Agenda packet — Palm Springs City Council, June 5, 2023 (part 1 of 4)

CITY COUNCIL

AND AS SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE
JOINT MEETING WITH MEASURE "J" COMMISSION

CITY OF PALM SPRINGS, CALIFORNIA
Council Chamber, City Hall
3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262
www.palmspringsca.gov

REGULAR MEETING AGENDA
Pursuant to Assembly Bill 361, this meeting may be conducted by teleconference. There will be in-person public access to the meeting location.

JUNE 5, 2023

4:30 PM CLOSED SESSION
5:30 PM REGULAR MEETING
Grace Elena Garner, Mayor
Jeffrey Bernstein, Mayor Pro Tem
Ron deHarte, Councilmember
Christy Gilbert Holstege, Councilmember
Lisa Middleton, Councilmember
City of Palm Springs Mission Statement: Palm Springs is an inclusive world-class city dedicated to providing excellent and responsive public services to enhance the quality of life for current and future generations.

Please note any agenda item which has not been initiated by 11:00 p.m. may be continued to a subsequent meeting.

At approximately 10:00 p.m., the City Council will determine the number of speakers who wish to address the City Council during Public Comment for non-Agenda Items and determine which agenda items will be considered before the 11:00 p.m.

Adjournment time.

AGENDA EN ESPAÑOL DISPONIBLE EL LUNES - HAGA CLIC AQUÍ
4:30 P.M. CLOSED SESSION
CALL TO ORDER:

PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY (Council Chamber): The City Council welcomes public input. Members of the public may address the City Council on Closed Session items by contacting the City Clerk's Office at 760-323-8204. Pursuant to State Law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). If you are compensated to communicate with City officials, you may be required to register and/or make certain disclosures as a lobbyist. Please see the City Clerk for additional information.

RECESS TO CLOSED SESSION (Small Conference Room): See Closed Session Agenda. 5:30 P.M. JOINT MEETING
CITY COUNCIL AND MEASURE "J" COMMISSION

CALL TO ORDER:

PLEDGE OF ALLEGIANCE:

ROLL CALL:

Public Comment: This time has been set aside for members of the public to address the City Council and Measure "J" Commission only on the Joint Meeting agenda item. Two (2) minutes will be assigned to each speaker.

ACCEPTANCE OF THE AGENDA: The City Council will discuss the order of the agenda, may amend the order, add urgency items, note abstentions or "no" votes on Consent Calendar items, and request Consent Calendar items be removed from the Consent Calendar for discussion. The City Council may also remove items from the Consent Calendar prior to that portion of the Agenda.

June 5, 2023 City Council Regular Meeting Agenda 2
A. MEASURE J FUND BUDGET FOR FISCAL YEARS 2023-24 AND 2024-25 RECOMMENDATION:

Provide direction to staff on any changes to the fiscal year 2023-24 and fiscal year 2024-25 budgets as adopted and recommended by the Measure J Commission.

1. 2. Adopt the Measure J Budget.

Adjournment:

Regular City Council Meeting
CALL TO ORDER:

ROLL CALL:

PRESENTATIONS:

A. PRESENTATIONS, PROCLAMATIONS, AND OTHER NOTICES
REPORT OF CLOSED SESSION:

PUBLIC TESTIMONY: (Non-Public Hearing Agenda Items ONLY) This time has been set aside for members of the public to address the City Council only on agenda items. Two (2) minutes will be assigned to each speaker. Testimony for Public Hearings will only be taken at the time of the hearing, and General Public Comments, non-agenda items, will be taken later in the meeting.

1. CONSENT CALENDAR:

The following routine matters may be acted upon by one motion. Individual items may be removed by the Council for separate discussion at this time or under Acceptance of the Agenda. The ordinance title is deemed to be read in its entirety and further reading waived on any ordinance listed on the Consent Calendar.

June 5, 2023 City Council Regular Meeting Agenda 3
A. FINDINGS TO CONDUCT CITY COUNCIL AND BOARD, COMMISSION, AND COMMITTEE MEETINGS VIRTUALLY UNDER ASSEMBLY BILL 361
RECOMMENDATION:

By motion, find that:

1. The City Council has reconsidered the circumstances of the state of emergency.

Even though the State and local declared states of emergency have ended, community spread of COVID-19 continues to exist, and measures to reduce the spread, including physical distancing measures, continue to be necessary for the public, health, safety, and welfare; and

2. State and local officials continue to recommend social distancing measures, which can impact the ability of the City and the public to meet safely in person; and

3. The City Council, and its subordinate bodies (Boards, Commissions, and Committees), shall be authorized to conduct public meetings in accordance with Government Code section 54953(e)(2) and other applicable provisions of the Brown Act for remote only or hybrid teleconference meetings
B. MEMORANDA OF UNDERSTANDING WITH THE PALM SPRINGS PUBLIC

EMPLOYEES ASSOCIATION OF PALM SPRINGS AND THE MANAGEMENT

ASSOCIATION OF PALM SPRINGS
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A MEMORANDUM OF

UNDERSTANDING RELATIVE TO WAGES, HOURS, AND OTHER TERMS

AND CONDITIONS OF EMPLOYMENT FOR EMPLOYEES IN THE PALM

SPRINGS PUBLIC EMPLOYEES ASSOCIATION AND THE MANAGEMENT ASSOCIATION OF PALM SPRINGS FOR THE PERIOD OF JULY 1, 2023 THROUGH JUNE 30, 2026, SUBJECT TO ASSOCIATIONS EXECUTING THE MEMORANDUM OF UNDERSTANDING.”

1. Authorize the City Manager to execute the Memorandum of Understanding (MOU) and all documents necessary to effectuate the above action, including the allocation and compensation plans, salary schedules, agreements and contracts, and any non-substantial MOU language or reorganization.

2. June 5, 2023 City Council Regular Meeting Agenda 4
C. ACCEPTANCE OF THREE FEDERALLY FUNDED GRANTS FOR THE AIRPORT

MASTER PLAN/GIS STUDY, THE INBOUND BAGGAGE CLAIM SYSTEM AND

THE OUTBOUND BAGGAGE HANDLING SYSTEM EXPANSION-DESIGN, FOR

FUNDING OF THE PALM SPRINGS INTERNATIONAL AIRPORT PROJECTS RECOMMENDATION:

Approve acceptance of Federal Aviation Administration AIP Grant No. 3-06-0181-067-2023 for Airport Master Plan/GIS Study in the amount of $2,108,584.

1. Approve acceptance of Federal Aviation Administration BIL-ATP Grant for Inbound Baggage Claim System in the amount of $5,700,000.

2. Approve acceptance of Transportation Security Administration OTA Grant for Outbound Baggage Handling System Expansion-Design in the amount of $1,388,995.

3. Authorize the City Manager or designee to execute all necessary grant documents.

4. D. APPROVAL OF AMENDMENT NO. 6 TO THE AIRPORT CAR RENTAL CONCESSIONAIRE AGREEMENTS AND APPROVAL OF AMENDMENT NO. 7

FOR AVIS-BUDGET AT PALM SPRINGS INTERNATIONAL AIRPORT
RECOMMENDATION:

Approve Amendment No. 6 and Avis-Budget Amendment No. 7 (Attachment A) to all Airport rental car concession agreements doing business as eight car rental agencies at PSP which include: Avis/Budget Car Rental, LLC (Amendment No. 7), The Hertz Corporation (Amendment No.6), Enterprise Rent-A-Car, LLC dba Alamo Rent a Car / National Car Rental (Amendment No. 6), Enterprise Rent-A-Car Company of Los Angeles (Amendment No. 6), DTG Operations, Inc. dba Dollar Rent a Car /Thrifty Car Rental (Amendment No. 6)

1. 2. Authorize the City Manager or his designee to execute all necessary documents.

E. APPROVE CONSULTING SERVICES AGREEMENT NO. 23Q112 FOR THE

DESIGN OF AN INLINE BAGGAGE HANDLING SYSTEM FOR THE PALM

SPRINGS INTERNATIONAL AIRPORT
RECOMMENDATION:

Approve Consulting Services Agreement No. 23Q112 (Attachment A) with AECOM Technical Services, Inc. to provide inline baggage handling system design services for the Airport for a three-year term in an amount not to exceed $3,174,638.

1. 2. Authorize the City Manager or designee to execute all necessary documents.

F. AUTHORIZE THE PURCHASE OF 33 NEW VEHICLES AND EQUIPMENT June 5, 2023 City Council Regular Meeting Agenda 5
F. AUTHORIZE THE PURCHASE OF 33 NEW VEHICLES AND EQUIPMENT RECOMMENDATION:

Approve the issuance of purchase orders to Palm Springs Motors, Inc., for the purchase of 3 Mustang Mach E electric vehicles, and 21 Ford Interceptor Utility Patrol vehicles in an amount not to exceed $1,479,560.34;

1. Approve the issuance of a purchase order to Fiesta Ford, Inc., for the purchase of 9 Ford F-150 Super Cab 4x4 vehicles in an amount not to exceed $418,504.53;

2. Delegate authority to the City Manager or designee to approve and execute change orders up to a total amount of $189,806.49 (10%);

3. After delivery of new vehicles, declare existing vehicles being replaced as surplus vehicles and authorize the City Manager, or designee, to sell at public auction in accordance with Chapter 7.07 of the Palm Springs Municipal Code; and,

4. 5. Authorize the City Manager or designee to execute all necessary documents.

G. AWARD OF A CONSTRUCTION CONTRACT TO UNIFIED FIELD SERVICES CORPORATION IN THE AMOUNT OF $2,167,854 FOR THE WASTEWATER TREATMENT PLANT SLUDGE DRYING BEDS, CITY PROJECT 21-05
RECOMMENDATION:

Award the construction contract to Unified Field Services Corporation, a California corporation, in the amount of $2,167,854 for the WWTP Sludge Drying Beds, City Project No. 21-05 (the “Project”).

1. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $216,785 (10%) with all change orders reported to the City Council at project completion.

2. 3. Authorize the City Manager or designee to execute all necessary documents.

