list of services rendered to date by Design-Builder in Exhibit “B” and reduce the Phase 1 Fee from $1,737,227.00 to $86,451.00.

Additionally, Design-Builder promises and agrees to furnish to City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately complete the demolition scope of work in Exhibit “B”, and all portions thereof, as set forth in the Contract Documents and this Amendment No. 1, for a fee of Nine Hundred Eighty-Two Thousand Nine Dollars ($982,009.00) (“Demolition Fee”).

The Phase 1 Fee of $86,451.00 and Demolition Fee of $982,009.00 constitute the Amendment No. 1 Fee of $1,068,460.00 and is the sum total of all compensation due to Design-Builder under the Contract, subject to adjustment under the Contract Documents.

The schedule of values of the Amendment No. 1 Fee are further described in Exhibit “C” of this Amendment No. 1. Unless otherwise stated in the Contract Documents or any amendments thereto, including, but not limited, to Change Orders, the Amendment No. 1 Fee shall cover all costs and expenses required to complete Amendment No. 1 and the Project.

The compensation to be paid shall be limited to the Amendment No. 1 Fee established pursuant to this Amendment No. 1, as the same may be adjusted under applicable provisions of the Contract Documents and this Amendment No. 1. To the extent DesignBuilder’s cost to complete Amendment No. 1 exceeds the Amendment No.1 Fee, as modified, Design-Builder shall bear such costs in excess of the Amendment No. 1 Fee without reimbursement or additional compensation from City.

3. CONSTRUCTION SCHEDULE.

Design-builder has provided a preliminary schedule for Amendment No. 1, which is attached hereto as Exhibit “D”. A Critical Path Method (CPM) Schedule for Amendment No. 1 is required prior to issuance of Notice to Proceed for Amendment No. 1. A 3-week 416
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look-ahead schedule will be provided weekly and an updated CPM Schedule for Amendment No. 1 will be provided monthly to the City in accordance with the Contract Documents

4. PERIOD OF PERFORMANCE AND LIQUIDATED DAMAGES.

Design-Builder guarantees that it shall perform and complete all work necessary for completion of Amendment No. 1 within 65 Calendar Days of the commencement date referenced in the Notice to Proceed (the “Milestone Date”).

The Parties also agree that time is of the essence for all work Design-Builder must perform to complete Amendment No. 1 by the Milestone Date. It is hereby understood and agreed that City will suffer damages if the Work is not completed by the Milestone Date. It is further agreed that it is and will be difficult and/or impossible to ascertain and determine the actual damage that City will sustain in the event of and by reason of DesignBuilder's delay in completing Amendment No. 1 beyond the Milestone Date. Accordingly, Design-Builder agrees that liquidated damages will apply in the amount of One Thousand Four Hundred and 00/100 Dollars ($1,400.00) for each and every calendar day beyond the Milestone Date that Final Completion of Amendment No. 1 has not been achieved. It is hereby understood and agreed that this amount is not a penalty. In the event any portion of the liquidated damages that may become due is not paid to City, City may deduct that amount from any money due or that may become due the DesignBuilder under the Contract.

5. REQUIRED DOCUMENTATION FOR NOTICE TO PROCEED.

After the Amendment No. 1 Effective Date, City may issue a Notice to Proceed with Amendment No. 1. Design-Builder shall provide all of the following prior to the issuance of such Notice to Proceed:
 If not already provided, fully executed Payment and Performance Bonds in the form required by the Contract.
 Evidence of Insurance for Construction Work as required by the Contract.  Copies of all other certifications applicable to Amendment No. 1 as required by the Contract.
 Critical Path Method (CPM) Schedule for Amendment No. 1, as accepted by City

6. EFFECTIVENESS/COUNTERPARTS.

This Amendment No. 1 shall only be effective upon the execution by both City and DesignBuilder. This Amendment No. 1 may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

7. SCOPE OF AMENDMENT.
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This Amendment No. 1 shall affect only the items specifically set forth herein, and all other terms and conditions of the Contract, as written shall remain in full force and effect.

