Agenda packet — Palm Springs City Council, January 27, 2022 (part 4 of 5)

RS&H California, Inc.
369 Pine Street, Suite 610, San Francisco, CA 94104
5901 W. Century Boulevard, Suite 1030, Los Angeles, CA 90045 California
X
See Attachment "A"
Item 1Q - 5

7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity EXAMPLE:

Jane Doe
[name of owner/investor]
50%, ABC Company, Inc.
[percentage of beneficial interest in entity and
name of entity]
A.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]

I DECLAR

E UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signature of Disclosing Party, Printed Name, Title Date

PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.

CITY OF
PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

James W. Hullett, Jr. 100% - RS&H California, Inc.

January 13, 2022
Item 1Q - 6
I I
ATTACHMENT “A”

RS&H CALIFORNIA, INC.

Public Entity Disclosure/Applicant Disclosure Form
Question 6 – Officers/Directors

Joseph P. Jackson Director, President
James W. Hullett, Jr. Director, Vice President
David J. Full Vice President, Corporate Secretary
Evan H. Pfahler Vice President, Treasurer
James R. Avitabile Vice President
Jesse J. Forst Vice President
Douglas D. Geiger Vice President
Christopher M. Greene Vice President
Fredrick L. Holderness Vice President
Druce S. Joslin Vice President
Keith M. Nix Vice President
Michael Spitzer Vice President
George N. Tsiouvaras Vice President
Craig A. Twibell Vice President
Andrew P. Wheeler Vice President
John J. Bottaro Assistant Corporate Secretary
E. Holt Graves Assistant Treasurer, Assistant Corporate Secretary Item 1Q - 7
Attachment B
Item 1Q - 8

Hot Spot Study
Scope of Work
Version 2.0
January 11, 2021
Palm Springs International Airport
Palm Springs, California
RS&H Project No.: 226-4411-0XX
Prepared by RS&H California, Inc. at
the direction of the City of Palm
Springs, California
Item 1Q - 9
RS&ff

I PROJECT DESCRIPTION
The City of Palm Springs is undertaking a Hot Spot Study to address FAA identified locations on the airfield at Palms Spring International Airport that are considered problematic by the FAA. The FAA typically designates a Hot Spot at a location on an airport with a history or pote ntial risk of collision or runway incursion, and where heightened attention by pilots and airfield drivers is necessary. FAA has identified a total of four Hot Spots (HS) at five locations at Palm Springs International. HS 1 occurs at the south and north ends of Taxiway C , as shown in the airport diagram below.

FIGURE 1:

PSP AIRPORT DIAGRAM AND HOT SPOTS (IMAGE COURTESY OF AIRNAV.COM, DEC. 2, 2021)

The goal of this Hot Spot Study is to evaluate the identified Hot Spots, review the incident data related to incursions, and to provide recommendations for modifying airfield geometry, improving signage and lighting, or procedural solutions to minimize potential for future incursions.

The Hot Spot Study wi ll be performed by RS&H using FAA guidance including FAA advisory circulars related to airport design and operational safety as well as experience planning and design airport facilities and operating areas at other similar commercial and general aviation airports.

Item 1Q - 10
JANUARY 2020

ANNUAL RATE OF CHANGE

0.1° w
•

HANGARS
I~ X
ELEV
449
-- x
J II~
HANGARS ,;;;E ...------..
/ STATION TWR
F8O - 583

GENERAL -----
AVIATION ...

PARKING /
U.S. CUSTOMS ~
TERMINAL '\
RWY l3R/ 3ll
PCN 64 F / B/W / T
RWY l3L-31R
PCN 5 F/ B/ W/ T
Al
ATIS
124.65
PALM SPRINGS TOWER•
119.7 377.05

GND CON
121.9

CLNC DEL
128.35
m
f--- ~ - --+---+--- ~ ---+-- -+-_ ----J- - --+-- -+-- ~ ----+-- -+-- ~ --~ 33°49'N CAUTION: BE ALERT TO RUNWAY CROSSING CLEARANCES.
j READBACK OF ALL RUNWAY HOLDING INSTRUCTIONS IS REQUIRED. l l6°3 l 'W l l 6°30'W

II IDENTIFIED HOT SPOTS
The following Hot Spots have been identified by FAA at PSP. A brief description of each Hot Spot is included for reference.
» HS 1 includes Taxiway C, which may be confused for a parallel runway for aircraft on final approach to Runway 13R or Runway 31L. Pilot confusion is believed to result from Taxiway C being a full length, parallel taxiway to the air carrier runway and having the appearance of a parallel runway - pilots may confuse Taxiway C for the parallel general aviation runway (13L-31R) located northeast of Taxiway C. » HS 2 is located at the intersection of Taxiway C and Taxiway B. Pilots taxiing from the air carrier runway to the Airport’s east general aviation and FBO area may fail to hold short of Runway 31R at Taxiway B.
» HS 3 is located at Taxiway B near the end of Runway 31R. Pilots taxiing from the general aviation and FBO ramps to Runway 31R may fail to hold short of Runway 31R due to limited visibility of pavement markings.
» HS 4 is located at the intersection of Taxiway C and Taxiway J. Pilots taxing from the air carrier runway to the Airport’s east general aviation and FBO area may fail to hold short of Runway 13L at Taxiway J. HS 2 and HS 4 represent similar issues at each end of the general aviation runway.

Item 1Q - 11

III PROJECT TASKS
TASK 1 ANALYSIS OF EXISTING DATA
Meetings and Preliminary Evaluation
Conduct a kick-off meeting with the Sponsor, FAA, and Airport Traffic Control Tower staff to discuss the potential causes of runway incursions and establish the preliminary design goals and methods to approach resolution of incursions through modified airport geometry, enhanced markings, or controller instruction. In addition to geometric factors, RS&H shall also consider extenuating circumstances that may have contributed to previous incursions.

Field Inspection
RS&H will conduct a visual inspection of the airfield to determine the existing conditions and to observe the aircraft operations in the Hot Spot areas if operations permit. During the site investigation, the geometric challenges associated with the location, with specific attention to the geocodes identified by the FAA will be observed to determine potential geomet ry issues and constraints.
o RS&H associates will visit the airport to observe, review and document operations at the identified Hot Spots if operations permit. The site visit can be completed in one to two days.

During observations, ground control will be monitored, to note ATC guidance, read-back, and actual on-field taxiing. Discussion with ATC will be necessary during the inspection to provide an understanding of how ATC typically handles aircraft during peak periods. Issues that will be recorded include photographs of the area, general aircraft operations in the area, and other information deemed relevant during the site visit.
o RS&H associates will coordinate with Airport staff and operations and conform to a mutually agreeable schedule that provides the best opportunity to observe relevant operations.

Data Collection and Summary
RS&H will collect, review, compile, and summarize available data related to the project. RS&H will review files and records to determine relevant information for the Airport to provide, such as the airport master plan, the FAA approved aviation demand forecast, the airport layout plan, aerial photogrammetry, survey data, and current considered RIM solutions. This will include a detailed review of the FAA documented runway incursion (RI) data for each location, including the category and severity

Item 1Q - 12
Task1.1
Task 1.2
Task 1.3

Task 1 RS&H Team Deliverables:
» Kick-off meeting agenda
» Kick-off meeting summary notes
» Field Visit Summary
» Data Collection Summary
» Preliminary Findings Report

Meetings:
» Hot Spot Study Meeting No. 1 - Kick-off
TASK 2 DEVELOP POTENTIAL SOLUTIONS
Establish Stakeholder Group
RS&H will coordinate with Airport staff to assemble a stakeholder group. This group should include representation from Airport staff, FAA, ATC, and a representative from the pilot community (e.g. a general aviation pilot , airline pilot, or FBO operations representative). Other may be included as directed by airport staff. The stakeholder group should be limited to five to eight people. The purpose of the stakeholder group is to provide input and insight on local, and technical considerations as they pertain to the potential solutions.

Preliminary Solutions
RS&H staff will develop up to three alternatives to mitigate each Hot Spot location. The potential solutions may include physical changes to airfield geometry and/or operational changes and instructions to improve ATC -pilot communication. T hese alternatives could include a dditional training, new communication equipment, or procedural changes. RS&H will prepare rough order of magnitude cost estimates for improvements for use in evaluating the alternatives. RS&H staff will also review historical information and industry information to include mitigation measures that have been attempted at other airports to consider what may have been effective or ineffective.

Stakeholder Group Meeting
RS&H will present the preliminary alternatives to the Sponsor, FAA and key stakeholders during an on-site stakeholder group meeting. RS&H will manage and organize the meeting to be held at PSP Airport with stakeholders. Stakeholder may participate by digital meeting if unavailable to attend at PSP. RS&H will document the results of the stakeholder meeting and use the information Item 1Q - 13
Task 2.1
Task 2.2
Task 2.3
obtained to evaluate and improve the alternatives to achieve agreement on the preferred solution for Hot Spot mitigation. RS&H will be responsible for coordinating the st akeholder group meetings, distributing invitations, meeting format and agenda.

Tasks 2.2 and 2.3 will be repeated, if needed, up to three times to refine solutions and reach consensus on workable solutions to minimize the potential for incursions at the identified PSP Hot Spots.

TASK 3 FINAL PLAN
PSP Hot Spot Study Final Report
RS&H will prepare a report that details the findings of the PSP Hot Spot Study. The report will include data and illustrations presented in four sections:
1) Executive Summary – Including a summary of the current conditions and recommended plan from the Hot Spot Study.
2) Introduction – Including airport setting and historical data that resulted in the identification of hot spots.
3) Study Process – Including information reviewed, alternatives considered, alternatives evaluation, and stakeholder engagement process used to determine the recommended action.
4) Recommended program – Including detailed information about what actions the Airport must undertake to implement the recommendations. Details would include implementation of operations changes, such as air traffic control instructions, design and construction of improvements to airfield infrastructure, signage, lighting, or other improvements. The report will include rough order of magnitude costs that can be anticipated as well as a recommended implementation schedule to be incorporated into the Airport Capital Improvement Program.

RS&H Team Deliverable:
» Draft and Final PSP Hot Spot Study Report
TASK 4 PROJECT MANAGEMENT AND QUALITY ASSURANCE
RS&H will perform the following tasks to ensure services are executed in accordance with the degree of professional care commensurate with industry standards.

Project Management
RS&H will manage the project in a professional manner, will assign qualified individuals or subconsultants to the project, and will complete efforts within the published schedule. Ongoing Item 1Q - 14
Task 3.1
Task 4.1
tasks will include preparation and coordination of periodic meetings including the development of summary meeting minutes, task element setup and oversight, and overall daily administration to conduct the project.

Quality Control (QC) Reviews
RS&H will conduct in -house quality control reviews of all draft deliverables, Hot Spot Study summary reports , technical memoranda, and drawings prior to submittal to PSP and other stakeholders.

IV PRELIMINARY PROJECT SCHEDULE
The Hot Spot Study will be e xecuted in accordance with the general schedule indicated below.

Specific dates for deliverables and meetings will be determined with PSP staff.

Date
NTP Jan. 31, 2022
Kickoff meeting Feb. 10, 2022
Site visit Feb. 7-18, 2022 (TBD based on availability of key airport and FAA staff)
Preliminary Findings Report Mar. 18, 2022
Stakeholder Meeting No. 1 Apr. 13, 2022
Stakeholder Meeting No. 2 May 18, 2022
Stakeholder Meeting No. 3 Jun. 15, 2022
Final Report Aug. 24, 2022

V ASSUMPTIONS AND EXCLUSIONS
The following assumptions have been made for this Scope of Work:
» Adherence to the project schedule is contingent upon PSP staff providing written comments to the planning team within two weeks of submittals. » The project schedule may be impacted by FAA staff availability for meetings and review of materials.
» The Scope of Work does not include an ALP update
» The Scope of Work does not include a full airfield geometry review

Item 1Q - 15
Task 4.2

VI PROFESSIONAL SERVICES FEE AND FEE TYPE

RS&H will provide the above referenced services for a Time and Materials – Not to Exceed Fee of $179,802. See Attachment A for a breakdown of costs.

Item 1Q - 16
Labor Cost:

Staff: J. Jackson E. Pfahler M. Becker T. Merrill S. Derengoski B. Moncrieff L. Rowe P. Leung Labor Category: Project Officer Sr. Planner Project Manager CAD Tech IV Planner II Planner 1 Admin Engineer IV Reimbursable Hourly Rate: $446.81 $349.32 $215.99 $146.07 $112.58 $91.66 $84.66 $252.46 Task 1 Analysis of Existing Conditions

1.1 Meetings and Preliminary Evaluation 4 8 24 - 24 - - -

1.2 Field Inspection - 16 80 - 40 - - -

1.3 Data Collection and Summary - - 24 16 40 32 - - Total Task 1 Analysis of Existing Conditions 4 24 128 16 104 32 - - 308 $54,796 Task 2 Develop Potential Solutions

2.1 Establish Stakeholder Group 1 4 8 4 - -

2.2 Preliminary Solutions 24 24 80 40 - 24

2.3 Stakeholder Group Meetings 4 32 80 24 80 - - Total Task 2 Develop Potential Solutions 5 36 112 48 164 40 - 24 429 $74,200 Task 3 Prepare Mitigation Plan Report -

3.1 Prepare Hot Spot Study Mitigation Report - 12 32 16 40 - - - Total Task 3 Prepare Mitigation Plan Report - 12 32 16 40 - - - 100 $17,944 Task 4 Project Management and Quality Assurance

4.1 Project Management 4 2 32 - 16 - 48

4.2 Quality Control 16 8 2 - - - - Total Task 4 Project Management and Quality
Assurance 20 10 34 - 16 - 48 - 128 $25,638 Total Hours 29 82 306 80 324 72 48 24 965 Labor Cost $12,957 $28,644 $66,093 $11,686 $36,476 $6,600 $4,064 $6,059 $172,578 Other Direct Non-Labor Costs:

Reproduction: $0
Travel: Airfare Car Lodging Per Diem Pkg
Trips People # Days $500 $80 $200 $63 $25 Total
Site Visit 1 - Field Inspection 1 2 3 $1,000 $240 $800 $126 $150 $2,166 Site Visit 2 - Stakeholder meeting 1 1 2 2 $1,000 $160 $400 $126 $100 $1,686 Site Visit 3 - Stakeholder meeting 2 1 2 2 $1,000 $160 $400 $126 $100 $1,686 Site Visit 4 - Stakeholder meeting 3 1 2 2 $1,000 $160 $400 $126 $100 $1,686 Subtotal Travel: $7,224
Total Direct Non-Labor Costs $7,224
Total Time and Materials - Not to Exceed Fee $179,802
Total
City of Palm Springs
Palm Springs International Airport
Attachment A - Project Cost
Hot Spot Study
Time and Materials - Not to Exceed Fee
Item 1Q - 17
RS&H

CITY COUNCIL STAFF REPORT
01/27/2022 1. R.

City Clerk -

SUBJECT

ACCEPTANCE OF PUBLIC IMPROVEMENTS AND AUTHORIZATION TO
RELEASE SUBDIVISION IMPROVEMENT SECURITIES FOR THE “VIBE DEVELOPMENT – JEN CALIFORNIA 3, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY”, TRACT MAP 36689
RECOMMENDATION:

Adopt a Resolution entitled,“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE SUBDIVISION IMPROVEMENTS ASSOCIATED WITH TRACT MAP 36689 AND AUTHORIZING RELEASE OF SECURITIES REQUIRED BY THE SUBDIVISION IMPROVEMENT AGREEMENT WITH JEN CALIFORNIA 3, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, (A7158), FOR PROPERTY LOCATED AT THE NORTHEAST CORNER OF FARRELL DRIVE AND BARISTO ROAD, IN SECTION 13, TOWNSHIP 4 SOUTH, RANGE 4 EAST”.

Attachments
Item 1R

CITY COUNCIL STAFF REPORT
DATE: J
anuary 27, 2022 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF PUBLIC IMPROVEMENTS AND AUTHORIZATION TO RELEASE SUBDIVISION IMPROVEMENT SECURITIES FOR THE “VIBE DEVELOPMENT – JEN CALIFORNIA 3, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY”, TRACT MAP 36689
FROM: Justin Clifton, City Manager
BY: Development Services Department
SUMMARY:

On June
20, 2018, the City Council approved Tract Map 36 689 and a subdivision improvement agreement with Jen California 3, LLC, a California Limited Liability Company (“Developer”), securing the Developer’s completion of certain required public and private improvements associated with Tract Map 36689 . The Developer has completed the required public improvements, and the City Council may accept these improvements as completed and complying with the City’s approved plans and authorize release of subdivision improvement securities.

RECOMMENDATION:

Ado
pt Resolution No. _________,“A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE SUBDIVISION IMPROVEMENTS ASSOCIATED WITH TRACT MAP 36689 AND

AUTHORIZING RELEASE OF SECURITIES REQUIRED BY THE SUBDIVISI ON IMPROVEMENT AGREEMENT WITH JEN CALIFORNIA 3, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY , (A 7158), FOR PROPERTY LOCATED AT THE NORTHEAST CORNER OF FARRELL DRIVE AND BARISTO ROAD, IN SECTION 13, TOWNSHIP 4 SOUTH, RANGE 4 EAST”.

BUSINESS PRINCIPAL DISCLOSURE:

The P
ublic Integrity Disclosure Form from Jen California 3, LLC, a California Limited Liability Company, is included as Attachment A.

BACKGROUND:

At i
ts meeting of July 23, 2014, the Planning Commission recommended approval of Tentative Tract Map 36689, which was subsequently approved by the City Council, subject to conditions, on September 17, 2014. Tentative Tract Map 36689 is located at Item 1R - 1
the Northeast corner of Farrell Drive and Baristo Road, In Section 13, Township 4 South, Range 4 East, as shown in the following vicinity map.

Site Map – TM 36689

On June 20, 2018, the City Council adopted Resolution No. 24448, approving Tract Map 36689 and an associated Subdivision Improvement Agreement, (the “SIA”), with the Developer. Tract Map 36689 involved a subdivision of 72 single -family homes and 93 condominium units included. The SIA and Tract Map 36689 are on file with the City Clerk.

Associated w ith Tract Map 36689 was a requirement to construct certain public and private improvements, including:

• On-site private street and storm drainage improvements; • On-site private sewer and domestic water system improvements; and • Off-site public street improvements.

At the time Tract Map 36689 was approved by the City Council, construction of required public and private improvements associated with Tract Map 36689 had not been completed; an engineer’s estimate of the cost of the improvements to be completed was $5,684,000.

Item 1R - 2
In accordance with Section 66462 of the California Government Code, the Developer requested that the City enter into the SIA securing the cost of these improvements not yet completed to the City’s satisfaction, (defined by the SIA as the “Works of Improvement”). Accordingly, pursuant to the terms of the SIA, the Developer filed the following Security Instruments with the City Clerk to guarantee construction of the Works of Improvement.

In 2019 the Developer had partially completed the required public improvements, and at its regular meeting of July 17, 2019, the City Council authorized reductions of subdivision improvement securities:

• Faithful Performance Bond; $5,684,000 (93% reduction = $400,000) • Labor and Material Bond; $2,842,000 (93% reduction = $200,000) • Monumentation Bond; $30,000 (0% reduction)
• Maintenance and Warranty Bond; $852,600 (0% reduction)

STAFF ANALYSIS:

The Developer has satisfactorily completed construction of the Works of Improvement and has requested that the City Council accept the improvements and release the Security Instruments in accordance with the terms of the SIA. On behalf of the City Engineer, the City’s Public Works Inspectors have inspected the Works of Improvement and found them to be in accordance with the City’s approved plans and specifications and recommends the City Council accept the improvements and release the Security Instruments in accordance with the SIA.

ENVIRONMENTAL ASSESSMENT
:

Pursuant to the California Environmental Quality Act (CEQA) Guidelines, the requested time extension for TPM 36767 and TTM 36689 is considered a project under the California Environmental Quality Act (CEQA). In connection with the 2014 project approvals, a n initial study was conducted on the site analyzing the project which concluded that there were aspects of the project that may cause a significant impact on the environment. A draft mitigated negative declaration (DMND) was proposed and a 20- day public review period for the Draft Mitigated Negative Declaration (DMND) was held beginning on April 17, 2014 and ending on May 6, 2014. No comments were received that would require modification or recirculation of the DMND. Mitigation measures that would reduce th e significant impacts to a less than significant level are imposed as part of project approval.

On September 17, 2014, the City Council adopted a mitigated negative declaration as an adequate analysis of the environmental impacts of the proposed project.

FISCAL IMPACT:

The Works of Improvement include both publicly maintained and privately maintained improvements; the public improvements are to be accepted and subsequently maintained by the City . Private improvements will be maintained by the Homeowner s Association Item 1R - 3
pursuant to the Covenants, Conditions and Restrictions (CC&Rs) recorded against the properties within Tract Map 36689.

REVIEWED BY:

Department Director: Flinn Fagg
City Manager: Justin Clifton

ATTACHMENTS:

A. Public Integrity Disclosure
B. Resolution

Item 1R - 4
Item 1R - 5
Who Must File?

CITY OF PALM SPRINGS

PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTIONS FOR APPLICANTS)
Applicants that are NOT a natural person or group of natural people that will be identified on the application, and seek a City approval determined by a vote of City officials. Examr:;les include corporations, limited liability companies, trusts, etc. that seek a City Council appro·1al, or an approval by one of. the City's board or commissions.

Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in municipal government and assists public officials in avoiding conflicts of interest. The City's Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the City's interest in ensuring that companies (and other legal entities that are not natural people) doing business in the community are transparent and make disclosure as to their ownership and management, and further tl1at those companies disclose the identity of any person, with an beneficial ownership interest of five percent (5%) or more.

When Must I File?
You must file this form with the Office of the City Clerk at the same time when you file y:)Ur application for a City approval determined by a vote of City officials, whether elected or appointed.
(Revised 09 13 18)

CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTION FOR APPLICANTS)

Page 1 of 2 ends

Item 1R - 6
What Must I Disclose?
A. The names of all natural persons who are officers, directors, members, managers, trustees, and other fiduciaries serving trusts or other types of organizations (attorneys, accountants, etc.).

Note: (1) you must make these disclosures in relation to the applicant entity, and also in relation to any related entity that owns a part of, or makes a profit based upon the business of the applicant entity. Disclosures may include parent, subsidiary or affiliated entities of the applicant entity; (2) if any entity that is not a nat'ilral person serves the applicant entity (e.g., as a member of an applicant LLC), then all officers, direcfrJrs, members, managers, trustees, etc., of the second entity must be disclosed).

8. The names of persons owning a beneficial interest of five percent (5%) or more in your entity, Owners/investors who have such an interest hold either investment power or voting power, i.e., they can (i) sell or transfer their interest, or (i) vote their interest in management decisions.

NOTE: USE ADDITIONAL PAGES AS NECESSARY
What if I Have Questions?
If you have any questions about how to complete this form, please contact City Attorney, Edward Z. Kotkin (email: Edward.Kotkln@pa l111sprinc1sca.gov)

PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.
(Revised 09 13 18)

CITY OF PALM SPRINGS- PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTION FOR APPLICANTS)

Page 2 of 2 ends

Item 1R - 7
City of Palm Springs
Public Integrity Disclosure
Supplementary Instructions
In an effort to ensure we capture the required business entity information in accordance w;th the attached instructions, we provide you these supplementary instructions to clearly identify the required information, and the format the information should be provided.

If you, as the applicant, are a business entity (i.e. a corporation or limited liability company), and it is also comprised of other business entities as its members or having a financial interest, all other such business entities must also be disclosed, including those entities other business entities, if any.

Ultimately, the City's disclosure document (attached) requires a listing identifying all natural persons having any financial interest over 5% of the business entities (and any other business entities comprising your business entity)
As an example, Applicant is: Acme Brothers, Inc., a California corporation, whose officers are: John Doe, Jill Doe, and Jay Doe, which is owned 50% by Acme Brothers, LLC, a California limited iability company, and John Doe (25% interest) and Jill Doe (25% interest). Acme Brothers, LLC, is mam;ged by Acme Brothers 2, Inc., a California corporation, whose officers are: George Doe, Bill Doe, ard Jane Doe, which is owned 100% by Acme Brothers 2, LLC, a California limited liability company, which is managed by George Doe, with George Doe and Jane Doe having 50% interest each.

The full business entity disclosure in this example would resemble the following:

1. Acme Brothers, Inc., a California corporation
a. Officers: .John Doe, Jill Doe, and Jay Doe
b. Ownership:
i. 50% Acme Brothers, LLC, a California limited liability company ii. 25% John Doe
iii. 25% Jill Doe

2. Acme Brothers, LLC, a California limited liability company a. Managers: Acme Brothers 2, Inc., a California corporation b. Ownership: 100% Acme Brothers 2, Inc., a California corporation

3. Acme Brothers 2, Inc., a California corporation
a. Officers: George Doe, Bill Doe, and Jane Doe
b. Ownership: 100% Acme Brothers 2, LLC, a California limited liability company

4. Acme Brothers 2, LLC, a California limited liability company a. Managers: George Doe
b. Ownership:
i. 50% George Doe
ii. 50% Jane Doe
Item 1R - 8
The full disclosure listing of natural persons with financial interest in Acme Brothers, Inc., a California corporation, would represent the following:

1. John Doe, 25%

2. Jill Doe, 25%

3. George Doe, 25%

4. Jane Doe, 25%
In order for you, as an applicant, to disclose to appropriate City officials any potential corwlict of interest, it is critical that all managers, members, corporate officers, and all natural persons having any financial interest of 5% or more be identified. Failure to identify all such persons may be cause for any action approved by the City to be declared null and void.

Item 1R - 9

1. Name of Entity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
JEN California 3 LLC

2. Address of Entity (Principle Place of Business)
680 5th Avenue, 25th Floor, New York NY 10024

3. Local or California Address (if different than #2)
600 Wilshire Boulevard, Suite 980, Los Angeles CA 90017

4. State where Entity is Registered with Secretary of State California
If other than California, is the Entitv also reg__istered in California? n Yes n 'lo

5. Type of Entity
D Corporation 0 Umited Liability Company D Partnership D Trust D Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity Reuben Leibowitz D Officer D Director D Member ~ Manag3r [name]
D General Partner D Limited Partner
Other
Ethan Leibowitz D Officer D Director D Member ~ Manager (Revised 09 13 18)
[name]
D General Partner D Limited Partner
Other
D Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
Other

CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

Item 1R - 10

7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity

EXAMPLE
JANE DOE 50%, ABC COMPANY, Inc.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
A.

David Bloom 15%
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.

William Bloom 7%
[name of owner/investor] [percentage of beneficial interest in enti':y and name of entity]
C.

Reuben Leibowitz 6%
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signature of Disclosing Party, Printed Name, Title Date /~~
Reuben Leibowitz, President May21,2019

CITY OF PALM SPRINGS- PUBLIC INTEGRITY DISCLOSURE FORM

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

(Revised 09 13.18)
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM

SPRINGS, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE

SUBDIVISION IMPROVEMENTS ASSOCIATED WITH TRACT
MAP 36689 AND AUTHORIZING RE LEASE OF SECURITIES

REQUIRED BY THE SUBDIVISION IMPROVEMENT AGREEMENT
WITH JEN CALIFORNIA 3, INC., A CALIFORNIA LIMITED

LIABILITY COMPANY, FOR PROPERTY LOCATED ON A
ROUGHLY 24-ACRE PARCEL AT THE SOUTHEAST CORNER OF

TAHQUITZ CANYON WAY AND FARRELL DRIVE , IN SECTION
13, TOWNSHIP 4 SOUTH, RANGE 4 EAST.

WHEREAS, the Planning Commission of the City of Palm Springs, at its meeting of July 23, 2014, recommended approval of Tentative Tract Map 36689 , subject to conditions; and
WHEREAS, the City Council of the City of Palm Springs, (hereinafter the “City”), at its meeting of September 14, 2014, approved Tentative Tract Map 36689 subject to conditions, and
WHEREAS, the City Council of the City of Palm Springs, (hereinafter the “City”), at its meeting of June 20, 2018 , adopted Resolution No. 2 4448, approving Tract Map 36689 and a related Subdivision Improvement Agreement, (Agreement No. 7158), with Jen California 3, LLC, a California Limited Liability Company, (hereinafter the “Developer”), in accordance with Section 66462 of the California Government Code; and WHEREAS, in accordance with Section 4.1 of the Subdivision Improvement Agreement, the Developer was required to submit subdivision improvement securities in the amount of $5,684,000. 00 to guarantee construction of certain public improvements required for and associated with Tract Map 36689, (the “Works of Improvement”); and WHEREAS, the Developer has completed construction of the Works of Improvement, and has requested that the City accept the Works of Improvement in accordance with Section 1.14 of the Subdivision Improvement Agreement; and WHEREAS, in accordance with Section 4.5 of the Subdivision Improvement Agreement, the Developer has requested that the City release the subdivisi on improvement securities filed with the City Clerk to guarantee construction of the Works of Improvement; and
WHEREAS, the City Engineer has examined the Works of Improvement, and has found them to be constructed in accordance with the Subdivision Improv ement Agreement, and the associated plans and specifications; and WHEREAS, the City Engineer recommends that the City Council accept the Works Item 1R - 11
of Improvement, and authorize the City Clerk to release the subdivision improvement securities filed with the City Clerk to guarantee construction of the Works of Improvement, with the exception of the maintenance and warranty security required by Section 4(b) of Subdivision Improvement Agreement.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1.

The recitals above are found to be true and correct and constitute the findings of the City Council made in support of this resolution.

SECTION 2. The City Council hereby finds and determines that the Works of Improvement have been completed in accordance with the relevant provisions of the Subdivision Improvement Agreement and the approved plans and specifications, and the City Council hereby accepts the completed Works of Improvements.

SECTION 3. The City Council’s acceptance of the Works of Improvement effectuated by this resolution shall not in any way supersede or relieve Jen California 3, LLC, a California Limited Liability Company,, or its successors and assigns, of any other obligations required by the Subdivision Improvement Agreement or the conditions of approval associated with Tract Map 36689.

SECTION 4.

The City Council’s acceptance of the Works of Improvement effectuated by this resolution shall not in any way impose an obligation on the City of Palm Springs to maintain those improvements that are required to be privately maintained by a Homeowners Association through Covenants, Conditions and Restrictions (CC&R’s), including the private streets associated with Tract Map 36689.