H. APPROVE AGREEMENT NO. 23B121 WITH UNIVERSAL GREEN LLC FOR

LANDSCAPE AND GROUNDS MAINTENANCE SERVICES
RECOMMENDATION:

Approve Contract Services Agreement No. 23B121 (Attachment A) with Universal Green LLC, to provide landscape and grounds maintenance services for an amount not to exceed $1,406,256.40 for a three-year term beginning July 1, 2023 through June 30, 2026, with two one-year extension options at the City’s sole discretion;

1. 2. Authorize the City Manager or designee to execute all necessary documents.

June 5, 2023 City Council Regular Meeting Agenda 6
I. APPROVE AMENDMENT NO. 1 TO AGREEMENT NO. A9186 WITH NALCO

COMPANY, LLC FOR WATER TREATMENT CHEMICALS AND SERVICES RECOMMENDATION:

Approve Amendment No. 1 to Agreement No. A9186 (Attachment A) with Nalco Company, LLC to provide water treatment chemicals and services in an additional amount of $300,000 for a total revised contract amount not to exceed $375,000 and extending the term through June 30, 2025.

1. 2. Authorize the City Manager or designee to execute all necessary documents.

J. CONSIDERATION OF A RESOLUTION CONSENTING TO THE INCLUSION OF THE PROPERTY LOCATED AT 3500 RAMON ROAD, PALM SPRINGS,

CALIFORNIA, IN THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT

AUTHORITY OPEN PACE PROGRAM
RECOMMENDATION:

Approve the resolution consenting to the inclusion of the property located at 3500 Ramon Road (“Airport Parking”) in the CSCDA Open PACE Program.

K. CONSIDERATION OF A RESOLUTION CONSENTING TO THE INCLUSION OF THE PROPERTY LOCATED AT 400 N. PALM CANYON DRIVE, PALM SPRINGS, IN

THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY

OPEN PACE PROGRAM
RECOMMENDATION:

Approve the resolution consenting to the inclusion of the property located at 400 N.

Palm Canyon Drive (Thompson Hotel) in the CSCDA Open PACE Program.

L. ADOPT A RESOLUTION IDENTIFYING THE PROJECTS TO BE FUNDED BY SENATE BILL 1 (SB 1), THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017, FOR FISCAL YEAR 2023-24
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SENATE BILL 1 (SB 1), THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017.”
June 5, 2023 City Council Regular Meeting Agenda 7
M. APPROVAL OF A MEMORANDUM OF UNDERSTANDING BETWEEN THE

CITY OF PALM SPRINGS AND THE COUNTY OF RIVERSIDE FOR TECHNICAL

ASSISTANCE AND PLAN REVIEW FOR ONSITE WASTEWATER TREATMENT

SYSTEMS
RECOMMENDATION:

Approve the Memorandum of Understanding between the City of Palm Springs and Riverside County for Technical Assistance and Plan Check Services for Onsite Wastewater Treatment Systems within the City of Palm Springs.

1. 2. Authorize the City Manager to execute all necessary documents.

N. RESOLUTION OF INTENTION TO LEVY ASSESSMENTS WITHIN THE PALM

SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT AND SETTING A TIME AND PLACE FOR THE PUBLIC HEARING; REVIEW

AND APPROVAL OF REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) ADVISORY BOARD, FISCAL YEAR 2023-2024
RECOMMENDATION:

Review and approve Report of the Tourism Business Improvement District (TBID) Advisory Board, Fiscal Year 2023-2024; and

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

THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION

TO LEVY AND COLLECT ASSESSMENTS WITHIN THE PALM SPRINGS

SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT, AND
SETTING A TIME AND PLACE FOR PUBLIC HEARING.”

2. O. NAMING RIGHTS FOR THE PLAZA THEATRE
RECOMMENDATION:

Staff recommends Council approve the naming rights proposed on Attachment A.

P. APPROVAL OF A REQUEST FOR NIGHT CONSTRUCTION START TIMES BETWEEN JULY 5, 2023, AND AUGUST 25, 2023, FOR WASTEWATER TREATMENT PLANT DIGESTER NO. 2 GAS FLARE AND FILTRATE PUMP STATION, CITY PROJECTS NO. 20-25 AND 21-07
RECOMMENDATION:

Approve the requested night construction time of 9:00 p.m. for the dates between July 5, 2023, and August 25, 2023, for the WWTP Digester No. 2 Waste Gas Flare and Filtrate Pump Station Project, subject to continuous monitoring of noise complaints and impacts to adjacent properties and businesses.

EXCLUDED CONSENT CALENDAR: Items removed from the Consent Calendar for separate discussion are considered at this time.

June 5, 2023 City Council Regular Meeting Agenda 8

2. PUBLIC HEARINGS:

A. A REQUEST BY SELENE PALM SPRINGS, LLC, FOR AN AMENDMENT TO

THE PREVIOUSLY APPROVED FINAL DEVELOPMENT PLANS AND

TENTATIVE TRACT MAP FOR THE DREAM HOTEL TO INCLUDE THE
ADDITION OF 24 CONDOMINIUM UNITS TO THE SOUTHEAST SECTION OF THE SITE; RECONFIGURATION OF 12 CONDOMINIUM UNITS AT THE NORTHWEST AREA OF THE SITE; AND AN INCREASE IN THE NUMBER OF TOWER CONDOMINIUM UNITS FROM 28 TO 29 UNITS AND MODIFICATIONS

TO THE FINAL LANDSCAPE PLANS FOR THE DEVELOPMENT LOCATED AT

THE NORTHWEST CORNER OF AVENIDA CABALLEROS AND AMADO
ROAD, ZONE PDD 333, SECTION 14 (CASE 5.1132-PD 333/TTM 35236), AND

CONSIDERATION OF A SETTLEMENT AND DEVELOPMENT AGREEMENT TO

FACILITATE THE COMPLETION OF THE PROJECT
RECOMMENDATION:

Continue deliberations on the amendment request proposed by Selene Palm Springs, LLC. Public testimony received on May 25, 2023.

1. Close the public hearing and adopt a Resolution entitled, “A RESOLUTION

OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,

APPROVING A PROPOSED AMENDMENT TO THE FINAL DEVELOPMENT

PLANS OF A PREVIOUSLY APPROVED FINAL PDD TO INCLUDE THE ADDITION OF TWENTY-FOUR RESIDENTIAL UNITS; ELIMINATING THE EVENT CENTER AT THE SOUTHEAST SECTION OF THE SITE;

RECONFIGURATION OF TWELVE CONDOMINIUM UNITS, ADDITION OF

THREE RESIDENTIAL VILLAS AT THE NORTHWEST SECTION OF THE SITE; AMENDING THE RESIDENTIAL TOWER BY ADDING ONE MORE UNIT TO INCREASE THE NUMBER OF CONDO UNITS FROM 40 UNITS TO 69 UNITS; AND MINOR MODIFICATIONS TO THE FINAL LANDSCAPE PLANS OF THE DREAM HOTEL LOCATED AT 450 NORTH CALLE
ALVARADO ROAD, ZONE PDD 333, SECTION 14.”

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

THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE

SETTLEMENT AND DEVELOPMENT AGREEMENT BY AND BETWEEN

THE CITY OF PALM SPRINGS AND SELENE PALM SPRINGS LLC
RELATED TO THE DEVELOPMENT OF THE DREAM HOTEL PROJECT.”

3. Approve and authorize the City Manager to execute the Settlement and Development Agreement, attached hereto in substantially final form and subject to minor modifications as approved by the City Manager and City Attorney, and to take all necessary actions to achieve the intent of this Agreement.

4. June 5, 2023 City Council Regular Meeting Agenda 9

3. BUSINESS & LEGISLATIVE:

A. UPDATE TO GENERAL FUND, CAPITAL, AND AIRPORT DRAFT BUDGET FOR FISCAL YEARS 2023-24 AND 2024-25
RECOMMENDATION:

Provide direction to staff on any changes to the draft fiscal year 2023-24 and draft fiscal year 2024-25 budgets.

B. REQUEST TO ADD CHAPTER 5.89 TO THE PALM SPRINGS MUNICIPAL

CODE RELATING TO SIDEWALK VENDING AND AN AMENDMENT TO
CHAPTER 5.48 RELATIVE TO COMMERCIAL SOLICITATION
RECOMMENDATION:

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

1. Introduce on first reading an Ordinance entitled, “AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 5.89 TO THE PALM SPRINGS MUNICIPAL CODE,

ESTABLISHING REGULATIONS ON SIDEWALK VENDING IN
COMPLIANCE WITH SENATE BILL 946; AND AN AMENDMENT TO
CHAPTER 5.48 RELATIVE TO COMMERCIAL SOLICITATION.”

2. C. APPROVE CHANGES TO UNEXECUTED FOURTH CONTRACT AMENDMENT TO AGREEMENT NO. 8922 WITH MARTHA’S VILLAGE AND KITCHEN FOR

OPERATIONS OF THE PALM SPRINGS DAYTIME DROP-IN ACCESS CENTER RECOMMENDATION:

Make corrections to Amendment No. 3 to reflect an annual amount of $212,050, an increased overnight sheltering amount of $105,464 and a revised total not to exceed contract amount for the third amendment to be $529,564.

1. Approve Amendment No. 4 to Agreement No. A8922 with Martha’s Village and Kitchen to:

Exercise option to extend Agreement until September 30, 2023.

Change the amount of compensation for the three-month period to $137,026 and the revised total compensation not to exceed the contract amount of $666,590.

Allow temporary overnight shelter services from June 1, 2023, to September 30, 2023, at no additional cost to the City.

2. Authorize the City Manager or designee to make minor technical changes and execute all necessary documents.

3. D. APPROPRIATE FUNDS FOR THE HOMELESS NAVIGATION CENTER AND June 5, 2023 City Council Regular Meeting Agenda 10
D. APPROPRIATE FUNDS FOR THE HOMELESS NAVIGATION CENTER AND EARLY ENTRY FACILITY IN THE AMOUNT OF $5,000,000 AT 3589 MCCARTHY ROAD.

RECOMMENDATION:

Approve $5,000,000 in the Fiscal Year 2024 General Fund Budget for additional costs relative to the Navigation Center and to add an Early Entry Facility at 3589 McCarthy Road.