SIGNATURES ON FOLLOWING PAGE
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SIGNATURE PAGE TO AMENDMENT NO. 1

BY AND BETWEEN CITY OF PALM DESERT
AND TILDEN-COIL CONSTRUCTORS, INC.

IN WITNESS WHEREOF, the Parties hereby execute this Amendment No. 1 as of the Amendment No. 1 Effective Date.

CITY OF PALM DESERT
By:

Chris Escobedo
City Manager
Attest:

By: __________________________
Anthony J. Mejia
City Clerk
Approved as to Form:

By:

Isra Shah
City Attorney
TILDEN-COIL CONSTRUCTORS, INC.,

AN S CORPORATION
By:

Dayne Brassard
President and CEO
By:

Greg Lackey
CFO, Secretary and Treasurer
208556 B – General ________
Contractor’s License Number and
Classification
1000000518 _______________
DIR Registration Number
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EXHIBIT “A”
AMENDMENT NO. 1 SPECIAL CONDITIONS
Table of Contents
ARTICLE 1 – DEFINITIONS; TERMINOLOGY
ARTICLE 2 – CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE ARTICLE 3 – INDEMNIFICATION; INSURANCE; BONDS
ARTICLE 4 – CITY RESPONSIBILITIES GENERALLY
ARTICLE 5 – DESIGN-BUILDER’S RESPONSIBILITIES
ARTICLE 6 – COST OF THE CONSTRUCTION WORK
ARTICLE 7 – SUBMITTALS; SHOP DRAWINGS
ARTICLE 8 – MATERIALS; EQUIPMENT
ARTICLE 9 – PROJECT SITE
ARTICLE 10 – PROSECUTION OF THE WORK
ARTICLE 11 – SCHEDULE; CONTRACT TIME
ARTICLE 12 – CHANGE IN CONTRACT PRICE/TIMES
ARTICLE 13 – COMPLETION; GUARANTEE OF WORK
ARTICLE 14 – TERMINATION; SUSPENSION
ARTICLE 15 – MEASUREMENT; PAYMENT
ARTICLE 16 – MISCELLANEOUS
ARTICLE 17 – DIGITAL DELIVERABLES (BIM & DOCUMENT CONTROL) ARTICLE 1 – DEFINITIONS; TERMINOLOGY
SC-1.1 Supplemental Definitions.

A. “Event Blackout Window” means City-designated dates/times during which high-impact construction activities are restricted. Refer to Exhibit “E”.

B. “Owner Verification Point (OVP)” means a hold point identified by City where Work may not proceed without City’s presence or written acknowledgment. 420
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C. “Inspection and Test Plan (ITP)” means a trade-level plan listing inspection hold/witness points, acceptance criteria, and required documentation.

D. “Traffic Control Plan (TCP)” means the City-accepted plan defining temporary traffic control devices, haul routes, flagging operations, truck queuing, delivery windows, and pedestrian/ADA protections associated with demolition and site work.

E. “Haul Route Plan (HRP)” means the City-accepted routing and logistics plan for debris/material hauling, including vehicle types, load limits, coverings, wheel-wash protocols, and residential avoidance.

F. “Debris Diversion Rate (DDR)” means the percentage of demolition debris diverted from landfill via reuse, salvage, or recycling, documented by certified weight tickets.

G. “Chain-of-Custody (CoC)” means the cradle-to-grave documentation for hazardous wastes (e.g., manifests, bills of lading, disposal certificates) associated with abatement and demolition.

H. “Environmental Assessment Report (EAR)” means the pre-demolition report consolidating hazardous materials survey results, baseline air/noise data, dust control strategy, and monitoring protocols.

ARTICLE 2 – CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE SC-2.1 Coordination with Contract Articles.

These Special Conditions supplement and do not replace the General Conditions. Where a conflict exists, the higher standard, higher quality, and most protective requirement of public safety and operations shall apply.