SECTION 5.

In accordance with Section 4.5(a) of the Subdivision Improvement Agreement, the City Clerk is hereby authorized to release the following Security Instruments previously filed with the City Clerk to guarantee construction of the Works of Improvement:

• Faithful Performance Bond; $5,684,000.00 (93% reduction = $400,000.00) • Labor and Material Bond; $2,842,000.00 (93% reduction = $200,00.00) • Monumentation Bond; $30,000.00 (0% reduction)
• Maintenance and Warranty Bond; $852,600.00 (0% reduction)

SECTION 6. In accordance with Section 4.5(b) of the Subdivision Improvement Agreement, the City Clerk is hereby authorized to release all Bonds for the project, excluding the Maintenance and Warranty Bond which will be held as security for a period of one year following the City Council’s acceptance of the Works of Improvement, and there being no claims regarding defective work associated with the Works of Improvement having been filed with the City Engineer.

Item 1R - 12
SECTION 7. The City Clerk, following adoption of this resolution, shall file with the Riverside County Recorder, the Acceptance of the Works of Improvement Certificate attached hereto.

ADOPTED THIS 27TH DAY OF JANUARY, 2022
.

JUSTIN CLIFTON

CITY MANAGER

ATTEST:

ANTHONY J. MEJIA, MMC

CITY CLERK
Item 1R - 13

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. ________________ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on January 27, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.

ANTHONY J. MEJIA, MMC

CITY CLERK

Item 1R - 14

Acceptance of the Works of Improvement Certificate follows this page.

Item 1R - 15

RECORDING REQUESTED BY

AND WHEN RECORDED RETURN
TO:

City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262

SPACE ABOVE THIS LINE FOR RECORDER’S USE
Exempt from recording fees under Government Code §6103

Acceptance of the Works of Improvement Certificate
Tract Map 36689
Subdivision Improvement Agreement (A7158)

The undersigned, City of Palm Springs, a California charter city and municipal corporation, (hereafter the “City”), hereby confirms that on January 27, 2022, the City Council of the City accepted the Works of Improvement associated with Tract Map 36689 to be constructed by or on behalf of
Jen California 3, LLC, a California
Limited Liability Company, and/or its successors and assigns, (collectively, hereafter the “Developer”), pursuant to that certain Subdivision Improvement Agreement (A7158) by and between the City and Developer recorded on August 19, 2018, as Document No. 2018-0375377, records of Riverside County Recorder, (hereafter the “Agreement”). The City hereby releases the Developer from its performance obligations to construct the Works of Improvement as set forth in the Agreement, and hereby releases the Security Instruments filed with the City Clerk pursuant to and in accordance with the Agreement. This Acceptance Certificate is applicable to those Works of Improvement associated with Tract Map 36689, identified as that certain real property more particularly described in Exhibit “A” attached hereto.

[SIGNATURES ON NEXT PAGE]

Item 1R - 16
City of Palm Springs, a California
charter city and municipal
corporation
Dated: ______________________

Justin Clifton, ICMA-CM, City Manager

Attest: Approved as to form:

Anthony J. Mejia, City Clerk Jeff Ballinger, City Attorney

Item 1R - 17

EXHIBIT “A”

Tract Map No. 36689 filed in the office of the County Recorder, County of Riverside, State of California, in Book 462 of Maps at Pages 89 through 96.

Item 1R - 18

CITY COUNCIL STAFF REPORT
01/27/2022 1. S.

City Clerk -

SUBJECT

ACCEPTANCE OF PUBLIC IMPROVEMENTS AND AUTHORIZATION TO
RELEASE SUBDIVISION IMPROVEMENT SECURITIES FOR THE “ICON DEVELOPMENT – FAR WEST INDUSTRIES, A CALIFORNIA CORPORATION”, TRACT MAP 36725
RECOMMENDATION:

Adopt a Resolution entitled,“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE SUBDIVISION IMPROVEMENTS ASSOCIATED WITH TRACT MAP 36725 AND AUTHORIZING RELEASE OF SECURITIES REQUIRED BY THE SUBDIVISION IMPROVEMENT AGREEMENT WITH FAR WEST INDUSTRIES, (A7028), FOR PROPERTY LOCATED AT THE SOUTHEAST CORNER OF NORTH PALM
CANYON DRIVE AND ALVARADO ROAD, IN SECTION 3, TOWNSHIP 4 SOUTH, RANGE 4 EAST”.

Attachments
Item 1S

CITY COUNCIL STAFF REPORT

DATE: January 27, 2022 CONSENT CALENDAR

SUBJECT: ACCEPTANCE OF PUBLIC IMPROVEMENTS AND AUTHORIZATION TO RELEASE SUBDIVISION IMPROVEMENT SECURITIES FOR THE “ICON DEVELOPMENT – FAR WEST INDUSTRIES, A CALIFORNIA
CORPORATION”, TRACT MAP 36725

FROM: Justin Clifton, City Manager

BY: Development Services Department

SUMMARY:

On January 7, 2015, the City Council approved Tract Map 36725 and a subdivision improvement agreement with Far West Industries, a California Corporation (“Developer”), securing the Developer’s completion of certain required public and private improvements associated with Tract Map 36725. The Developer has completed the required public improvements, and the City Council may accept these improvements as completed and complying with the City’s approved plans and authorize release of subdivision improvement securities.

RECOMMENDATION:

Adopt Resolution No. _________,“A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING ACCEPTANCE OF THE SUBDIVISION IMPROVEMENTS ASSOCIATED WITH TRACT MAP 36725 AND

AUTHORIZING RELEASE OF SECURITIES REQUIRED BY THE SUBDIVISI ON IMPROVEMENT AGREEMENT WITH FAR WEST INDUSTRIES , (A 7028), FOR

PROPERTY LOCATED AT THE SOUTHEAST CORNER OF NORTH PALM CANYON DRIVE AND ALVARADO ROAD, IN SECTION 3, TOWNSHIP 4 SOUTH, RANGE 4 EAST”.

BUSINESS PRINCIPAL DISCLOSURE:

The Public Integrity Disclosure Form from Far West Industries, a California Corporation, is included as Attachment A.

BACKGROUND:

At its meeting of December 10, 2014, the Planning Commission recommended approval of Tentative Tract Map 36725, which was subsequently approved by the City Council, Item 1S - 1
subject to conditions, on January 7, 2015. Tentative Tract Map 36725 is located at the Southeast corner of North Palm Canyon Drive and Alvarado Road, as shown in the following site map.

Site Map – TM 36725

On July 19, 2017, the City Council adopted Resolution No. 24278 , approving Tract Map 36725 and an associated Subdivision Improvement Agre ement, (SIA), with the Developer. Tract Map 36725 created a subdivision of 46 Condominium Units and infrastructure. The SIA and Tract Map 36725 are on file with the City Clerk.

Associated with Tract Map 36725 was a requirement to construct certain public and private improvements, including:

Item 1S - 2
• On-site private street and storm drainage improvements • On-site sewer and domestic water system improvements
• Off-site street improvements

At the time Tract Map 36725 was approved by the City Council, construction of required public and private improvements associated with Tract Map 36725 (the “Works of Improvement”) had not been completed. An engineer’s estimate of the cost of the Works of Improvement to be completed was $3,100,000.

In accordance with Section 66462 of the California Government Code, the Developer requested that the City enter into the SIA securing the cost of the Works of Improvement not yet completed to the City’s satisfaction. Accordingly, pursuant to the terms of the SIA, the Developer filed the following Security Instruments with the City Clerk to guarantee construction of the Works of Improvement.

In 2019 the Developer had partially completed the required public improvements, and at its regular meeting of October 23, 2019, the City Council authorized reductions of subdivision improvement securities:

• Faithful Performance Bond No. 391100P; $3,100,000 (Reduced to $100,000) • Labor and Material Bond No. 391100P; $1,550,000 (Reduced to $50,000) • Monumentation Bond No. 391094P; $3,000 (0% reduction) • Maintenance and Warranty Bond; $465,000 (0% reduction)

STAFF ANALYSIS:

ENVIRONMENTAL ASSESSMENT
:

Tentative Tract Map 36725 was considered a “Project” pursuant to the California Environmental Quality Act (“CEQA”) Guidelines. The City, acting as Lead Agency pursuant to CEQA, prepared an Initial Study for Tentative Tract Map 36725. On January 7, 2015, the City Council adopted Resolution No. 23742 adopting the Mitigated Negative Declaration and approving Tentative Tract Map 36725. No further action with regard to CEQA is required to approve the final map for TTM 36725.

Item 1S - 3
FISCAL IMPACT:

The Works of Improvement include both publicly maintained and privately maintained improvements; the public improvements are to be accepted and subsequently maintained by the City . Private improvements will be maintained by the Homeowners Association pursuant to the Covenants, Conditions and Restrictions (CC&Rs) recorded against the properties within Tract Map 36725.

REVIEWED BY:

Department Director: Flinn Fagg
City Manager: Justin Clifton

ATTACHMENTS:

A. P ublic Integrity Disclosure.

B. Resolution.

Item 1S - 4
Item 1S - 5

1. Name of Entity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
Far West Industries

2. Address of Entity (Principle Place of Business)
2922 Daimler St., Santa Ana, CA 92705

3. Local or California Address (if different than #2)

4. State where Entity is Registered with Secretary of State California
If other than California, is the Entity also registered in California? D Yes D No

5. Type of Entity
[8] Corporation D Limited Liability Company D Partnership D Trust D Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity Scott Lissoy
Albert 0. Lissoy
Ira Glasky
(Revised 05/16/19)
[8] Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
other
[8] Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
other
[8] Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
'
Other

CITY OF PALM SPRINGS-PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

Item 1S - 6

7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity

EXAMPLE
JANE DOE 50%, ABC COMPANY, Inc.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
A.

Lissoy Family Trust u/~f o roj,.., I 1, 100%
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signature of Disclo ing Party, Printed Name, Title Date

PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.
(Revised 05/16/19)

CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, AUTHORIZING

ACCEPTANCE OF THE SUBDIVISION IMPROVEMENTS
ASSOCIATED WITH TRACT MAP 36725 AND

AUTHORIZING RELEASE OF SECURITIES REQUIRED BY

THE SUBDIVISION IMPROVEMENT AGREEMENT WITH
FAR WEST INDUSTRIES , (A 7028), FOR PROPERTY

LOCATED AT THE SOUTHEAST CORNER OF NORTH

PALM CANYON DRIVE AND ALVARADO ROAD , IN
SECTION 3, TOWNSHIP 4 SOUTH, RANGE 4 EAST.

WHEREAS, the Planning Commission of the City of Palm Springs, at its meeting of December 10, 2014, recommended approval of Tentative Tract Map 36725, subject to conditions; and
WHEREAS, the City Council of the City of Palm Springs, (hereinafter the “City”), at its meeting of January 7, 2015, approved Tentative Tract Map 36725 subject to conditions; and
WHEREAS, the City Council of the City of Palm Springs, (hereinafter the “City”), at its meeting of July 19, 2017, adopted Resolution No. 24278 , approving Tract Map 36725 and a related Subdivision Improvement Agreement, (Agreement No. A7028), with Far West Industries, a California Corporation (hereinafter the “Developer”), in accordance with Section 66462 of the California Government Code; and WHEREAS, in accordance with Section 4.1 of the Subdivision Improvement Agreement, the Developer was required to submit subdivision improvement securities in the amount of $3,100,000.00 to guarantee construction of certain public improvements required for and associated with Tract Map 36725, (the “Works of Improvement”); and WHEREAS, the Developer has completed construction of the Works of Improvement, and has requested that the City accept the Works of Improvement in accordance with Section 1.14 of the Subdivision Improvement Agreement; and WHEREAS, in accordance with Section 4.5 of the Subdivision Improvement Agreement, the Developer has requested that the City release the subdivision improvement securities filed with the City Clerk to guarantee construction of the Works of Improvement; and
WHEREAS, the City Engineer has examined the Works of Improvement, and has found them to be constructed and completed in accordance with the Subdivision Improvement Agreement, and the associated plans and specifications; and WHEREAS, the City Engineer recommends that the City Council accept the Works of Improvement, and authorize the City Clerk to release the subdivision improvement securities filed with the City Clerk to guarantee construction of the Works of Improvement, Item 1S - 7
with the exception of the maintenance and warranty security required by Section 4(b) of Subdivision Improvement Agreement.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The recitals above are found to be true and correct and constitute the findings of the City Council made in support of this resolution.

SECTION 3. The City Council’s acceptance of the Works of Improvement effectuated by this resolution shall not in any way supersede or relieve Far West Industries, a California Corporation, or its successors and assigns, of any other obligations required by the Subdivision Improvement Agreement or the conditions of approval associated with Tentative Tract Map 36725.

SECTION 4.

SECTION 5.

• Faithful Performance Bond; $3,100,000.00 (reduced to = $100,000.00) • Labor and Material Bond; $1,550,000.00 (reduced to = $50,000.00) • Monumentation Bond; $3,000.00
• Maintenance and Warranty Bond; $465,000.00

SECTION 7. The City Clerk, following adoption of this resolution, shall file with the Riverside Cou nty Recorder, the Acceptance of the Works of Improvement Certificate attached hereto.

Item 1S - 8
ADOPTED THIS 27TH DAY OF JANUARY, 2022.

JUSTIN CLIFTON

CITY MANAGER

ATTEST:

ANTHONY J. MEJIA, MMC

CITY CLERK
Item 1S - 9

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. ____________ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on January 27, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.

ANTHONY J. MEJIA, MMC

CITY CLERK

Item 1S - 10

Acceptance of the Works of Improvement Certificate follows this page.

Item 1S - 11

RECORDING REQUESTED BY

AND WHEN RECORDED RETURN
TO:

City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262

SPACE ABOVE THIS LINE FOR RECORDER’S USE
Exempt from recording fees under Government Code §6103

Acceptance of the Works of Improvement Certificate
Tract Map 36725
Subdivision Improvement Agreement (A7028)

The undersigned, City of Palm Springs, a California charter city and municipal corporation, (hereafter the “City”), hereby confirms that on January 27, 2022, the City Council of the City accepted the Works of Improvement associated with Tract Map 36725 to be constructed by or on behalf of
Far West Industries, a California
Corporation, and/or its successors and assigns, (collectively, hereafter the “Developer”), pursuant to that certain Subdivision Improvement Agreement (A7028) by and between the City and Developer recorded on October 3, 2017, as Document No. 2017- 0409752, records of Riverside County Recorder, (hereafter the “Agreement”). The City hereby releases the Developer from its performance obligations to construct the Works of Improvement as set forth in the Agreement, and hereby releases the Security Instruments filed with the City Clerk pursuant to and in accordance with the Agreement. This Acceptance Certificate is applicable to those Works of Improvement associated with Tract Map 36725, identified as that certain real property more particularly described in Exhibit “A” attached hereto.

[SIGNATURES ON NEXT PAGE]

Item 1S - 12
City of Palm Springs, a California
charter city and municipal
corporation
Dated: ______________________

Justin Clifton, ICMA-CM, City Manager

Attest: Approved as to form:

Anthony J. Mejia, City Clerk Jeff Ballinger, City Attorney

Item 1S - 13

CITY COUNCIL STAFF REPORT
01/27/2022 1. T.

City Clerk -

SUBJECT

STAFF AUTHORIZED AGREEMENTS AND PURCHASE ORDERS FOR THE PERIOD OF OCTOBER 1 THROUGH DECEMBER 31, 2021
RECOMMENDATION:

Receive and file the report of Staff Authorized Agreements and Purchase Orders for the period of October 1 through December 31, 2021.

Attachments
Item 1T

CITY COUNCIL STAFF REPORT
DATE: January 27, 2022 CONSENT CALENDAR
SUBJECT: STAFF AUTHORIZED AGREEMENTS AND PURCHASE ORDERS FO R THE PERIOD OF OCTOBER 1 THROUGH DECEMBER 31, 2021
FROM: Justin Clifton, City Manager
BY: Offi ce
of the City Clerk
Procurement Department
RECOMMENDATION:

Recei
ve and file the report of Staff Authorized Agreements and Purchase Orders for the period of October 1 through December 31, 2021.

AGREEMENTS

NUMBER VENDOR DESCRIPTION DEPARTMENT
A8963 ELITE OTTERS LEASE AGREEMENT FOR THE PALM

SPRINGS SWIM CENTER AND

ASSOCIATED OFFICE

PARKS &

RECREATION
A8973 ADK

CONSULTING
AND

EXECUTIVE
SEARCH

CONTRACT FOR RECRUITMENT

SERVICES OF AN EXECUTIVE

DIRECTOR FOR PALM SPRINGS

INTERNATIONAL AIRPORT
HUMAN

RESOURCES
A8983 CAPITAL

REALITY

ANALYSTS

CONTRACT FOR APPRAISAL
SERVICES FOR A 3.64 ACRE

DEVELOPED INDUSTRIAL
PROPERTY AT 3589 MCCARTHY
ROAD

COMMUNITY &

ECONOMIC

DEVELOPMENT
A8986 139 FIRE LLC CONTRACT SERVICES OF AN FAA

APPROVED MOBILE TRAINER TO
FULFIL THE PART 139 FFA

REQUIREMENTS FOR ANNUAL LIVE
BURN
FIRE

DEPARTMENT
Item 1T - 1
City Council Staff Report
January 27, 2022 – Page 2
Staff Authorized Contracts & Purchase Orders

PURCHAS

E ORDERS
A8990 MARINA

LANDSCAPE

CONVERTING EXISTING

LANDSCAPES AND TURFS TO

DROUGHT TOLERANT SHRUBS

PLACED IN CRUSHED ROCK AND
MULCH

SUSTAINABILITY
A8992 BGF LLC CONTRACT FOR DIGITAL AD

CAMPAIGN AND MARKETING

SERVICES

AVIATION
A8993 IMPRENTA

COMMUNICATI

ONS GROUP,
INC

CONTRACT FOR SPANISH

LANGUAGE DIGITAL MARKETING

SERVICES

COMMUNICATION
S
A8997 O’BAYLEY

COMMUNICATI
ON

CONTRACT FOR MARKETING AND

COMMUNICATION SERVICES

COMMUNICATION
S
A9025 AVIDEX

INDUSTRIES
LLC

DESIGN AND CONSTRUCTION

CONTRACT FOR THE PAVILLION

ACOUSTIC UPGRADES

ENGINEERING

NUMBER VENDOR DESCRIPTION AMOUNT DEPARTMENT
22000556 OBAYLEY

COMMUNICAT
IONS

GRAPHIC DESIGNS,

ADVERTISING AND

PLANNING
$15,000.00 CITY CLERK
22000533 TERRA NOVA

PLANNING
AND

RESEARCH

EXPEDITED CANNIBIS

ZONING APPLICATION
REVIEW
$18,105.85 PLANNING
Item 1T - 2
City Council Staff Report
January 27, 2022 – Page 3
Staff Authorized Contracts & Purchase Orders

22000538

BLACK &
WHITE

EMERGENCY

VEHICLES

PD CAR OUTFITTING

FOR NEW CSO VEHICLE
NUMBER 20092

$16,096.47

FLEET

OPERATIONS

22000534

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 201521

$16,799.72

FLEET

OPERATIONS

22000537

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 201221

$16,799.72

FLEET

OPERATIONS

22000541

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 200721 $16,799.72
FLEET

OPERATIONS
22000543

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 202021 $16,799.72
FLEET

OPERATIONS
22000544

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 201421 $16,799.72
FLEET

OPERATIONS
22000545

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 202921 $16,799.72
FLEET

OPERATIONS
22000546

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 203721 $16,799.72
FLEET

OPERATIONS
22000547

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 204121 $16,799.72
FLEET

OPERATIONS
22000548

BLACK &
WHITE

EMERGENCY

VEHICLES

NEW VEHICLE
OUTFITTING K9 UNIT
204921 $20,063.71
FLEET

OPERATIONS
22000539

BLACK &
WHITE

EMERGENCY

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 201021 $16,799.72

FACILITIES

MAINTENANCE
Item 1T - 3
City Council Staff Report
January 27, 2022 – Page 4
Staff Authorized Contracts & Purchase Orders

VEHICLES

22000559
TOPS N

BARRICADES
INC

TRAFFIC CONTROL
DEVCES AND SERVICES $40,000.00

STREETS

MAINTENANCE
22000560
PALM

SPRINGS
WATER
SYSTEMS INC.

DBA RAYNE

WATER CO

SOFT WATER SERVICE

FOR COGEN
EQUIPMENT & HVAC $10,000.00

FACILITIES

MAINTENANCE
22000584
PATTON

DOOR AND
GATE

PARTS & APPARATUS

ROOM DOOR REPAIR
SRVICES $10,000.00

FACILITIES

MAINTENANCE
22000583

PRUDENTIAL

OVERALL
SUPPLY

UNIFORM RENTAL
SERVICES $16,735.04

FACILITIES

MAINTENANCE
22000586

PUMPMAN
LLC

SERVICE AND REPAIRS

TO ANY PUMP SYSTEM /
FULL INSP $10,000.00

FACILITIES

MAINTENANCE
22000589
PALM

SPRINGS

MIRROR AND
GLASS

GLASS AND DOOR
REPLACEMENTS $10,000.00

FACILITIES

MAINTENANCE
22000602 PWLC II INC

LANDSCAPE AND

GROUND MAINTENANCE
CITY FACILITIES $10,000.00

DOWNTOWN
PARKS

MAINTENANCE
22000616

RACEWAY
FORD

AUTOMOTIVE REPAIRS
AND PARTS $30,000.00
FLEET

OPERATIONS
22000615

TRAVELSCAP

E LLC /

EXPEDIA INC

EXPEDIA WEBSITE
ADVERTISING $25,000.00

AVIATION

DEPARTMENT
22000624

JOHN BEAN

TECHNOLOGI
ES

CORPORATIO
N GPU POWER CABLES $13,183.56

AVIATION

DEPARTMENT
22000629
ADK

CONSULTING
INC

EXECUTIVE

RECRUITMENT - EXEC
DIR OF PS INTL AIRPORT $22,600.00
HUMAN

RESOURCES

22000625

LIMBACH

COMPANY LP

AIR CONDITIONING,
HEATING, VENTILATION $10,000.00

FACILITIES

MAINTENANCE
16000860

MUNISERVICE
S
A5482 CONSULTING
SERVICES $17,778.75

FINANCE

DEPARTMENT
19000813

MUNISERVICE
S
A5768 CONTRACT

SERVICE AGREEMENT
FOR UUT $22,837.84

FINANCE

DEPARTMENT
Item 1T - 4
City Council Staff Report
January 27, 2022 – Page 5
Staff Authorized Contracts & Purchase Orders

19001444

MUNISERVICE
S
A6205 BUSINESS

LICENSE AUDITING AND
TAX DISCOVERY $35,104.31

FINANCE

DEPARTMENT

18000530

MUNISERVICE
S
A6017 CONTRACT

SERVICE AGREEMENT
FOR TOT $42,603.06

FINANCE

DEPARTMENT
22000516

PRECISION

ULTRASOUND
WEIGHT LOSS MEDICAL EXAMS & SVCS $23,362.02
FIRE

DEPARTMENT
22000511
TOPS N

BARRICADES
INC

TRAFFIC CONTROL
BARRIERS $10,000.00

FACILITIES

MAINTENANCE
22000526

COMMUNITY
WORKS
DESIGN
GROUP LLC ORGANICS ANALYSIS $19,025.00 SUSTAINABILITY
22000531 139 FIRE LLC

ANNUAL LIVE BURN
MOBILE TRAINER $24,995.00
FIRE

DEPARTMENT
22000528

BLACK &
WHITE

EMERGENCY

VEHICLES

PD PATROL CAR

OUTFITTING FOR NEW
VEHICLE 200421 $16,799.72
FLEET

OPERATIONS
22000524

BLACK &
WHITE

EMERGENCY

VEHICLES

NEW VEHICLE
OUTFITTING K9 UNIT
203821 $20,063.71
FLEET

OPERATIONS
22000525

BLACK &
WHITE

EMERGENCY

VEHICLES

NEW VEHICLE
OUTFITTING K9 UNIT
242421 $20,063.71
FLEET

OPERATIONS
22000644

KEENAN AND

ASSOCIATES

P&L CLAIM ADMIN FEE
2021/2022 $65,000.00

PROCUREMENT &

CONTRACTING
22000642
ALPHA

PETROLEUM

TRANSPORT
INC

WASTE MATERIAL
DISPOSAL SERVICES $45,000.00

FACILITIES

MAINTENANCE
22000641 BGF LLC

AIRPORT ADVERTISING,
MARKETING $56,000.00

AVIATION

DEPARTMENT
22000686
PALM

SPRINGS
MOTORS

EQUIPMENT

MAINTENANCE AND

REPAIR SERVICES FOR
AUTO $19,568.70
FLEET

OPERATIONS
22000698
OLINN

EXECUTIVE

SECURITY

SERVICE

FIRE AND SECURITY
ALARM MONITORING $12,643.20

FACILITIES

MAINTENANCE
Item 1T - 5
City Council Staff Report
January 27, 2022 – Page 6
Staff Authorized Contracts & Purchase Orders

22000687

COMMERCIAL
MOBILE

SYSTEMS

MOBILE OFFICE TRAILER
FOR ACCESS CENTER $12,880.00

FACILITIES

MAINTENANCE
22000708

OBAYLEY

COMMUNICAT
IONS
PUBLIC

RELATIONS/ADVERTISIN
G/DESIGN SERVICES $10,000.00 CITY MANAGER
22000705

PROCAST

PRODUCTS
INC

REFURBISHED

CONCRETE BARRIERS -
K-RAILS $40,000.00

ENGINEERING -

PUBLIC WORKS
22000718

DAVID EVANS
AND
ASSOCIATES CONTRACT $25,000.00 SUSTAINABILITY
22000723
PORTER
BOILER

SERVICE INC

REPLACE THE DRY

OVEN ON BURNER FOR
COGEN CHILLER $10,410.30

FACILITIES

MAINTENANCE
22000736
DRAGON

BEDLINERS
LLC

BEDLINER FOR CITY
TRUCKS $10,000.00
FLEET

OPERATIONS
22000744 15000 INC

CANNABIS ODOR

CONTROL REVIEW FOR
CANNABIS APPLICANT $40,000.00

SPECIAL

PROGRAMS

COMPLIANCE
22000738

L N CURTIS

AND SONS

HAND TOOLS,

POWERED AND NON-

POWERED, INCLUDING
ACC $74,893.07
FIRE

DEPARTMENT
22000752
RT

ENGINEERING
AND

ASSOCIATES
INC
CP 16-19,

CONSTRUCTION

MANAGEMENT
SERVICES $63,100.00

ENGINEERING -

PUBLIC WORKS
22000758

ALPHA MEDIA
LLC CONSULTING SERVICES $14,304.00

AVIATION

DEPARTMENT
22000651

THE LAMAR

COMPANIES

LAMAR BILLBOARD
ADVERTISING $23,700.00

AVIATION

DEPARTMENT
22000670

INTELESYSON
E

ESTIMATED

EXPENDITURES FOR
INTELESYSONE $10,000.00
INFO

TECHNOLOGY
22000666

SAN DIEGO

CENTRE FOR

ORGANIZATIO
N

EFFECTIVENE
SS CONSULTING SERVICES $25,000.00 CITY CLERK
22000664

DATA TICKET
INC CITATION PROCESSING $20,000.00
POLICE

DEPARTMENT
22000674
OLINN

EXECUTIVE

SECURITY

SERVICE

CITYWIDE SECURITY

REPAIRS, PARTS, &
OTHER SERVICES $10,000.00

FACILITIES

MAINTENANCE
22000683 RICHARD A RICHARD BECKER "TOT" $18,800.00 CITY MANAGER Item 1T - 6
City Council Staff Report
January 27, 2022 – Page 7
Staff Authorized Contracts & Purchase Orders

STAFF ANALYSIS:

The City’s policies and procedures provide t he Ci ty Manager and designated staff authority to enter into agreements and purchase orders which are $25,000 or less, and certain other amendments and change orders as previously approved by the City Council. P alm Springs Municipal Code §7.02.030(k) requi res a monthly report be submitted to the City Council.

The original contract document s are on file in the Office of the City Clerk and purchase orders are on file in the Procurement Division.

REVIEWED BY:

Department Director: Anthony J. Mejia
City Manager: Justin Clifton

BECKER SCULPTURE
22000794
DELL

MARKETING
LP

REPLACEMENT PSP

GENETEC
WORKSTATIONS $13,203.70
INFO

TECHNOLOGY
22000797

IMPRENTA

COMMUNICAT

IONS GROUP
INC

COMMUNICATIONS AND

MEDIA RELATED
SERVICES $75,000.00 CITY MANAGER
22000799
R & R

JANITORIAL

SERVICE

JANITORIAL CLEANING

SERVICES FOR CITY
BUILDINGS $10,000.00

FACILITIES

MAINTENANCE
22000798

ELECTRO-
MECH

SCOREBOAR

D COMPANY

ELECTRONIC SCORE
BOARD $15,960.00

FACILITIES

MAINTENANCE
22000821
IRON

MOUNTAIN
AL103 STORAGE OF
CITY DOCUMENTS.

FORMERLY 21-1354, $12,000.00

FINANCE

DEPARTMENT
22000817

PACIFIC

LIGHTING AND

STANDARDS

GREEN DECRETIVE
POLES $18,168.28

FACILITIES

MAINTENANCE
22000771
ALBERT A.

WEBB

ASSOCIATES
CP 21-22, HAWK SYSTEM
SB821 PROJECT $45,000.00

ENGINEERING -

PUBLIC WORKS
22000770
NALCO

COMPANY
CHEM. & TEST

EQUIPMENT FOR THE
CO-GEN PLANTS & HVA $70,000.00

FACILITIES

MAINTENANCE
22000775

ARCHITECTU
RAL

RESOURCES
GROUP

WELWOOD MURRAY

MEMORIAL LIBRARY
HANDRAIL $10,125.00 PLANNING
Item 1T - 7

CITY COUNCIL STAFF REPORT
01/27/2022 2. A.

City Clerk -

SUBJECT
REDISTRICTING 2021: PUBLIC HEARING REGARDING REDISTRICTING OF CITY COUNCIL BOUNDARIES AS REQUIRED BY ELECTIONS CODE SECTION 21601 ET SEQ
RECOMMENDATION:

Receive a report from Staff and the City’s redistricting consultant on the continued redistricting process and review draft maps.