E. CONSIDERATION ESTABLISHMENT OF A CITY COUNCIL POLICY

PROVIDING THAT PERCENTAGE OF TRANSIENT OCCUPANCY TAX (TOT)

BE SET ASIDE AND USED FOR FUTURE AFFORDABLE HOUSING NEEDS RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, ESTABLISHING A CITY COUNCIL

POLICY REGARDING THE USE OF A CERTAIN PERCENTAGE OF TRANSIENT OCCUPANCY TAX (TOT) FOR AFFORDABLE HOUSING PROGRAMS.”
PUBLIC COMMENT: (Non-Agenda Items) This time has been set aside for members of the public to address the City Council on items of general interest within the subject matter jurisdiction of the City. Although the City Council values your comments, pursuant to the Brown Act, it generally cannot take any action on items not listed on the posted agenda. Two (2) minutes will be assigned to each speaker.

CITY COUNCIL AND CITY MANAGER COMMENTS, REPORTS, & AGENDA DEVELOPMENT: This time is set aside for the City Council and City Manager to provide additional general comments and reports. Additionally, the City Council and City Manager may briefly discuss items of concern and prioritize agenda items for future meeting dates.

ADJOURNMENT:

June 5, 2023 City Council Regular Meeting Agenda 11

AFFIDAVIT OF POSTING
State of California )
County of Riverside ) ss.

City of Palm Springs )
I, Brent Rasi, Deputy City Clerk of the City of Palm Springs, California, hereby certify this Agenda was delivered to each member of the City Council, provided to all parties who have requested such notice, posted at City Hall before 5:00 p.m., on June 1, 2023, and posted on the City’s website as required by established policies and procedures. __________________________
Brent Rasi
Deputy City Clerk

P U B L I C N O T I C E S

Pursuant to G.C. Section 54957.5(b)(2) the designated office for inspection of records in connection with the meeting is the Office of the City Clerk, City Hall, 3200 E. Tahquitz Canyon Way. Complete Agenda Packets are available for public inspection at: City Hall Office of the City Clerk. Agenda and staff reports are available on the City’s website www.palmspringsca.gov. If you would like additional information on any item appearing on this agenda, please contact the Office of the City Clerk at
(760) 323-8204.

It is the intention of the City of Palm Springs to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 323-8204, at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible.

June 5, 2023 City Council Regular Meeting Agenda 12

CITY COUNCIL STAFF REPORT
06/05/2023
SUBJECT:
4:30 P.M. CLOSED SESSION
Attachments
2023-06-05 Closed Session Agenda

CITY COUNCIL

AND AS SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS

CLOSED SESSION AGENDA
Monday, June 5, 2023 – 4:30 p.m.

Pursuant to Assembly Bill 361, this meeting may be conducted by teleconference. There will be inperson public access to the meeting location.

PUBLIC COMMENT PERIOD FOR CLOSED SESSION ITEMS ONLY
(Time limit is two minutes per person) The City Council welcomes public input. Pursuant to State law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). Please contact the City Clerk at 760-323-8204 to be added to the queue.

CONFERENCE WITH LEGAL COUNSEL The City Council finds, based on advice from the City Attorney, that discussion in open session of the following described matter(s) will prejudice the position of the City in existing and anticipated litigation.

CONFERENCE WITH LEGAL COUNSEL—SIGNIFICANT EXPOSURE TO LITIGATION G.C § 54956.9(d)(2)
One (1) matter.

Claim No. 22-0903, dated April 27, 2022, filed by Law Offices of Monrow Mabon and Barry J. Bennett, on behalf of Pearl Devers, Survivors & Descendants of Section 14; Claim No. 22-0960, dated November 29, 2022, filed by Areva Martin, Esq., Martin & Martin, LLP Pearl Devers & Section 14 Survivors and Descendants
CONFERENCE WITH REAL PROPERTY NEGOTIATOR G.C 54956.8
Property:

City Negotiator:

Negotiating parties:

Under negotiation:
414 N. Palm Canyon Dr., Palm Springs CA
Scott Stiles, City Manager
Canyon Palm Springs Hotel, LLC
Price and terms of transfer of parking easement

CITY COUNCIL STAFF REPORT
06/05/2023
SUBJECT:

MEASURE J FUND BUDGET FOR FISCAL YEARS 2023-24 AND 2024-25 RECOMMENDATION:

Provide direction to staff on any changes to the fiscal year 2023-24 and fiscal year 2024-25 budgets as adopted and recommended by the Measure J Commission.

1. 2. Adopt the Measure J Budget.

Attachments
Joint Meeting OCR

CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 BUSINESS & LEGISLATIVE
SUBJECT: MEASURE J FUND BUDGET FOR FISCAL YEARS 2023-24 AND 2024-25 FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
Measure J Commission

SUMMARY:

This item represents a review of the estimated fiscal year 2023-24 and fiscal year 2024- 25 Measure J Fund budget.

RECOMMENDATION:
1) Provide direction to staff on any changes to the fiscal year 2023-24 and fiscal year 2024-25 budgets as adopted and recommended by the Measure J Commission. 2) Adopt the Measure J Budget.

STAFF ANALYSIS:

In Table 1 on the following page, a forecast of the current fiscal year Measure J Fund revenue and expenditures is provided, along with an overview of Measure J Fund budgeted revenue and expenditures for FY 2023-24 (FY24) and FY 2024-25 (FY25) as recommended by the Measure J Commission.

Following Table 1, revenue and expense highlights are outlined to provide additional detail.

JOINT MEETING - Page 1
City Council Staff Report
June 5, 2023 -- Page 2
Joint Council Meeting with Measure J Commission for FY 2023-24 & FY 2024-25 Budget

MEASURE J FUND
TABLE 1
Measure J Fund Revenue Highlights for Fiscal Year 2022-23, Fiscal Year 2023-24 and Fiscal Year 2024-25
The Measure J Fund is expected to end Fiscal Year 2022-23 (FY23) with total sales tax revenue at $22.2 million, less than 1% increase over fiscal year 2021-22, but 9.2% over FY 23 budget. FY 24 sales tax revenue is projected at $22.5 million, which is 1.9% over fiscal year 2022-23. FY 25 sales tax revenue is projected at $23.4 million, which is 3.9% over FY24.

Year-End Adopted Forecast
Final Audited Budget Fiscal Year
2021-2022 2022-2023 2022-2023 2023-2024 2024-2025
Beginning Fund Balance $ 21,142,569 $ 32,744,800 $ 32,744,800 $ 6,208,265 $ 4,726,113 Measure J Sales Tax Revenue 22,202,207 20,352,400 22,228,489 22,520,046 23,405,226 Interest Income/Unrealized Gain/Loss (445,703) 287,762 250,000 250,000 Miscellaneous Revenue 13,955
Total Revenues 21,770,458 20,352,400 22,516,251 22,770,046 23,655,226 Existing Budget Obligations:

Multi-Year Projects:

Street Repairs 5,983,348 6,000,000 6,000,000 9,000,000 6,000,000 Community Initated Projects 13,275 3,000,000 972,580 1,000,000 1,000,000 Airport Reserve on Aviation Fuel Sales per FAA * - 200,000 200,000 200,000 200,000 Total Multi-Year Projects (Subtotal) 5,996,622 9,200,000 7,172,580 10,200,000 7,200,000 Other Approved Projects and Expenses:

Debt Service 1,402,832 3,138,500 3,138,500 3,133,279 3,133,620 Downtown Maintenance, Landscaping & Security 599,309 1,099,735 667,935 650,000 400,000 Transfer Out to Other Funds - 2,000,000 2,000,000 - -
Expenditures 2,169,464 - - -
Adopted Capital Projects FY22-23 Expenditures - 17,396,150 7,141,961 8,768,920 6,996,500 Cont Appropriations (Carryover) - 12,884,164 26,904,390 - - Cont Appropriations (Carryover) - CIP 2,027,420
Project Cost Over Runs 1,000,000 1,000,000
Parks and Recreation (Cap Prj Cost Over Runs) 500,000 500,000 Total Expenditures 10,168,227 45,718,549 49,052,786 24,252,199 19,230,120 Net Change 11,602,231 (25,366,149) (26,536,535) (1,482,153) 4,425,106 Fund Balance Restricted for Measure J Capital 31,649,800 6,083,651 4,913,265 3,231,113 7,456,219 Fund Balance Restricted for Airport Projects 1,095,000 1,295,000 1,295,000 1,495,000 1,695,000 Total Fund Balance 32,744,800 7,378,651 6,208,265 4,726,113 9,151,219 * Note: Effective December 8, 2017, per a Federal Aviation Administration ruling, the City is required to set aside Measure J sales taxes collected on aviation fuel sales for airport project expenses.

JOINT MEETING - Page 2
City Council Staff Report
June 5, 2023 -- Page 3
Joint Council Meeting with Measure J Commission for FY 2023-24 & FY 2024-25 Budget Measure J Fund Expenditure Highlights for Fiscal Year 2022-23, Fiscal Year 2023- 24 and Fiscal Year 2024-25
The FY 24 and FY 25 is a continuation of the FY23 budget with only a few new items added.

In FY 24, there will be 28 projects that will carry forward (see Attachment 1 for a list of projects). Those projects have a balance remaining (carryover) of $26.9 million. Two of these projects are on-going annually. The street paving and the pedestrian master plan get annual funding that is fully spent each year. Two of the projects are essentially “setaside” funding for future construction of a Fire Station and Airport related projects yet to be determined. These 28 projects will add an additional $19.6 million to their budgets in FY 24.

One new project will be added, a structure that will be able to house vehicles that have been impounded by the Police Department. The anticipated cost is $754,000.

The total budget for projects is $19.6 million in FY 24. The Commission is also recommending adding $1 million for cost overruns as the projects get scoped and bid out.

In addition to the $1 million, the Commission is recommending $500,000 for cost overruns on Parks and Recreation specific projects. Lastly, the Commission voted to phase out the Downtown Maintenance, Landscaping, and Security line item. The FY 24 budget contains $650,000 for this purpose but will be fully phased out to zero in FY 26. This line item will be covered in the General Fund for FY26.