ARTICLE 3 – INDEMNIFICATION; INSURANCE; BONDS
SC-3.1 Confirmations.

A. Pollution Liability is required when abatement/demolition or hazardous material handling occurs; reports (air monitoring, chain-of-custody, disposal manifests) shall be included in monthly progress packages.

B. Air Monitoring Plan: Provide and implement continuous particulate (PM10/PM2.5) monitoring during demolition and fiber count monitoring when asbestos-containing materials are disturbed; define action thresholds, corrective measures, and reporting cadence. Attention is directed to AQMD Rule 403.1, which applies to all contracts within the Coachella Valley Area of Riverside County.

C. Hazardous Waste CoC: Maintain complete chain-of-custody documentation (manifests, transporter licenses, disposal facility permits/certificates); upload to the document control platform within 3 business days of disposal.

ARTICLE 4 – CITY RESPONSIBILITIES GENERALLY
SC-4.1 Review Turnarounds.
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A. Submittal review: 20 calendar days per General Conditions. Urgent items may be handled via Field Clarification per SC-12.1.

B. RFI responses: 5 business days target; complex RFIs that affect design will be acknowledged within 2 business days with an estimated response date.

ARTICLE 5 – DESIGN-BUILDER’S RESPONSIBILITIES (Staffing retained) SC-5.A Site Safety Enhancements.
1) Public barricade inspections twice daily; deficiencies corrected immediately. 2) Dust/Noise/Vibration Controls as required by permitting agencies and scope of work SC-5.B Meetings & Reporting.
1) Weekly Coordination Meeting with agenda issued 24 hours in advance; include safety, Work completed, three-week look-ahead by trade, submittal/RFI status, QA/QC, utility coordination, public/event items, inspections.
2) Daily Field Report by 9:00 a.m. next business day: manpower, equipment, work areas, inspections, deliveries, visitors, safety observations, SWPPP log entries, public interactions, photos.
2a) Include daily Dust Control Log (water usage, nozzle locations) 3) Monthly Open-Book Progress Package (see SC-15.1).

ARTICLE 6 – COST OF THE CONSTRUCTION WORK (retained)
SC-6.A Contingency & Allowance Controls.
1) Contingency Draw Request (pre-work): scope, cause, estimate, schedule impact, and confirmation that no other Contract mechanism applies; City approval prior to expenditure. 2) Post-Work Reconciliation: actuals vs. estimate with supporting invoices/timecards; included in monthly open-book package.
3) Allowance Conversions: convert to firm scope via Change Order line items supported by quotes/bids; unused allowances revert to City.

ARTICLE 7 – SUBMITTALS; SHOP DRAWINGS
SC-7.1 Submittal & RFI Procedures.

A. Submittal Schedule: CPM-integrated; identify review durations and dependencies; incomplete submittals returned without review.

B. RFI Protocol: RFIs shall state the question, affected drawings/specs, proposed solution, and schedule/cost relevance; duplicate RFIs are non-compensable. 422
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C. Field Clarifications (FCs): For urgent field issues, City may issue an FC within 48 hours; Design-Builder shall follow with a formal RFI within 3 days for record continuity (see SC-12.1).

SC-7.2 Required Plans & Reports (Demolition Work).

A. Salvage & Recycling Plan (SC-8.1): Submit prior to demolition; identify material categories, on-site sorting, target diversion consistent with City requirements, and receiving facilities.

B. Traffic Control Plan (TCP) and Haul Route Plan (HRP): Submit for City approval at least 20 days before demolition; coordinate delivery/haul windows with Exhibit “E” Special Events; include pedestrian/ADA detours, flagging, truck queuing, load covering, wheel-wash, and residential avoidance.

C. Utility Outage/Protection Plan (SC-9.2): Include temporary services, test/rollback steps, notification matrices, and emergency contacts.

ARTICLE 8 – MATERIALS; EQUIPMENT
SC-8.1 Salvage & Recycling Plan.