1. Conduct a public hearing to receive public input on district boundaries.2.

Attachments
Item 2A

CITY COUNCIL STAFF REPORT
DATE: Jan uary 27, 2022 PUBLIC HEARING
SUBJECT: REDI STRICTING 2021: PUBLIC HEARING REGARDING REDISTRICTING

OF CITY COUNCIL BOUNDARIES AS REQUIRED BY ELECTIONS CODE SECTION 21601 ET SEQ
FROM: Ju stin Clifton, City Manager
BY: Ant hony J. Mejia, City Clerk
SUMMARY:

Every 10 years, cities with by -district election systems must use new census data to review and, if needed, redraw district lines to reflect how local populations have changed. This process, called redistricting, en sures all districts have a nearly equal population. The redistricting process for the City of Palm Springs must be completed by April 17, 2022. You may view the draft maps using our online mapping tool:
• For maps prepared by the City’s consultant
5DJfn_Gg8&ll=33.81136476826782%2C-116.55600453882683&z=12 • For maps submitte
https://www.google.com/maps/d/u/0/viewer?mid=1diV-026fsSoyvYw 5JLNcqy1&ll=33.805997128326176%2C-116.46737325577526&z=11 RECOMMENDATION:

1. Receive a report from St aff and the City’s redistricting consultant on the continued redistricting process and review draft maps.

2. Conduct a public hearing to receive public input on district boundaries.

BACKGROUND:

Every 10 years, cities with by -district election systems must use new census data to review and, if needed, redraw district lines to reflect how local populations have changed. This process, called redistricting, ensures all distric ts have a nearly equal population. The redistricting process for the City of Palm Springs must be completed by April 17, 2022. The first of four scheduled public hearings was held on November 4, 2021 and provided an overview of the redistricting process. The second of the required hearings was held on December 9, 2021 and provided an initial review of the three proposed map options prepared by the City’s redistricting consultant.

Item 2A - 1
ANALYSIS:

The City adopted its current district b oundaries in 2018, based on 2010 census data as required by law. The districts must now be redrawn using the 2020 census data and in compliance with the FAIR MAPS Act, which was adopted by the California legislature as AB 849 and took effect January 1, 2020. One of the key requirements under the Fair Maps Act, and the federal Voting Rights Act, is that districts be population balanced. In addition, maps may not intentionally seek to dilute or minimize the minority vote and if there is an ability to create majority/minority voting districts, the agency must strive to do so. Currently, the City’s districts vary widely in population, a result of the post -recession building boom occurrin g since the 2010 census, the numbers from which were used to draw the City’s original district boundaries. At present, the population deviation between the least populated district to the most populated district, as compared to the ideal population (1/5 of the total City population) is 12.135%. One of the goals of redistricting is to reduce the total deviation to as close to zero as possible, however , the courts have ruled that a deviation of 10% or less is generally acceptable.

The purpose of this public hearing is to share proposed map options and receive feedback on the maps pr esented. The initial three maps are followed by two additional consultant maps, and four publically submitted maps.

Previously Reviewed Maps

Map Option A

Map A begins with a simple population rebalance, to reduce the total deviation to an acceptable level. Closely resembling the current Council district boundary map, Map A primarily reduces population in District 3 and adds it to District 4. The map reflect s an acceptable total deviation of 5.39%. The map also creates more compact Districts 3 and

4. Due to the dispersed nature of the minority population throughout the community , the map does not create a majority/minority voting district . Complete demographic analysis of the census data for Map Option A is attached to this report.

Item 2A - 2
The map is depicted here, both with and without the community neighborhood overlay.

Map Option B

Map B also focused on population rebalance, however , it more dramatically change s the district confi gurations. Whereas Districts 1 and 5 remain fairly consistent with their current boundaries, Districts 2, 3, and 4 change significantly in the core of the City. This map creates more compactness for the central districts as compared to the City’s existing boundary map. The map achieves a total deviation of 2.32%. As with Map Option A, this map does not create a majority/minority voting district. Complete demographic analysis of the census data for Map Option B is attached to this report.

Item 2A - 3
Map Option B is d epicted here, both with and without the community neighborhood overlay.

Map Option C

Map Option C balances the population, maintains District 1 as a majority/minority voting district, and attempts to address concerns regarding communities of interest and existing neighborhoods, specifically as it relates to minority populat ions. Option C exhibits a deviation of 7.90%.

Item 2A - 4
Map Option C is presented here, both with and without the community neighborhood overlay.

All three map options are population bal anced, relatively compact, contiguous, and respect various communities of int erest. After the second public hearing, the City’s consultant prepared additional map options incorporating the City Council’s and the public’s input at the hearing. The consultant has prepared an additional two maps. In addition to the consultant’s maps, four maps were submitted by members of the public.

The maps are summarized below, with a complete demographic analysis attached to this report. In addition, an online tool has be en developed that allows zoom and search capabilities. All maps may be reviewed online.

For maps prepared by the City’s consultant, the tool may be found here:
• https://www.google.com/maps/d/u/0/viewer?mid=1ZbYIzU2eLu6cQjPz_GnXCyD 5DJfn_Gg8&ll=33.81136476826782%2C-116.55600453882683&z=12

For maps submitted by members of the public, the tool may be found here:
• https://www.google.com/maps/d/u/0/viewer?mid=1diV-026fsSoyvYwmambezLO- 5JLNcqy1&ll=33.805997128326176%2C-116.46737325577526&z=11

Item 2A - 5
New Maps for Consideration

Map Options D and E

Map Options D and E were prepared subsequent to the second public hearing, following Council input. The maps are two varied attempts at addressing the following:

• Maintaining the Gene Autry neighborhood in a single district.

• Araby Commons and Smoketree neighborhoods moving from District 4 to District 5, with the request the Araby Commons neighborhood remain in District 4.

• Is it po ssible to keep Movie Colony East with the or iginal Movie Colony neighborhood?

• Minimize the number of voters moving from District 1 to Dist rict 4, District 3 to District 4, and District 5 to District 3 so as not to interrupt their current voting cycle.

• Overall desire to keep existing neighborhoods together.

The two map options attempt to address these issues in different ways. There are sl ight differences between the two that are best viewed using the Google tools mentioned above. Both maps are population balanced, with Option D exhibiting a deviation of

5.75% and Option E exhibiting a deviation of 3.81%. Both maintain District 1 as a majority/minority voting district.

Item 2A - 6
The maps are depicted below , both with and without the community neighborhood overlay.

Map Option D

Map Option E
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Publicly Submitted Maps

Map Option F

Map Option F was submitted by a member of the public, who provided the following insights into the methodology used in creating the maps.

• Smoke Tree Ranch is moved from District 4 to District 5, which reduces the deviation between these two districts. The author lives nearby in Indian Canyons, and the large houses (and likely high-income level) bring them into the same community of interest as District 5 neighborhoods, such as my neighborho od, Andreas Hills, the Mesa, and Historic Tennis Club. Responding to the comment of Councilmember Holstege at the December 9 publi c hearing, the Smoke Tree shopping district, Araby Commons and Araby Cove are kept in District 4. Araby Commons and Cove are clearly a single community of interest.

• The Sunmor neighborhood i s moved from District 3 to District 2, instead of District 4, as proposed in Map Option C. The census block configuration leads to a few houses on the east side of Airline Drive as it curves north from Andreas Road being in District 4 with the apartment buildings on Tahquitz west of City Hall in the Gateway neighborhood, so a manual adjustment needs to be made to bring them into District 2 with the rest of the Sunmor neighborhood.

• With the ab ove changes, all neighborhoods remain on their current election cycles, instead of moving Historic Tennis Club up by two years and Su nmor back by two years.

• Another manual adjustment that needs to be made, as is currently the case, is to move the area around the DAP Health campus at Sunrise and Vista Chino in the Rogers Ranch neighborhood from District 3 to District 2.

• The census blo ck configuration has the mountain area to the west of Vista Las Palmas north of Alejo Road in District 5 instead of District 3 and for the districts to be contiguous the areas west of that block moved from District 3 to District 2, but I did not intend to make a change from the current map.

• Resembles Map Option C in moving City Hall and the civic complex area together with t he Sunmor neighborhood into District 2 instead of District 1, as is currently the case. The district boundaries are more even, but s ince no one lives there, this is a policy decision for Council.

• The apartment complexes south of Vista Chino and north of C huckwalla Road are moved from District 3 to District 2. Dieter Crawford made this change in his published map, and I agree entirely wit h him. The residents of the El Mirador neighborhood made it abundantly clear with their gates that they do not think they are in the same community of interest as the apartment residents.

Item 2A - 8
• Movie Colony and Movie Colony East are kept together in District 3, as per the comment of Councilmember Kors at the public hearing. These neighborhoods also share a community of interest.

The total deviation for Map Option F is 4.95%. There is a slight difference in the population totals between the online mapping tool a nd official census records, however it is not significant enough to affect the overall deviation of drawn maps. Should th e Council show a preference for Map Option F, the City’s redis tricting consultant will complete the full analysis of the demographics and confirm the deviation.

Map Option F is depicted below, both with and without the community neighborhood overlay.

Item 2A - 9
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Map Option G

Map Option G was submitted by a member of the public. The author did not provide any note as to the methodology, howe ver preliminary analysis indicates the map exhibits a deviation of 7.41%. It does not create or maintain a majority/minority voting distr ict.

Should the City Council wish additional demographic analysis of this map, that information can be provided at the next public hearing.

Map Option G is depicted below, both with and without the community neighborhood overlay.

Item 2A - 10
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Map Option H was submitted by a member of the public. The author did not provide any note as to the methodology, however preliminary analysis indicates the map exhibits a deviation of 9.84%. It does not creat e or maintain a majority/minority vo ting district.

Should the Council wish additional demographic analysis of this map, that information can be provided at the next public hearing.

Map Option H is depicted below, both with and without the community neighborhood overlay.

Item 2A - 11
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Map Option I

Map Option I was submitted by a member of the public. The author did not provide any note as to the meth odology, however preliminar y analysis indicates the map exhibits a deviation of 6.98%. It does not create or maintain a majority/mi nority voting district.

Should the City Council wish additional demographic analysis of this map, that information can be provided at the next public hearing.

Map Option I is depicted below, both with and without the communi ty neighborhood overlay.

At this hearing, the City Council and community are invited to comment on the proposed maps and/or suggest revisions. Revised maps will be brought back at a fourth public hearing, scheduled for February 10, 202 2. At that hearing, it is anticipated the Council will adopt a final map.

Item 2A - 12
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FISCAL IMPACT:

There is no fiscal impact associated with this action.

REVIEWED BY:

City Clerk: Anthony J. Mejia
City Attorney: Jeffrey S. Ballinger
City Manager: Justin Clifton

ATTACHMENTS:

A. Demographic Analysis (to be provided prior to the January 27 public hearing).

B. Comparison of Significant Changes (to be provided prior to the January 27 public hearing).

Item 2A - 13

CITY COUNCIL STAFF REPORT
01/27/2022 2. B.

City Clerk -

SUBJECT

REQUEST BY THE CITY OF PALM SPRINGS FOR ADOPTION OF AN
ORDINANCE TO IMPLEMENT SENATE BILL 9 REQUIREMENTS FOR URBAN LOT SPLITS AND TWO-UNIT RESIDENTIAL DEVELOPMENTS, CASE 5.1548 ZTA RECOMMENDATION:

Waive the reading of the ordinance text in its entirety and read by title only.1.

Introduce on first reading an Ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 9.62 OF THE PALM SPRINGS MUNICIPAL CODE AND CHAPTER

93.00 OF THE PALM SPRINGS ZONING CODE RELATING TO URBAN LOT SPLITS AND TWO-UNIT PROJECTS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA.”

2. Attachments
Item 2B

CITY COUNCIL STAFF REPORT

DATE: JANUARY 27, 2022 PUBLIC HEARING

SUBJECT: REQUEST BY THE CITY OF PALM SPRINGS FOR ADOPTION OF AN ORDINANCE TO IMPLEMENT SENATE BILL 9 REQUIREMENTS FOR

URBAN LOT SPLITS AND TWO -UNIT RESIDENTIAL DEVELOPMENTS, CASE 5.1548 ZTA

FROM: Justin Clifton, City Manager

BY: Development Services Department

SUMMARY:

This is a request for the City Council to adopt an ordinance to implement regulations relative to urban lot splits and two-unit residential development in single-family residential zones; this ordinance is intended to implement the requirements of Senate Bill 9 (SB 9), which became effective on January 1, 2022. The City Council adopted an urgency ordinance, Ordinance No. 2057, with the same content on January 13, 2022 by a 4/5 vote. The proposed ordinance will supersede the urgency ordinance upon its effective date.

RECOMMENDATION:

1. Waive the reading of the ordinance text in its entirety and read by title only; and

2. Introduce on first reading Ordinance No. ____, “AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 9.62 OF THE PALM SPRINGS MUNICIPAL CODE AND CHAPTER

93.00 OF THE PALM SPRINGS ZONING CODE RELATING TO URBAN LOT

SPLITS AND TWO -UNIT PROJECTS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA.”

BACKGROUND:

SB 9 was signed into law by Governor Newsom on September 16, 2021 and became effective on January 1, 2022. The bill allows urban lot splits and two- unit housing developments within single- family residential zones to be approve d administratively by staff, without discretionary review or public hearing. While SB 9 applies to all cities and counties, including charter cities, local agencies may adopt objective zoning, design, and subdivision standards unless those standards would be contrary to state law.

Item 2B - 1
T
he City Council adopted Urgency Ordinance No. 2057 on January 13, 2022 to quickly put standards in place for the benefit of applicants who may interested in pursuing urban lot splits or two-unit development. Approval of the proposed ordinance will formally codify these requirements via a regular public hearing process and will replace the urgency ordinance.

STAFF ANALYSIS:

The proposed ordinance, which is similar in content to the urgency ordinance that was adopted on January 13th, implements the requirements of SB 9 relative to urban lot splits and two-unit housing developments. In accordance with state law, applications processed under this ordinance will be approved ministerially at a staff level and will not require a public hearing or discretionary review by the Planning Commission or Architectural Review Committee.

As with the urgency ordinance, the proposed ordinance establishes that urban lot splits may be proposed for existing lots of record as small as 2,400 square feet in area, with the new resulting lots no smaller than 1,200 square feet. Each lot that is created under the ordinance must have direct street frontage, which will allow for a side- by-side lot configuration or a front -back configuration with the rear lot being a “flag lot.” New units created by the ordinance may be up to 1,000 square feet in area, and side and rear yard setbacks may be reduced to as little as four feet in order to allow the development of the residential units. Architectural standards require that the units developed on the resulting split lot must be consistent in terms of materials, architectural details, and roof pitch.

Landscaping requirements are also included to assist in screening the new units from existing adjacent residences. A copy of the staff report from the January 13, 2022 City Council meeting is included as Attachment B to this report and includes a more complete description of the proposed ordinance and related development standards.

In considering the adoption of the urgency ordinance on January 13th, the City Council modified the proposed development standards to increase the maximum unit size from 800 square feet to 1,000 square feet. The proposed ordinance includes this modification; no other modifications to the ordinance are proposed at this time.

Planning Commission Action
The Planning Commission is scheduled to hold a public hearing on this matter at their meeting of January 26, 2022. A verbal report of the Planning Commission recommendation and action will be provided at the City Council meeting of January 27, 2022.

Future Action
The proposed ordin ance includes basic objective development standards and architectural standards for urban lot splits and two-unit residential development. To make the ordinance effective for the development of affordable housing while preserving neighborhood character, it is recommended that further analysis and public input be Item 2B - 2
c
onducted relative to the architectural standards and development requirements . The Planning Commission has discussed the appointment of a subcommittee to work with City Staff and stakeholders in studying and formulating recommended modifications to the ordinance. Areas of study and analysis may include increasing the maximum unit size, setback modifications, parking/driveway design and configuration standards, additional architectural standards, and similar development standards. It is intended that the recommendations of the Planning Commission will be forwarded to the City Council for consideration and adoption later this spring.

ENVIRONMENTAL ASSESSMENT:

Under California Government Code sections 65852.21, subdivision (j), and 66411.7, subdivision (n), the adoption of an ordinance by a city or county implementing the provisions of Government Code sections 66411.7 and 65852.21 and regulating urban lot splits and two- unit projects is statuto rily exempt from the requirements of the California Environmental Quality Act (“CEQA”). Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements these new laws enacted by SB 9.

In addition to being statutorily exempt from CEQA, the proposed ordinance is also categorically exempt from CEQA under the Class 15 exemption set forth in State CEQA Guidelines section 15315. The Class 15 exemption categorically exempts from CEQA, among other things, the division of property in urbanized areas zoned for residential use into four or fewer parcels. Here, the ordinance is categorically exempt under Class 15 exemption because the ordinance regulates a single urban lot split of one parcel into two separate lots between 60 percent and 40 percent of the original lot area in a residential zone. Further, the proposed ordinance is also categorically exempt from CEQA under the Class 3 exemption set forth in State CEQA Guidelines section 15303. The Class 3 exemption categorically exempts from CEQA, among other things, the construction and location of new, small structures and the conversion of existing small structures from one use to another. Section 15303 specifically lists the construction of a second dwelling unit in a residential zone and a duplex or similar multi -family residential structure totaling no more than four dwelling units as examples of activity that expressly falls within this exemption. Here, the ordinance is categorically exempt under the Class 3 exemption because the ordinance regulates the construction of two primary dwelling units or, if there is already a primary dwelling unit on the lot, the development of a second primary dwelling unit, in a residential zone. Moreover, the City Council finds that none of the “exceptions” to the use of the Class 3 exemption, set forth in State CEQA Guidelines section 15300.2, apply here. Specifically, the City Council finds that the ordinance will:

(1) Not result in a potentially significant cumulative impact as the development allowable under this ordinance will only be established in developed areas where environmental analysis and assessment has occurred, and the scope of allowable development will not result in impacts that significantly exceed that of the existing development;
Item 2B - 3
(2
) Not result in a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances as the development allowable under this ordinance will only be permitted in developed areas and poses no impacts that differ from existing development;

(3) Not result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway as the development allowable under this ordinance i s not permitted in areas with scenic area overlay protections as identified in the General Plan and Zoning Code;

(4) Not be located on a hazardous waste site included on any list compiled pursuant to § 65962.5 of the Government Code as no areas eligible for the development allowable under this ordinance are located on a listed hazardous waste site; or

(5) Not result in a substantial adverse change in the significance of a historical resource as alterations to historic resources are governed by the procedures listed in Chapter 8.05 of the Palm Springs Municipal Code and are subject to review and approval by the Historic Preservation Officer and/or the Historic Site Preservation Board.

Each of the foregoing exemptions is asserted in the alternative and each is independently sufficient to fully exempt the whole of the project.

REVIEWED BY:

Department Director: Flinn Fagg
City Manager: Justin Clifton

ATTACHMENTS:

A. Draft Ordinance.

B. City Council Staff Report – January 13, 2022.

C. Public Comment.

Item 2B - 4

ATTACHMENT A

Item 2B - 5
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS , CALIFORNIA,
AMENDING CHAPTER 9.62 OF THE PALM
SPRINGS MUNICIPAL CODE AND CHAPTER 93.00

OF THE PALM SPRINGS ZONING CODE

RELATING TO URBAN LOT SPLITS AND TWO -

UNIT PROJECTS AND DETERMINING THE
ORDINANCE TO BE EXEMPT FROM CEQA.

City Attorney’s Summary
This Ordinance amends the P alm Springs Municipal
Code and the Palm Springs Zoning Code to adopt
standards and procedures for urban lot splits and two-
unit developments in single-family residential zones in accordance with Senate Bill 9.

THE CITY COUNCIL FINDS AND DETERMINES AS FOLLOWS:

A. The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and pursuant to the authority granted the City by Sections 5 and 7 of Article XI, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt comprehensive zoning regulations and regulations upon the use of land and property within the City; and

B. In 2021, the California Legislature approved, and the Governor signed into law Senate Bill 9 (“SB 9”), which, among other things, adds Government Code Section 65852.21 and 66411.7 to impose new limits on local authority to regulate urban lot splits and two-units projects; and

C. SB 9 allows local agencies to adopt objective design, development, and subdivision standards for urban lot splits and two-unit projects; and

D. SB 9 takes effect on January 1, 2022, and preempts any conflicting city ordinance; and

E. The City desires to amend its local regulatory scheme to comply with Government Code Sections 66411.7 and 65852.21 and to appropriately regulate projects under SB 9; and

F. Pursuant to Section 94.07.01 of the Palm Springs Zoning Code (PSZC), the Director of Planning Services is authorized to initiate proceedings and recommend amendments to the Zoning Code; and

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G. On January 26, 2022, the Planning Commission conducted a duly noticed public hearing to consider Case No. 5.1548 ZTA, an ordinance amending the Zoning Code to adopt standards to allow the ministerial approval of urban lot splits and two-unit development in accordance with Senate Bill 9 (the “Zoning Text Amendment”) and, by a ___- ___ vote, approved Resolution # _____ recommending approval of the Zoning Text Amendment to the City Council; and

H. Notice of a public hearing of the City Council of the City of Palm Springs to consider the Zoning Text Amendment was given in accordance with applicable law; and

I. On January 27, 2022, a duly noticed public hearing on the proposed Zoning Text Amendment was held by the City Council in accordance with applicable law where, by a ___ to ___ vote, the City Council adopted the Zoning Text Amendment; and

J. Under California Government Code secti ons 65852.21, subdivision (j), and 66411.7, subdivision (n), the adoption of an ordinance by a city or county implementing the provisions of Government Code sections 66411.7 and 65852.21 and regulating urban lot splits and two- unit projects is statutorily exempt from the requirements of the California Environmental Quality Act (“CEQA”). Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements these new laws enacted by SB 9.

Section 15303 specifically lists the construction of a second dwelling unit in a residential zone and a duplex or similar multi -family residential structure totaling no more than four dwelling units as examples of activity that expressly falls within this exemption. Here, the ordinance is categorically exempt under the Class 3 exemption because the ordinance regulates the construction of two primary dwelling units or, if there is already a primary dwelling unit on the lot, the development of a second primary dwelling unit, in a residential zone. Moreover, the City Council finds that none of the “exceptions” to the use of the Class 3 exemption, set forth in State CEQA Guidelines section 15300.2, apply here.

Specifically, the City Council finds that the ordinance will:

Item 2B - 7
(1) Not result in a potentially significant cumulative impact as the development allowable under this ordinance will only be established in developed areas where environmental analysis and assessment has occurred, and the scope of allowable development will not result in impacts that significantly exceed that of the existing development;

(2) Not result in a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances as the development allowable under this ordinance will only be permitted in developed areas and poses no impacts that differ from existing development;

(3) Not result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway as the development allowable under this ordinance is not permitted in areas with scenic area overlay protections as identified in the General Plan and Zoning Code;

Each of the foregoing exemptions is asserted in the alternative and each is independently sufficient to fully exempt the whole of the project.

K. The City Council has carefully reviewed and considered all of the evidence presented in connection with the hearing on the Zoning Text Amendment, including, but not limited to, the staff report, and all written and oral testimony presented; and

L. The City Council hereby finds that approval of the proposed Zoning Text Amendment would:

1. Implement the requirements of Senate Bill 9 by adopting standards and procedures relative to urban lot splits and two-unit development in single-family residential zone districts that are consistent with state law.

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2. Implement the goals and policies of the Housing Element of the City of Palm Springs General Plan by increasing options for the development of new housing units that are affordable for residents with incomes that are at or below the area median income.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. That the findings and determinations reflected above are true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by the and through this Ordinance.

SECTION 2. Add Section 9.62.055 to Chapter 9.62 of the Palm Springs Municipal Code to read as follows:

Section 9.62.055 Urban Lot Splits

A. Purpose. The purpose of this section is to allow and appropriately regulate urban lot splits in accordance with Government Code section 66411.7.

B. Definition. An “urban lot split” means the subdivision of an existing, legally subdivided lot into two lots in accordance with the requirements of this section.

C. Application.

1. Only individual property owners may apply for an urban lot split. “Individual property owner” means a natural person holding fee title individually or jointly in the person’s own name or a beneficiary of a trust that holds fee title. “Individual property owner” does not include any corporation or corporate person of any kind (partnership, LP, LLC, C corp, S corp, etc.) except for a community land trust (as defined by R ev. & Tax Code § 402.1(a)(11)(C)(ii)) or a qualified nonprofit corporation (as defined by § 214.15).

2. An application for an urban lot split must be submitted on the city’s approved form. Only a complete application will be considered. The city will inform the applicant in writing of any incompleteness within 30 days after the application is submitted.

3. The city may establish a fee to recover its costs for adopting, implementing, and enforcing this section of the code, in accordance with applicable law. The city council may establish and change the fee by resolution. The fee must be paid with the application.

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D. Approval.

1. An application for a parcel map for an urban lot split is approved or denied ministerially, by the Director, without discretionary review.

2. A tentative parcel map for an urban lot split is approved ministerially if it complies with all the requirements of this section. The tentative parcel map may not be recorded. A final parcel map is approved ministerially as well, but not until the owner demonstrates that the required documents have been recorded, such as the deed restriction and easements. The tentative parcel map expires three months after approval.

3. The approval must require the owner and applicant to hold the city harmless from all claims and damages related to the approval and its subject matter.

4. The approval must require the owner and applicant to reimburse the city for all costs of enforcement, including attorneys’ fees and costs associated with enforcing the requirements of this code.

E. Requirements. An urban lot split must satisfy each of the following requirements:

1. Map Act Compliance.

(a) The urban lot split must conform to all applicable objective requirements of the Subdivision Map Act (Gov. Code § 66410 et. seq., “SMA”), including implementing requirements in this code, except as otherwise expressly provided in this section.

(b) If an urban lot split violates any part of the SMA, the city’s subdivision regulations, including this section, or any other legal requirement:

(1) The buyer or grantee of a lot that is created by the urban lot split has all the remedies available under the SMA, including but not limited to an action for damages or to void the deed, sale, or contract.

(2) The city has all the remedies available to it under the SMA, including but not limited to the following:

(i) An action to enjoin any attempt to sell, lease, or
finance the property.

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(ii) An action for other legal, equitable, or summary
remedy, such as declaratory and injunctive
relief.

(iii) Criminal prosecution, punishable by
imprisonment in county jail or state prison for up
to one year, by a fine of up to $10,000, or both;
or a misdemeanor.

(iv) Record a notice of violation.

(v) Withhold any or all future permits and approvals.

(c) Notwithstanding section 66411.1 of the SMA, no dedication of rights-of-way or construction of offsite improvements is required for an urban lot split.

2. Zone. The lot to be split is in a single- family residential zone. For purposes of this section, a single- family residential zone is a zone where the only residential use that is allowed as a primary use is a single residential dwelling on a lot.

3. Lot Location.

(a) The lot to be split is not located on a site that is any of the following:

(1) Prime farmland, farmland of statewide importance, or land that is zoned or designated for agricultural
protection or preservation by the voters.

(2) A wetland.

(3) Within a very high fire hazard severity zone, unless the site complies with all fire -hazard mitigation measures required by existing building standards.

(4) A hazardous waste site that has not been cleared for residential use.

(5) Within a delineated earthquake fault zone, unless all development on the site complies with applicable
seismic protection building code standards.

(6) Within a 100- year flood hazard area, unless the site has either:

Item 2B - 11

(i) been subject to a Letter of Map Revision
prepared by the Federal Emergency
Management Agency and issued to the l ocal
jurisdiction, or

(ii) meets Federal Emergency Management
Agency requirements necessary to meet
minimum flood plain management criteria of the
National Flood Insurance Program.

(7) Within a regulatory floodway, unless all development on the site has received a no-rise certification.

(8) Land identified for conservation in an adopted natural community conservation plan, habitat conservation
plan, or other adopted natural resource protection plan.

(9) Habitat for protected species.

(10) Land under conservation easement.

(11) Land within a hillside area, as that term is defined in section 93.13.00.

(b) The purpose of subpart (E)(3)(a) above is merely to summarize the requirements of Government Code section
65913.4(a)(6)(B)–(K). (See Gov. Code § 66411.7(a)(3)(C).)

4. Not Historic. The lot to be split must not be a historic property or within a historic district that is included on the State Historic Resources Inventory, nor may the lot be or be within a site that is designated by ordinance as a city or county historic resource or as a historic property or within a historic district.

5. No Prior Urban Lot Split.

(a) The lot to be split was not established through a prior urban lot split.

(b) The lot to be split is not adjacent to any lot that w as established through a prior urban lot split by the owner of the lot to be split or by any person acting in concert with the owner.

6. No Impact on Protected Housing. The urban lot split must not require Item 2B - 12
or include the demolition or alteration of any of the following types of housing:

(a) Housing that is income-restricted for households of moderate, low, or very low income.

(b) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its policy power.

(c) Housing, or a lot that used to have housing, that has been withdrawn from rental or lease under the Ellis Act (Gov. Code §§ 7060–7060.7) at any time in the 15 years prior to
submission of the urban lot split application.

(d) Housing that has been occupied by a tenant in the last three years. The applicant and the owner of a property for which an urban lot split is sought must provide a sworn statement as to this fact with the application for the parcel map. The city may conduct its own inquiries and investigation to ascertain the veracity of the sworn statement, including but not limited to, surveying owners of nearby properties; and the city may require additional evidence of the applicant and owner as necessary to determine compliance with this requirement.

7. Lot Size.

(a) The lot to be split must be at least 2,400 square feet.

(b) The resulting lots must each be at least 1,200 square feet.

8. Easements.

(a) The owner must enter into an easement agreement with each public-service provider to establish easements that are sufficient for the provision of public services and facilities to each of the resulting lots.

(b) Each easement must be shown on the tentative parcel map.

(c) Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property before the final map may be approved, in accordance with subpart (D)(2) above.

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(d) If an easement is recorded and the project is not completed, making the easement moot, the property owner may request, and the city will provide, a notice of termination of the easement, which the owner may record.

9. Lot Access.

(a) Each resulting lot must adjoin the public right-of-way.

(b) Each resulting lot must have frontage on the public right -of- way of at least 12.5 feet.

10. Unit Standards.

(a) Quantity. No more than two dwelling units of any kind may be built on a lot that results from an urban lot split. For purposes of this paragraph, “unit” means any dwelling unit, including, but not limited to, a primary dwelling unit, a unit created under section 93.23.21 of this code, an ADU, or a JADU.