The City is expecting to spend $19.4 million which includes the following:
• $9 million on street paving
• $4.7 million for LED lighting upgrades at City parks
• $725,000 for Pickleball Courts
The Measure J Fund also supports Community Initiated Projects (see Attachment 2 for a list of projects). The budget for those 14 projects, approved by the Council in FY 23, is $3.0 million. Currently, those projects are projected to spend a total of $1.8 million, however, as each project gets scoped and bid out, the City expects that amount to be considerably more. The Measure J Commission is recommending another $1 million be set aside in FY 24 and FY 25 for more Community Initiated Projects. The City is expecting to complete 10 of the 14 projects by the end of FY 24.

In FY 25, 25 of the 28 aforementioned projects will carry forward. The City will add $14.6 million to the budgets of these projects which includes $3.6 million set-aside for future construction of a fire station. No new projects are currently planned to be added in FY 25.

The Measure J Commission approved an additional $1 million to be set aside for future Library related construction. The City expects to spend $28.2 million toward these projects in FY 25 which includes the following:

JOINT MEETING - Page 3
City Council Staff Report
June 5, 2023 -- Page 4
Joint Council Meeting with Measure J Commission for FY 2023-24 & FY 2024-25 Budget • $7 million for the planned infrastructure upgrades to the Library ($6.5 million grant award will also be applied to this construction for a total of $13.5 million) • $6 million for street paving
• $2 million to complete the purchase and installation of the Police CAD/RMS system • $1.5 million for Victoria and Ruth Hardy park restroom upgrades • $1.1 million to complete the DeMuth Park ADA access
• $1 million for the Pedestrian Master Plan
Overall, of the 24 active projects in Attachment 1 (28 projects less the 2 annually funded projects and the 2 set-aside funded projects), 12 are expected to be completed by the end of Fiscal Year 2024-25.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the City Council identified major theme/principle of Forward-Thinking Governance.

FISCAL IMPACT:

Provide direction to Staff on any changes to the Preliminary FY24 and FY25 budgets.

REVIEWED BY:

Acting Director of Finance: Kristopher J. Mooney
City Engineer: Joel Montalvo
City Manager: Scott Stiles
ATTACHMENTS:

1. Project List

2. Community Initiated Projects List
JOINT MEETING - Page 4
ATTACHMENT 1

JOINT MEETING - Page 5
ATTACHMENT 2
JOINT MEETING - Page 6

CITY OF PALM SPRINGS
Department of FinanceMeasure J Summary
FY24 & FY25 Budget
MEASURE J FUND Estimated
Project Number Project Name Status Balance 06/30/23 FY23‐24 Budget FY23‐24 Expenditures FY24‐25 Budget FY24‐25 Expenditures Remaining Balance 16‐08 MAIN LIBRARY RENOVATIONS Scope Development 4,138,339 2,921,400 1,000,000 7,059,739 1,000,000 18‐06 VICTORIA RTHHRDY RESTROOMS Not Started 1,220,000 366,000 120,000 1,466,000 ‐ 18‐09 FIRE TRAINING FACILITY Not Started 1,150,000 345,000 345,000 1,150,000 ‐ 18‐10 DOWNTOWN SFTY BOLLARD PH2 On Hold ‐ 500,000 500,00018‐17 Police Department Vehicle Impound Structure NEW 754,000 290,000 464,000 ‐ 19‐16 PD 911 CAD RMS Open 1,671,980 1,078,020 750,000 2,000,000 ‐ 19‐18 JC FREY BUILDING REHAB Combined ‐ 1,131,000 1,131,000 ‐ 19‐23 KEYLESSS ENTRY PHASE 2 Scope Development 203,348 651,000 854,348 19‐24 DEMUTH PARK ADA ACCESS PH2 RFP Design Services 595,714 1,000,000 478,714 1,117,000 ‐ 19‐25 LIFE SAFETY IMPRV FIRE SPRKLR Not Started 900,000 500,000 500,000 1,900,000 ‐ 19‐26 EMERGENCY GENERATORS CITYFAC Not Started 1,200,000 777,500 1,977,500 ‐ 19‐27 HVAC CITY WATER TREATMENT PRGM Not Started 607,500 607,500 ‐ 19‐28 RECREATIONAL LED LIGHTING UPGR Out to Bid 4,702,213 4,702,213 ‐ 20‐03 PALM CYN INDIAN ROUNDABOUT Under Design 334,487 520,000 300,000 200,000 754,487 20‐04 SUNRISE PLAZA HVAC IMPROVEMENTS Not Started 400,000 650,000 696,500 1,746,500 ‐ 21‐16 DEMUTH DOG PARK Scope Development 202,000 202,000 ‐ 21‐17 ARNICO TRACT SEWER PHASE 4 Completed Design 684,950 684,950 ‐ 22‐11‐2 PARK BENCHES Open 10,000 10,000
22‐11‐3 PAVILION LANDSCAPING Open 10,000 10,000
22‐16 CONVENTIONCTR HOUSTON PLAZA UPGRADE Scope Development ‐ ‐ 22‐19 RELOCATE FIRE STATION 1 Not Started 1,600,000 ‐ 500,000 3,600,000 4,700,000 N/A 260.2 DOWNTOWN MAINTENANCE, LANDSCAPING, ETC Open ‐ 650,000 650,000 400,000 400,000 ‐ 22‐20 COMMUNITY INITIATED PROJECTS In Process 2,027,420 1,000,000 328,920 1,000,000 3,698,500 22‐21 PEDESTRIAN STREETS MASTER PLAN Scope Development 500,000 500,000 500,000 500,000 1,000,000 ‐ 22‐24 PICKLEBALL COURTS Scope Development 150,000 575,000 725,000 ‐ 22‐25‐1 DOWNTOWN PROJECT‐DSRTFASHIONPLAZA Open 8,863 8,863 22‐26 SAN RAFAEL DRIVE TURF CONVERSION Not Started 150,000 150,000 22‐32‐1 PROPERTY MAINTENANCE/LANDSCAPE Open 95,121 95,121 22‐37‐1 AIRP RES‐FUEL FAA Open 1,295,000 200,000 200,000 1,695,000 PAVING ANNUAL PAVING REHABILITATION Under Construction 3,000,000 6,000,000 9,000,000 6,000,000 6,000,000 ‐ 18‐04 ‐MEAS J PLAZA THEATER ‐ TRANSFERRED TO GENERAL FUND Completed 38,872 38,872 14‐20 OTHER On Hold 8,582 8,582
SUBTOTAL $ 26,904,390 $ 19,618,920 $ 19,374,797 $ 14,596,500 $ 28,221,239 $ 13,523,774 Measure J Interfund Items
DEBT Measure J Debt Service N/A ‐ 3,133,279 3,133,279 3,133,620 3,133,620 SUBTOTAL $ ‐ $ 3,133,279 $ 3,133,279 $ 3,133,620 $ ‐ 3,133,620 $ TOTAL 26,904,390 $ $ 22,752,199 $ 22,508,076 $ 17,730,120 $ 31,354,859 $ 13,523,774 Cost Over Runs 1,500,000 1,500,000
GRAND TOTAL 24,252,199 $ $ 19,230,120
JOINT MEETING - Page 7 I

CITY OF PALM SPRINGS
Department of FinanceMeasure J Community Initiated Projects (Proj. 22‐20) Fiscal Year 2023‐24 and Fiscal Year 2024‐25 Budget
Number Name Status FY22‐23 Budget FY22‐23 Expenditures FY23‐24 Expenditures FY24‐25 Expenditures Remaining Balance 1 Drainage at the boys and Girls Club Scope Development $ 72,500 $ 6,080 66,420 $ ‐ 2 Shade Structure over the playground at Victoria Park Design Development 58,000 ‐ 58,000 ‐3 Fencing between the Pool and Pavillion RFP Design Services 87,000 40,000 47,000 ‐ 4 Repair Existing Exercise Equipment at Desert Highland Park Not Started 32,625 ‐ 32,625 5 Add 4 New Pieces of Exercise Equipment at Desert Highland Park Not Started 71,775 ‐ 71,7756 Hiking Trail Maintenance and Trailhead Signage Not Started 145,000 ‐ 145,000 7 Shade Structures at Animal Shelter Bid ‐ Over Budget 280,500 280,500 ‐ 8 Demuth Dog Park Upgrades to address immediate needs In Process 362,500 362,500 ‐ 9 Resurfacing the Walking Path at Desert Highland Park Pending a quote 72,500 ‐ 72,500 ‐ 10 Swim Center Locker Rooms RFP Design Services 145,000 60,000 85,000 ‐ 11 Palm Canyon Theatre Maintenance Repairs Agreement in Process 280,575 ‐ 280,575 12 Visitor Center Up Lighting Agreement in Process 43,500 43,500 ‐ 13 Wellness Centers and Local Schools (4 schools) Check Issued 100,000 100,000 ‐14 School Gardens at Local Schools (4 schools) Check Issued 80,000 80,000 ‐ SUBTOTAL $ 1,831,475 $ 972,580 $ 328,920 $ ‐ $ 529,975
JOINT MEETING - Page
8 CITY COUNCIL STAFF REPORT
06/05/2023
SUBJECT:

FINDINGS TO CONDUCT CITY COUNCIL AND BOARD, COMMISSION, AND COMMITTEE MEETINGS VIRTUALLY UNDER ASSEMBLY BILL 361
RECOMMENDATION:

By motion, find that:

1. The City Council has reconsidered the circumstances of the state of emergency.

2. State and local officials continue to recommend social distancing measures, which can impact the ability of the City and the public to meet safely in person; and

CITY COUNCIL STAFF REPORT
DATE: June 5, 2023 CONSENT CALENDAR
SUBJECT: FINDINGS TO CONDUCT CITY COUNCIL AND BOARD, COMMISSION, AND COMMITTEE MEETINGS VIRTUALLY UNDER ASSEMBLY BILL 361 FROM:

BY:

Scott C. Stiles, City Manager
Brenda Pree, City Clerk
RECOMMENDATION:

By motion, find that:

1. The City Council has reconsidered the circumstances of the state of emergency.

2. State and local officials continue to recommend social distancing measures, which can impact the ability of the City and the public to meet safely in person; and

BACKGROUND:

Governor Newsom’s Executive Orders N-29-20 and N-35-20, which relaxed some of the Brown Act’s teleconferencing provisions during the COVID-19 pandemic, expired on September 30, 2021. On September 16, 2021, Governor Newsom signed AB 361, which amends sections of the Brown Act to allow legislative bodies to more easily hold teleconference meetings during a state of emergency.