A. Before demolition, submit a Salvage & Recycling Plan for reuse/recycling consistent with City diversion requirements.

B. Provide certified weight tickets and diversion percentages in monthly progress packages.

SC-8.2 Debris Tracking & Diversion Metrics.

A. Digital Tracking: Log all loads by material category, container ID, gross/net weights, destination facility, and disposition (reuse/recycle/disposal) in the project document control platform (see SC-17.2).

B. Reporting: Summarize Debris Diversion Rate (DDR) monthly and cumulatively; reconcile discrepancies between hauler tickets and scale house certificates.

C. Contaminated/Restricted Materials: Document CoC for hazardous wastes (SC-3.1.D); separate and label regulated materials; maintain on-site storage per best practices.

ARTICLE 9 – PROJECT SITE
SC-9.1 Public Interface & Event Operations.

A. Maintain ADA-compliant, signed, walkways adjacent to work zones.

B. Event Blackout Windows: No high-impact work from 48 hours before through 12 hours after City-listed events unless authorized; day-before checklist: fencing, signage, sweeping, lighting, ADA route confirmation.

C. Noise/Vibration Limits: As required by governing agencies D. Public Notifications: Post weekly look-ahead maps at site entries and City website portal (as directed), highlighting closures, detours, and haul windows. 423
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E. Protect and/or stabilize all existing art, monuments, and any structures located within or adjacent to the project site throughout the duration of the work.

SC-9.2 Utility Coordination & Outages.

A. Outage Plan: 7-day advance plan with temporary services, test/rollback steps, and notifications; 48-hour reminder.

B. Potholing & Mapping: Complete potholing at all crossings before trenching; update maps weekly; comply with Gov. Code §4216 processes.

C. Contact Matrix: Maintain current utility and emergency contact list; include escalation paths and after-hours numbers; post at site gate and upload to document platform.

D. Contractor shall protect and maintain all existing irrigation systems adjacent to demolition activities. Where demolition or site work requires removal of any portion of the irrigation mainline, the Contractor shall cap, reroute, and reconnect the system as needed to restore full functionality, including testing and repairs, at no additional cost to the Owner.

E. Contractor shall verify the power source serving the existing irrigation and pump house, including determining whether service originates within the building switchgear or from exterior equipment. Contractor shall provide all investigation, coordination, and temporary power connections necessary to maintain operations throughout demolition and site work, restoring permanent power as required.

SC-9.3 Traffic Control & Haul Routes.

A. TCP/HRP Execution: Implement only City-approved TCP/HRP; no heavy haul during Event Blackout Windows unless expressly authorized.

B. Truck Operations: Enforce designated haul routes, queuing areas, speed limits, and delivery windows; require covered loads and wheel-wash prior to exiting; prohibit idling adjacent to pedestrian areas.

C. Pedestrian/ADA Protections: Provide signed detours, tactile warnings, illumination, and edge protection; inspect twice daily (see SC-5.A.2).

D. Monitoring & Compliance: Track near-misses/incidents, citations, and public complaints; include metrics in monthly package (SC-15.1).

ARTICLE 10 – PROSECUTION OF THE WORK
SC-10.1 QA/QC Execution.

A. Inspection & Test Plans (ITPs): Provide trade-level ITPs; attach checklists to daily reports upon completion of critical activities.

B. Owner Verification Points (OVPs): City may identify OVPs; Work may not proceed past an OVP without City presence or written acknowledgment; no time/cost entitlement. 424
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Amendment - Exhibit “A” Special Conditions
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C. Demolition Hold Points: Establish OVPs prior to removal of primary structural elements, commencement of hazardous material abatement, and initiation of heavy haul operations; upload hold-point sign-offs to the document platform.

ARTICLE 11 – SCHEDULE; CONTRACT TIME
SC-11.1 CPM Requirements.

A. Critical Path Method Schedule is required
SC-11.2 Approval Milestones (Demolition Work).

A. Include milestones for City acceptance of EAR, Salvage & Recycling Plan, TCP/HRP, and Utility Outage/Protection Plan prior to Notice to Proceed for demolition.