(b) Unit Size.

(1) The total floor area of each primary dwelling that is developed on a resulting lot must be

(i) less than or equal to 1,000 and

(ii) more than 500 square feet.

(2) A primary dwelling that was legally established prior to the urban lot split and that is larger than 1,000 square feet is limited to the lawful floor area at the time of the urban lot split. It may not be expanded.

(3) A primary dwelling that was legally established prior to the urban lot split and that is smaller than 1,000 square feet may be expanded to 1,000 square feet after the
urban lot split.

(1) On a resulting lot that is larger than 2,000 square feet, no new primary dwelling unit may exceed a single story
or 16 feet in height, measured from grade to peak of
the structure.

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(2) On a resulting lot that is smaller than 2,000 square feet, no new primary dwelling unit may exceed two stories
or 22 feet in height, measured from grade to peak of
the structure. A second story is only permissible where conformance to lot coverage or setback requirements
does not result in two primary units on the lot of up to 1,000 square feet each. Any portion of a new primary
dwelling that exceeds one story must be stepped back
by an additional five feet from the ground floor; no
balcony deck or other portion of the second story may
project into the stepback.

(3) No rooftop deck is permitted on any new or remodeled dwelling or structure on a lot resulting from an urban lot split.

(d) Lot Coverage. Lot coverage shall not exceed 45%. This lot coverage standard is only enforced to the extent that it does not prevent two primary dwelling units on the lot at 1,000 square feet each.

(e) Setbacks.

(1) Generally. All setbacks must conform to those
objective setbacks that are imposed through the
underlying zone.

(2) Exceptions. Notwithstanding subpart (E)(10)(e) above:

(i) Existing Structures. No setback is required for
an existing legally established structure or for a
new structure that is constructed in the same
location and to the same dimensions as an
existing legally established structure.

(ii) 1,000 square feet; four -foot side and rear. The
setbacks imposed by the underlying zone must
yield to the degree necessary to avoid physically
precluding the construction of up to two units on
the lot or either of the two units from being at
least 1,000 square feet in floor area; but in no
event may any structure be less than four feet
from a side or rear property line.

(iii) Front Setback Area. Notwithstanding any other
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part of this code, dwellings that are constructed
after an urban lot split must be at least 25 feet
from the front property lines. The front setback
area must:

(I) be kept free from all structures greater
than three feet high;

(II) be at least 50 percent landscaped with
drought-tolerant plants, with vegetation
and irrigation plans approved by a
licensed landscape architect;

(III) allow for vehicular and fire-safety access
to the front structure.

(f) Parking. Each new primary dwelling unit that is built on a lot after an urban lot split must have at least one off-street parking space per unit unless one of the following applies:

(1) The lot is located within one-half mile walking distance of either

(i) a corridor with fixed route bus service with
service intervals no longer than 15 minutes
during peak commute hours or

(ii) a site that contains

(I) an existing rail or bus rapid transit station,
or

(II) the intersection of two or more major bus
routes with a frequency of service interval
of 15 minutes or less during the morning
and afternoon peak commute periods.

(2) The site is located within one block of a car -share vehicle location.

(g) Architecture.

(1) If there is a legal primary dwelling on the lot that was established before the urban lot split, any new primary dwelling unit must match the existing primary dwelling
unit in exterior materials, color, and dominant roof
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pitch. The dominant roof slope is the slope shared by
the largest portion of the roof.

(2) If there is no legal primary dwelling on the lot before the urban lot split, and if two primary dwellings are
developed on the lot, the dwellings must match each
other in exterior materials, color, and dominant roof
pitch. The dominant roof slope is the slope shared by
the largest portion of the roof.

(3) All exterior lighting must be limited to down-lights.

(4) No window or door of a dwelling that is constructed on the lot after the urban lot split may have a direct line of sight to an adjoining residential property. Fencing,
landscaping, or privacy glass may be used to provide
screening and prevent a direct line of sight.

(5) If a dwelling is constructed on a lot after an urban lot split and any portion of the dwelling is less than 30 feet from a property line that is not a public right-of-way line, then all windows and doors in that portion must either
be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.

(h) Landscaping. Evergreen landscape screening must be
planted and maintained between each dwelling and adjacent lots (but not rights-of-way) as follows:

(1) At least one (1) 15- gallon size plant shall be provided for every five (5) linear feet of exterior wall.

Alternatively, at least one (1) 24” box size plant shall be provided for every ten (10) linear feet of exterior
wall.

(2) Plant specimens must be at least six (6) feet tall when installed. As an alternative, a solid fence of at least six (6) feet in height may be installed.

(3) All landscaping must be drought tolerant.

(4) All landscaping must be from the city’s approved plant list.

(i) Nonconforming Conditions. An urban lot split may be Item 2B - 17
approved without requiring a legal nonconforming zoning condition to be corrected.

(j) Utilities. Each primary dwelling unit on the resulting lots must have its own direct utility connection to the utility service provider.

(k) Building & Safety. All structures built on the lot must comply with all current local building standards. An urban lot split is a change of use.

11. Fire-Hazard Mitigation Measures.

(a) A lot in a very high fire hazard severity zone must comply with each of the following fire-hazard mitigation measures:

(1) It must have direct access to a public right-of-way with a paved street with a width of at least 40 feet. The
public right-of-way must have at least two independent
points of access for fire and life safety to access and for residents to evacuate.

(2) All dwellings on the site must comply with current fire code requirements for dwellings in a very high fire
hazard severity zone.

(3) All enclosed structures on the site must have fire
sprinklers.

(4) All sides of all dwellings on the site must be within a 150-foot hose-pull distance from either the public right- of-way or of an onsite fire hydrant or standpipe.

(5) If the lot does not have a swimming pool, the lot must have a water reservoir of at least 5,000 gallons per
dwelling, with fire -authority approved hookups
compatible with fire-authority standard pump and hose
equipment.

(b) Prior to submitting an application for an urban lot split, the applicant must obtain a certificate of compliance with all applicable fire-hazard mitigation measures in accordance with this subpart (E)(11). The city or its authorized agent must inspect the site, including all structures on the site, and certify as to its compliance. The certificate must be included with the application. The applicant must pay the city’s costs for Item 2B - 18
inspection. Failure to pay is grounds for denying the
application.

12. Separate Conveyance.

(a) Within a resulting lot.

(1) Primary dwelling units on a lot that is created by an urban lot split may not be owned or conveyed
separately from each other.

(2) Condominium airspace divisions and common interest
developments are not permitted on a lot that is created by an urban lot split.

(3) All fee interest in a lot and all dwellings on the lot must be held equally and undivided by all individual property owners.

(b) B etween resulting lots. Separate conveyance of the resulting lots is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the urban lot split boundary may separate them for conveyance purpos es if the structures meet building code safety standards and are sufficient to allow separate
conveyance. If any attached structures span or will span the new lot line, the owner must record appropriate CC&Rs,
easements, or other documentation that is necessary to
allocate rights and responsibility between the owners of the two lots.

13. Regulation of Uses.

(a) Residential-only. No non- residential use is permitted on any lot created by urban lot split.

(b) No Short -Term Rentals. No dwelling unit on a lot that is created by an urban lot split may be rented for a period of less than 30 days.

(c) Owner Occupancy. The applicant for an urban lot split must sign an affidavit stating that the applicant intends to occupy one of the dwelling units on one of the resulting lots as the applicant’s principal residence for a minimum of three (3) years after the urban lot split is approved.

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14. Notice of Construction.

(a) At least 30 business days before starting any c onstruction of a structure on a lot created by an urban lot split, the property owner must give written notice to all the owners of record of each of the adjacent residential parcels, which notice must include the following information:

(1) Notice that construction has been authorized,

(2) The anticipated start and end dates for construction,

(3) The hours of construction,

(4) Contact information for the project manager (for
construction-related complaints), and

(5) Contact information for the Building & Safety Division.

(b) This notice requirement does not confer a right on the noticed persons or on anyone else to comment on the project before permits are issued. Approval is ministerial. Under state law, the City has no discretion in approving or denying a particular project under this section. This notice requirement is purely to promote neighborhood awareness and expectation.

15. Deed Restriction. The owner must record a deed restriction, acceptable to the city, that does each of the following:

(a) Expressly prohibits any rental of any dwelling on the property for a period of less than 30 days.

(b) Expressly prohibits any non-residential use of the lots created by the urban lot split.

(c) Expressly prohibits any separate conveyance of a primary dwelling on the property, any separate fee interest, and any common interest development within the lot.

(d) States that the property is formed by an urban lot split and is therefore subject to the city’s urban lot split regulations, including all applicable limits on dwelling size and
development.

F. Specific Adverse Impacts.

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1. Notwithstanding anything else in this section, the city may deny an application for an urban lot split if the building official makes a written finding, based on a preponderance of the evidence, that the project would have a “specific, adverse impact” on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

2. “Specific adverse impact” has the same meaning as in Gov. Code § 65589.5(d)(2): “a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they exi sted on the date the application was deemed complete” and does not include (1) inconsistency with the zoning ordinance or general plan land use designation or (2) the eligibility to claim a welfare exemption under Revenue and Taxation Code section 214(g).

3. The building official may consult with and be assisted by planning staff and others as necessary in making a finding of specific, adverse impact.

SECTION 3. Add Section 93.23.21 to Chapter 93.00 of the Palm Springs Zoning Code to read as follows:

Section 93.23.21 Two-Unit Projects

A. Purpose. The purpose of this section is to allow and appropriately regulate two-unit projects in accordance with Government Code section 65852.21.

B. Definition. A “two -unit project” means the development of two primary dwelling units or, if there is already a primary dwelling unit on the lot, the development of a second primary dwelling unit on a legally subdivided lot in accordance with the requirements of this section.

C. Application.

1. Only individual property owners may apply for a two- unit project. “Individual property owner” means a natural person holding fee title individually or jointly in the person’s own name or a beneficiary of a trust that holds fee title. “Individual property owner” does not include any corporation or corporate person of any kind (partnership, LP, LLC, C corp, S corp, etc.) except for a community land trust (as defined by Rev. & Tax Code § 402.1(a)(11)(C)(ii)) or a qualified nonprofit corporation (as defined by § 214.15).

2. An application for a two- unit project must be submitted on the city’s Item 2B - 21
approved form.

3. The applicant must obtain a certificate of compliance with the Subdivision Map Act for the lot and provide the certificate with the application.

4. Only a complete application will be considered. The city will inform the applicant in writing of any incompleteness within 30 days after the application is submitted.

5. The city may establish a fee to recover its costs for adopting, implementing, and enforcing this section of the code, in accordance with applicable law. The city council may establish and change the fee by resolution. The fee must be paid with the application.

D. Approval.

1. An application for a two- unit project is approved or denied ministerially, by the Director, without discretionary review.

2. The ministerial approval of a two-unit project does not take effect until the city has confirmed that the required documents have been recorded, such as the deed restriction and easements.

3. The approval must require the owner and applicant to hold the city harmless from all claims and damages related to the approval and its subject matter.

4. The approval must require the owner and applicant to reimburse the city for all costs of enforcement, including attorneys’ fees and costs associated with enforcing the requirements of this code.

E. Requirements. A two -unit project must satisfy each of the following requirements:

1. Map Act Compliance. The lot must have been legally subdivided.

2. Zone. The lot is in a single- family residential zone. For purposes of this section, a single-family residential zone is a zone where the only residential use that is allowed as a primary use is a single residential dwelling on a lot.

3. Lot Location.

a. The lot is not located on a site that is any of the following:

Item 2B - 22
1) Prime farmland, farmland of statewide importance, or land that is zoned or designated for agricultural
protection or preservation by the voters.

2) A wetland.

3) Within a very high fire hazard severity zone, unless the site complies with all fire -hazard mitigation measures required by existing building standards.

4) A hazardous waste site that has not been cleared for residential use.

5) Within a delineated earthquake fault zone, unles s all development on the site complies with applicable
seismic protection building code standards.

6) Within a 100- year flood hazard area, unless the site has either:

(i) been subject to a Letter of Map Revision
prepared by the Federal Emergency
Management Agency and issued to the local
jurisdiction, or

(ii) meets Federal Emergency Management
Agency requirements necessary to meet
minimum flood plain management criteria of the
National Flood Insurance Program.

7) Within a regulatory floodway, unless all development on the site has received a no-rise certification.

8) Land identified for conservation in an adopted natural community conservation plan, habitat conservation
plan, or other adopted natural resource protection plan.

9) Habitat for protected species.

10) Land under conservation easement.

(11) Land within a hillside area, as that term is defined in section 93.13.00.

b. The purpose of subpart (E)(3)(a) above is merely to
summarize the requirements of Government Code section
Item 2B - 23
65913.4(a)(6)(B)–(K). (See Gov. Code § 66411.7(a)(3)(C).)

4. Not Historic. The lot must not be a historic property or within a historic district that is included on the State Historic Resources Inventory, nor may the lot be or be within a site that is designated by ordinance as a city or county resource or as a historic property or within a historic district.

5. No Impact on Protected Housing. The two- unit project must not require or include the demolition or alteration of any of the following types of housing:

a. Housing that is income-restricted for households of moderate, low, or very low income.

b. Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its policy power.

c. Housing, or a lot that used to have housing, that has been withdrawn from rental or lease under the Ellis Act (Gov. Code §§ 7060–7060.7) at any time in the 15 years prior to
submission of the urban lot split application.

d. Housing that has been occupied by a tenant in the last three years. The applicant and the owner of a property for which a two-unit project is sought must provide a sworn statement as to this fact with the application for the parcel map. The city may conduct its own inquiries and investigation to ascertain the veracity of the sworn statement, including but not limited to, surveying owners of nearby properties; and the city may require additional evidence of the applicant and owner as necessary to determine compliance with this requirement.

6. Unit Standards.

a. Quantity.

1) No more than two dwelling units of any kind may be
built on a lot that results from an urban lot split. For purposes of this paragraph, “unit” means any dwelling
unit, including, but not limited to, a primary dwelling unit, a unit created under this section of this code, an ADU, or a JADU.

2) A lot that is not created by an urban lot split may have a two-unit project under this section, plus any ADU or
Item 2B - 24
JADU that must be allowed under state law and the
city’s ADU ordinance.

b. Unit Size.

1) T he total floor area of each primary dwelling built that is developed under this section must be

(i) less than or equal to 1,000 and

(ii) more than 500 square feet.

2) A primary dwelling that was legally established on the lot prior to the two -unit project and that is larger than 1,000 square feet is limited to the lawful floor area at the time of the two- unit project. The unit may not be
expanded.

3) A primary dwelling that was legally established prior to the two -unit project and that is smaller than 1,000
square feet may be expanded to 1,000 square feet
after or as part of the two-unit project.

c. Height Restrictions.

1) On a lot that is larger than 2,000 square feet, no new primary dwelling unit may exceed a single story or 16
feet in height, measured from grade to peak of the
structure.

2) On a lot that is smaller than 2,000 square feet, no new primary dwelling unit may exceed two stories or 22 feet in height, measured from grade to peak of the
structure. A second story is only permissible where
conformance to lot coverage or setback requirements
does not result in two primary units on the lot of up to 1,000 square feet each. Any portion of a new primary
dwelling that exceeds one story must be stepped back
by an additional five feet from the ground floor; no
balcony deck or other portion of the second story may
project into the stepback.

3) No rooftop deck is permitted on any new or remodeled dwelling or structure on a lot with a two-unit project.

d. Demo Cap. The two- unit project may not involve the
Item 2B - 25
demolition of more than 25 percent of the existing exterior walls of an existing dwelling unless the site has not been occupied by a tenant in the last three years.

e. Lot Coverage. Lot coverage shall not exceed 45%. This lot coverage standard is only enforced to the extent that it does not prevent two primary dwelling units on the lot at 1,000 square feet each.

f. Setbacks.

1) Generally. All setbacks must conform to those
objective setbacks that are imposed through the
underlying zone.

2) Exceptions. Notwithstanding subpart (E)(6)(f) above:

(ii) 1,000 sf; four -foot side and rear. The setbacks
imposed by the underlying zone must yield to
the degree necessary to avoid physically
precluding the construction of up to two units on
the lot or either of the t wo units from being at
least 1,000 square feet in floor area; but in no
event may any structure be less than four feet
from a side or rear property line.

3) Front Setback Area. Notwithstanding any other part of this code, dwellings that are constructed under this
section must be at least 25 feet from the front property lines. The front setback area must:

(i) be kept free from all structures greater than
three feet high;

(ii) be at least 50 percent landscaped with drought-
tolerant plants, with vegetation and irrigation
plans approved by a licensed landscape
architect;

(iii) allow for vehicular and fire-safety access to the Item 2B - 26
front structure.

g. Parking. Each new primary dwelling unit must have at least one off -street parking space per unit unless one of t he following applies:

1) The lot is located within one-half mile walking distance of either

(i) a corridor with fixed route bus service with
service intervals no longer than 15 minutes
during peak commute hours or

(ii) a site that contains

(I) an existing rail or bus rapid transit station,

(II) the intersection of two or more major bus
routes with a frequency of service interval
of 15 minutes or less during the morning
and afternoon peak commute periods.

2) The site is located within one block of a car -share vehicle location.

h. Architecture.

1) If there is a legal primary dwelling on the lot that was established before the two- unit project, any new
primary dwelling unit must match the existing primary
dwelling unit in exterior materials, color, and dominant roof pitch. The dominant roof slope is the slope shared by the largest portion of the roof.

2) If there is no legal primary dwelling on the lot before the two-unit project, and if two primary dwellings are
developed on the lot, the dwellings must match each
other in exterior materials, color, and dominant roof
pitch. The dominant roof slope is the slope shared by
the largest portion of the roof.

3) All exterior lighting must be limited to down-lights.

4) No window or door of a dwelling that is constructed on the lot may have a direct line of sight to an adjoining residential property. Fencing, landscaping, or privacy
Item 2B - 27
glass may be used to provide screening and prevent a
direct line of sight.

5) If any portion of a dwelling is less than 30 feet from a property line that is not a public right -of-way line, then all windows and doors in that portion must either be (for windows) clerestory with the bottom of the glass at
least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.

i. Landscaping. Evergreen landscape screening must be
planted and maintained between each dwelling and adjacent lots (but not rights-of-way) as follows:

1) At least one (1) 15- gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one (1) 24” box size plant shall be provided for every ten (10) linear feet of exterior wall.

2) Plant specimens must be at least six (6) feet tall when installed. As an alternative, a solid fence of at least six (6) feet in height may be installed.

3) All landscaping must be drought tolerant.

4) All landscaping must be from the city’s approved plant list.

j. Nonconforming Conditions. A two- unit project may only be approved if all nonconforming zoning conditions are
corrected.

k. Utilities. Each primary dwelling unit on the lot must have its own direct utility connection to the utility service provider.

l. Building & Safety. All structures built on the lot must comply with all current local building standards. A project under this section is a change of use and subjects the whole of the lot, and all structures, to the city’s current code.

7. Fire-Hazard Mitigation Measures. A lot in a very high fire hazard severity zone must comply with each of the following fire- hazard mitigation measures:

a. It must have direct access to a public right -of-way with a paved street with a width of at least 40 feet. The public right - Item 2B - 28
of-way must have at least two independent points of access for fire and life safety to access and for residents to evacuate.

b. All dwellings on the site must comply with current fire code requirements for dwellings in a very high fire hazard severity zone.

c. All enclosed structures on the site must have fire sprinklers.

d. All sides of all dwellings on the site must be within a 150- foot hose-pull distance from either the public right-of-way or of an onsite fire hydrant or standpipe.

e. If the lot does not have a swimming pool, the lot must have a water reservoir of at least 5,000 gallons per dwelling, with fire- authority approved hookups compatible with fire- authority standard pump and hose equipment.

8. Separate Conveyance.

a. Primary dwelling units on the lot may not be owned or conveyed separately from each other.

b. Condominium airspace divisions and common interest
developments are not permitted within the lot.

c. All fee interest in the lot and all the dwellings must be held equally and undivided by all individual property owners.

9. Regulation of Uses.

a. Residential-only. No non -residential use is permitted on the lot.

b. No Short-Term Rentals. No dwelling unit on the lot may be rented for a period of less than 30 days.

c. Owner Occupancy. Unless the lot was formed by an urban lot split, the individual property owners of a lot with a two- unit project must occupy one of the dwellings on the lot as the owners’ principal residence and legal domicile.

10. Notice of Construction.

a. At least 30 business days before starting any construction of a two-unit project, the property owner must give written notice Item 2B - 29
to all the owners of record of each of the adjacent residential parcels, which notice must include the following information:

1) Notice that construction has been authorized,

2) The anticipated start and end dates for construction,

3) The hours of construction,

4) Contact information for the project manager (for
construction-related complaints), and

5) Contact information for the Building & Safety
Department.

b. This notice requirement does not confer a right on the noticed persons or on anyone else to comment on the project before permits are issued. Approval is ministerial. Under state law, the City has no discretion in approving or denying a particular project under this section. This notice requirement is purely to promote neighborhood awareness and expectation.

11. Deed Restriction. The owner must record a deed restriction, acceptable to the city, that does each of the following:

a. Expressly prohibits any rental of any dwelling on the property for a period of less than 30 days.

b. Expressly prohibits any non-residential use of the lot.

c. Expressly prohibits any separate conveyance of a primary dwelling on the property, any separate fee interest, and any common interest development within the lot.

d. If the lot is not created by an urban lot split: Expressly requires the individual property owners to live in one of the dwelling units on the lot as the owners’ primary residence and legal domicile.
e. States that the property is formed by an urban lot split and is therefore subject to the city’s urban lot split regulations, including all applicable limits on dwelling size and
development.

F. Specific Adverse Impacts.

1. Notwithstanding anything else in this section, the city may deny an Item 2B - 30
application for a two-unit project if the building official makes a written finding, based on a preponderance of the evidence, that the project would have a “specific, adverse impact” on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

2. “Specific adverse impact” has the same meaning as in Gov. Code § 65589.5(d)(2): “a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete” and does not include (1) inconsistency with the zoning ordinance or general plan land use designation or (2) the eligibility to claim a welfare exemption under Revenue and Taxation Code section 214(g).

3. The building official may consult with and be assisted by planning staff and others as necessary in making a finding of specific, adverse impact.

G. Remedies. If a two- unit project violates any part of this code or any other legal requirement:

1. The buyer, grantee, or lessee of any part of the property has an action for damages or to void the deed, sale, or contract.

2. The city may:

a. Bring an action to enjoin any attempt to sell, lease, or finance the property.

b. Bring an action for other legal, equitable, or summary remedy, such as declaratory and injunctive relief.

c. Pursue criminal prosecution, punishable by imprisonment in county jail or state prison for up to one year, by a fine of up to $10,000, or both; or a misdemeanor.

d. Record a notice of violation.

e. Withhold any or all future permits and approvals.

f. Pursue all other administrative, legal, or equitable remedies that are allowed by law or the city’s code.

SECTION 4. If any section or provision of this Ordinance is for any reason Item 2B - 31
held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation.

SECTION 5. Under California Government Code sections 65852.21, subdivision (j), and 66411.7, subdivision (n), the adoption of an ordinance by a city or county implementing the provisions of Government Code sections 66411.7 and 65852.21 and regulating urban lot splits and two-unit projects is statutorily exempt from the requirements of the California Environmental Quality Act (“CEQA”).

Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements these new laws enacted by SB 9.

SECTION 6. On its effective date, this Ordinance shall supersede Urgency Ordinance No. 2057 with identical regulatory content adopted on January 13, 2022.

SECTION 7. The Mayor shall sign and the Ci ty Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS ______ DAY OF ___________________, ______.

LISA MIDDLETON
MAYOR

ATTEST:

ANTHONY J. MEJIA, MMC

CITY CLERK

Item 2B - 32

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on __________ and adopted at a regular meeting of the City Council held on __________ by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.

ANTHONY J. MEJIA, MMC

CITY CLERK

Item 2B - 33

ATTACHMENT B

Item 2B - 34

CITY COUNCIL STAFF REPORT

DATE: JANUARY 13, 2022 LEGISLATIVE

SUBJECT: REQUEST BY THE CITY OF PALM SPRINGS FOR ADOPTION OF AN URGENCY ORDINANCE TO IMPLEMENT SENATE BILL 9

REQUIREMENTS FOR URBAN LOT SPLITS AND TWO -UNIT
RESIDENTIAL DEVELOPMENTS, CASE 5.1548 ZTA (4/5ths VOTE

REQUIRED)

FROM: Justin Clifton, City Manager

BY: Development Services Department

SUMMARY:

This is a request for the City Council to approve an urgency ordinance adopting regulations relative to urban lot splits and two- unit residential development pursuant to the recent adoption of Senate Bill 9 (SB 9). SB 9 requires urban lot split applications and two-unit residential applications to be approved ministerially, and applies to all cities and counties, including charter cities. Failure to adopt local standards will result in applications being approved subject only to the limited criteria contained in State law. The urgency ordinance requires a four-fifths (4/5ths) vote of the City Council to pass.

RECOMMENDATION:

Waive the reading of the Ordinance text in its entirety, read by title only, and adopt urgency Ordinance No. ____, “AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 9.62 OF THE PALM SPRINGS MUNICIPAL CODE AND CHAPTER 93.00 OF THE PALM SPRINGS

ZONING CODE RELATING TO URBAN LOT SPLITS AND TWO-UNIT PROJECTS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA. ” (4/5ths Vote
Required.)

BACKGROUND:

SB 9 was signed into law by Governor Newsom on September 16, 2021 and became effective on January 1, 2022. The bill requires that City’s all urban lot split s and two-unit housing development s within single -family residential zones to be approved administratively by staff, without discretionary review or public hearing. The bill outlines a number of minimum requirements, including the following:

• The proposed urban lot split cannot be located in high-hazard areas, flood zones, fault zones, conservation areas, or similar protected areas; Item 3A - 1
Item 2B - 35
City Council Staff Report
January 13, 2022 – Page 2
Case 5.1548 ZTA, Urgency Ordinance to Implement SB 9
• The urba
n lot split must not involve the demolition or alteration of protected housing (such as rent -controlled housing, affordable housing, tenant -occupied hous ing, and similar housing);
• The lot must not be a historic landmark or within a designated historic district; • The urban lot split must result in two new lots that are approximately equal in size (60/40 split maximum);
• The urban lot split or two-unit development must result in the development of two units that are a minimum of 800 square feet in area;
• Side and rear yard setbacks may be reduced to as little as four feet to accommodate a minimum of two units on the resulting lots; • Parking requirements are limited to one space per unit, and no parking spaces are required when the site is within one-half mile of certain transit lines or stops; • Applicants must reside in one of the housing units as their principal residence for a minimum of three years from the date of the lot split; • Short-term rentals are prohibited in dwellings that are developed under SB 9 requirements.

While SB 9 applies to all cities and counties, including charter cities, local agencies may adopt objective zoning, design, and subdivision standards unless those standards would have the effect of preventing the development of two residential units on either of the resulting parcels or preventing the development of two units from being at least 800 square feet in floor area.

STAFF ANALYSIS:

To impl
ement the requirements of SB 9, staff from the City Attorney ’s office has drafted an urgency ordinance that permits urban lot splits and two- unit residential development in all single-family residential zones. The proposed ordinance will modify Chapter 9.62 of the Palm Springs Municipal Code relative to subdivision mapping requirements and will modify Chapter 93.00 of the Palm Springs Zoning Code to establish standards for two- unit residential development. The proposed ordinance includes limited objective standards relating to lot configuration and architectural design, as is permissible under State law.

The urgency ordinance establishes that urban lot splits may be proposed for existing lots of record as small as 2,400 square feet, with the new resulting lots no smaller than 1,200 square feet in area in accordance with State law. The term “urban lot” means an existing lot of record within a n urbanized area, which encompasses all single-family residential zones in Palm Springs. Each lot that is created under the ordinance must have direct street frontage; however, the frontage can be as little as 12.5 feet in width, which is the minimum for a residential driveway . This will allow for either a side -by-side lot configuration, or front-back configuration with the rear lot being a “flag lot.” Demolition of an existing residence in order to create the lot split is limited to a maximum of 25%, unless the unit has not been occupied for more than three years. Please note that the City cannot require the dedication of right-of-way or the construction of off -site improvements (such Item 3A - 2
Item 2B - 36
City Council Staff Report
January 13, 2022 – Page 3
Case 5.1548 ZTA, Urgency Ordinance to Implement SB 9
as si
dewalks or street curbing) in conjunction with the creation of new lots under SB 9, as would typically be the case for standard subdivisions.

The proposed ordinance will apply objective development standards for two -unit residential development as permissible under SB 9. Objective standards are defined as standards that require no exercise of judgment, such as numeric limits relative to square footage, height, setbacks, etc. As the intent of SB 9 is to foster the development of affordable housing, the maximum square footage permissible for residential units created under the ordinance is 800 square feet. The City may choose to adjust this maximum square footage requirement at a later date based on further study and public input.

Pursuant to SB 9, minimum setbacks of four feet are established for side and rear property lines; however, the front yard setback requirement will remain at 25 feet as is the current standard so as to maintain a consistent appearance along street frontages. Height limits for any lot larger than 2,000 square feet is established at one story and 16 feet. Height limits for any lot smaller than 2,000 square feet may be up to two stories and 22 feet, but only when reduced setbacks and increased lot coverage will not result in two units of 800 square feet each. Architectural standards require that the units developed on the resulting split lot must be consistent in terms of materials, architectural details, and roof pitch. In order to protect privacy of abutting homes, landscaping requirements are established to screen the new units, and window placement will be reviewed for impacts to neighbors.

Per the requirements of SB 9, urban lot split and two-unit housing developments must be approved by staff as an administrative process, and local agencies cannot require discretionary review by P lanning Commission or architectural review boards. Specific application fees have yet to be established for these applications; an amendment to the fee schedule will be brought forward to City Council once application fees and impact fees have been determined.

Due to the relatively short period between the bill being signed into law and its effective date, Staff was unable to prepare a standard ordinance and meet all public notic e requirements prior to January 1, 2022. Consequently, Staff has prepared an urgency ordinance for adoption by City Council, with a regular ordinance to follow on January 27, 2022. The urgency ordinance will take effect immediately upon adoption and will r emain in place until the regular ordinance becomes effective. As there may be a need for further adjustment to the initial objective development and architectural standards, it is intended that Staff will work with the Planning Commission over the next several months to review the ordinance in detail and assess any modifications that may be necessary.