AB 361 added section 54953(e) to the Brown Act, authorizing legislative bodies (City Council, Boards, and Commissions) to conduct remote meetings provided the legislative body makes specified findings on a regular basis. Section 54953(e)(3) authorizes the City Council and its subordinate bodies to continue to conduct remote and/or hybrid public meetings, provided the procedural requirements of AB 361 are met.

In order to continue meeting by remote teleconferencing, a required condition is that the City Council find that state or local officials have imposed or recommended measures to promote social (physical) distancing, and that the legislative body continues to make Item 1A - Page 1
certain findings by majority vote at least every 30 days.

Among other measures to promote physical distancing, the California Division of Occupational Safety and Health (“Cal/OSHA”) regulations at Title 8 Section 3205 recommend physical distancing in the workplace as precautions against the spread of COVID-19 and imposes certain restrictions and requirements due to a “close contact” which occurs when individuals are within six feet of another in certain circumstances.

And, the Centers for Disease Control and Prevention continue to recommend avoiding contact and keeping a safe distance from a person who has a suspected or confirmed case of COVID-19.

Under AB 361, teleconferenced meetings must meet the following requirements:
• All votes taken during a teleconferenced meeting must be by rollcall. • Whenever notice of the time of the meeting is given or the agenda for the meeting is posted, the legislative body must also provide notice of the means by which members of the public can access the meeting and offer public comment. The agenda must identify and include an opportunity for all persons to attend via a callin option or an internet-based service option. • In the event of a disruption that prevents the legislative body from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the City’s control that prevents members of the public from offering public comments using the call-in option or internet-based service option, the legislative body cannot take any further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. • The legislative body cannot require public comments to be submitted in advance of the meeting and must provide an opportunity for the public to address the legislative body and offer comment in real time.
• An individual desiring to provide public comment through the use of an internet website, or other online platform, not under the control of the local legislative body, that requires registration to log in to a teleconference may be required to register as required by the third-party internet website or online platform to participate. • With regard to public comments:
• A legislative body that provides a timed public comment period for each agenda item cannot close the public comment period for the agenda item, or the opportunity to register, to provide public comment until that timed public comment period has elapsed.
• A legislative body that does not provide a timed public comment period, but takes public comment separately on each agenda item, must allow a reasonable amount of time per agenda item to allow public members the opportunity to provide public comment, including time for members of the public to register/log on, or otherwise be recognized for the purpose of providing public comment. • A legislative body that provides a timed general public comment period that does not correspond to a specific agenda item cannot close the public comment period or the opportunity to register/log on, until the timed general public comment period has elapsed.

Item 1A - Page 2
City Council Staff Report
June 05, 2023 -- Page 2
Virtual Meetings Under AB 361
As such, City Staff and the City Attorney recommend that the City Council make these findings, including at every Council meeting, in order to meet the “every 30 days” requirement of AB 361. These findings would apply to all City Boards, Commissions and Committees, so they are able to hold virtual meetings under AB 361.

FISCAL IMPACT:

There is no fiscal impact associated with this action.

REVIEWED BY:

Department Director: Brenda Pree
City Attorney: Jeffrey S. Ballinger
City Manager: Scott Stiles
Item 1A - Page 3

CITY COUNCIL STAFF REPORT
06/05/2023
SUBJECT:

MEMORANDA OF UNDERSTANDING WITH THE PALM SPRINGS PUBLIC

EMPLOYEES ASSOCIATION OF PALM SPRINGS AND THE MANAGEMENT

ASSOCIATION OF PALM SPRINGS
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A MEMORANDUM OF

UNDERSTANDING RELATIVE TO WAGES, HOURS, AND OTHER TERMS

AND CONDITIONS OF EMPLOYMENT FOR EMPLOYEES IN THE PALM

2. Attachments
Item 1B

CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 CONSENT CALENDAR
SUBJECT: MEMORANDA OF UNDERSTANDING WITH THE PALM SPRINGS

PUBLIC EMPLOYEES ASSOCIATION OF PALM SPRINGS AND THE

MANAGEMENT ASSOCIATION OF PALM SPRINGS
FROM: Scott C. Stiles, City Manager
BY: Department of Human Resources
SUMMARY:

The City has reached a tentative Memorandum of Understanding (MOU) agreement with the Palm Springs Public Employees Association (PEAPS) and the Management Association of Palm Springs (MAPS). The City Council will consider adopting a Resolution approving the Memoranda of Understanding between the City and the Associations.

RECOMMENDATION:

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

THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A

MEMORANDUM OF UNDERSTANDING RELATIVE TO WAGES, HOURS,

AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT FOR

EMPLOYEES IN THE PALM SPRINGS PUBLIC EMPLOYEES ASSOCIATION

AND THE MANAGEMENT ASSOCIATION OF PALM SPRINGS FOR THE
PERIOD OF JULY 1, 2023 THROUGH JUNE 30, 2026, SUBJECT TO

ASSOCIATIONS EXECUTING THE MEMORANDUM OF
UNDERSTANDING.”

2. Authorize the City Manager to execute the Memorandum of Understanding (MOU) and all documents necessary to effectuate the above action, including the allocation and compensation plans, salary schedules, agreements and contracts, and any non-substantial MOU language or reorganization.

STAFF ANALYSIS:

The City and representatives of PEAPS and MAPS have met and conferred in good faith and have reached an agreement on the terms and conditions of the MOU governing employees of the City represented by PEAPS and MAPS for the period July 1, 2023 through June 30, 2026.

Item 1B - Page 1
City Council Staff Report
June 5, 2023 -- Page 2

PEAPS AND MAPS MOU
The three-year term agreement with PEAPS and MAPS includes a 5% increase to base salary every year of the contract beginning with the pay period that includes July 1, 2023 and the addition of Indigenous Peoples’ Day. Other changes include a reopener agreement to discuss opening City Hall and Police Department five days a week, the restructuring of holiday pay, and simplifying the safety shoe and education reimbursement programs.

The agreement was reached through negotiations with PEAPS and MAPS and the City Negotiation team, which jointly recommend City Council adoption of the MOUs.

ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not 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. The requested action is to approve agreements for the above-mentioned bargaining units, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

The requested action aligns with the City Council identified major theme/principle of Forward-Thinking Governance.

FISCAL IMPACT:

During the term of the agreement the anticipated annual additional cost for PEAPS is:

Year 1 - $928,000
Year 2 - $1,948,000
Year 3 - $3,068,000
During the term of the agreement the anticipated annual additional cost for MAPS is:

Year 1 - $575,000
Year 2 - $1,214,000
Year 3 - $1,917,000
Item 1B - Page 2
City Council Staff Report
June 5, 2023 -- Page 3

PEAPS AND MAPS MOU
REVIEWED BY:

Department Director: Stephanie George
Deputy City Manager: Jeremy Hammond
City Manager: Scott Stiles
ATTACHMENTS:

A. Resolution
B. Memorandum of Understanding
Item 1B - Page 3

ATTACHMENT A

Item 1B - Page 4
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, APPROVING A

MEMORANDUM OF UNDERSTANDING RELATIVE TO

WAGES, HOURS, AND OTHER TERMS AND CONDITIONS

OF EMPLOYMENT FOR EMPLOYEES IN THE PALM

SPRINGS PUBLIC EMPLOYEES ASSOCIATION AND THE

MANAGEMENT ASSOCIATION OF PALM SPRINGS FOR
THE PERIOD JULY 1, 2023 THROUGH JUNE 30, 2026,

SUBJECT TO ASSOCIATIONS EXECUTING THE
MEMORANDUM OF UNDERSTANDING.

WHEREAS, Resolution 16438 designates the City Manager (acting personally or through a delegee) with authority to meet and confer in good faith on matters within the scope of representation including wages, hours, and other terms and conditions of employment; and
WHEREAS, the City Negotiation Team has met and conferred in good faith on wages, hours, terms and other conditions of employment with the Public Employees Association of Palm Springs (“PEAPS”) and the Management Association of Palm Springs (“MAPS”); and
WHEREAS, as a result of such good faith negotiations, the City Negotiation Team have reached agreement with PEAPS and MAPS on the terms and conditions of a Memorandum of Understanding (“MOU”) governing employees of the City of Palm Springs within such Associations; and
WHEREAS, PEAPS, MAPS and the City Negotiation Team jointly recommend adoption of such MOUs by the City Council;

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

SECTION 1. That the Memorandum of Understanding between PEAPS and the City, for the period July 1, 2023 through June 30, 2026, on file with the City Clerk and incorporated herein by this reference, is hereby approved upon execution of said Memorandum of Understanding.

SECTION 2. That the Memorandum of Understanding between MAPS and the City, for the period July 1, 2023 through June 30, 2026, on file with the City Clerk and incorporated herein by this reference, is hereby approved upon execution of said Memorandum of Understanding.

SECTION 3. The City Manager is authorized and directed to fulfill any meet and confer process(es) in accordance with these changes and execute documents necessary to effectuate the above actions, including the allocation and compensation plans, salary Item 1B - Page 5
Resolution No. _____

Page 2 ends

schedules, agreements and contracts, and any non-substantial MOU language or reorganization in a form acceptable to the City Attorney.

ADOPTED THIS 5TH DAY OF JUNE 2023.

SCOTT C. STILES

CITY MANAGER
ATTEST:

BRENDA PREE

CITY CLERK
Item 1B - Page 6
Resolution No. _____

Page 3 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, BRENDA PREE, 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 June 5, 2023, 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 5th day of June, 2023.