B. Reflect Exhibit “E” Special Events constraints and blackout windows in calendars and logic ties.

ARTICLE 12 – CHANGE IN CONTRACT PRICE/TIMES
SC-12.1 Field Clarifications & Directed Changes.

A. Field Clarification (FC): City may issue to address urgent conflicts; Design-Builder memorializes via RFI within 3 days; pricing/time handled via Change Order/TIA as needed.

B. Directed Changes: City may issue unilateral directives; Design-Builder proceeds; relief handled per General Conditions.

ARTICLE 13 – COMPLETION; GUARANTEE OF WORK (unchanged)
No changes.

ARTICLE 14 – TERMINATION; SUSPENSION
SC-14.1 Clarification. Nothing herein modifies termination/suspension rights under General Conditions; Special Conditions are for execution discipline only.

ARTICLE 15 – MEASUREMENT; PAYMENT
SC-15.1 Monthly Open-Book Progress Package.

A. Include: updated schedule of values; open-book cost detail; contingency/allowance reconciliation; CPM native files; submittal/RFI logs; QA/QC metrics; risk register; SWPPP logs; environmental/abatement documentation.

B. City may withhold progress payments if package is incomplete or CPM updates are missing.

C. Demolition Work Metrics (expanded):
1) Certified weight tickets and monthly Debris Diversion Rate (DDR) by material category; reconciliation report.
2) Hazardous Waste Chain-of-Custody manifests and disposal certificates (see SC-3.1.D). 425
Contract No. C49180C
Amendment - Exhibit “A” Special Conditions
12 72500.00001\44352978.1
3) Air Monitoring as required by governing agencies
4) TCP/HRP compliance metrics: near-misses/incidents, citations, complaint log, and mitigation actions (see SC-9.3.D).
5) Pre-Event checklist certifications for each Event Blackout Window (see SC-9.1.B).

ARTICLE 16 – DIGITAL DELIVERABLES (BIM & DOCUMENT CONTROL) SC-16.1 Document Control Platform.

A. Maintain project platform(s) (Submittals, RFIs, daily reports, photos, logs) with City guest access; archive monthly exports.

SC-16.2 As-Built Information.

A. Provide final coordinated as-built model and PDFs; tag major assets; deliver digital inventory linked to O&M manuals.
426
Contract No. C49180C
Amendment - Exhibit “B” Scope of Work
13 72500.00001\44352978.1
EXHIBIT “B”
AMENDMENT NO. 1 SCOPE OF WORK
Conclude Preconstruction and Design Work for Phase 1 Services:

1. Services Rendered to Date
A. Budget development, Industry partner solicitation, Value Engineering, City/Architect Meetings, Design Agency Coordination, and Design Validation Report
B. City/Architect Meeting, Design Validation Report, and Value Engineering solutions. Includes costs from all design consultants including MEP and Structural
C. SWPPP and PM-10 Plan Development
Demolition Scope of Work:

1. Permitting and Support
Identify and obtain all necessary permits and approvals required for project execution and supporting the preparation and submission of permit applications.

This includes:

A. Regulatory pathway analysis and timeline development.

B. Coordination with permitting agencies to clarify requirements and expectations.

C. Preparation of supporting documentation and responses to agency comments.

2. Site Preparation Activities
A. Includes demolition, abatement, and site preparation work necessary to prepare the site for full construction. These activities may involve removal of existing structures, hazardous materials management, utility coordination, and grading.

3. Abatement
Based on the City’s environmental survey, hazardous materials such as asbestos, lead, or contaminated soils may be present. If identified, the Contractor shall:

A. Conduct environmental testing and reporting
B. Develop abatement plans in compliance with all applicable regulations 427
Contract No. C49180C
Amendment - Exhibit “B” Scope of Work
14 72500.00001\44352978.1
C. Coordinate with certified remediation subcontractors

4. Demolition
Removal of existing buildings, associated infrastructure, and surface features per the Exhibit “H” - Demolition Package. Scope includes:

A. Structural assessments and sequencing plans
B. Salvage and recycling of reusable materials
C. Implementation of dust, noise, and vibration mitigation measures

5. Site Clearing & Grading
Removal of vegetation, debris, and surface obstructions, followed by grading to establish proper drainage and elevation profiles in alignment with the proposed building design.