ENVIRONMENTAL ASSESSMENT
:

Under C
alifornia Government Code sections 65852.21, subdivision (j), and 66411.7, subdivision (n), the adoption of an ordinance by a city or county implementing the provisions of Government Code sections 66411.7 and 65852.21 and regulating urban lot splits and two-unit projects is statutorily exempt from the requirements of the California Environmental Quality Act (“CEQA”). Therefore, the proposed ordinance is statutorily Item 3A - 3
Item 2B - 37
City Council Staff Report
January 13, 2022 – Page 4
Case 5.1548 ZTA, Urgency Ordinance to Implement SB 9
exempt
from CEQA in that the proposed ordinance implements these new laws enacted by SB 9.

Further, the proposed ordinance is also categorically exempt from CEQA under the Class 3 exemption set forth in State CEQA Guidelines section 15303. The Class 3 exemption categorically exempts from CEQA, among other things, the construction and location of new, small structures and the conversion of existing small structures from one use to another. Section 15303 specifically lists the construction of a second dwelling unit in a residential zone and a duplex or similar multi-family residential structure totaling no more than four dwelling units as examples of activity that expressly falls within this exemption.

Here, the ordinance is categorically exempt under the Class 3 exemption because the ordinance regulates the construction of two primary dwelling units or, if there is already a primary dwelling unit on the lot, the development of a second primary dwelling unit, in a residential zone. Moreover, the City Council finds that none of the “exceptions” to the use of the Class 3 exemption, set forth in State CEQA Guidelines section 15300.2, apply here.

Specifically, the City Council finds that the ordinance will:
(1) Not result in a potentially significant cumulative impact as the development allowable under this ordinance will only be established in developed areas where environmental analysis and assessment has occurred, and the scope of allowable development will not result in impacts that signif icantly exceed that of the existing development;
(2) Not result in a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances as the development allowable under this ordinance will only be per mitted in developed areas and poses no impacts that differ from existing development;
(3) Not result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway as the development allowable under this ordinance is not permitted in areas with scenic area overlay protections as identified in the General Plan and Zoning Code; Item 3A - 4
Item 2B - 38
City Council Staff Report
January 13, 2022 – Page 5
Case 5.1548 ZTA, Urgency Ordinance to Implement SB 9
(4) Not be l
ocated on a hazardous waste site included on any list compiled pursuant to § 65962.5 of the Government Code as no areas eligible for the development allowable under this ordinance are located on a listed hazardous waste site; or
(5) Not result in a substantial adverse change in the significance of a historical resource as alterations to historic resources are governed by the procedures listed in Chapter 8.05 of the Palm Springs Municipal Code and are subject to review and approval by the Historic Preservation Officer and/or the Historic Site Preservation Board.

Each of the foregoing exemptions is asserted in the alternative and each is independently sufficient to fully exempt the whole of the project.

REVIEWED BY:

Department Director: Flinn Fagg
City Manager: Justin Clifton
ATTACHMENTS:

A. Urgenc
y Ordinance and Exhibits.

B. SB 9 Bill Text.

Item 2B - 39

ATTACHMENT C
Item 2B - 40
Item 2B - 41
Tiffani Bailey
From:

Sent:

To:

Anthony Mejia
Thursday, January 13, 2022 2:50 PM
Tiffani Bailey
Subject: Fwd: Public Comment - Item
CityOrd.pdf Attachments:

AC
Anthony Mejia
City Clerk
Begin forwarded message:

From: Steven Randel <[email protected]>
Date: January 13, 2022 at 2:41:01 PM PST
To: City Clerk <[email protected]>
Subject: Public Comment - Item
·NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open · attachments unless you are sure the content is safe.

Please contribute the attached letter regarding zoning ordinance changes for SB 9 that the City Council will address this evening.

Thank you,
Steven Randel
l
Item 2B - 42
Palm Springs Planning Department
Steven C. Randel
Randel Architecture, Inc.
777 E Tahquitz Canyon Way, Suite 200.209
Palm Springs, CA 92262
13 January 2022
Regarding Ordinance Compliance for Senate Bill 9 for Lot Splits As a design professional, I wish to contribute to how the Planning Department will address some of the parameters of SB9 into the Palm Springs Ordinances.

1. Lot Square Footage - For urban lot splits, the proposed threshold is 2400 square feet. Very few lots in the area are less than 8000 square feet. With required setbacks, any lot less than 5000 square feet would be difficult to meet setbacks depending on the zone. I suggest raising the lot to be split to at least 5000 square feet. Make the minimum size 2500 square feet, but don't place a 60/40 split because that further complicates the equation. Just let the minimum of 2500 square feet be the determining factor. That way, you could have a IOOOO square foot lot have a small parcel of not less than 2500 feet, which could hold a small home.

2. There will have to be more leeway in setbacks so that buildings can comply but allow at least five feet. Any building closer than five feet needs specific eave construction for fire codes. Six feet is even better for a side setback.

3. Keep a one-story maximum in all cases, as most current single-family lots restrict to a single level. This maintains neighboring privacy. Lower the height maximum to 12 feet. A 16-foot height limit is too much for a single-level dwelling. An 8 to 9-foot ceiling is adequate in a small dwelling, a lower height also keeps the pitch of roofs lower, so they don't block views.

4. The maximum square footage of 800 is too restrictive. That amount is only suitable for a comfortable one-bedroom apartment. No one will build a one-bedroom dwelling. The expense for the return is too low. Allow at least 1000 square feet and up to 1200 square feet for another house. That amount allows two bedrooms at least and contributes to the housing supply more practically.

5. The minimum of 500 square feet is also too little to add to the housing supply. Make it 750 square feet minimum so that the dwelling is enough to have lasting value .

6. Don't put restrictions on the square footage of existing dwellings where you would otherwise be able to add to that house. A restriction like that further limits dwelling space, which is needed to add to the housings supply.

7. Do not require street frontage for secondary lots. Allow easements to serve that purpose instead, which technically allows larger parcels.

Since the goal is to build more housing within established infrastructure in California , that housing should be just as desirable as all other dwellings. The proposed square footage could inhibit production since an investment must make a return. Please consider spatial practicality in your decision to update the Palm Springs ordinances.

Thank you,
~"J-c;_-~a-/~
Steven C. Randel

CITY COUNCIL STAFF REPORT
01/27/2022 2. C.

City Clerk -

SUBJECT

CONDUCT BROWN ACT PUBLIC HEARING TO CONSIDER AUTHORIZATION TO

TRANSITION TO A PER TRANSACTION DAY CUSTOMER FACILITY CHARGE

THE STAFF REPORT FOR THIS ITEM WILL BE PROVIDED TO THE CITY COUNCIL AND MADE AVAILABLE TO THE PUBLIC ON FRIDAY, JANUARY 21, 2022.

Attachments
Item 2C

CITY COUNCIL STAFF REPORT

DATE: January 27, 2022 Public Hearing

SUBJECT: CONDUCT BROWN ACT PUBLIC HEARING TO CONSIDER

AUTHORIZATION TO TRANSITION TO A PER TRANSACTION DAY

CUSTOMER FACILITY CHARGE

FROM: Justin Clifton, City Manager

BY: Department of Aviation

The staff report for this item will be provided to the City Council and made available to the public on Friday, January 21, 2022.

Item 2C - 1

CITY COUNCIL STAFF REPORT
01/27/2022 3. A.

City Clerk -

SUBJECT

FIRST READING AND INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 10.22.060 OF THE PALM SPRINGS MUNICIPAL CODE RELATED TO UNATTENDED ANIMALS IN ENCLOSED VEHICLES – GUIDE DOGS OF THE DESERT
RECOMMENDATION:

Waive the reading of the text in its entirety, read by title only, and introduce for first reading an Ordinance entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL CODE CHAPTER 10.22 RELATED TO UNATTENDED ANIMALS IN ENCLOSED VEHICLES."
Attachments
Item 3A

CITY COUNCIL STAFF REPORT
DATE: J
anuary 27, 2022 LEGISLATIVE
SUBJECT: FIRST READING AND INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 10.22.060 OF THE PALM SPRINGS MUNICIPAL CODE
RELATED TO UNATTENDED ANIMALS IN ENCLOSED VEHICLES –

GUIDE DOGS OF THE DESERT
FROM: Justin Clifton, City Manager
BY: Anthony J. Mejia, City Clerk
RECOMMENDATION:

Waiv
e the reading of the text in its entirety, read by title only, and introduce for first reading an Ordinance entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL CODE CHAPTER 10.22 RELATED TO UNATTENDED ANIMALS IN ENCLOSED VEHICLES." BACKGROUND:

At t
he request of the Guide Dogs of the Desert (GDOD), the City Council is requested to amend the PSMC to authorize the Chief of Police to permit certain vehicles to keep unattended animals in enclosed vehicles subject to conditions of approval. Currently, the Palm Springs Municipal Code (PSMC) prohibits any person to leave, unattended, any animal within an enclosed vehicle. Furthermore, PSMC Section 10.22.060 exempts animals only in a peace officer or animal control officer’s vehicle while engaged in regularly assigned duties.

The GDOD advises that they routinely train guide dogs by taking them to high activity areas such as Downtown Palm Springs. GDOD may take multiple dogs at one time which necessitates keeping some dogs in the vehicle unattended. GDOD utiliz es two customized vans for training purposes and these vehicles are rigged with specialized remote temperature monitoring systems. The system is controlled via a mobile app which enables the handler to remotely monitor the vehicle’s internal temperature and battery voltage. In the event of a failure, the handler will be alerted by the honking of the horn, activation of the emergency lights, automatic rolling down of both rear windows , and automated phone calls to the handler and school.

Item 3A - 1
The Police Department has inspected the vehicles’ equipment and confirmed that it meets or exceeds the rigorous standards required for K-9 police vehicles. Additionally, the Chief of Police, if authorized, would issue such permits subject to conditions of approval, s uch as prohibiting unattended animals in vehicles during extreme heat conditions and requiring an annual inspection.

REVIEWED BY:

City Clerk / ADA Coordinator: Anthony J. Mejia
Chief of Police Andrew Mills
City Attorney Jeffrey Ballinger
City Manager: Justin Clifton

ATTACHMENTS:

1. Draft Ordinance.

2. Remote Temperature Monitoring System Specifications.

Item 3A - 2
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF PALM SPRINGS ,

CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL
CODE CHAPTER 10.22 RELATED TO UNATTENDED

ANIMALS IN ENCLOSED VEHICLES

City Attorney’s Summary
This ordinance amends the Palm Springs Municipal Code t o authorize the Chief of Police to permit certain vehicles to keep unattended animals in enclosed vehicles subject to conditions of approval.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Section 10 .22.060, Exempt ions, of the Palm Springs Municipal Code shall be amended to read as follows: “ This chapter is not applicable to animals which are in a peace officer’s vehicle, or an animal control officer’s vehicle, or other vehicles with a permit (subject to conditions of approval ) issued by the Chief of Police, while such peace officers or animal control officers are engaged in their regularly assigned duties.”

SECTION 2. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS _____ DAY OF ______________, _________.

LISA MIDDLETON
MAYOR

ATTEST:

ANTHONY J. MEJIA, MMC

CITY CLERK

Item 3A - 3

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, do hereby certi fy that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on _________ and adopted at a regular meeting of the City Council h eld on __________ by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF , I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.

ANTHONY J. MEJIA, MMC

CITY CLERK
Item 3A - 4
A division of Radiotronics, Inc.

Model HA-2520
User Manual
Operating Instructions
Factory Default settings are based on the most commonly requested settings selected by K9 handlers. However you can customize them to your needs. See menu choices sections.

Radiotronics Inc.
1315 SW Commerce Way
Stuart Fl 34997
Phone: (772) 600-7574
Fax (772) 600-7012
Item 3A - 5
K9 HEAT ALARM' PRO
INTELLIGENCE INSIDE "·'
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Pri:1 M# HR-2520
Contents
Introduction Page 1
Monitoring Features
Optional Monitoring Features
Overview of Settings Page 2
Default Settings
Safest Settings
K9 Heat Alarm® Operation Page 3
Heat Alarm Power
Snooze Mode
Temperature Averaging
Temperature Monitoring Page 4
Alarm Modes
"Pre-Alert" Mode
"FULL ALARM" Mode
Clearing Reminder
Types of Alarms
Temperature Alarm
Engine Stall Alarm, Engine Stall™ Monitor
Low Battery Alarm, Vehicle Battery Sentinel™
Temperature Sensor Alarm, Diagnostics
Other Alarms, Self Diagnostics
Changing Settings Page 5
Light Intensity Adjustment
Menu Mode
Heat Alarm Menu Choices
Heat Alarm Power
Heat and Cold Temp Page 6
Stall Monitor
Temperature Averaging
Auto Snooze
Low Voltage Set Point
USA or Metric
Previous Alarms Page 7
Serial Numbers
Reset To Default
System Test
Testing Page 8
Serial Numbers Page 9
Item 3A - 6
Introduction
The Heat Alarm ® Pro is a state of the art product designed and developed by the AceK9.com ™ division of Radiotronics, Inc. It is microprocessor controlled with a unique blend of positive features taken from field use of our K9 Heat Alarm®
Standard Monitoring Features: The K9 Heat Alarm® Pro monitors the vehicle’s interior temperature and battery Voltage. When the alarm sounds, The handler will be alerted by honking the horn, activating emergency lights, siren and rolling down both rear windows to allow air flow through the vehicle.
 Temperature Sensor Averaging –Reduces false alarms.
 Exclusive S.O.S Horn Honk™.
 Non-Volatile Memory – Temperature and other settings are maintained in memory when power is disconnected.
 Dual Window Drop. *Rear windows do not drop in cold alarm  Menu allows you to adjust settings to your needs.
 Temperature Sensors Monitor – Warns of damaged sensor and sets off alarm if both temperature sensors are damaged.

Optional Monitoring features:
o AceWatchDog System - Smart Phone Monitoring System & App. o E.S.M. Engine Stall Monitor™ – Alerts of Engine Stall BEFORE the vehicle’s interior gets too hot or cold.
o No K9 Left Behind - K9 removal reminder system
o Smoke Detector
o Carbon monoxide detector
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Item 3A - 7
Overview of Settings
Factory default settings are based on the most commonly requested settings selected by K9 handlers. However you can customize them to your needs. See menu choices sections.

Defaults Setting
K9 Heat Alarm® Power: On/Off with vehicle.

Door Popper Power: On/Off with vehicle.

Hot Set Point: 90°
Cold Set Point: Disabled
Stall Sensor Enabled (Disable if not purchased)
Auto Snooze Mode: Enabled
USA or Metric Fahrenheit
Temperature Averaging Enabled
Safest Setting
K9 Heat Alarm® Power: Car on Manual off.

Door Popper Power: On By Arming.

Hot Set Point: 90°
Cold Set Point: Enabled (in Cold Climates)
Stall Sensor Enabled (Disable if not purchased)
Auto Snooze Mode: Enabled
Temperature Averaging Enabled (Disabled with separated K9s) (2)
Item 3A - 8
K9 Heat Alarm® Operation
Heat Alarm Power: The heat alarm will turn on with the ignition. When the ignition is powered off the heat alarm will power down. This requires you to leave the vehicle running with the air conditioner ON to maintain a safe environment for the canine, and remove the K9 if the vehicle is off.

Settings are customizable to your working environment. See changing settings section if manual.

Snooze Mode: At start up, Snooze Mode will automatically appear if there is an over temperature or another condition that requires attention. A Snooze period of approximately 10 minutes allows time to get the vehicle running and cooled down for the safety of your K9.

When the Heat Alarm ® Pro does not detect
a safe condition at the end of the Snooze
period the Pre Alert alarm will activate.

During Pre alert Snooze can be manually
reactivated (By pressing OK). Only 3 snooze
periods are allowed.

Note: During Snooze, the handler is
responsible to monitor the conditions of the
canine.

Dual Temperature Sensor Averaging™:

The individual temperature sensor readings
are displayed along with the average
temperature. This enables the K9 Heat
Alarm® Pro to obtain a much more accurate
reading of the vehicles interior
temperature. With averaging enabled,
unnecessary false alarms are avoided when
one of the temperature Sensors is in a
warmer location. (Example: direct sunlight
or open window). In order to activate the
alarm, the AVERAGED (center) temperature
sensor readings must reach the alarm
threshold setting (90° Hot Default). As an
additional safety measure the heat alarm is activated if either temperature sensors reading goes 10 degrees above the threshold setting (90° Hot Default).

Disable Temperature averaging if monitoring two separated locations . For
example a pickup where one K9 is in the cab and the other in covered bed. To change see the menu choices section.
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Item 3A - 9
Stop Alarm
-
K9 HEAT ALARM' PRO
Average Right Sensor
Temperature Monitoring : The left, average, and right temperatures are displayed in the primary screen; the vehicle’s battery voltage is displayed periodically. When the K9 Heat Alarm ® Pro has detected safe conditions the HOT status light will illuminate, indicating that temperature is being monitored.

Alarm Modes
Pre-Alert Mode . During Pre-Alert a description of the unsafe condition will be Displayed, along with flashing light and warning tone for 40 seconds. This allows the K9 handler to put the unit into Snooze Mode or turn Off the K9 Heat Alarm® before the Full Alarm is activated.
“FULL ALARM” Mode
During full alarm all installed alert features are
activated. The K9 Heat Alarm ® Pro will continue the Full Alert Alarm Mode until the temperature or other condition in the vehicle returns to a safe condition or until the [MENU] key is pressed. If a safe condition is detected by the system; the Full Alert Alarm stops and the display will periodically show a reminder note to advise the K9 Handler that an alarm has occurred.

Clearing reminder: To clear the alarm reminder, press [OK] while the reminder is being displayed. Reminders will also clear when the unit is restarted Types of Alarms
Temperature Alarm: When an averaged temperature that is above hot set point or below a selected cold set point is sensed K9 Heat Alarm ® Pro goes into Pre Alert. If no action is taken and it remains so the unit will go into full alarm.

Engine Stall Alarm, Engine Stall Monitor ™Option (Purchased separately):

With the stall sensor option installed and enabled in software, the K9 Heat Alarm® Pro will monitor the engine. When the engine stalls “Engine Stalled/Pre- Alert Mode” is displayed allowing the K9 handler to restart the engine or press Snooze to start 10 minute snooze. If no action is taken the Full Alarm is activated.

Low Battery Alarm, Vehicle Battery Sentinel™ : The vehicle’s battery is monitored and the voltage is periodically displayed. The Battery Sentinel sets the alarm off before the battery dies. Battery Voltage below 10.5 Volts (default) will display a warning and the unit enters Low Voltage mode. The Full Alarm is activated for a short period of time lowering rear Windows providing ventilation for the K9. The Alarm will activate again every few minutes as long as there is enough battery power.
(4)
Item 3A - 10
Temperature Sensors Diagnostics: The Temperature Sensors are continuously monitored; if one of the sensors is damaged or a connection is lost, (Open or Short will be displayed in the place of left or right sensor) When a sensor is damaged the K9 Heat Alarm Pro will automatically disable averaging and utilize the working sensor, periodically a warning message and beep will occur to notify the handler. If both Temperature Sensors are damaged, a warning message is displayed, pre alert starts, followed by full alarm activating.

Self Diagnostics: The K9 Heat Alarm Pro continuously monitors its internal systems. If a detectable problem exists that would prevent the system from operating properly the system will go into Full Alarm mode.

Changing Settings
Light Intensity Adjustment.

The light intensity is controlled by using the
arrow keys. The lights automatically dim,
when the vehicle’s ignition is turned OFF
(press the OK key to return it to the original
intensity).

Menu Mode: To enter menu mode, power up the K9 Heat Alarm ® Pro, press the [MENU] key. To view Menu items Press the [DOWN] key for the next item or the [UP] key for the previous item. To change a Menu item press the [OK] key.

The [DOWN] and [UP] Keys let you scroll through the available settings. To choose a setting, press the [OK] key. (saving will appear). To exit without making changes press the [MENU] key. Additional Menu changes can be made or exit the menu by pressing the [MENU] key again. When returning from the Menu Mode, the system will enter into the selected operating configuration. (5)
Item 3A - 11
K9 HEAT ALARM'PRO
INTELLIGENCE INSIDE "'
Heat Alarm Menu Choices
Heat Alarm Power
Default setting is “On/Off with Car”This will turn the Heat Alarm ON & OFF with vehicles ignition, most commonly the engine and A/C are usually left ON to maintain the vehicle’s interior temperature. Remove the K9 if the vehicle is off.

Alternative Setting “Car on Manual off”The Heat Alarm will turn ON with ignition and OFF by [POWER] key. This is the safest method. The unit will automatically turn ON with the vehicle but will only turn OFF when you depress and the [POWER] key.

Alternative Setting “On/Off Manually”The Heat Alarm will only turn ON or OFF with [POWER] Key.

Alternative Setting “Off all the Time”The Heat Alarm feature is disabled requires re-enabling through the Heat Alarm [POWER] then [MENU] to make changes.

Alternative Setting “No K9 left behind”the Heat alarm will turn on with ignition and off when ignition power is off and once the Door is opened to remove the K9. See user supplement sent with this option (Sold separately) (5)
“Heat Alarm Temp” Hot Set Point
Default setting is 90° The Heat Alarm will activate at 90 ° but can be adjusted from 77° to 95° as your needs require.(24°C to 32°C) “Cold Alarm Temp” Cold Set Point
Default setting “disabled”.The cold Alarm can be turned on and can be set between 10° to 58° as your needs require.(-12°C to 12°C) Stall Monitor
Default setting is “Enabled”.

When an optional stall sensor is not purchased this feature should be disabled.

Temperature Averaging
Default setting is “enabled”so the temperatures of the both Temperature Sensors are AVERAGED thus reducing false alarms.

Alternative Setting: Disabled This setting would be used if monitoring two separate locations in one vehicle (example on K9 in the bed of a pickup, and one in passenger compartment)
Auto Snooze Mode
Default setting is “enabled”’. Auto Snooze Mode temporally disables the Heat Alarm to allow time for the vehicle to cool down during start up.

Alternative Setting: Disabled
Low Voltage Set Point
Default Setting 10.5V Low voltage can be set between 10V and 12V USA or Metric
Default setting is Fahrenheit (USA)
Alternative Setting is Celsius
Item 3A - 12
(6)
Previous Alarms Displays the 10 previous causes of the alarms and setting changes.

Serial Numbers Displays the serial numbers of the control head and the IntelaBox. See additional information in back of manual.

Reset to Default Resets all features to their factory default settings.(turns on engine stall sensor, if the engine stall sensor option was not purchased Disable it in Menu)
System Test
When in this menu function Pressing [OK] will begin a System Full Alert Test activating the window drop, SOS Horn, Lights, and Siren. Accessories such as Pager, and fan will also activate. Followed by a Pixel test, that will fill all the pixels in the display, both top and bottom. Ending with a Push button test will allow testing of each of the Menu Keys. If any of these tests fail contact you installer or AceK9.com for further assistance.
(The K9 watchdog system will not activate using this feature see watchdog Manual).

AceK9.com Two (2) Year Limited Warranty
For details visit http://www.AceK9.com/Warranty
IMPORTANT safety reminder: It is the responsibility of the Installer and the Handler to confirm that all safety features are installed and working properly at the time of installation.

Item 3A - 13
(7)
Weekly System Test Procedure for K9 Heat Alarm® Pro
K9 should not be in the vehicle during these tests.

Turn the system on, observe the feature settings during power up, Check the temperatures and vehicle’s battery voltage.

K9 Heat Alarm Output Tests
Confirm that the displayed temperatures are below the Heat Alarm Hot Set Point and the system is not in Snooze Mode. Press the [MENU] key to enter menu mode. Move down to the menu choice “System Test”, press [OK] to activate all the installed heat alarm alert options. Verify that ALL the installed Heat Alarm alert accessories and options worked.

Temperature Sensors Test
Turn the vehicle’s climate control to the heat position to manually raise the temperature inside the vehicle. Monitor the temperatures displayed on the heat alarm and confirm that the alarm activates when the Hot Set Point is reached.

Visually inspect the wiring and electronic components and confirm that the location of the temperature sensors are just outside the K9 container and not in direct sunlight and out of canine reach.

Testing of Add on Options
See the test procedure outlined in the options manual.

Popular add on Options
o Stall Sensor
o No K9 left behind
o Fan Kit
o Pager Module
o AceWatchDog™
_____________________________________________________________ *** It is important to remember that, while every effort to monitor the system is taken, there is no substitute for doing the Weekly tests outlined in this manual. ***
_______________________________________________________________ Visit www.AceK9.com
for more options available.

Item 3A - 14
(8)
Serial Numbers
Record your serial Numbers Here
Control Head (display) KC__________
IntelaBox (wired box) HI__________
To retrieve Serial Numbers from the Menu
1 Select Serial numbers from the menu
2 Press (OK)
3 The Serial number for the control head will Display
4 Press any button to see IntelaBox serial number
Item 3A - 15
(9)
A division of Radiotronics, Inc.

Model HA-2520
.

AceWatchDog
™ User Guide

Go to www.AceLogin.c
om and click on the CREATE NEW ACCOUNT
link at
the bottom. Fill in the page with your information and the activation code and
press save.

When you have completed the steps above with the Activation Code you you will receive a text to let you know that your AceWatchDog™ system has been activated! Then click on the Dashboard or re-login to see the temperatures sent from your AceWatchDog™ unit.

You can save a quick link to your phone’s home screen. On iPhone’s Safari browser, click on the little box at the bottom with the arrow pointing up and click on the Add to Home Screen button. On Android’s browser, click the Menu button and click on Add to Home Screen.

Store number 360-262-7623 as a Contact named AceWatchDog. The system calls & texts everyone from this number.

The AceWatchDog™ web app Description

The
Temperatures are displayed and the Arrow shows the Temperature’s Trend. Straight to the Right, pointing towards the 3:00 position, means the temperature is the same as the last reading. When it points more upward, between 3:00 and 12:00 the temperature is increasing. When it points more downward, between 3:00 and 6:00 the temperature is decreasing. The steeper the angle, the greater the change in temperature.

The Battery symbol indicates the Vehicle’s Battery Voltage.

The Engine Stall Sensor symbol indicates if the engine is Running or Stalled.

The Signal Strength symbol indicates the AceWatchDog™ Cellular Signal Strength in your vehicle. This lets you know if your vehicle is located in a good or poor cellular signal area.

The Heat Alarm symbol indicates that the unit is ON or Alarming.

The Car Ignition symbol indicates if the Ignition is ON or OFF. When OFF the Stall Sensor is Disabled.

Tap the Menu Bars in the upper left to access the Handler Profile, Alarm Contacts and Unit Configuration.

Any phone, ta
blet, or PC with an internet browser can monitor the AceWatchDog™ system. Just go to AceLogin.com and log in with the E
mail and Password for the unit.

Item 3A - 17
•••• Venzon LT[ 11"49AM CJ*' 100% -•
Temperature
Battery Engine Stall Sensor
Running
Signal Streng1h Heat Alarm Car Ignition
.• II • ,P
ON ON
[email protected]
Text and Voice No
tifications

Warn
ings Texts are sent ONLY to you. Warnings include:

Tem
peratures above or below the Warning set points, typically above 85 and below 32 Fahrenheit. Or when the Vehicle Battery gets very low. Or if an Update has not been received to the Cloud Servers in a reasonable time, they will send you a Data Warning Text. This important safety feature lets you know to check on your K9 if they are in the vehicle alone.

This can happen if your vehicle is parked in a bad service area or if anything blocks our Servers from receiving updates from your AceWatchDog™ unit.

During an Alarm, Voice Calls and Texts are sent to your phone(s) and to ALL your other Alarm Contacts.

The
Menu System Test DOES NOT activate AceWatchDog™ Alarm Notifications. It sends only you a confirmation Te
xt. That way these weekly tests will not annoy others on the call list. The Hot-N-Pop® or K9 Heat Alarm® must be in Alarm
for about 30 seconds to activate AceWatchDog™ Notifications. Then after about 30 seconds of processing, you and
all your other Alarm Contacts will receive Alarm Calls and Texts.

The Alarm
temperature threshold, typically 90 degrees, is set in the Control Head and is adjusted in it’s menu.

The War
ning temperature threshold, typically 85 degrees, of AceWatchDog™ is adjusted in the web app’s menu. These se
ttings allow AceWatchDog™ to send you a warning text before the vehicle alarm activates.

To give the v
ehicle’s interior temperature time to cool off, no Warnings are not sent for the first 15 minutes after Power Up.

LED L
ights Explained:

When
AceWatchDog™ powers up or reboots, the Red, Yellow and Green LEDs will flash for 1 second.

The Red LED turns on when there is a Temperature or other Status Update pending to be sent to the AceWatchDog™ Servers. It will turn OFF when the update has been successfully sent.

The Yellow LED indicates that the AceWatchDog™ System has a Cellular & Internet connection.

The GREEN LED indicates good communication with the Hot-N-Pop® Pro or K9 Heat Alarm® Pro.

The Red LED Flashing indicates an Alarm has been successfully sent to the AceWatchDog™ Servers.

Reset B
utton –or- White Connector Plug:

If
the AceWatchDog stops working or becomes non-responsive, do the following:

If the AceWatchDog unit has a small push button near the Green/Yellow/Red LEDs:

Press it for several seconds until all the LEDs turn off then let go. The unit will restart in a moment.

If the AceWatchDog unit has a White Connector Plug with a loop of wire or Power Wires:

Press the little tab to unplug it for about 1 second and plug it back in. This will cause it to restart.

Item 3A - 18

CITY COUNCIL STAFF REPORT
01/27/2022 5. A.

City Clerk -

SUBJECT

MEMORANDUM OF UNDERSTANDING AND ACQUISITION AND FUNDING

AGREEMENT BETWEEN CITY OF PALM SPRINGS AND COUNTY OF
RIVERSIDE, FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 3589

MCCARTHY ROAD, PALM SPRINGS, CALIFORNIA, FOR A PROPOSED LOW

BARRIER NAVIGATION CENTER AND APPROVAL OF A CONTRACT SERVICES AGREEMENT WITH MARTHA’S VILLAGE AND KITCHEN
RECOMMENDATION:

Approve Memorandum of Understanding between City of Palm Springs and County of Riverside, for the purchase of 3589 McCarthy Road, for a proposed low barrier navigation center.