Brenda Pree
City of Palm Springs, California
Item 1B - Page 7

ATTACHMENT B
Item 1B - Page 8

MANAGEMENT

ASSOCIATION OF PALM

SPRINGS (MAPS)

MEMORANDUM OF

UNDERSTANDING
JULY 1, 2023 – JUNE 30, 2026
Item 1B - Page 9
2 Management Association of Palm Springs (MAPS)
Memorandum of Understanding
July 1, 2023 – June 30, 2026
GENERAL PROVISIONS.................................................................................................... 3 ARTICLE 1, TERM ...................................................................................................... 3 ARTICLE 2, RECOGNITION ....................................................................................... 3 ARTICLE 3, PRACTICES............................................................................................ 3 ARTICLE 4, FEDERAL AND STATE LAWS ................................................................ 3 ARTICLE 5, MAINTENANCE OF BENEFITS .............................................................. 4 COMPENSATION / OTHER PAY........................................................................................ 5 ARTICLE 6, SALARIES............................................................................................... 5 ARTICLE 7, SALARY ADVANCEMENT ELIGIBILITY.................................................. 5 ARTICLE 8, OVERTIME AND STANDBY PAY............................................................ 5 ARTICLE 9, ACTING OUT OF CLASSIFICATION....................................................... 6 ARTICLE 10, SPECIAL COMPENSATION.................................................................. 7 ARTICLE 11, UNIFORM ALLOWANCE AND SAFETY BOOTS .................................. 8 ARTICLE 12, MILEAGE .............................................................................................. 9 BENEFITS ........................................................................................................................10 ARTICLE 13, HEALTH INSURANCE.........................................................................10 ARTICLE 14, HEALTH INSURANCE FOR RETIREES..............................................12 ARTICLE 15, RETIREMENT .....................................................................................14 ARTICLE 16, EDUCATION REIMBURSEMENT .......................................................15 ARTICLE 17, EMPLOYEE SERVICE AWARDS........................................................16 ARTICLE 18, CELL PHONES....................................................................................16 WORK HOURS / LEAVE...................................................................................................17 ARTICLE 19, WORK SCHEDULE.............................................................................17 ARTICLE 20, ANNUAL LEAVE..................................................................................17 ARTICLE 21, HOLIDAYS ..........................................................................................19 ARTICLE 22, BEREAVEMENT LEAVE .....................................................................20 EMPLOYER / EMPLOYEE RELATIONS...................................................................21 ARTICLE 23, DRUG POLICY/DRUG SCREENING...................................................21 ARTICLE 24, LAYOFF ..............................................................................................21 ARTICLE 25, PAYROLL DEDUCTION - ASSOCIATION MEMBERSHIP ..................21 ARTICLE 26, MEETINGS..........................................................................................21 ARTICLE 27, ASSOCIATION TIME BANK ................................................................21 ARTICLE 28, STRIKES AND WORK STOPPAGES..................................................21 ARTICLE 29, GRIEVANCE PROCEDURE................................................................22 ARTICLE 30, DISCIPLINE.........................................................................................24 ARTICLE 31, WAIVER OF FURTHER BARGAINING................................................27 APPENDIX A – DRUG AND ALCOHOL POLICY...............................................................28 APPENDIX B – MAPS CLASSIFICATIONS AND FLSA EXEMPTION STATUS ................30 Item 1B - Page 10
3 MEMORANDUM OF UNDERSTANDING (MOU)

BETWEEN THE CITY OF PALM SPRINGS)

AND THE MANAGEMENT ASSOCIATION OF PALM SPRINGS (MAPS)

REPRESENTING THE PROFESSIONAL & MANAGEMENT UNIT
JULY 1, 2023 – JUNE 30, 2026

GENERAL PROVISIONS
ARTICLE 1, TERM
MAPS AND CITY agrees as follows:

This MOU shall be for the period commencing July 1, 2023, and terminating at 11:59 p.m. on, June 30, 2026.

The Parties agree on a reopener during the term of this MOU to discuss the subject of City Hall and the Police Department being open five days per week. The parties agree that if the City requests to reopen negotiations, it will not propose to eliminate the 4/10 work schedule.

ARTICLE 2, RECOGNITION
This Memorandum of Understanding is entered into with reference to the following facts:

A. The Management Association of Palm Springs (hereinafter referred to as “MAPS”) is the exclusive recognized employee organization for members it represents employed by the City in the Professional and Management Unit (“Unit”) as defined in Appendix B of this MOU.

B. MAPS and the City have met and conferred in good faith on wages, hours and other terms and conditions of employment for the employees represented by MAPS and have reached agreements which are set forth in this Memorandum of Understanding (hereinafter referred to as the “MOU”).

ARTICLE 3, PRACTICES
It is understood that existing ordinances, resolutions, and policies of City cover matters pertaining to employer-employee relations including, but not limited to, wages, salaries, benefits, hours and other terms and conditions of employment.

ARTICLE 4, FEDERAL AND STATE LAWS
It is understood and agreed that this MOU is subject to all present and future applicable Federal and State laws and regulations and the provisions hereof shall be effective and implemented only to the extent permitted by such laws and regulations. If any part of this MOU is in conflict or inconsistent with such applicable provisions of Federal or State laws Item 1B - Page 11
4 or regulations, or otherwise held to be invalid or unenforceable by any tribunal of competent jurisdiction, such part or provisions shall be suspended and superseded by such applicable laws and regulations and the remainder of this MOU shall not be affected thereby and shall remain in full force and effect.

ARTICLE 5, MAINTENANCE OF BENEFITS
The status of all existing benefits and conditions of employment now enjoyed by the members of the Unit as represented by MAPS (referred to as “unit members” in this MOU) shall not be deemed affected by this MOU, except as specifically modified by provisions hereof or by actions taken in implementation hereof.

Item 1B - Page 12
5 COMPENSATION / OTHER PAY
ARTICLE 6, SALARIES
Effective the later of the pay period which includes July 1, 2023 or the pay period following Council approval of this MOU, unit members shall receive a five percent (5.0%) salary increase.

Effective the pay period which includes July 1, 2024, unit members shall receive a five percent (5.0%) salary increase.

Effective the pay period which includes July 1, 2025, unit members shall receive a five percent (5.0%) salary increase.

For each classification represented by the Association, there is one range on the salary schedule.

Employees who promote into the unit will be placed at a step on the salary schedule at least five percent (5%) above (unless five percent (5%) would cause the employee’s salary range to be above top step for the classification hired into) the step from which they were at in their prior job classification with the City.

Employees who are promoted within the unit will be placed at the lowest step in their new classification which will ensure that they receive at least a five percent (5%) increase from their current salary.

ARTICLE 7, SALARY ADVANCEMENT ELIGIBILITY
Unit members shall be advanced one-step on the salary schedule effective on each member’s anniversary date, provided the member’s service has been continuous and they have at least a “meets expectations” or higher service rating on their most recent performance evaluation. Such consideration for a salary advancement shall only be given effective on each anniversary date until the member reaches the top step of the range.

Any unpaid leave of absence in excess of twenty (20) consecutive days will extend a member’s anniversary date by the length of such leave.

ARTICLE 8, OVERTIME AND STANDBY PAY

8.1 The bargaining unit is made up of employees who are both exempt and non-exempt from overtime per the Fair Labor Standards Act (FLSA). The parties agree that each of the classifications represented by the Association along with their designation as either exempt or non-exempt is set forth in Appendix B to this MOU. For purposes of this MOU, overtime or compensatory time off provided to employees (as provided in the paragraph below) who occupy classifications designated as exempt will be provided to employees pursuant to this MOU, not because these employees are entitled to overtime per the FLSA. Non-exempt employees are entitled to overtime or compensatory time off as provided below in accordance with the FLSA.

Item 1B - Page 13
6 The City agrees that if a Unit member is asked to work more than forty (40) hours in a week, such member will be eligible to receive overtime or compensatory time off, either MOU overtime/compensatory time off for exempt employees or FLSA overtime/compensatory time off for non-exempt employees. If the employee accrues compensatory time off, all requests to use that time will be honored if the employee provides reasonable notice unless it would be unduly disruptive to do so. The maximum compensatory time off accumulation is one hundred (100) hours.

Unit members shall be required to log time in and time out. Employees may be allowed to flex hours within a workweek, if approved in advance by the Department Head or designee.

8.2 Standby Pay
Unit members shall be paid for two (2) hours per day for standby pay at the employee’s regular hourly rate and not subject to overtime premium. Department Heads, Managers and Supervisors placing employees on standby are encouraged to provide unit members with advanced notice (when possible) of placement on standby.

Unit members on standby shall receive a cell phone from the City and will be required to respond to the call or text as quickly as possible. Upon responding, the member will be instructed as to whether they are required to return to work and will be informed of the location to which they must respond. Response time will generally be one hour and any additional minimal time necessary to get ready to return to work. Standby lists shall be created monthly, at least one week in advance of any standby shift. Members will be permitted to trade stand-by shifts with their colleagues.

ARTICLE 9, ACTING OUT OF CLASSIFICATION

9.1 Employees Who Are Assigned to Another Classification On An Acting Basis On the second consecutive workday that a Unit member is assigned to an acting assignment such member shall be entitled to additional compensation equal to the lowest step on the range of the higher classification which will provide an increase in pay of 5%, but not to exceed the top step of the classification for which such member is performing acting out of class duties ("acting pay"). Such acting pay shall be prospective only, commencing the second consecutive workday the member is acting out of class and continuing thereafter until such member ceases performing acting out of class duties.

9.2 Employees Who Are Not Assigned to Another Classification, But Who Are Required To Perform Duties Not Covered By Their Classification On the second consecutive workday that a Unit member is required to perform the majority of the duties of a higher classification ("acting out of class") such member shall be entitled to additional compensation equal to the lowest step on the range of the higher classification which will provide an increase in pay of 5%, but not to exceed the top step of the classification for which such member is performing acting out of class duties ("acting pay").

Such acting pay shall be prospective only, commencing the second (2) consecutive day the member is performing the majority of the duties of the higher classification and continuing Item 1B - Page 14
7 thereafter until such member ceases performing those duties.

ARTICLE 10, SPECIAL COMPENSATION
Per this article, unit members may only receive one of the following certification premiums (set forth in Articles 10.1 – 10.3): Master’s Degree, professional certification, notary certification or bilingual certification.

10.1 Education Incentive Pay
Unit members will be eligible to receive an additional 5.0% of their base salary for a Master's Degree from a college or university accredited by either the Council for Higher Education Accreditation (“CHEA”) or the U.S. Department of Education (“USDE”).