6. Utility Coordination
Identification, protection, relocation, or disconnection of existing utilities in coordination with service providers. Tasks include:

A. Utility mapping and verification
B. Scheduling of service interruptions or relocations
C. Installation of temporary utilities as needed for construction

7. Site Access & Logistics Planning
Establishment of construction access routes, staging areas, and perimeter fencing to secure the site and support efficient construction operations.

A. The Design-Builder shall provide a three-week lookahead schedule weekly for the City’s review.

8. Site Coordination
Manage and coordinate construction activities around ongoing site uses, including:
a. Parking operations with City partners to remain open throughout construction, as further described in Exhibit “F”
b. Park maintenance and public access, as further described in Exhibit “F” c. Concerts and special events, as further described in Exhibit “E”

9. Safety, Quality Assurance & Control
Implement procedures to ensure construction meets design intent and standards, along with providing regular safety reports.

10. Construction Execution
428
Contract No. C49180C
Amendment - Exhibit “B” Scope of Work
15 72500.00001\44352978.1
Conducting all construction activities in accordance with the approved plans, schedule, and budget along with providing regular updates to the City.

11. Project Delivery & Closeout
Managing all aspects of construction to ensure timely, on-budget, and highquality completion of the project. Final inspections, commissioning, and turnover to the City.
429
Contract No. C49180C
Amendment - Exhibit “C” Fee
16 72500.00001\44352978.1
EXHIBIT “C”
AMENDMENT NO. 1 FEE
The Amendment No. 1 Fee is calculated as follows, and shall include the following schedule of values:
430
Contract No. C49180C
Amendment - Exhibit “D” Schedule
17 72500.00001\44352978.1
EXHIBIT “D”
AMENDMENT NO. 1 SCHEDULE
431
Contract No. C49180C
Amendment - Exhibit “E” Special Events Schedule
18 72500.00001\44352978.1
EXHIBIT “E”