1. Approve Acquisition and Funding Agreement between City of Palm Springs, for the purchase of 3589 McCarthy Road, for a proposed low barrier navigation center.

2. Approve Contract Services Agreement with Martha’s Village and Kitchen to Operate the Proposed Navigation Center at 3589 McCarthy Road.

3. Authorize the City Manager to execute said Memorandum of Understanding and Acquisition and Funding Agreement, and Contract Services Agreement with any modifications approved by the City Manager and City Attorney, for the purchase of 3589 McCarthy Road, for a proposed low barrier navigation center.

4. Authorize the City Manager to take any and all actions, and execute any other documents, necessary to apply for grant funding and purchase the property located at 3589 McCarthy Road, Palm Springs, for a proposed low barrier navigation center.

5. Attachments
Item 5A

CITY COUNCIL STAFF REPORT

DATE: January 27, 2022 NEW BUSINESS

SUBJECT: MEMORANDUM OF UNDERSTANDING AND ACQUISITION AND

FUNDING AGREEMENT BETWEEN CITY OF PALM SPRINGS AND

COUNTY OF RIVERSIDE, FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 3589 MCCARTHY ROAD, PALM SPRINGS, CALIFORNIA,

FOR A PROPOSED LOW BARRIER NAVIGATION CENTER AND

APPROVAL OF A CONTRACT SERVICES AGREEMENT WITH
MARTHA’S VILLAGE AND KITCHEN

FROM: Justin Clifton, City Manager

BY: Jeffrey S. Ballinger, City Attorney

SUMMARY:

As discussed at the November 4, 2021, November 18, 2021, and most recently at the January 13, 2022, Council meetings, the City of Palm Springs has been in discussions with the County of Riverside to jointly fund the acquisition of real property located at 3589 McCarthy Road, Palm Springs, for the purpose of establishing a low barrier navigation center.

This agenda item provides the City Council with the opportunity to review and consider approving the necessary agreements between the City and County, in order to fund the acquisition of the subject property; and between the City and Martha’s Village and Kitchen for the operation of the Navigation Center.

RECOMMENDATION:

1. Approve Memorandum of Understanding between City of Palm Springs and County of Riverside, for the purchase of 3589 McCarthy Road, for a proposed low barrier navigation center;

2. Approve Acquisition and Funding Agreement between City of Palm Springs, for the purchase of 3589 McCarthy Road, for a proposed low barrier navigation center; 3 Approve Contract Services Agreement with Martha’s Village and Kitchen to Operate the Proposed Navigation Center at 3589 McCarthy Road;

4. Authorize the City Manager to execute said Memorandum of Understanding and Acquisition and Funding Agreement, and Contract Services Agreement with any modifications approved by the City Manager and City Attorney, for the purchase of 3589 McCarthy Road, for a proposed low barrier navigation center; and Item 5A - 1
City Council Staff Report
January 27, 2022 -- Page 2
MOU, Funding/Acquisition Agreement, and Contract Services Agreement for 3589 McCarthy Road

5. Authorize the City Manager to take any and all actions , and execute any other documents, necessary to apply for grant funding and purchase the property located at 3589 McCarthy Road, Palm Springs, for a proposed low barrier navigation center.

BACKGROUND:

For the past many months, City Staff has been working to identify potential locations to build a low barrier navigation center that could provide transitional housing and wraparound services for unhoused Palm Springs residents. In November 2021, the City Council was provided several different potential properties that could possibly serve those purposes. At the November 18, 2021 City Council meeting, the Council gave direction to pursue acquisition of the property located at 3589 McCarthy Road and to bring back the necessary agreements with the County in order to jointly fund the acquisition of the property.

City Staff and the City Attorney have been in discussions with the County regarding the necessary legal documents required to memorialize the parties’ understanding with regard to the joint acquisition of the subject property. As a result of those discussions, Staff is presenting for the Council’s consideration a Memorandum of Understanding (MOU) as well as an Acquisition and Funding Agreement.

At the time of the November discussion, the subject property was in escrow to be sold to a private, third party. The original asking price for the property was $6,250,000. However, the buyer in escrow agreed to assign its interest, as buyer, to the City. As a result, the City is able to purchase the subject property for the same price, Five Million Nine Hundred Thousand Dollars ($5,900,000).

The MOU provides the basic framework for the agreement between the City and County.

The Funding and Acquisition Agreement is being entered into between the City and County, since this is a standard agreement that the County requires for program funding of this sort. Under the MOU and the Funding and Acquisition Agreement, the City will contribute Five Million Three Hundred Thousand ($ 5,300,000) from the City’s Housing Homelessness Assistance Program (HHAP) funding from the State of California. This funding will be used to provide supportive services, operation and maintenance at the McCarthy Road site. The County, in turn, will provide Seven Million Dollars ($7,000,000), from the County’s American Rescue Plan Act (ARPA) funding. Of this, it is expected that Five Million Seven Hundred Forty Thousand ($5, 740,000) would be used for the acquisition, and One Million Two Hundred Sixty Thousand ($1,260,000) would be used for capital improvements to the property, which is currently developed as an industrial property.

Also, under the MOU, both the City and County will, either jointly or independently, pursue grant funds for purposes of funding the acquisition and operation and maintenance of the site. For example, at the January 13, 2022 City Council meeting, the Council authorized Item 5A - 2
City Council Staff Report
January 27, 2022 -- Page 3
MOU, Funding/Acquisition Agreement, and Contract Services Agreement for 3589 McCarthy Road

City Staff to pursue potential funding, of up to Fifty Million Dollars ($50,000,000), through the State of California’s Homekey2 Funding program.

In addition, the MOU recognizes that the City will be the lead agency, for purposes of any entitling of the site as a navigation center, for purposes of the California Environmental Quality Act (CEQA), as well as for the operation and maintenance of the navigation center.

Finally, the MOU contemplates that the City and County intend to enter into one or more agreements between the two parties, for the ongoing funding and operation of the navigation center. The Acquisition and Funding Agreement is a standard agreement required of the County for program funding of this sort. While the Loan Agreement is currently structured as a forgivable loan, the City and County will be discussing a different structure, more akin to a grant, which will still recognize the parties’ respective contributions to the overall project. D etails of this Agreement have not been finalized as of the writing of this staff report. Therefore, City Staff and the City Attorney are requesting that the City Council approve entering into such an agreement, based on the terms set forth in the MOU.

Navigation Center Operations/Supportive Services

As presented at the January 13, 2022 City Council meeting, a solicitation for Letters of Interest (LOI) was released seeking potential operators for the Navigation Center. The solicitation was sent to 12 homeless services and shelter providers operating in Riverside County. The City received one proposal from Martha’s Village and Kitchen (Martha’s). It should be noted, two solicitation recipients - Coachella Valley Rescue Mission and Jewish Family Services of San Diego - informed Staff they received the request but would not be pursuing this opportunity.

Martha’s proposes to operate and manage the Navigation Center with up to 80 no-barrier shelter beds, provide on-site access to a wide variety of behavioral health services, social services, medical/dental services, and workforce development. Martha’s has utilized a “Housing First” approach in providing the Coachella Valley with homeless housing and wrap-around services since its inception in 2001 and will continue to use this model in Palm Springs. Martha’s also has over two decades of experience operating a commercial kitchen in accordance with the United States Department of Agriculture (USDA). Their overall goal will be to connect homeless individuals quickly and successfully to the appropriate housing and services needed to move them into stable housing.

Martha’s Village and Kitchen is regarded as the first resource center of its kind in the region. In collaboration with Borrego Health and Clinicas de Salud, their current programs include medical and dental services and a Certified Drug and Alcohol Counselor.

Martha’s is the only nonprofit certified by the State to provide workforce development services in the Coachella Valley and is a State licensed childcare facility. They will bring their talents and resources to the Navigation Center.

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City Council Staff Report
January 27, 2022 -- Page 4
MOU, Funding/Acquisition Agreement, and Contract Services Agreement for 3589 McCarthy Road

Martha’s service outcomes over the past year include:

• 554 homeless adults and children resided in the safe and stable Homeless Housing Program.
• 85% of existing clients moved directly from homeless housing into permanent housing.
• 100% of clients served had their basic needs met on their paths to self- sufficiency.
• 70% of individuals that completed Martha's employment program obtained work.

Martha’s is proposing to provide security 24 hours a day, 365 days a year. Similar to the safety protocols at the Palm Springs Access Center operated by Martha’s, clients will not be allowed to loiter outside the facility; security staff will monitor and report incidents of loitering; there will be a 24- hour contact number visible and available to the public to report any disturbances or issues related to the facility; and video surveillance cameras will be installed at the facility.

Additional services to be provided include:

• Assisting individuals to obtain permanent housing, supportive housing, shelter, or program placement. This includes intake and assessment for the Coordinated Entry System and Continuum of Homeless Management Information System, and other housing resources like housing document assistance, housing location services, or affordable housing waitlists.
• Assisting individuals with securing health, disability, social security, and other benefits.
• Coordinate access to other support services like cash and non-cash benefits. • Case management to clients based on their individual needs and desires. • Family reunification program.
• Transportation assistance.
• Assistance with food stamps, birth certificates, and identification cards. • Provide vouchers for clean clothes.
• Utilization and management of Homeless Management Information System.

As proposed, Martha’s will provide case management to interim housing residents at a ratio of no more than 1 to 20 client per caseworker ratio, which allows for the client to be more a part of the process leading to better outcomes.

ENVIRONMENTAL IMPACT:

These funding agreements and the proposed acquisition of the property located at 3589 McCarthy Rd. are for the purpose of approving a low barrier navigation center, as that term is defined in California Government Code section 65660(a). Namely, the proposed navigation center is intended to provide a low -barrier, service-enriched shelter focused Item 5A - 4
City Council Staff Report
January 27, 2022 -- Page 5
MOU, Funding/Acquisition Agreement, and Contract Services Agreement for 3589 McCarthy Road

on moving people into permanent housing , that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.

For purposes of the California Environmental Quality Act (Pub. Res. Code, §§ 21000 et. seq.) (“CEQA”), the City is the lead agency for the acquisition and operation of the Site.

In 2019, the California Legislature passed, and the Governor signed, Assembly Bill (AB) 101. AB 101 contained the Legislature’s determination that “low barrier navigation center developments are essential tools for alleviating the homelessness crisis in this state and are a matter of statewide concern and thus applicable to charter cities. ” AB 101 (2019) makes low barrier navigation centers, such as what is proposed by the City and County at 3589 McCarthy Rd., a use by right. Pursuant to Government Code section 65660(b), added by AB 109, CEQA does not apply to any action taken by a public agency to lease, convey, or encumber land owned by a public agency, or to facilitate the lease, conveyance, or encumbrance of land owned by a public agency, or to provide financial assistance to, or otherwise approve, a low barrier navigation center.

Therefore, because these funding agreements and the acquisition of 3589 McCarthy Rd. are for the purpose of approving a low barrier navigation center development, no further environmental review is required by CEQA. City staff will file a Notice of Exemption, on that basis, following the City Council’s approval of this agenda item.

FISCAL IMPACT:

The approval of the MOU and the Funding and Acquisition Agreement will commit Five Million Three Hundred Thousand Dollars ($5,3 00,000) of the City’s Housing Homelessness Assistance Program (HHAP) funds for Navigation Center Operating Subsidy.

REVIEWED BY:

Department Director: Jay Virata
City Attorney: Jeffrey S. Ballinger
Assistant City Manager: Teresa Gallavan
City Manager: Justin Clifton

ATTACHMENTS:

1. Memorandum of Understanding.

2. Contract Services Agreement.

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MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding ( “Memorandum") dated as of the 27th day of January, 2022 ("Effective Date") is between the City of Palm Springs, a municipal corporation and Charter City of the State of California ("City") and County of Riverside, a political subdivision of the State of California ("County") (referred to herein individually as a "Party" and collectively as the "Parties").

RECITALS
A. City and County have been working cooperatively to identify real property for a service rich, low barrier homeless Navigation Center that provides overnight shelter and food , and has a strong focus on services designed to end an individual’s homelessness and build the foundational skills needed to ensure a successful transition to perm anent housing that are necessary to assist populations experiencing food and housing insecurity as result of impacts due do to the COVID-19 public health emergency.

B. City and County have identified for this purpose a site located at 3589 McCarthy Road, in t he City of Palm Springs ("Site"), and would like to memorialize the basic understanding they have reached concerning further steps to acquire and control the Site and to provide for an outline of the operation of the Site as a Navigation Center.

C. The County and City intend to utilize funding available through the American Rescue Plan Act ( “ARPA” or “the Act” ) and County will distribute funding in conformance with the requirements of the Act and the to the City for the acquisition and operation of th e Navigation Center Project.

D. The City and County agree that this and all related agreements will be in compliance with the requirements of ARPA and all contract terms required by the Act shall be incorporated into the Acquisition and Sale Agreement, Third Party Operation , and other operative agreements.

E. The purpose of this Memorandum is to provide a basic understanding concerning the understanding the Parties hav e with respect to the acquisition of the Site and set forth a framework that the Parties contemplate regarding the operation of the Navigation Center.

F. For purposes of the California Environmental Quality Act, Pub. Res. Code 21000 et. seq (“CEQA”), the City shall be the lead agency for the a cquisition and operation of the Site.

AB 101 (2019) makes low barrier navigation centers a use by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses . The Site has a Palm Springs General Plan designation of MU (Mi xed-Use/Multi-Use), which allows for residential development , thereby making a low barrier navigation center a “use by right” . Pursuant to Government Code section 65660(b), CEQA shall not apply to any actions taken by a public agency to approve a low barrier navigation center, as proposed by the Parties. Therefore, no further environmental review is required by CEQA.

I. INTENDED ACQUISITION AND USE OF SITE
A. City has entered into escrow for purchase of the Site located at 3589 McCarthy Road, Palm Springs . City has paid One Hundred and Twenty Five Thousand Dollars Item 5A - 6
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($125,000) in earnest money to owner of the Site and must complete escrow by January 28, 2022. The total purchase price of the Site is $5,900,000.

B. The Parties intend for the Site to serve as a low barrier navigation center, as that term is defined in Government Code section 65660(a), to provide services to homeless individuals including temporary shelter beds and to provide supportive services (“Navigation Center”).

C. Through the use of a contracto r or otherwise, City anticipates providing services at the Site, including, but not limited to, social and mental health services as determined in the reasonable discretion of the City (“Supportive Services”).

D. The City shall be the lead agency in the processing of any land use entitlements and permits, including CEQA, as may be required for the renovation and operation of the Site.

E. The City shall control the management and operational plan for the Site, as well as the types of clients who are served at the Site. The City shall, subject to funding availability and appropriation therefore, operate the Site as a Navigation Center.

II. COST SHARING BETWEEN THE PARTIES
A. For the acquisition of the Site by the City and the Capital Improvements , the County agrees to provide ARPA funding in the amount of $7,000,000 pursuant to terms and conditions described herein, the Acquisition and Sale Agreement and any other agreements to be entered between the Parties. Parties shall enter into an Acquisition and Sale Agreement for the use of ARPA funds for the acquisition of the Site property whereby the County will disburse Five Million Seven Hundred Forty Thousand Dollars ($5,740,000). Subsequently pursuant to a separate agreement, the County will provide additional funding in the amount of One Million Two Hundred Sixty Thousand Dollars ($1,260,000) for the Capital Improvements. City will pay any additional amounts due to acquire the Site. In order to meet the January 28, 2022 closing date, the City may pre-pay the remainder of the purchase price, and the County shall thereafter pay the City the Five Million Seven Hundred Forty Thousand Dollars ($5,740,000) called for above.

B. The City and County shall jointly, or independently, pursue grant funds i n sufficient amounts to complete the purchase and Capital Improvements of the Site , and to be utilized to provide the Supportive Services, operation or maintenance of the Navigation Center.

C. The City shall initially allocate Housing Homelessness Assistanc e Program funds budgeted in the Housing Homelessness Assistance Program Standard Agreement between the City and Business, Consumer Services, and Housing Agency of the State of California, in the New Navigation Centers and Emergency Shelters Eligible Use Category in the amount of $3,500,000 to provide the Supportive Services, operation or maintenance of the Navigation Center.

D. The Parties are concurrently entering into a n Acquisition and Sale Agreement with the terms and conditions for the disbursement of the $5,740,000.

III. PARTIES AGREE TO ENTER INTO AGREEMENT(S) FOR OPERATION OF NAVIGATION CENTER.

A. After the acquisition of the Site by the City, the Parties shall endeavor to enter into one or more agreements for the ongoing funding and operation of the Navigation Center.

Should County not allocate the funds for the operation and administration of the Navigation Item 5A - 7
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Center, City and County shall mutually agree to the disposition of the Site consistent with the terms of any separate agreements entered into between the parties..

B. The Parties acknowledge and agree that City may enter into Third Party Operation Agreements for the operation and maintenance of the Navigation Center , in its sole and absolute discretion . The Third Party Operation A greement should be consistent with the Operation Memorandum of Understanding however, Parties agree that City may operate the shelter as it determines in its reasonable discretion.

IV. MISCELLANEOUS
A. The Parties shall indemnify, defend with counsel approve d in writing, save and hold each of its elected officials, officers, directors, agents and employees harmless from any and all claims, injuries, liabilities, actions, damages, losses or expenses, of every type and description to which they may be subjected arising out of any act or omission of, its employees, representatives, agents and independent contractors in connection with the implementation of the actions described in this Memorandum. The Parties' duties and obligations under this paragraph shall survive termination or expiration of this Memorandum.

B. Neither Party shall have the right to assign this Memorandum without the express written approval of the other Party. This Memorandum shall be binding upon and inure to the benefit of the Parties and their permitted successors, assigns and legal representatives.

This Memorandum shall not be interpreted to establish any express or implied third party beneficiaries.

C. This Memorandum contains the entire agreement between the Parties with respect to the acquisition of the Site and initial and ongoing funding, though not for the operation of the Site. No alteration or variation of the terms of this Memorandum shall be valid unless made in writing and signed by the Parties; and no oral understand ing or agreement not incorporated herein shall be binding on either of the Parties.

F. Notices or other communications which may be required or provided under the terms of this Memorandum shall be given as follows:

Cities: City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Manager
County: County of Riverside/County Executive Office
4080 Lemon Street, Floor 4
Riverside CA 92501
Attention: County Executive Officer
All notices shall be in writing and deemed effective when del ivered in person or deposited in the United States mail, first class, postage prepaid and addressed as above.

Notwithstanding the above, the Parties may also provide notices by facsimile transmittal, and any such notice so given shall be deemed to have bee n given upon receipt during normal business hours or, in the event of receipt after business, on the following business day. Any notices, correspondence, reports and/or statements authorized or required by this Memorandum, addressed in any other fashion shall be deemed not given.

G. In any action or proceeding to enforce or interpret any provision of this Memorandum, or where any provision hereof is validly asserted as a defense, the Parties shall bear their own attorney's fees, costs and expenses.

H. Prior to the acquisition of the Site, either Party may terminate this Memorandum upon thirty (30) days' notice provided however that if County terminates this Memorandum Item 5A - 8
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then County shall reimburse City for any expenses including amount of the funds paid to property owner during escrow.

I. In the event County or City defaults in the performance of any of their obligations under this Memorandum or materially breaches any of the provisions of this Memorandum, the other Party may enforce this Memorandum through specific p erformance or may exercise any other available remedies. Additionally, the failure of one Party to fulfill its obligations hereunder shall relieve the other Party of doing so as well upon thirty (30) days' prior written notice to the other Party. In the ev ent City or County cures such default within such thirty (30) day period, all obligation hereunder shall continue in full force and effect.

J. Each Party represents and warrants that the execution, delivery and performance of this Memorandum have been duly au thorized by all necessary action of such Party's governing board, and the person executing this Memorandum on behalf of such Party has been duly authorized and empowered to do so on behalf of such Party.

K. The laws of the State of California and applicable l ocal and federal laws, regulations and guidelines shall govern this Memorandum.

L. This Memorandum may be executed and delivered in any number of counterparts, each of which, when executed and delivered shall be deemed an original and all of which together shall constitute the same agreement. Each party of this Memorandum agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code § § 1633.1 to 1633.17), for executing this Memorandum. The parties further agree that the electronic signatures of the parties included in this Memorandum are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of S ection 1633.2 of the Civil Code.

M. Either Party shall be excused from performing its obligations under this Memorandum during the time and to the extent that it is prevented from performing by an unforeseeable cause beyond its control, including but not l imited to; any incidence of fire, flood; acts of God; commandeering of material, products, plants or facilities by the federal, state or local government; national fuel shortage; or a material wrongful act or omission by the other Party; when satisfactory evidence of such cause is presented to the other Party, and provided further that such nonperformance is unforeseeable, beyond the control and is not due to the fault or negligence of the Party not performing.

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City-and County have executed this Memorandu m of Understanding as of the date and year first written above.

“CITY”
CITY OF PALM SPRINGS, a California charter
city and municipal corporation
By:

Justin Clifton, City Manager
ATTEST:

Anthony Mejia, City Clerk

APPROVED AS TO FORM:

Jeffrey S. Ballinger, City Attorney

“COUNTY”
COUNTY OF RIVERSIDE, a political
subdivision of the State of California
By:

Its: __________________________________

ATTEST:

CLERK OF THE BOARD

BY: ______________________
DEPUTY
APPROVED AS TO LEGAL FORM:

Gregory Priamos, County Counsel

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1 CONTRACT SERVICES AGREEMENT
Martha’s Village and Kitchen
THIS AGREEMENT FOR CONTRACT SERVICES (“Agreement”) is made and entered into on __________________, 2022, by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and Martha’s Village and Kitchen, a 501 (c) 3 non-profit corporation, (“Contractor”). City and Contractor are individually referred to as “Party” and are collectively referred to as the “Parties”.

RECITALS
A. City requires the services of a navigation center operator, and wrap-around services, for individuals who are homeless or at risk of becoming homeless (“Project”).

B. Contractor has submitted to City a proposal to provide navigation center operations, and wrap-around services, for individuals who are homeless or at risk of becoming homeless , to City under the terms of this Agreement.

C. Based on its experience, education, training, and reputation, Contractor is qualified and desires to provide the necessary services to City for the Project.

D. City desires to retain the services of Contractor for the Project.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. CONTRACTOR SERVICES

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contractor shall provide services to City as described in the Scope of Services/Work attached to this Agreement as Exhibit “A” and incorporated herein by reference (the “Services” or “Work”).

Exhibit "A" includes the agreed upon schedule of performance and the sche dule of fees.

Contractor warrants that the Services shall be performed in a competent, professional, and satisfactory manner consistent with the level of care and skill ordinarily exercised by high quality, experienced, and well qualified members of the p rofession currently practicing under similar conditions. In the event of any inconsistency between the terms contained in the Scope of Services/Work and the terms set forth in this Agreement, the terms set forth in this Agreement shall govern.

1.2 Compliance with Law. Contractor shall comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful orders, rules, and regulations when performing the Services. Contractor shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement.

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2 1.3 Licenses and Permits . Contractor shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement.

1.4 Familiarity with Work. By executing this Agreement, Contractor warrants that it has carefully considered how the Work should be performed and fully understands the facilities, difficulties, and restrictions attending performance of the Work under this Agreement.

2. TIME FOR COMPLETION
The time for completion of the Services to be performed by Contractor is an essential condition of this Agreement. Contractor shall prosecute regularly and diligently the work of this Agreement according to the agreed upon schedule of performance set forth in Exhibit “A.” Neither Party shall be accountable for delays in performance caused by any condition beyond the reasonable control and without the fault or negligence of the non-performing Party. Delays shall not entitle Contractor to any additional compensation regardless of the Party responsible for the delay.

3. COMPENSATION OF CONTRACTOR

3.1 Compensation of Contractor. Contractor shall be compensated and reimbursed for the services rendered under this Agreement in accordance with the schedule of fees set forth in Exhibit “A”.

3.2 Method of Payment . In any month in which Contractor wishes to receive payment, Contractor shall submit to City an invoice for Services rendered prior to the date of the invoice, no later than the first working day of such month, in the form approved by City’s finance director. Payments shall be based on t he hourly rates set forth in Exhibit “A” for authorized services performed. City shall pay Contractor for all expenses stated in the invoice that are approved by City and consistent with this Agreement, within thirty (30) days of receipt of Contractor’s invoice.

3.3 Changes. In the event any change or changes in the Services is requested by City, Parties shall execute a written amendment to this Agreement, specifying all proposed amendments, including, but not limited to, any additional fees. An amendment may be entered into:

A. To provide for revisions or modifications to documents , work product, or Work, when required by the enactment or revision of any subsequent law; or B. To provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Contractor’s profession.

3.4 Appropriations. This Agreement is subject to , and contingent upon, funds being appropriated by the City Council of City for each fiscal year. If such appropriations are not made, this Agreement shall automatically terminate without penalty to City.

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3 4. PERFORMANCE SCHEDULE

4.1 Time of Essence. Time is of the essence in the performance of this Agreement.

4.2 Schedule of Performance. All Services rendered under this Agreement shall be performed under the agreed upon schedule of performance set forth in Exhibit “A .” Any time period extension must be approved in writing by the Contract Officer.

4.3 Force Majeure. The time for performance of Services to be rendered under this Agreement may be extended because of any delays due to a Force Majeure Event , if Contractor notifies the Contract Officer within ten (10) days of the commencement of the Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Contractor’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities t hat are required for the Work); and (4) pandemics, epidemics or quarantine restrictions . For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfar e and safety, and other actions of the City in its capacity as a municipal authority. After Contractor notification, the Contract Officer shall investigate the facts and the extent of any necessary delay, and extend the time for performing the Services for the period of the enforced delay when and if , in the Contract Officer’s judgment, such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. The Contractor will not receive an adjustment to the contract price or any other compensation. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement s hall continue in full force and effect for a period of five years, with one three- year (3-year) option and one two-year (2-year) to extend, commencing on February 1, 2022, and ending on January 31, 2032, unless extended by mutual written agreement of the Parties.

4.5 Termination Prior to Expiration of Term . City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor. W here termination is due to the fault of Contractor and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon receipt of the no tice of termination, Contractor shall immediately cease all Services except such as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed Services, and shall not be entitled to damages or compensation for termination of Work. If the termination is for cause, the City shall have the right to take whatever steps it deems necessary to correct Contractor's deficiencies and charge the cost thereof to Contractor, who shall be liable for the full cost of the City's corrective action. Contractor may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

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4 5. COORDINATION OF WORK

5.1 Representative of Contractor. The following principal of Contractor is designated as being the prin cipal and representative of Contractor authorized to act and make all decisions in its behalf with respect to the specified Services: Linda Barrack, President and Chief Executive Officer . It is expressly understood that the experience, knowledge, education, capability, and reputation of the foregoing principal is a substantial induce ment for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services under this A greement. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

5.2 Contract Officer . The Contract Officer shall be the City Manager or his/her designee ("Contract Officer"). Contractor shall be responsible for keeping the Contract Officer fully informed of the progress of the performance of the Services. Contractor shall refer any decisions that must be made by City to the Contract Officer. Unless otherwise specified, any approval of City shall mean the approval of the Contract Officer.

5.3 Prohibition Against Subcontracting or Assignment . The experience, knowledge, education, capability, and reputation of Contractor, its principals and employees, were a substantial inducemen t for City to enter into this Agreement. Contractor shall not contract or issue a memorandum of understanding with any other individual or entity to perform any Services required under this Agreement without the City Manager's express written approval. In addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provi sions stipulated in this Agreement including without limitation the insurance and indemnification requirements. If Contractor is permitted to subcontract any part of this Agreement by City, Contractor shall be responsible to City for the acts and omissions of its subcontractor(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City.

5.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode , or means by which Contractor, its agents or employees, perform the Services required, except as otherwise specified. Contractor shall perform all required Services as an independent contractor of City and shall not be an employee of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role ; however, City shall have the right to review Contractor’s work product, result, and advice. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Contractor shall pay all wages, salaries, and other amounts due personnel in connection with their performance under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemp loyment insurance, and workers’ compensation insurance. Contractor shall not have any authority to bind City in any manner.

5.5 Personnel. Contractor agrees to assign the following individuals to perform the services in this Agreement. Contractor shall not alter the assignment of the following personnel Item 5A - 14
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5 without the prior written approval of the Contract Officer. Acting through the City Manager, the City shall have the unrestricted right to order the removal of any personnel assigned by Contractor by providing written notice to Contractor.

Name: Title:

TBD Critical Wrap Around Case Manager(s) 3.0 FTE
TBD Intake, Eligibility and Assessments –Case Manager 1.0 FTE TBD Security/Emergency Intake 5.0 FTE
TBD Residential - Live Skills Spec 5.0 FTE
TBD Employment Spec 1.0 FTE
TBD Maint. 2.0 FTE
TBD Food Service 2.5 FTE
TBD Housekeeping 1.0 FTE
TBD Grounds and Public Areas / Instruct 1.0 FTE
TBD Kitchen helper 1.5 FTE
TBD Services Dir 1.0 FTE
TBD Client Services Coordinator 1.0 FTE
TBD Operation Coordinator 1.0 FTE
TBD Asst Service Coordinator 1.0 FTE
TBD HMIS Entry, Analysis and Reporting 1.0 FTE

5.6 California Labor Code Requirements.

A. Contractor is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of preva iling wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by t he Prevailing Wage Laws, and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It s hall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

B. If the Services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771. 1, the Contractor and all subcon tractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcon tractors, as Item 5A - 15
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6 applicable. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements.

5.7 Background Check . All of Contractor’s employees, including volunteers and subcontractors’ employees who provide direct services to clients , will require a Live Scan fingerprint background check to be arranged for by Contractor at Contractor’s sole expense .

Contractor shall maintain all Live Scan records in a secure and confidential site at all times, and verification of status shall be included in reports provided to City and made available to the City immediately upon request as permitted by law.

6. INSURANCE
Contractor shall procure and maintain, at its sole cost and expense, policies of insurance as set forth in the attached Exhibit "B", incorporated herein by reference.