10.2 Certification Pay
Unit members will be eligible to receive an additional 5.0% of their base salary for maintaining a professional certification related to their job that require Continuing Education Hours or require testing or coursework to be recertified. Any employees who have previously received certification pay from the City for certifications which do not require Continuing Education Hours or require testing or coursework to be recertified, will continue to receive that pay. However, effective July 1, 2014 certification pay for professional certifications will only be provided to employees who maintain certifications related to their job which require Continuing Education Hours or require testing or coursework to be recertified. Each Department must approve the certification pay and determine if it is a certification necessary for the department.

10.3 Notary Pay
Unit members designated by the City Manager may be eligible to receive an additional

5.0% Notary Certification Pay for being a licensed Notary Public. Designations for “Notary Certification Pay” for Unit members shall be entirely at the City Manager’s discretion.

Employees hired on or after October 4, 2018, will receive one hundred dollars ($100) per month for Notary Certification Pay.

10.4 Bilingual Pay
Unit members are eligible for Bilingual Pay as provided in this section. The City Manager shall determine the language needs as well as the number of members eligible for Bilingual Pay. In order to be eligible for Bilingual Pay, a member must pass an examination (and as set forth below, must recertify) demonstrating fluency in listening, writing and speaking the desired second language.

Unit members hired before October 4, 2018 are eligible to receive five percent (5%) of base salary in compensation for Bilingual Pay if their position is selected to receive Bilingual Pay and they pass the required examinations. Members will be required to take both a speaking and listening and a writing bilingual proficiency examination. These members shall receive two and one half percent (2.5%) for passing the speaking and listening portion of the bilingual proficiency exam and an additional two and one half percent (2.5%) for passing the writing portion of the bilingual proficiency exam for up to a maximum of Item 1B - Page 15
8 five percent (5%) of base salary.

Members hired on or after October 4, 2018 who become eligible for bilingual pay shall receive two hundred and fifty dollars ($250) per month for Bilingual Pay. Members will be required to take both a speaking and listening and a writing bilingual proficiency examination. Members shall receive one hundred and twenty-five dollars ($125) per month for passing the speaking and listening portion of the bilingual proficiency exam and an additional one hundred and twenty-five dollars ($125) per month for passing the writing portion of the bilingual proficiency exam for up to a maximum of two hundred and fifty dollars ($250) per month.

The examinations shall be developed and administered by the City to demonstrate fluency in writing and speaking and listening the desired second language. All members receiving bilingual pay must pass the prescribed examinations for each skill (one for speaking and listening and the other for writing) every two years to continue to receive bilingual pay for each skill. The City will notify members when they are required to retest. A member who passes one of the tests but not the other, will still be eligible to receive their respective bilingual pay (2.5% or $125 per month for the skill passed. In addition, the member may take a recertification examination after waiting at least three (3) months after taking the recertification examination to which the employee did not pass.

If the member does not pass that recertification examination, they shall not be permitted to take the recertification examination for that skill until their two-year cycle to recertify has passed. The City will notify members when they are required to re-test.

If the member passes one of the two examinations they shall the respective incentive pay (2.5% or $125 per month) for Bilingual Pay. If the member does not pass either or both of those subsequent recertification examinations, they shall not be permitted to take the recertification examination(s) for that skill until their two-year cycle to recertify has passed.

The Human Resources Department will coordinate the recertification examination for each employee receiving bilingual pay.

For any members who receive Bilingual Pay, they must sign up to be present at and prepared to use their bilingual skills at one City Council meeting per year. On the day of the Council meeting for which the employee signs up, they shall adjust their work schedule that day by starting four (4) hours later than their regular start time so that they can be present at the Council meeting to utilize their bilingual skills.

ARTICLE 11, UNIFORM ALLOWANCE AND SAFETY BOOTS
City agrees to continue to pay a monthly uniform allowance of one hundred twenty-five dollars ($125.00) to the Emergency Management Coordinator, the Fire Marshal and to the Police Services Supervisor as a reimbursement for expenses incurred for acquisition and maintenance of uniforms.

Each fiscal year the City will provide four (4) shirts, four (4) pants and a jacket for Airport Operations Supervisors. The City will provide thirty dollars ($30.00) per month as reimbursement for cleaning uniforms for the Airport Operations Supervisors, and effective on the first day of the month following City Council approval of this MOU, the Code Compliance Supervisor and the Maintenance Supervisor.

Item 1B - Page 16
9 The City shall pay employees in the following classifications one hundred and seventyfive dollars ($175.00) per year (which will be paid $14.58 per month) for the purchase of safety boots that meet the general industry and ASTM F2413 standards: Maintenance Supervisor, Fleet Manager, Streets Manager, Deputy Director of Maintenance and Facilities, and Maintenance Superintendent.

ARTICLE 12, MILEAGE
Reimbursement for personal vehicle use shall be at prevailing IRS rate. Where extensive vehicle travel is required, a City vehicle may be provided instead.

Item 1B - Page 17
10 BENEFITS
ARTICLE 13, HEALTH INSURANCE

13.1 Cafeteria Plan
City agrees to continue to enroll with and subscribe to the Public Employees’ Retirement Health Care Plan pursuant to the Public Employees' Hospital and Medical Care Act (PEHMCA), Government Code Sections 22751 et seq., for the provision of health insurance for members of the unit. The health insurance benefit provided through PEHMCA shall be part of a cafeteria plan in accordance with IRS Code section 125 (“the Plan”) which also includes:

A. Dental Insurance as addressed below in Section 13.3; and B. Vision Insurance as addressed below in Section 13.5
The City will pay the CalPERS statutory minimum to comply with the Public Employees’ Hospital and Medical Care Act on behalf of all employees and retirees ($151 for 2023, and a yet undetermined amount for beyond 2023. In addition, the maximum City contribution to the Plan (i.e., health, dental and vision insurance) shall be determined annually based on the formula that has been used by City which is inclusive of the PERS statutory minimum. The formula involves taking the rate increase for each benefit as listed above, and combining them to develop a single rate increase to the maximum contribution to the categories listed below (i.e., single, two-party, and family).

The cafeteria plan rates effective January 1, 2023, are:

Category Maximum Contribution
Employee Only $855/month
Employee + 1 $1,723/month
Family $2,252/month
Since the actual amounts above also include the PERS statutory minimum, the actual amounts provided to employees through the cafeteria plan are the above amounts minus the PERS statutory minimum for each applicable calendar year.

In the event that the premium changes for health, dental and vision insurance (i.e., the Plan benefits) exceed the City’s maximum rate of contribution by five percent (5%), the amount of the excess shall be paid by unit members through a payroll deduction.

The maximum City monthly contribution for the Plan shall be determined by the health plan selected (i.e., single, two-party, or family). Should an employee decline health coverage, but elect either dental or vision coverage, there will be no Plan excess dollars paid to the employee. The City will, however, pay the premiums for the dental and/or vision coverage/s selected.

The Association acknowledges that the City’s agreement to pay up to five percent (5%) Item 1B - Page 18
11 of the increases for health, dental and vision insurance is a valuable benefit. The Association agrees that each year, once the increase in the costs of health, dental and vision is known (CalPERS generally publishes the increases for health insurance for the following calendar year in July), the amount that will be paid for by the City will be calculated based on the then current number of employees in the bargaining unit. The City will then inform the Association as to what those increased costs will be so that the Association is aware of how much more the City will be spending on these benefits in the following calendar year. The City will consider these increased costs in evaluating its positions in collective bargaining.

In the event a Unit member selects a health plan which does not require the City to make a maximum contribution, then such unit member shall receive the remainder of the City contribution (up to the maximum of $150.00 per pay period up to two pay periods per month – twenty four (24) pay periods per year) as taxable wages.

13.2 Unit Members Who Opt Out of the Health Care Benefit Contribution Unit members who choose to opt out of receiving the Heath Care Benefit Contribution (i.e., receiving any portion of the total City contribution for any of the three benefits – Medical, Dental and Vision) and who satisfy the Eligible Opt-Out Arrangement rules below shall receive one hundred and fifty dollars ($150) (as taxable wages) per pay period (up to two (2) pay periods per month - 24 pay periods per year).

Pursuant to the Affordable Care Act (ACA) Employer Mandate “affordability” determination, an Eligible Opt-Out Arrangement requires the following for employees who opt-out of employer-provided health coverage and receive cash in lieu:

A. Employee must provide reasonable evidence that the employee and each member of the employee’s expected tax family (individuals the employee expects to claim personal exemption deduction) have or will have minimum essential coverage (other than coverage in the individual market, whether or not obtained through Covered California) during the period of coverage to which the opt-out arrangement applies;
B. The opt-out payment may not be made if the employer knows or has reason to know that the employee or any other member of the employee’s expected tax family does not have or will not have the alternative coverage;

1. The evidence of alternative coverage must be provided every plan year to which the eligible opt-out arrangement applies; and

2. The reasonable evidence will be an attestation signed by the employee, attesting to the above, and must be provided no earlier than a reasonable period of time before each plan year begins.

13.3 Dental Benefits
City agrees to continue dental benefits at level(s) existing under the current Plans.

Although it is possible that the carriers could change, the levels of benefits through new carriers will be equivalent.

Item 1B - Page 19
12 13.4 Life Insurance
Unit Members will receive $50,000.00 term life insurance coverage and $50,000.00 accidental death and dismemberment (AD&D) coverage.

13.5 Vision Benefits
City agrees to provide Vision Coverage at the benefit level(s) existing as of the date this MOU is executed. Although it is possible that the carriers could change, the levels of benefits through new carriers will be equivalent.

13.6 Domestic Partner Coverage
Domestic partners may register with the Secretary of State and be eligible to enroll in a CalPERS health plan. The law requires the following actions for a domestic partner to be enrolled in a CalPERS health benefits plan: First, the Secretary must register the domestic partnership, and provide a Declaration of Domestic Partnership to the domestic partners.

The CalPERS enrollee must provide a copy of the Declaration of Domestic Partnership and a signed Statement of Financial Liability (PERS form) to City. CalPERS will use the same enrollment policies for domestic partnerships as currently used for traditional marriages.

Domestic partner enrollment documents submitted within 60 days of the domestic partner registration will provide health benefit coverage effective on the first day of the month following the month in which the employer received the enrollment document.

13.7 Short Term Disability
Employees are required to enroll in the short-term disability insurance plan and pay for the benefit by making premium payments through a payroll deduction.