SPECIAL EVENTS SCHEDULE
City Produced events:
 May and October Concerts in the Park (Thursday evenings)  4
th of July
 Veterans Day event in the park
 Shredding & E-Waste events – 2-day events in May, September & November o These take place closer to the skatepark side of the parking lot City Sponsored events:
 Palm Desert Half Marathon and 5K – February 15, 2026
 Wildflower Fest – March 7, 2026
 “For the Health of It” Health Fair – February 2026
Civic Center Park rentals that are reserved through the Desert Recreation District, including but not limited to:
 Desert Recreation Districts “Eggstravaganza” – Easter event  Holocaust Memorial (January)
 Riverside County’s Violent Crime Victim Vigil (April)  Filipino Vendor Market (Early May)
 Suicide Prevention Walk – October (exact date TBD)
 Alzheimer’s Walk (Early November exact date TBD)
 NAMI walk (early November exact date TBD)
 Water Lantern Festival (mid-late November exact date TBD)  American Heart Association Heart Walk (early December exact date TBD)  Winterfest (early to mid-December exact date TBD
432
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NEW LIBRARY FACILITY
City Council Meeting
March 26, 2026
Approve Amendment No.1 to Contract No. C49180C for Tilden-Coil Constructors, Inc. 629
2 PROJECT TIMELINE
March 2024:
• Richärd Kennedy Architects was awarded contract for Conceptual Design Services
February 2025:
• City Council approved the $30M Conceptual Design of New Library Facility
November 2025:
• Tilden-Coil Constructors, Inc. (T-C) was awarded Progressive Design-Build contract with $25M budget
February 2026:
• Tilden-Coil estimates approximately $49.2M for Progressive Design-Build scope
630
3 PROJECT TIMELINE
March 2024:
• Richärd Kennedy Architects was awarded contract for Conceptual Design Services
February 2025:
• City Council approved the $30M Conceptual Design of New Library Facility
November 2025:
• Tilden-Coil Constructors, Inc. was awarded Progressive Design-Build contract with $25M budget
February 2026:
• Tilden-Coil estimates approximately $49.2M for their Progressive Design- Build scope 631
4 COST VARIANCE
Considerations
• Interpretation of schematic design intent
o Many building systems and materials remain conceptual at the schematic level o Differences in interpretation of the Schematic Design documents • Conservative early-phase estimating
o Estimate includes elevated contingencies and risk allowances • Conflicting benchmarking data
o Tilden-Coil projects reflect higher cost-per-square-foot metrics o Richärd Kennedy projects delivered within cost parameters aligned with the City’s approved budget 632
5 SCOPE OF WORK
Original Scope
• Progressive Design-Build
o Progress project design from schematics to complete construction documents o Planned Early Construction Package for demolition of Parkview Office Building o Guaranteed Max Price (GMP) for construction
Amended Scope
• Conclude Progressive Design-Build Services
o Compensated for preconstruction services rendered to date • Demolish Parkview Office Building
633
6 NEXT STEPS
Demolition of Parkview Office Building:
• April 2026 – June 2026
New Progressive Design-Build:
• Request for Proposals (RFP) with revised evaluation criteria o Modify submission requirements for greater pool of respondents o Shortlisted qualified firms will provide Design Validation Report for final evaluation • Straight into Design Development
• Construction Documents complete early 2027
• Construction complete 2028
634
7 PROJECT BUDGET
New Library:

Authorized Budgets
Date
Authorized Total
Library Capital
Funds 452
Measure G
Funds 452
Capital Bond
Funds 451
FY 2024-25 CIP Budget 7/1/2024 4,000,000 - - -
Less: COD Library Reno Costs 7/1/2024 (98,932) (98,932) - - FY 2025-26 CIP Budget 7/1/2025 26,000,000 - 6,000,000 20,000,000 Total Authorized Budget to Date 29,901,068 3,901,068 6,000,000 20,000,000 Authorized Expenditures
Date
Authorized Total
Library Capital
Funds 452
Measure G
Funds 452
Capital Bond
Funds 451
Conceptual Design 4/15/2024 642,865 642,865 - -
Cost Estimating 4/1/2024 70,295 70,295 - -
Surveying 5/1/2024 67,500 67,500 - -
Traffic Study 7/23/2024 50,169 50,169 - -
Geotechnical Engineering 4/21/2025 9,500 6,280 2,800 -
Lead & Asbestos Survey 9/4/2025 15,650 - 15,650 -
Staff Time for FY 2024-25 6/30/2025 48,874 - 48,874 -
Various Fees 7/1/2025 1,009 - 1,009 -
On-Call Landscaping Svcs 3/1/2026 25,000 - 25,000 -
Construction Management Svcs 12/11/2025 1,662,627 - 1,662,627 - Progressive Design-Build:

Tilden-Coil Constructors 11/13/2025
Phase 1 1,737,227 1,737,227 - -
Early Const. Package Amendment 1,326,732 1,326,732 - -
Contingency 170,000 - 170,000 -
Total Authorized Expenditures to Date 5,827,448 3,901,068 1,926,380 - * Less: Early Const. Package Amendment (1,326,732) (1,326,732) - - * Tilden-Coil Constructors Amendment #1:
* Progressive Design-Build Savings ** (1,650,776) (1,650,776) - - * Demolition of Parkview Office Building 982,009 982,009 - - Remaining Project Budget Available 26,069,119 1,995,499 4,073,620 20,000,000 * This request
** $1,737,227 less $86,451 Services Rendered to Date
635

Palm Desert City CouncilMarch 26, 2026

Palm Desert City Council
March 26, 2026