7. INDEMNIFICATION.

7.1 Indemnification. To the fullest extent permitted by law, Contractor shall defend (at Contractor’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Contractor’s employees included) , for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct committed by Contractor, its officers, employees , representatives, and agents, that arise out of or relate to Contractor’s performance of Services or this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Contractor’s ind emnification obligation or other liability under this Agreement . Contractor’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final.

7.2 Design Professional Services Indemnification and Reimbursement. If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Contractor’s indemnification obligation shall be limited to the extent which the C laims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor in the performance of the Services or this Agreement, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction, Contractor’s liability for such claim, including the cost to defend, shall not exceed the Contractor’s proportionate percentage of fault.

Item 5A - 16
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7 8. RECORDS AND REPORTS

8.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer reports concerning the performance of the Services required by this Agreement, or as the Contract Officer shall require.

8.2 Records. Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement. Contractor shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

8.3 Ownership of Documents . All drawings, specifications, reports, records, documents, and other materials prepared by Contractor in the performance of this Agreement shall be the property of City . Contractor shall deliver all above-referenced documents to City upon request of the Contract Officer or upon the termination of this Agreement . Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights or ownership of the documents and materials. Contractor may retain copies of such documents for Contractor's own use. Contractor shall have an unrestricted right to use the concepts embodied in such documents.

8.4 Release of Documents. All drawings, specifications, reports, records, documents, and other materials prepared by Contractor in the performance of Services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer.

8.5 Audit and Inspection of Records . After receipt of reasonable notice and during the regular business hours of City, Contractor shall provide City, or othe r agents of City, such access to Contractor’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, documents, and activities directly related to Contractor’ s performance under this Agreement. Contractor shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and shall clearly identify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

9. ENFORCEMENT OF AGREEMENT

9.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California.

Legal actions concerning any dispute, claim , or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

9.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties. Accordingly, Item 5A - 17
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8 any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

9.3 Waiver. No delay or omission in the exercise of any right or remedy of a non - defaulting Party on any default shall impair such right or remedy or be construed as a waiver. No consent or approval of City shall be deemed to waive or render unnecessary City’s consen t to or approval of any subsequent act of Contractor. Any waiver by either Party of any default must be in writing. No such waiver shall be a waiver of any other default concerning the same or any other provision of this Agreement.

9.4 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative. T he exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

9.5 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct , or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief , a declaratory judgment, or any other remedy consistent with the purposes of this Agreement.

9.6 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non -judicial proceeding, the prevaili ng Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attorney fees, expert contractor fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding.

10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

10.1 Non-Liability of City Officers and Employees . No officer or employee of City shall be personally liable to the Contractor, or any successor-in-interest, in the event of any default or breach by City or for any amount which may become due to the Contractor or its successor, or for breach of any obligation of the terms of this Agreement.

10.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement nor shall Contractor enter into any agreement of any kind with any such officer or employee during the term of this Agreement and for one (1) year thereafter. Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.

10.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for employmen t Item 5A - 18
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9 because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including ap prenticeship; and further, that Contractor is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting.

11. MISCELLANEOUS PROVISIONS

11.1 Notice. Any notice, demand, request, consent, approval, or communication that either Party desires, or is required to give to the other Party or any other person shall be in writing and either served personally or sent by pre -paid, first-class mail to the address set forth below.

Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed as provided in this Section. Either Party may change its address by notifying the other Party of the change of address in writing.

To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262

To Contractor: Martha’s Village & Kitchen, Inc.,
Attention: Linda Barrack
83791 Date Ave
Indio, CA 92201-4737

11.2 Integrated Agreement . This Agreement constitutes the entire understanding between the Parties and supersedes and cancels all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter in this Agreement.

11.3 Amendment. No amendments or other modifications of this Agreement shall be binding unless through written agreement signed by all Parties.

11.4 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law . In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining Item 5A - 19
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10 phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the Parties.

11.5 Successors in Interest . This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.

11.6 Third Party Beneficiary . Except as may be expressly provided for in this Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third -party beneficiary or otherwise, upon any entity or person not a party to this Agreement.

11.7 Recitals. The above -referenced Recitals are hereby incorporated into the Agreement as though fully set forth in this Agreement and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.

11.8 Authority. The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement on behalf of Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement.

11.9 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

[SIGNATURES ON NEXT PAGE]

Item 5A - 20
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11 SIGNATURE PAGE TO CONTRACT SERVICES AGREEMENT

BY AND BETWEEN THE CITY OF PALM SPRINGS AND
MARTHA’S VILLAGE AND KITCHEN

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.
“CITY”
City of Palm Springs

Date:__________________________ By: _______________________________ Justin Clifton
City Manager

APPROVED AS TO FORM: ATTEST

By: ___________________________ By: _______________________________ Jeffrey S. Ballinger, Anthony Mejia
City Attorney City Clerk

Corporations require two notarized signatures. One signature must be from Chairman of Board, President, or any Vice President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer.

CONTRACTOR NAME:

______________________________________ Check one: ___ Individual ___ Partnership ___ Corporation

______________________________________
Address
______________________________________

By____________________________________ By______________________________________ Signature (Notarized) Signature (Notarized)
Item 5A - 21
55575.18165\32899991.2

12 Item 5A - 22
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13 EXHIBIT “A”

CONTRACTOR’S

SCOPE OF SERVICES/WORK

Including,

Schedule of Fees

And

Schedule of Performance
Item 5A - 23
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14 CONTRACTOR’S

SCOPE OF SERVICES/WORK

Scope of Services for 3589 McCarthy Road, Palm Springs

Contractor is entering into an agreement with the City of Palm Springs for use of 3589 McCarthy Road to assist unsheltered homelessness in Palm Springs. Specifically, the facility will serve as a Navigation Center with associated activities for homeless individuals, provide shelter and interim housing, commercial kitchen operations, counseling services, job training, case management support, and general administrative office functions. A primary function of the Navigation Center is to connect individuals to and navigate them through housing resources.

FACILITY RULES AND REQUIREMENTS.

Cause No Disturbance. The Contractor shall monitor outdoor parking areas, walkways, and adjoining properties and shall take all necessary measures to ensure that customers do not loiter, create noise, litter, or cause any disturbances while on-site. The Contractor or subcontractors shall ensure that at closing time, all customers leave the property promptly and that the property is clean and secure before the owner/operator leaves the premises.

Grounds for Revocation. Non-compliance with any of these rules or with City codes and ordinances, State laws; any valid citizen complaints or policing and safety problems (not limited to excessive alcohol consumption, noise, disturbances, sign s, etc.) regarding the operation of the establishment; as determined by the Chief of Police or the Director of Building and Safety, may result in proceedings to terminate the Agreement. In addition, violations of the City Codes and Ordinances will result in enforcement actions which may include citations, arrest, temporary business closure, or termination of this Agreement.

Comply with City Noise Ordinance . The Contractor shall comply with the provisions of Section 11.74 Noise Ordinance of the Palm Sprin gs Municipal Code. Violations may result in revocation of this Agreement.

Kitchen Operations. The Contractor will provide meals in accordance with the USDA to the homeless. The Contractor will operate and manage a commercial kitchen and dining room. The Contractor will leverage its culinary arts training program in other facilities as a model for the Navigation Center campus.

Shelter Operations . The Contractor will distribute health and hygiene supplies to all residents and will provide evening and morning meals and snacks, laundry services, etc.

Security/Emergency Intake . The Contract will provide 3.0 FTE Monday -Sunday, 365 days, 24 hours. The Contractor will utilize 6 security staff to be shared across other facilities and Navigation Center for training.

Item 5A - 24
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15 Loitering. Patrons of the facility shall not be permitted to loiter on the subject site or on adjacent parcels. On-site security staff shall be responsible for monitoring and reporting incidents of loitering.

Lighting. City to provide adequate lighting at all entrances. Contractor to maintain lighting and ensure building entrances remain illuminated between sunset and sunrise. 24-Hour Contact Number. The Contractor shall be required to maintain a 24-hour contact number visible and available to the public to report any disturbances or issues related to the facility.

Sign Applications Required . No signs are approved by this action. Separate approval and permits shall be required for all signs in accordance with Zoning Ordi nance Section

93.20.00. Exterior Alarms & Audio Systems. No sirens, outside paging or any type of signalization will be permitted. Contractor may install silent alarm with remote 24-hour monitoring.

Video Cameras: Contractor may install video cameras with remote 24-hour monitoring ability.

Outside Storage . Outside storage may be permitted as approved as a part of the proposed plan.

No off-site Parking. Vehicles associated with the operation of the proposed development including company vehicles or employee’s vehicles shall not be permitted to park off the proposed building site unless a parking management plan has been approved.

Bicycle Parking. The project shall be required to provide secure bicycle parking facilities on site for use by patrons and employees. Location and design shall be approved by the Director of Development Services
Outdoor Use. The applicant shall not be permitted to provide any facilities (such as seating, misting systems, or shade structures) outside of the tenant spaces shown on the approved floor plan, nor may patrons be permitted to congregate outside of the tenant spaces except as approved by the Director of Development Services.

Addition of Building Space. Any addition of building space not currently described in the Agreement shall require an amendment to the Agreement
Security Plan. A security plan, reviewed and appro ved by the Police Department, shall be required to establish security protocol for the subject property. The security plan shall address site lighting, security cameras, and any other security features deemed necessary by the Police Department. The secur ity plan may be modified by the Police Department at any point in the future based on any identified security concerns.

On-site Security. On-site security shall conform to the minimum requirements identified in PSMC Section 5.52. On -site security personnel shall be required to wear uniforms in Item 5A - 25
55575.18165\32899991.2

16 accordance with PSMC Section 5.52.100, or as may otherwise be approved by the Police Department. The applicant shall provide the names of all on -site security personnel to the Police Department and shall notify the Police Department within forty-eight (48) hours of any changes to the list of security personnel.

CONTRACTOR RESPONSIBILITIES.

Facility Management

1. Ensure that facility is open and adequately staffed during hours of operation.

2. Maintain and manage use of equipment needed to satisfy the health, hygiene, and immediate needs of clients, including beds, showers, restrooms, laundry, water, snacks, and packaged food as needed.

3. Maintain and manage access to short-term storage for client belongings. Contractor shall not provide outdoor storage for client belongings.

4. Provide equipment needed to operate the program, including computers, phones, tables, chairs, etc.

5. Responsibly maintain cleanliness of facility.

6. Report all safety issues and maintenance issues immediately to City.

7. Ensure that property signage is posted on site as required by City, Riverside County, or other relevant entities.

8. Program Operator will provide supplies for, and maintain, bathroom and shower cleanliness during operating hours.

Administration

1. Provide staff to support and facilitate all operations.

2. All the Contractor and Subcontractor employees who are assigned to the Project shall be subject to the management and direction of the Contractor, and not the City. The Contractor will be responsible for all employer obligations toward the employees (such as compensation, benefits and workers compensation coverage) and for compliance with all applicable labor laws. Contractor is an independent contractor; the City shall have no obligations as an employer to Contractor or Subcontractor employees.

3. Contractor shall, at its sole cost and expense, operate the Navigation Center and related activities.

4. Case managers and employment specialists will utilize laptop computers with secure internet connections to record data on site, including:
• Intake meetings with each homeless individual and family to establish a customized path for their specific needs. Utilization of community-wide Coordinated Entry System (CES), HOMECONNECT, to identify and prioritize homeless individuals. If client opts not to participate in establishing the customized path for their specific needs, Contractor shall make subsequent attempts to have client participate in establishing the customized path for their specific needs if or when client visits the Navigation Center again. • Collecting and analyzing statistical records, including clients’ intake data, program participation, client records, and demographic profiles. If client opts Item 5A - 26
55575.18165\32899991.2

17 not to participate in providing such intake data, Contractor shall make subsequent attempts to collect such client intake data if or when client visits the Navigation Center again.
• Data collection and data entry into the agency’s C-Star database and HMIS.

Utilization of Logic Model, Contractor’s foundation of measurement and tracking the impact of analysis. If client opts not to participate in providing such data, Contractor shall make subsequent attempts to collect such client data if or when client visits the Navigation Center again. • Preparation and presentation of regular reports that includes information regarding: progress toward stated outcomes, evaluation of data and programs; analysis of success and barriers; integration of Housing First best practices; analysis of successes and barriers, and review of trends in services and/or population served.

5. Ensure that records are properly kept and documents containing confidential and/or personal-identifying information are stored securely.
• Provide and document Intakes, Screening and Assessments using County of Riverside Coordinated Entry and HMIS system(s) when available. Intake data to include Vulnerability Index - Service Prioritization Decision Assistance Tool (VI-SPDAT), client demographics, and frequency of visits on a daily, monthly, and annual basis. If HMIS system is not available, Contractor to record intake data using an alternative system on a temporary basis and add into HMIS system when available.
• Provide digital data files to City in format consistent and compatible with the State of California Business, Consumer Services, and Housing Agency reporting requirements.

6. Provide regular performance and progress reports to City.

7. Contractor will designate a lead staff person to serve as the Navigation Center Manager with Management Team support. This staff person will be available on call by cell phone when not on site.

8. Identify partners and enter into agreements as needed with entities delivering services in connection with this scope of work. Including but not limited to the services agreement, memorandums of understanding with other partners yet to be determined, and grant funding agreements with other entities. Negotiate and administer subcontracts related to this scope of work. This will include performance monitoring and reporting as specified by those agreements.

9. Set standards and monitor performance in service delivery, program operations, budget management, and outcomes.

Programs and Services

1. Operate Interim Housing Program

2. Programs and services provided in connection with the facility will be primarily focused on unsheltered homeless individuals.

3. Programs and services will be conducted in a manner that presents low barrier to access.

Item 5A - 27
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18 4. No individual shall be discriminated against or denied access to services based on actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation.

5. Programs and Services to include:
• Case Management: Provide full assessment for what services each client needs. Perform VI-SPADT for all clients. Individualized client selected case plans and assistance with case plans, counseling, transportation, assessments, assistance with mainstream benefits, support, information, referrals, and follow up services to ensure stability in housing. Martha's will follow up with clients up to 12 months after exiting.
• Housing Stabilization: Assist individuals in obtaining permanent housing, supportive housing, shelter, or program placement. This includes intake and assessment for the Coordinated Entry System and Continuum of Homeless Management Information System, and other housing resources like housing document assistance, housing location services, or affordable housing waitlists.
• Behavioral Health Services: Crisis intervention, psychiatric assessments, recovery management, medication services, case management, and dual- diagnosis treatment.
• Physical Health Services: Comprehensive medical and dental care, including primary care, pediatrics, psychology, STI & HIV testing, family practice, behavioral health, women’s health, family planning, psychiatry, veteran’s health, and COVID-19 testing.
• Benefits and Essential documentation: Assess clients for eligibility for benefits and support in obtaining MediCal/CalAIM, CalFresh, Social Security eligibility, and other federal, state, and county programs; assist individuals in acquiring documentation needed to obtain mainstream benefits • Education and Employment Services: Job preparation, adult education, career development, and job placement assistance; includes ELL training, GED acquisition, assistance with applications, support to acquire skills training in alignment with Riverside County’s Workforce Development Board’s identified regional labor market needs, onsite training in culinary arts, including food handlers, first aid training, and job training for youth. • Other Services: Life skills, including budgeting, laundry, food services, cleaning, accessing community resources, maintaining rental property, instructions regarding fair housing, including landlord and tenant responsibilities; wellness planning, health planning, including selecting a doctor and renewing benefits; soft skills of working with roommates and landlords.
• Kitchen Operations: Provide meals in accordance with the USDA; operate and manage commercial kitchen and dining room.

6. The Contractor, with and City staff from the Police, Facilities, and Community and Economic Development departments, agrees to conduct quarterly forums for area residents and business owners in order to receive input on any neighborhood security issues and discuss potential resolutions.

Item 5A - 28
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19 7. The Contractor shall also work with City staff from the Police, Facilities, and Community and Economic Development departments to amicably resolve complaints related to the operations at this property.

CITY OF PALM SPRINGS RESPONSIBILITIES.

1. The City of Palm Springs will continue to be responsible for maintenance and repairs needed to keep the facility in safe and habitable condition. Contractor will provide staff to oversee and operate the facility.

2. Develop site of Navigation Center as mutually agreed upon.

3. The City will be responsible for the physical condition of the Premises

Item 5A - 29
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20 Schedule of Fees

Staffing FTE Cost/ w benefits
Critical Wrap Around Case Manager(s) 3.0 182,224
Intake, Eligibility and Assessments Case Manager 1.0 44,928 Security/Emergency Intake 5.0 224,640
Residential - Live Skills Spec 5.0 212,160
Employment Spec 1.0 49,920
Maint 2.0 99,840
Food Service/ Cooks 2.5 115,440
Housekeeping 1.0 39,936
Grounds and public areas keeper / instruct 1.0 42,432
Kitchen Helper/ Commodities Driver 1.5 63,648
Services Dir 1.0 102,000
Client Services Coordinator 1.0 84,000
Operation Coordinator 1.0 84,000
Asst Service Coordinator 1.0 74,880
HMIS Entry, Analysis and Reporting 1.0 49,920

28.0 1,469,968

Expenses Amount
71350 · Cell Phone Reimbursement 3,600
71500 · Employee Screening 2,000
71600 · Employee Recruitment 2,000
72700 · Software Subscriptions 10,000
73000 · Dining Room Supplies 13,000
73100 · Food Purchases 70,000
73200 · Uniforms 2,000
74100 · Drug Screening 2500
77020 · Building Maintenance Contract 19,000
77025 · Building Maintenance Repair 30,000
77030 · Cleaning Supplies -COVID 24,000
77031 · COVID19 Supplies 30,000
77035 · Client Supplies 30,000
77037 · Client Travel 2,500
77040 · Computer & Software & Printers 35,000
77070 · Equipment Lease / Purchase 20,000
77075 · Equipment Maintenance 21,600
Item 5A - 30
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21 77080 · Internet / and related services 3,000
77090 · Landscaping 5,000
77170 · Minor Equipment 5,000
77180 · Minor Furniture 6,000
77190 · Office Supplies 24,000
77200 · Operating Supplies 21,000
77210 · Pest Control 5,000
77220 · Shipping & Postage 1,500
77230 · Printing 1,500
77270 · Telephone 5,000
77280 · Training 5,000
77290 · Trash Services 35,000
77300 · Travel Staff mileage 6,000
77310 · Utilities - Electric 211,350
77320 · Utilities - Water 26,125
77330 · Vehicle Maintenance 5,000
77335 · Vehicle Other 5,000
Total Expense

687,675
Administration

302,070
Total Annual Operating Cost

2,459,713

Item 5A - 31
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22 Schedule of Performance

Services will commence on or about February 1, 2022, and continue for five years, with one three- year, and one two (2) year options to extend.

Prior to commencement of the Navigation Center operations, and as needed thereafter, Contractor shall, subject to execution of Agreement, consult with City on navigation center design, operations, commence fund raising and grant writing, complete work necessary to set -up computers with internet access, and commence staff training.

Item 5A - 32
55575.18165\32899991.2

23 Item 5A - 33
55575.18165\32899991.2

24 EXHIBIT “B”

INSURANCE PROVISIONS

Including

Verification of Coverage,

Sufficiency of Insurers,

Errors and Omissions Coverage,

Minimum Scope of Insurance,

Deductibles and Self-Insured Retentions, and

Severability of Interests (Separation of Insureds)
Item 5A - 34
55575.18165\32899991.2

25 INSURANCE

1. Procurement and Maintenance of Insurance. Contractor shall procure and maintain public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Contractor’s performance under this Agreement.

Contractor shall procure and maintain all insurance at its sole cost and expense, in a form and content satisfactory to the City, and submit concurrently with its execution of this Agreement .

Contractor shall also carry workers’ compensation insurance in accordance with California workers’ compensation laws. Such insurance shall be kept in full force and effect during the term of this Agreement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the City, its elected officials, officers, employees, agents, and volunteers as additional named insured s by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorsements evidencing the same shall not be construed as a limitation of Contractor’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.

2. Minimum Scope of Insurance. The minimum amount of insurance required under this Agreement shall be as follows:

1. Comprehensive general liability and personal injury with limits of at least one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate;

2. Automobile liability insurance with limits of at least one million dollars ($1,000,000.00) per occurrence;

3. Professional liability (errors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000) annual aggregate is:
_________ required
_________ is not required;

4. Workers’ Compensation insurance in the statutory amount as required by the State of California and Employer’s Liability Insurance with limits of at least one million dollars $1 million per occurrence. If Contractor has no employees, Contractor shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3. Primary Insurance. For any claims related to this Agreement, Contractor’s insurance coverage shall be primary with respect to the City and its respective elected officials, officers, employees, agents, and volunteers. Any insurance or self -insurance maintained by City and its respective elected officials, officers, employees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all rights of subrogation and Item 5A - 35
55575.18165\32899991.2

26 contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.

4. Errors and Omissions Co verage. If Errors & Omissions Insurance is required, and if Contractor provides claims made professional liability insurance, Contractor shall also agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within three years of the completion of Contractor’s services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in the amount required by this Agreement for at least three years after completion of Contractor’s services under this Agreement. Contractor shall also be required to provide evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy.

5. Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless otherwise acceptable to the City.

6. Verification of Coverage. Contractor shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, effecting all of the coverages required by this A greement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to requi re Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

A. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No.___" or "for any and all work performed with the City" may be included in this statement).

B. "This insurance is primary and non -contributory over any insurance or self - insurance the City may have..." ("as respects City of Palm Springs Contract No.___ " or "for any and all work performed with the City" may be included in this statement).

C. "Should any of the above described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named. " Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

Item 5A - 36
55575.18165\32899991.2

27 D. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs s hall be named the certificate holder on the policies.

All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

7. Deductibles and Self -Insured Retentio ns. Any deductibles or self -insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or sel f-insured retentions with respect to the City, its elected officials, officers, employees, agents, and volunteers; or (2) Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Certificates of Insurance must include evidence of the amount of any deductible or self -insured retention under the policy. Contractor guarantees payment of all deductibles and self-insured retentions.

8. Severability of Interests (Separation of Insured s). This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer’s liability.

Item 5A - 37

CITY COUNCIL STAFF REPORT
01/27/2022 5. B.

City Clerk -

SUBJECT

DESERT COMMUNITY ENERGY LINE OF CREDIT GUARANTY
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AN UNCONDITIONAL GUARANTY OF THE OBLIGATIONS OF DESERT COMMUNITY ENERGY
UNDER A CREDIT AGREEMENT WITH RIVER CITY BANK.”

1. Authorize the City Manager, in consultation with the City Attorney, to negotiate and take such actions necessary and appropriate to finalize and execute the Guaranty and associated documents.

2. Attachments
Item 5B

CITY COUNCIL STAFF REPORT
DATE:

January 27, 2022 NEW BUSINESS
SUBJECT: DESERT COMMUNITY ENERGY LINE OF CREDIT GUARANTY FROM: Justin Clifton, City Manager
BY: Department of Development Services, Office of Sustainability SUMMARY:

Deser
t Community Energy (DCE) is requesting the City enter into a Guaranty Agreement with River City Bank guaranteeing all obligations of DCE pursuant to a credit agreement between DCE and River City Bank for a revolving line of credit (RLOC) and subsequent option for term loan conversion. The RLOC will be utilized to augment cash flow for DCE during periods of power market volatility and at times when power supply payment obligations precede corresponding revenue realization. The funds will also allow DCE to enter into additional power purchase agreements to provide more locally produced, cleaner energy to residents and businesses in Palm Springs.

RECOMMENDATION:

1. Adopt
Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AN UNCONDITIONAL

GUARANTY OF THE OBLIGATIONS OF DESERT COMMUNITY ENERGY
UNDER A CREDIT AGREEMENT WITH RIVER CITY BANK.”

2. Authorize the City Manager, in consultation with the City Attorney, to negotiate and take such actions necessary and appropriate to finalize and execute the Guaranty and associated documents.

BACKGROUND:

Deser
t Community Energy (DCE) was created in October 2017 as a joint powers agency to provide a Community Choice Aggregation (CCA) program to member agencies, which are currently the cities of Palm Springs and Palm Desert. In June 2019, the City Council voted unanimously to move forward with Community Choice Aggregation for Palm Springs. Palm Springs customers were enrolled in the 100% Carbon Free product and became DCE customers beginning April 1, 2020. Palm Desert has not moved forward with implementation; therefore, the City is currently the only member with residents and businesses who are served by DCE.

Item 5B - 1
At the November 18, 2021 City Council meeting, DCE staff provided an update to the City Council on current DCE activities and future plans. Included in that report was expressed appreciation to the City Council, residents and businesses in Palm Springs for the significant progress made in reducing greenhouse gas emissions as a result of participation in Desert Community Energy. As a result of this participation by Palm Springs City Council, residents, and businesses, the City reduced 2020 greenhouse gas emissions by 16%, the equivalent of taking more than 25,000 cars off the road. The report also highlighted steps DCE has taken to benefit Palm Springs customers including DCE’s lower cost Desert Saver product , a bill-protection credit for low- income customers, and signing long-term contracts for carbon free and renewable power sources, including three wind projects within Palm Springs C ity limits. DCE offers additional benefits including more choice in electricity supply, local control, and promoting the transition to a cleaner, more efficient energy supply.

It is commonplace for electric energy enterprises, including CCAs like DCE, to experience fluctuations in cash flow a s a result of timing differences between when a CCA incurs energy and other operating expenses and collects corresponding revenues. T hese fluctuations are typically managed through the establishment of operating reserves that accumulate over time. Operating reserves also help a CCA to establish a good credit rating. Because DCE launched service in April 2020, it has not had sufficient time to accumulate such reserves, especially given the COVID pandemic and other challenges .

As noted later in this staff report , DCE projects more positive financial conditions during 2022, and an improved ability to build reserves. For the time being, however, DCE requires a buffer in the form of a revolving line of credit to address the inherent fluctuations in the power business, including market uncertainties, imposed regulatory fees and requirements, and other factors outside DCE’s direct control.

To address short-term capital requirements, DCE sought proposals for a credit facility and recently completed a due diligence process with potential lenders . DCE was pleased to receive two competitive proposals , from current banking partner, River City Bank, and from Union Bank. Both proposals included a requirement for an unconditional guaranty from the City of Palm Springs as the active member of DCE. DCE staff and financial advisors completed a negotiation and evaluation process and determined that River City Bank’s proposal for an up to $8 million revolving line of credit for up to three years best matched DCE’s current needs. The amount of the line of credit was thoroughly evaluated, using financial projections and cash flow analysis over the next five years. DCE requires sufficient capital liquidity to pay energy suppliers, to fund operations, to provide customers with a reliable energy supply at stable rates, and to address uncertainty related to extreme weather events should they occur. While DCE is unlikely to need the full amount of available credit offered by River City Bank, the availability of a credit line up to $8 million (about 15% of DCE’s total annual revenues) allows flexibility to address fluctuations and volatility in the energy market, uncertainties in power prices, and likely future heat events related to the impacts of climate change.

Item 5B - 2
The past two years have been financially challenging for DCE, as well as for other CCAs throughout the state, due to impacts of the s ummer 2020 heat storm and related energy price spikes, COVID-related power demand shifts, delinquent customer payments, and revenue implications, as well as natural gas shortages nationwide and associated power price increases in Summer 2021. The DCE Board has taken all necessary steps to address these challenges. In early 2021, DCE signed four long-term contracts for renewable energy which will further stabilize and control costs; however, three of these projects will not come on -line until 2023 and early 2024. The line of credit and guaranty will allow DCE to access such funds at favorable rates and thus manage market uncertainty until sufficient reserves can be accumulated.

Since inception, DCE’s Board has emphasized prudent fiscal management . F inancial policies include setting budgets and rates as necessary to meet operating costs, reserve targets, debt repayment, and DCE’s obligations under its power supply and other contracts, including future programs and projects. DCE’s risk management policy ensures that supply and operating risks are actively managed; a risk management team meets monthly to implement, maintain, and oversee compliance with th ese policies. These Board approved policies have been adhered to by the Board as it has historically exercised its responsibility to control costs and maintain necessary revenues by way of adopting rate revisions, including the flexibility to automatically adjust rates in response to unanticipated cost changes.

As reported at the November 2021 City Council meeting, the financial outlook for DCE in 2022 significantly improves and DCE does not anticipate the need for a rate increase . A five-year projection prepared by DCE consultants shows an encouraging picture. DCE is currently projecting net revenues close to $10 million in 2022 and $20 million in 2023 and expects to meet these targets with similar projections for subsequent years . DCE anticipates positive cash flow by mid -2022 coupled with the ability to build financial reserves during the second half of this year and beyond. Once DCE transitions to its longer-term fixed price renewable/carbon free power contracts over the next several years, it anticipates much greater financial and rate stability.

The DCE Board , at its January 10 meeting , unanimously voted to approve the credit facility by resolution and authorized the Executive Director, in consultation with DCE’s Legal Counsel, to take necessary actions to finalize and execute the credit agreement with River City Bank, consistent with the term sheet, and pending final credit approval and a guaranty from the City of Palm Springs. DCE staff is working with River City Bank to complete the credit approval process and finalize the credit agreement for signature.

DCE legal counsel, the C ity Attorney, and Ri ver City Bank legal counsel have worked together to prepare the guaranty included in this agenda packet. DCE would like to complete and execute the credit agreement as soon as feasible, potentially by the end of this month.

Item 5B - 3
Backing in the form of a guaranty from the City of Palm Springs, with its long existing, high quality credit rating, is the key to making this process a success and providing DCE the financial flexibility it requires over the next few years as it builds reserves.

Credit Guaranty Key Elements:

Key elements of the credit guaranty agreement include:

• Palm Springs becomes the Guarantor of any/all DCE borrowings pursuant to the revolving credit agreement and optional subsequent term loan facility between DCE and River City Bank.
• Palm Springs’s credit support obligations would commence only in the event that DCE defaults in any repayment obligations pursuant to the revolving credit agreement and optional subsequent term loan facility.
• Palm Springs guaranty amounts are limited to any unpaid principal amounts that may be outstanding and due plus any reasonably incurred expenses by River City Bank which may be necessary to collect such amounts.

STAFF ANALYSIS:

The proposed guaranty ( Attachment 1 ) identifies the City of Palm Springs as the Guarantor and commits the City to guaranty all obligations of Desert Community Energy as Borrower, in accordance with the terms of the credit agreement with River City Bank .

The maximum and most unlikely risk fo r the C ity would result from a sudden and unexpected event that might cause the cessation of DCE’s power business operations and a subsequent default on the credit agreement. In this event, the risk to Palm Springs would be the requirement to repay any the n outstanding balance owed pursuant to the River City Bank revolving credit agreement, after DCE has undertaken all available steps to repay any outstanding amounts through rate actions, sale of already procured power, or other available financial avenues. While there is risk associated with the proposed guaranty, that risk is limited given the following mitigating factors:

• DCE being the default local electricity provider in Palm Springs, with a stable customer base and revenue stream.
• DCE’s ability to raise rates as may be necessary to enhance revenues to meet operating requirements.
• Revenue projections which target $10 million in net revenues during each of the next five years.
• DCE’s prudent fiscal policies, sound financial practices , and active risk management efforts.

There are also risks if the guaranty required for DCE to secure the line of credit is not consummated. Potential negative outcomes that would likely occur absent the proposed guaranty and line of credit include:

Item 5B - 4
• Significant challenges for DCE to manage cash flow and reduce d ability to accommodate the mismatch of timing between power procurement costs and receipt of revenues.
• Increased cost of credit which may translate to increased rates and higher cost of electricity for Palm Springs customers.
• Impacts to DCE’s ability to provide 100% carbon free electricity and the associated positive greenhouse gas emissions reduction and climate mitigating benefits made possible by Palm Springs, its residents and businesses.

As a start -up in the Community Choice Energy business, DCE has been particularly vulnerable to market volatility and energy price increases not evident since the California energy crisis of nearly 20 years ago. The proposed line of credit, backed by Palm Springs’ guaranty, will be a significant positive step to help DCE build reserves to manage this volatility, revenue accrual swings, and uncertainty regarding factors out of DCE’s direct control. In a time of challenging market conditions over the last two years , DCE has implemented strategies and taken other steps to reduce costs, manage volatility and promote rate stability for its customers. DCE’s record includes:

 Two years of successful business start-up and operations  Stable customer base. Almost 85% of Palm Springs customers continue to be DCE customers and most are enrolled in DCE’s 100% Carbon Free plan.  DCE is current on all accounts with all suppliers and service providers.  Environmental benefits including effecti ve greenhouse gas emissions reduction and climate supportive mission and products.
 Hedging strategy of procuring fixed price energy on a forward basis over time which tempers most of the impact from volatile energy prices, as in summer 2021.

DCE continues to implement forward hedging practices for procurement of energy to serve customers in 2022, 2023, and beyond.
 DCE Board approval of four, long- term contracts for renewable and carbon free energy projects will result in significant savings, added stability, and increased rate certainty for DCE customers. These long-term power sources (wind energy in north Palm Springs and a solar plus battery storage project in Tulare County) will lock in associated supply costs for roughly 60% of DCE’s portfolio by 2024. These Power Purchase Agreements ( PPAs) will also help DCE meet its program goals of building a carbon free and significantly renewable energy resource mix. At the time of signing the contracts in early 2021, the lifetime cost savings of these PPAs was estimated at $20 to $60 million.
 Offering a lower cost product for its most price sensitive customers. DCE’s Desert Saver product continues to be offered at a discount of at least 0.5 percent less than Southern California Edison’s base rate. Customers can opt down to Desert Saver at any time and pay the lowest electricity prices available in Palm Springs .

DCE is conscious of the needs of lower income communities.  Implementation of c onservative fiscal policies and limited overhead costs , including policies to fully recover all costs.
 Demonstrated ability to adjust rates as warranted to meet revenue requirements.

Item 5B - 5
 Leadership by locally appointed elected officials who are directly responsible to local community and constituency.
 Ability to take all necessary and responsible steps to meet all business costs in a timely manner, including any balances incurred pursuant to the River City Bank credit arrangement under consideration.
 Successful repayment of the outstanding balance on a one-year $2 million line of credit with River City Bank at the end of 2021.
 Strong partnership with consultant team with many years experience in the public power business and Community Choice Energy, including The Energy Authority and energy consultant Don Dame.
 Commitment to periodically report to the DCE Board, DCE’s members, and the City of Palm Springs about DCE activities and its financial health.

Among the founding principles for DCE is to reduce greenhouse gas emissions related to the use of power, develop and implement sustainable energy initiatives that reduce energy demand and advance the use of clean, efficient, and renewable resources, and stimulate and sustain the local economy by developing local clean energy jobs . As discussed at the DCE City Council presentation in November 2021, DCE’s carbon free product is a relatively cost -effective way for the C ity to help achieve greenhouse gas reduction goals. The participation in DCE’s carbon free energy by the C ity and Palm Springs residents and businesses has demonstrated benefits in addres sing climate change. As it builds reserves, DCE staff is evaluating opportunities and potential funding sources so that DCE may o ffer new programs, with a particular focus on programs to benefit low-income customers. Programs may include electric vehicles and their charging stations, building electrification, energy storage, grid resiliency, energy efficiency, weatherization, and demand response.

ENVIRONMENTAL ASSESSMENT:

The proposed action does not result in a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.

FISCAL ANALYSIS:

There is no immediate fiscal impact of the proposed guaranty provided DCE meets its obligations as provided in the credit agreement with respect to the RLOC and optional subsequent term loan facility with River City Bank. Should DCE not meet its fiscal obligations, then the City will be liable for such obligations as provided in the terms of the Guaranty Agreement. However, this potential liability risk is mit igated by DCE’s prudent management noted above.

Item 5B - 6
It should also be noted that the City of Palm Springs is one of the largest power customers of DCE for the City’s electricity usage. The guaranty will assist DCE in providing increased rate certainty for its customers, whereas failure to approve the guaranty, thus precluding DCE from securing the line of credit , could lead to increased rates and higher cost of electricity for Palm Springs customers, including the City of Palm Springs.

REVIEWED BY:

Department Director: Flinn Fagg
City Manager: Justin Clifton

ATTACHMENTS:

1. Guaranty by City of Palm Springs.

2. Draft Resolution.

Item 5B - 7

SAMPLE GUARANTY

This GUARANTY is made effective as of ___________, 2022 (“Guaranty”) by the City of Palm Springs (the “Guarantor”) in favor and for the benefit of Lender under the Credit Agreement (each as hereinafter defined).

RECITALS

A. Pursuant to a certain credit agreement dated as of ______, 2022 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms thereof in effect, the “Credit Agreement”) by and between Desert Community Energy (“Borrower”) and ______ Bank (“Lender”), Lender has agreed to make certain Advances to Borrower up to a limit of [$____________] (“Commitment”). Capitalized terms not defined herein have the meanings ascribed to them in the Credit Agreement.

B. The Borrower is a joint powers authority that serves energy to commercial and residential customers within the boundaries of Guarantor and Guarantor is a member of Borrower.

B.C. It is a requirement under Section ____ of the Credit Agreement that the Guarantor shall execute and deliver a Guaranty and that this Guaranty shall be in full force and effect.

C.D. This Guaranty is given by the Guarantor in favor of Lender to guaranty all of the Obligations of Borrower in accordance with the terms of the Credit Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guarantor hereby agrees as follows:

l. Guaranty. (a) To induce Lender to make the Advances upon the terms and conditions set forth in the Credit Agreement, and in consideration thereof, the Guarantor hereby unconditionally and irrevocably severally (based on Guarantor’s percentage responsibility set forth on Exhibit A attached hereto (each a “Guarantor’s Share”)): (i) guarantees to Lender and its successors, transferees and assigns, the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) and at all times thereafter of the Obligations of Borrower (including amounts which would become due but for the operation of the automatic stay under Section 362(a) of the United States Federal Bankruptcy Code of 1978, as amended, or any state bankruptcy statute) under the Credit Agreement (including without limitation the Term Loan); and (ii) agrees to pay any and all reasonable expenses (including reasonable attorneys’ fees and disbursements and expert witnesses’ fees and disbursements) which may be paid or incurred by Lender in enforcing any rights with respect to, or collecting, any or all of the Obligations under the Credit Agreement and/or enforcing any rights with respect to, or collecting against, Guarantor under this Guaranty (collectively, the “Guaranteed Obligations”). Notwithstanding the foregoing, Item 5B - 8
“Guaranteed Obligations” shall not include principal in an amount greater than the amount of Advances under the Credit Agreement without the prior written consent of the Guarantor.

(b) Guarantor agrees that this Guaranty constitutes a guaranty of payment when due and not of collection and waives any right to require that any resort be had by Lender to any security held for payment of any of the Guaranteed Obligations or to any balance of any deposit account or credit on the books of Lender in favor of Borrower or any other Person.

(c) No payment or payments made by Borrower or any other Person or received or collected by Lender from any other Person by virtue of any action or proceeding or any set off or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of Guarantor hereunder which shall, notwithstanding any such payment or payments other than payments made to Lender by a Guarantor or payments received or collected by Lender from a Guarantor, remain liable for Guarantor’s Share of the Guaranteed Obligations until the Guaranteed Obligations are indefeasibly paid in full in cash or cash equivalents.

(d) Guarantor understands, agrees and confirms that this is a guaranty of payment when due and not of collection and that Lender may, from time to time, enforce this Guaranty up to the full amount of Guarantor’s Share of the Guaranteed Obligations owed to Lender without proceeding against any other Person, against any security for the Guaranteed Obligations, against any other guarantor or under any other guaranty covering the Guaranteed Obligations.

2. Waiver by Guarantor. Until the payment and satisfaction in full of all Guaranteed Obligations and the expiration or termination of any commitment to lend by Lender under the Credit Agreement, Guarantor hereby waives absolutely and irrevocably any claim which it may have against Borrower or any or its respective Affiliates by reason of any payment to Lender, or to any other Person pursuant to or in respect of this Guaranty, including any claims by way of subrogation, contribution, reimbursement, indemnity or otherwise.

Guarantor further agrees that Guarantor’s liability as guarantor shall not be impaired or affected by any renewals or extensions which may be made from time to time, with or without the knowledge or consent of Guarantor of the time for payment of interest or principal under the Credit Agreement or by any forbearance or delay in collecting interest or principal under the Credit Agreement, or by any waiver by Lender under the Credit Agreement or any other Loan Documents, or by Lender’s failure or election not to pursue any other remedies it may have against Borrower or Guarantor, or by any change or modification in the Credit Agreement or any other Loan Document, or by the acceptance by Lender of any additional security or any increase, substitution or change therein, or by the release by Lender of any security or any withdrawal thereof or decrease therein, except that payment in full of the indebtedness shall automatically release Guarantor of its obligations under this Guaranty, or by the application of payments received from any source to the payment of any obligation other than the indebtedness even though Lender might lawfully have elected to apply such payments to any part or all of the indebtedness (in which case Guarantor will be automatically released), or by the failure or invalidity of, or any defect in, the Credit Agreement, or by any Item 5B - 9
legal disability or other defense of Borrower, or by the cessation, limitation or termination from any cause whatsoever of any of the Obligations under the Credit Agreement, except upon payment in full of the indebtedness (in which case Guarantor will be automatically released), or by the application by Borrower of the proceeds of the Advances for purposes other than the purposes represented by Borrower to Lender or intended or understood by Lender or Guarantor, it being the intent hereof that Guarantor shall remain liable for its ratable share of obligations hereunder to the extent of Guarantor’s obligations provided herein, notwithstanding any act or thing which might otherwise operate as a legal or equitable discharge of a surety. Guarantor hereby waives any and all rights or defenses based on, and understands and agrees that Guarantor’s liability as guarantor shall not be impaired or affected by, an election of remedies by Lender, even though that election of remedies, such as a non- judicial foreclosure with respect to security for a guaranteed obligation, has destroyed Guarantor’s rights of subrogation and reimbursement against the principal by the operation of Section 580d of the California Code of Civil Procedure or otherwise, or the foreclosure of any of the security for the Advances, including without limitation the security described in any Security Agreement, or Guarantor’s right to a fair value hearing under Section 580a of the California Code of Civil Procedure, it being intended that this Guaranty shall survive the realization upon any of the security for the Advances, including without limitation the security described in the Security Agreement, including without limitation non-judicial foreclosure, where applicable, and notwithstanding any defense, right, or claim that any such foreclosure satisfied the obligations secured thereby. Guarantor agrees that the payment of all sums payable under the Credit Agreement or any of the other Loan Documents or any part thereof or other act which tolls any statute of limitations applicable to the Credit Agreement or the other Loan Documents shall similarly operate to toll the statute of limitations applicable to Guarantor’s liability hereunder. Without limiting the generality of the foregoing or any other provision hereof, Guarantor expressly waives to the extent permitted by law any and all rights and defenses that Guarantor may have if Borrower’s debt is secured by real property.

This means, among other things: (1) Lender may collect from a Guarantor without first foreclosing on any security for the Advances (whether such security is real or personal property) pledged by Borrower; and (2) if Lender forecloses on any real property security pledged by Borrower (including without limitation the real property described in a Deed of Trust), (A) the amount of the Indebtedness may be reduced only by the price for which that security is sold at the foreclosure sale, even if the security is worth more than the sale price, and (B) Lender may collect from Guarantor even if Lender, by foreclosing on the real property security, has destroyed any right Guarantor may have to collect from Borrower. This is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have if Borrower’s debt is secured by real property. These rights and defenses include, but are not limited to, any rights or defenses based upon Section 580a, 580b, 580d, or 726 of the California Code of Civil Procedure, and/or Sections 2787 to 2855, inclusive, 2899 and 3433 of the California Civil Code, or any of such sections. Guarantor further understands and agrees that Lender may at any time enter into agreements with Borrower to amend and modify the Credit Agreement, Loan Agreement, Security Agreement or other Loan Documents, and may waive or release any provision or provisions of the Credit Agreement, Loan Agreement, Security Agreement and other Loan Documents or any thereof, and, with reference to such instruments, may make and enter into any such agreement or agreements as Lender and Borrower may deem proper and desirable, without in any manner impairing or affecting this Commented [1]: My understanding is that the only security other than the Guaranty would be participation in the lockbox.

Item 5B - 10
Guaranty or any of Lender’s rights hereunder or Guarantor’s obligations hereunder.

Notwithstanding the foregoing, Lender shall not enter into any amendment or modification of the Credit Agreement which would increase the amount of the Commitment made available to Borrower for Advances without the prior written consent of Guarantor.

3. Consent by Guarantor. Guarantor hereby consents and agrees that, without the necessity of any reservation of rights against Guarantor and without notice to or further assent by Guarantor, any demand for payment of any of the Guaranteed Obligations made by Lender may be rescinded by Lender and any of the Guaranteed Obligations continued, and the Guaranteed Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guaranty therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by Lender; and the Credit Agreement or other guaranty or documents in connection therewith, or any of them, may be amended, modified, supplemented or terminated, in whole or in part, as Lender may deem advisable from time to time; and any guaranty or right of offset may be sold, exchanged, waived, surrendered or released, all without the necessity of any reservation of rights against Guarantor and without notice to or further assent by Guarantor, which will remain bound hereunder, notwithstanding any such renewal, extension, modification, acceleration, compromise, amendment, supplement, termination, sale, exchange, waiver, surrender or release. Notwithstanding the foregoing, Lender shall not enter into any amendment or modification of the Credit Agreement which would increase the amount of the Commitment made available to Borrower for Advances without the prior written consent of Guarantor. Lender shall have no obligation to protect, secure, perfect or insure any property at any time held as security for the Guaranteed Obligations. When making any demand hereunder against Guarantor, Lender may, but shall be under no obligation to, make a similar demand on Borrower, any other Person who at any time guarantees or pledges any assets to secure the Guaranteed Obligations, or any one or more of them (a “Credit Party”) or any such other guarantor, and any failure by Lender to make any such demand or to collect any payments from such other Credit Party or any such other guarantor or any release of such other Credit Party or any such other guarantor or of Guarantor’s obligations or liabilities hereunder shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of Lender against Guarantor hereunder. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

4. Waivers; Successors and Assigns. Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by Lender upon this Guaranty or acceptance of this Guaranty, and the Guaranteed Obligations shall conclusively be deemed to have been created, contracted or incurred in reliance upon this Guaranty, and all dealings between Guarantor and any other Credit Party, on the one hand, and Lender, on the other hand, shall likewise be conclusively presumed to have been had or consummated in reliance upon this Guaranty. Guarantor waives diligence, presentment, protest, demand for payment and notice of default or non- payment to or upon any Credit Party or Guarantor with respect to the Guaranteed Obligations.

This Guaranty shall be construed as a continuing, absolute and unconditional guaranty of payment without regard to the validity, regularity or enforceability of the Credit Agreement, Item 5B - 11
the other Loan Documents, any of the Guaranteed Obligations or any guaranty therefor or right of offset with respect thereto at any time or from time to time held by Lender and without regard to any defense (other than the defense of payment), set-off or counterclaim which may at any time be available to or be asserted by any Credit Party against Lender, or by any other circumstance whatsoever (with or without notice to or knowledge of Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Guaranteed Obligations, or of Guarantor under this Guaranty, in bankruptcy or in any other instance, and the obligations and liabilities of Guarantor hereunder shall not be conditioned or contingent upon the pursuit by Lender or any other Person at any time of any right or remedy against any Credit Party or against any other Person which may be or become liable in respect of all or any part or the Guaranteed Obligations or against any collateral security or Guaranty therefor or right of offset with respect thereto. This Guaranty shall be a primary obligation of Guarantor to secure the payment of the Guaranteed Obligations and Lender shall have no obligation whatsoever to seek payment of the Guaranteed Obligations from Borrower in the event an Event of Default has occurred and is continuing. This Guaranty shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon Guarantor and the successors and assigns thereof, and shall inure to the benefit of Lender, and their respective successors, transferees and assigns (including each holder from time to time of Guaranteed Obligations), until all of the Guaranteed Obligations and the obligations of Guarantor under this Guaranty shall have been satisfied by indefeasible payment in full in cash or cash equivalents, notwithstanding that from time to time during the term of the Credit Agreement any Credit Party may be released from all of its Guaranteed Obligations thereunder.

5. Effectiveness; Reinstatement. This Guaranty shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Guaranteed Obligations is rescinded or must otherwise be restored or returned by Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any Credit Party, or upon or as a result of the appointment of a receiver, intervenor or conservator of; or trustee or similar officer for, any Credit Party or any substantial part of its property, or otherwise, all as though such payments had not been made.

6. Payments of Guaranteed Obligations. Guarantor hereby guarantees that its Guarantor’s Share of the Guaranteed Obligations will be paid for the benefit of Lender without set-off or counterclaim in lawful currency of the United States of America at the office of Lender located at _______________, ___________, California _____. Guarantor shall make any payments required hereunder within thirty (30) calendar days of receipt of written notice thereof from Lender; provided, however, that such written notice may only be sent after the occurrence and during the continuation of an Event of Default and provided, further, however, that the failure of Lender to give such notice shall not affect Guarantor’s obligations hereunder.

7. Representations and Warranties. To induce Lender to enter into the Credit Agreement and to make the Advances thereunder, Guarantor represents and warrants to Lender that, as to Guarantor, the following statements are true, correct and complete on and as of the date hereof:

Item 5B - 12

(a) Organization and Qualification; Authority; Consents. Guarantor is a City duly organized, validly existing under and operating pursuant to the laws of the State of California, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying unless the failure to be so licensed or qualified would not have a material adverse effect on its business, operations or assets. Guarantor has full right and authority to enter into this Guaranty and to perform each and all of the matters and things herein provided for; and this Guaranty does not, nor does the performance or observance by Guarantor of any of the matters or things herein or therein provided for, contravene any provision of law or any organizational document of Guarantor or any covenant, indenture or agreement of or affecting Guarantor or any of its Properties. The execution, delivery, performance and observance by Guarantor of this Guaranty and any other instruments and documents executed by Guarantor in connection with this Guaranty do not and, at the time of delivery hereof, will not require any consent or approval of any other Person, other than such consents and approvals that have been given or obtained.

(b) Legal Effect. This Guaranty constitutes a legal, valid and binding agreement of Guarantor, enforceable in accordance with its terms, subject to laws relating to bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and the application of equitable remedies if equitable remedies are sought.

(c) Litigation. There is no litigation or governmental proceeding pending, nor to the knowledge of Guarantor threatened in writing, against Guarantor which if adversely determined would result in any material adverse change in the financial condition, Properties, business or operations of Guarantor.

(d) Compliance with Laws. Guarantor is in compliance with the requirements of all federal, state and local laws, rules and regulations applicable to or pertaining to its Properties or business operations (including, without limitation, laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes and substances), non- compliance with which could have a material adverse effect on the financial condition, Properties, business or operations of Guarantor. Guarantor has not received notice to the effect that its operations are not in compliance with any of the requirements of applicable federal, state or local environmental, health and safety statutes and regulations or are the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the environment, which non- compliance or remedial action could have a material adverse effect on the financial condition, Properties, business or operations of Guarantor.

(e)(d) Other Agreements. Guarantor is not in default under the terms of any covenant, indenture or agreement of or affecting Guarantor or any of its Properties, which default if uncured would have a material adverse effect on the financial condition, Properties, business or operations of Guarantor.

Item 5B - 13

8. Covenants. Guarantor agrees that so long as any credit is available to or in use by Borrower under the Credit Agreement, except to the extent compliance in any case or cases is waived in writing by Lender:

(a) Financial Reports. Guarantor shall maintain a standard system of accounting in accordance with GAAP (as applied to government entities) and shall furnish to Lender and its duly authorized representatives any publicly available information respecting the business and financial condition of Guarantor as Lender may reasonably request.

(b) Compliance with Laws. Guarantor shall comply in all respects with the requirements of all laws, rules, regulations, ordinances and orders applicable to or pertaining to its Properties or business operations, non-compliance with which could have a material adverse effect on the financial condition, Properties, business or operations of Guarantor or could result in a Lien upon any of its Property.

(c) Notices of Claims and Litigation. Guarantor shall promptly inform Lender in writing of (l) all material adverse changes in Guarantor’s financial condition and (2) all existing litigation and all written threats of litigation, claims, investigations, administrative proceedings or similar actions affecting Guarantor which could materially affect the financial condition of Guarantor.

98. Expenses. If: (a) this Guaranty is placed in the hands of an attorney for collection or is collected through any legal proceeding; (b) an attorney is retained to represent Lender in any bankruptcy, reorganization, receivership, or other proceedings affecting creditors’ rights and involving a claim under this Guaranty; or (c) an attorney is retained to represent Lender in any proceedings whatsoever in connection with this Guaranty and Lender prevails in any such proceedings, then Guarantor shall pay to Lender (as the case may be) upon demand Guarantor’s Share of all reasonable attorney’s fees, costs and expenses incurred in connection therewith (all of which are referred to herein as “Enforcement Costs”), in addition to all other amounts due hereunder, regardless of whether all or a portion of such Enforcement Costs are incurred in a single proceeding brought to enforce this Guaranty as well as the other Loan Documents.

109. No Waiver. No failure to exercise and no delay in exercising, on the part of Lender, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the exercise of any other power or right. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law.

1110. Notices. All notices, demands, instructions or other communications required or permitted to be given to or made upon any party hereto shall be given in accordance with the provisions of the Credit Agreement and at the address set forth therein or as provided on the signature page hereof.

Item 5B - 14
1211. Amendments, Waivers, etc. No provision of this Guaranty shall be waived, amended, terminated or supplemented except by a written instrument executed by Guarantor and Lender.

1312. GOVERNING LAW. THIS GUARANTY SHALL BE GOVERNED BY, AND

SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF

THE STATE OF CALIFORNIA WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

1413. CONSENT TO JURISDICTION AND SERVICE OF PROCESS. ALL JUDICIAL

PROCEEDINGS BROUGHT AGAINST GUARANTOR WITH RESPECT TO THIS

GUARANTY AGREEMENT SHALL BE BROUGHT IN ANY STATE OR FEDERAL

COURT OF COMPETENT JURISDICTION IN THE COUNTY OF SACRAMENTO,

CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS GUARANTY

AGREEMENT GUARANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH

ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. THE PARTIES HERETO HEREBY

IRREVOCABLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW,

ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF

FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE

BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

1514. Counterparts. This Guaranty and any amendments, waivers, consents or supplements may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

[remainder of page intentionally left blank]
Item 5B - 15
City of Palm Springs

By:

Its:

Address:

Item 5B - 16
EXHIBIT A (to Guaranty)

GUARANTOR’S SHARE

Guarantor
Guarantor’s Share
of the Obligations
City of Palm Springs 100.00%

Item 5B - 17
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, APPROVING AN

UNCONDITIONAL GUARANTY OF THE OBLIGATIONS OF

DESERT COMMUNITY ENERGY UNDER A CREDIT

AGREEMENT WITH RIVER CITY BANK

WHEREAS, Desert Community Energy (“DCE”) is a joint powers authority established on October 30, 2017 for the purpose of implementing community choice aggregation programs under Public Utilities Code Section 366.2.0; and

WHEREAS, DCE currently provides clean energy for the residents and businesses of the City; and

WHEREAS, the energy provided by DCE has resulted in a substantial reduction in greenhouse gas emissions within the City while maintaining competitive rates;

WHEREAS, DCE needs working capital to address short term fluctuations in cash flow and working capital requirements as a result of its operations; and

WHEREAS, DCE received credit proposals that would provide financing and credit support for DCE operation and power procurement (“Credit Facility”), as well as working capital requirements; and

WHEREAS, DCE’s Board of Directors has approved entering into a Credit Facility consistent with a term sheet negotiated with River City Bank (“RCB”) to provide a Commercial Revolving Line of Credit in the amount of up to $8,000,000 (“Credit Facility Term Sheet”); and

WHEREAS, DCE is a relatively new entity that is still in the process of building operating reserves, RCB is requiring that the City, as the sole active member of DCE, provide an unconditional guaranty the Credit Facility as security for its repayment, and

WHEREAS, the financial stability and flexibility provided by the Credit Facility will directly benefit the City and its ratepayers; and

WHEREAS, the willin gness of the City to provide a guaranty will result in favorable terms pursuant to the Credit Facility Term Sheet that would not otherwise be available to DCE; and

WHEREAS, DCE staff and DCE’s legal counsel are in the process of negotiating a Credit Agre ement and related security agreements that are consistent with the terms of the Credit Facility Term Sheet pursuant to authority granted by the DCE Board of Directors, including the draft unconditional guaranty that is attached hereto as Exhibit “A” (“Guaranty”); and
Item 5B - 18

WHEREAS, the City Attorney has reviewed and approved the attached form of Guaranty and will continue to monitor the negotiation of the Credit Agreement with RCB; and

WHEREAS, it is important from a timing perspective that the Guaranty of the Credit Facility be approved by the City Council and that authority be given to the City Manager, with the advice of the City Attorney, to finalize and execute the Guaranty subject to review of the final Credit Agreement between DCE and RCB;

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY RESOLVES, DETERMINES AND APPROVES AS FOLLOWS:

Section 1. Factual Findings. The true and correct recitals above are incorporated by this reference herein as the basis and foundation for the City’s adoption of this Resolution.

Section 2. Approval of Unconditional Guaranty . The City Council hereby approves the unconditional guaranty of a Credit Facility from River City Bank to provide working capital for the operations of Desert Community Energy in a principal amount not to exceed $8,000,000 and agrees that the City of Palm Springs will be liable to River City Bank for the payment of all amounts due to River City Bank in connection with the Credit Facility upon the occurrence of an event of default by Desert Community Energy with respect to its obligations to River City Bank.

Section 3. Authority of City Manager . The City Manager is hereby authorized to finalize and execute the Guaranty, with the advice of the City Attorney, in substantially the form which is attached to this resolution and subject to review and approval by the City Manager, with the advice of the City Attorney, of the terms of the Credit Agreement between DCE and RCB.

Section 4. Effective Date. This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS ___ DAY OF __________, 2022.

JUSTIN CLIFTON, CITY MANAGER

Item 5B - 19

ATTEST:

ANTHONY J. MEJIA, MMC, CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, ANTHONY J. MEJIA, MMC , City Clerk of the City of Palm Springs, hereby certify that Resolution No. _____ is a full, true and correct copy as was duly adopted at a regular meeting of the City Council of the City of Palm Springs on _____________, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

__
ANTHONY J. MEJIA, MMC, CITY CLERK
Item 5B - 20
1/18/22 Discussion Draft Page 1 of 8

SAMPLE GUARANTY
This GUARANTY is made effective as of ___________, 2022 (“Guaranty”) by the City of Palm Springs (the “Guarantor”) in favor and for the benefit of Lender under the Credit Agreement (each as hereinafter defined).

RECITALS
A. Pursuant to a certain credit agreement dated as of ______, 2022 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms thereof in effect, the “Credit Agreement”) by and between Desert Community Energy (“Borrower”) and ______ Bank (“Lender”), Lender has agreed to make certain Advances to Borrower up to a limit of [$____________] (“Commitment”). Capitalized terms not defined herein have the meanings ascribed to them in the Credit Agreement.

B. The Borrower is a joint powers authority that serves energy to commercial and residential customers within the boundaries of Guarantor and Guarantor is a member of Borrower.

C. It is a requirement under Section ____ of the Credit Agreement that the Guarantor shall execute and deliver a Guaranty and that this Guaranty shall be in full force and effect.

D. This Guaranty is given by the Guarantor in favor of Lender to guaranty all of the Obligations of Borrower in accordance with the terms of the Credit Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guarantor hereby agrees as follows:
l. Guaranty. (a) To induce Lender to make the Advances upon the terms and conditions set forth in the Credit Agreement, and in consideration thereof, the Guarantor hereby unconditionally and irrevocably: (i) guarantees to Lender and its successors, transferees and assigns, the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) and at all times thereafter of the Obligations of Borrower (including amounts which would become due but for the operation of the automatic stay under Section 362(a) of the United States Federal Bankruptcy Code of 1978, as amended, or any state bankruptcy statute) under the Credit Agreement (including without limitation the Term Loan); and (ii) agrees to pay any and all reasonable expenses (including reasonable attorneys’ fees and disbursements and expert witnesses’ fees and disbursements) which may be paid or incurred by Lender in enforcing any rights with respect to, or collecting, any or all of the Obligations under the Credit Agreement and/or enforcing any rights with respect to, or collecting against, Guarantor under this Guaranty (collectively, the “Guaranteed Obligations”). Notwithstanding the foregoing, “Guaranteed Obligations” shall not include 5B - Supplemental Material

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Palm Springs City CouncilJanuary 27, 2022

Palm Springs City Council
January 27, 2022