13.8 Long Term Disability
Long Term Disability shall continue to be provided by the City at the benefit level(s) existing as of the date this MOU is executed. Although it is possible that the carriers could change, the levels of benefits through new carriers will be equivalent.

ARTICLE 14, HEALTH INSURANCE FOR RETIREES
Retiree medical insurance is provided through CalPERS pursuant to PEMHCA.

The City has two tiers (including three qualifying levels within Tier I) for the provision of retiree medical insurance., The provision of retiree medical insurance is provided by providing all retired annuitants (i.e., retirees under PEMHCA) a benefit equal to that received by covered unit members (the CalPERS statutory minimum).

For unit members, (as addressed above in Article 13) the provision of additional money Item 1B - Page 20
13 for medical insurance (i.e., in addition to the statutory minimum) is provided through a cafeteria plan, which the parties have called the “Health Care Benefit Plan.” For Tier I retirees with at least twenty (20) years of continuous service with the City, in addition to the CalPERS statutory minimum, additional money for retiree medical insurance will be provided pursuant to a Health Reimbursement Account (HRA) which has been established by the City through a third party vendor who administers the Account. The members pay for their chosen retiree medical insurance through a deduction from their retirement payment from CalPERS. The third party vendor then disburses the below described HRA benefit to each retiree as the retiree directs. The benefits provided by the HRA are as follows:

A. Tier I – Level 1 – Retirees Who Were First Employed Before September 7, 2005 And Who Have At Least 25 Years of Continuous Service With the City:

These individuals will receive a dollar amount through the HRA which will equal the City’s contribution for medical insurance up to two-party coverage (i.e., a single party will only be provided single party coverage) as described above under the provision of retiree medical insurance (i.e., the member’s maximum benefit is tied to the plan chosen by the member at the time the member leaves active service unless the member chooses a less costly plan in retirement and then it is tied to that plan because the employee cannot be reimbursed for more than 100% of the cost of the plan) for employees minus the particular calendar year’s CalPERS statutory minimum amount. If a member chooses a more costly plan as a retiree, they will have additional out-of-pocket medical expenses.

If a member chooses a more costly health plan prior to retirement, they must have chosen the plan at least one year prior to retirement or the health plan used for determining the maximum benefit under the HRA will be the plan previously chosen.

B. Tier I – Level 2 – Retirees Who Were First Employed Before September 7, 2005 And Who Have At Least 20 Years Of Continuous Service With the City:

These individuals will receive a dollar amount through the HRA which will equal seventy-five percent (75%) of the City’s contribution for medical insurance up to two-party coverage (i.e., a single party will only be provided single party coverage) as described above under the provision of retiree medical insurance (i.e., the member’s maximum benefit is tied to the plan at the time the member leaves active service unless the member chooses a less costly plan in retirement and then it is tied to that plan because the employee cannot be reimbursed for more than 100% of the cost of the plan) for members minus the particular calendar year’s CalPERS statutory minimum amount. If a member chooses a more costly plan as a retiree, they will have additional out-of-pocket medical expenses.

C. Tier I – Level 3 – Retirees Who Were First Employed Before September 7, 2005 But Who Have Less than 20 Years Of Continuous Service With the City:

Item 1B - Page 21
14 These individuals will not receive any additional contribution through the HRA.

They will receive the CalPERS statutory minimum amount towards their chosen retiree medical benefit.

1. Service Credit for Health Insurance For Retirees in Tier 1 Members in Tier 1 shall be eligible for two years of service credit for the purpose of being eligible for retiree health insurance (e.g., an employee with 18 years of continuous service will be eligible for the benefits available to those with 20 years of continuous service) if in the month of June the member makes an irrevocable offer to retire (which will be immediately accepted by the City) by no earlier than ninety (90) days from the date of notice or later than December 31 of that same calendar year. The additional two (2) years of service credit will sunset on December 31, 2028.

D. Tier II – Members First Hired on September 7, 2005 Or Later:

In addition to being provided the CalPERS statutory minimum for retiree medical insurance once retiring, these individuals, while employed, will receive onehundred dollars ($100.00) per month (placed into a retiree health savings (RHS) account by the City. The City will pay the administrative costs of this account.

All Retirees will be required to comply with any of the requirements of CalPERS as provided by PEMHCA. This may include, but not be limited to, enrolling in Medicare when age appropriate and becoming eligible to receive Medicare. The City will not pay for the cost of Medicare enrollment, as it will continue to pay the CalPERS statutory minimum for all retired annuitants.

ARTICLE 15, RETIREMENT

15.1 Retirement Formula
Unit members (and not “new members as defined by the Public Employees’ Pension Reform Act of 2013 - PEPRA) hired prior to December 24, 2012 are covered by the 2.7% @ 55 formula provided for by the Public Employees’ Retirement Law at Government Code section 21354.5. These employees’ retirement will be calculated pursuant to the optional benefit (in the City’s contract with CalPERS) of single highest twelve month period.

Unit members (and not “new members as defined by the Public Employees’ Pension Reform Act of 2013 - PEPRA) hired after December 24, 2012 are covered by the 2% @ 60 formula provided for by the Public Employees’ Retirement Law at Government Code section 21353.3. These employees’ retirement will be calculated per the three year average final compensation per Government Code 20037.

Unit members who are defined as “new members” under the PEPRA, are covered by the 2% @ 62 formula provided for by the PEPRA at Government Code section 7522.20(a).

These employees’ retirement will be calculated per the three year average final compensation as provided for by the PEPRA per Government Code section 7522.32(a).

Item 1B - Page 22
15 15.2 Employee Contributions to the Retirement System Employees subject to the 2.7%@55 Formula:

These Unit members shall pay their eight percent (8%) member contribution.

Employees subject to the 2% @ 60 Formula:

These employees pay the seven percent (7%) member contribution.

Employees subject to the 2% @ 62 Formula – “New Members” as defined by PEPRA:

These employees shall pay the statutorily mandated employee contribution rate of one half of the total normal cost as determined by CalPERS in their annual valuation.

15.3 Adoption of IRS Code Section 414(h)(2) Resolution
The City has adopted the CalPERS resolution in accordance with and as permitted by IRS Code section 414(h)(2) to ensure that the employees’ payment (i.e., “pick up” as that term is used in section 414(h)(2)) of their employee contribution is made on a pre-tax basis.

15.4 Optional Benefits
A. The City contracts with CalPERS for the following optional benefits:

B. Pre-retirement death benefits to continue after remarriage of survivor – Government Code section 21551
C. Death Benefit – Government Code section 21620
D. Post Retirement Survivor Allowance – Government Code sections 21624/26/28 and 21635
E. 1959 Survivor Benefit Level 4– Government Code section 21574. Employees pay the employee premium for this benefit.

F. Military Reallocation Credit - Government Code section 21024 G. Final Compensation Period One Year - Government Code section 20042 for classic members
H. 2% Cost of Living Allowance - Government Code section 21329 I. Prior Service - Government Code section 20055
ARTICLE 16, EDUCATION REIMBURSEMENT
Employees in good standing who hold regular appointments in the City Service shall be eligible for educational reimbursement. Courses must be from a college or university Item 1B - Page 23
16 accredited by either the Council for Higher Education Accreditation (“CHEA”) or the U.S.

Department of Education (“USDE”). No Unit member shall receive more than $1,500/fiscal year through the Educational Reimbursement Program.

ARTICLE 17, EMPLOYEE SERVICE AWARDS
The Service Awards program will be continued for Unit members.

ARTICLE 18, CELL PHONES
A. The decision as to which employees in MAPS need to have/use a cell phone for work shall remain within the discretion of the City Manager.

B. The City retains the discretion to remove the cell phone at any time if it determines the employee does not need to use a cell phone for the position.

Item 1B - Page 24
17 WORK HOURS / LEAVE
ARTICLE 19, WORK SCHEDULE
All unit members shall be assigned to work a 4/10 work schedule; four consecutive work days followed by three consecutive days off. If an employee is working a 4/10 schedule and the City desires to change the work schedule to a different work schedule, including 5/8 work schedule, the City will request to meet and confer with the Association who agrees will promptly meet and confer with the City.

A unit member scheduled to work a 4/10 work schedule may request to work a four day – nine hour work schedule (4/9). Such a request is subject to Department Head approval and once granted, may be revoked at any time. A decision to deny a request for such a work schedule is not subject to challenge or grievance. The Department Head has total discretion as to whether to grant a request for such work schedule and whether the schedule should continue. The parties agree that City Hall will remain closed on Fridays.

If the Executive Director of the Palm Springs International Airport desires to change a member’s schedule due to changes in flight schedules, the Association agrees that it will meet with the City as soon as possible to address the issue.

Employees are required to take a meal period of at least thirty (30) minutes. The meal period cannot be taken to shorten an employee’s work day at the beginning or end of their shift.

ARTICLE 20, ANNUAL LEAVE

20.1 Conversion and Definition
Annual leave shall be defined as any approved absence with pay from regularly scheduled work for any purpose that are not properly chargeable to some other category of leave. Annual leave shall substitute for either vacation or sick leave.

20.2 Maximum Accrual and Minimum Usage
There shall be a maximum accrual of 712 annual leave hours for employees.

20.3 Annual Leave Cash-Out
By December 15 of each year, unit members may make an irrevocable election to cash out up to the maximum number of hours of annual leave which they can accrue per year which will be earned in the following calendar year at the employee’s base rate of pay. In the following year, the employee can receive the cash for the annual leave they irrevocably elected to cash out in either two (2) separate increments of up to half their annual accrual cap (i.e., for those who accrue 20.67 hours per month - 248 hours per year, 124 hours each) or one (1) increment of up the maximum they can accrue in a year.

The member would be paid one half of what they irrevocably elect to cash out hours on both the second pay day in July and the second pay day on November or the employee Item 1B - Page 25
18 can elect to be paid their full amount they elected to cash out on the second pay day in November. However, if the member’s annual leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the member will receive cash for the amount of leave the member has accrued at the time of the cash out.

If a member makes an irrevocable election to cash out annual leave in the following calendar year and uses annual leave in that subsequent year, the annual leave used will come from annual leave the member had earned prior to January 1 of the year the employee has elected to cash out annual leave. This is to ensure that assuming an member had an annual leave balance prior to January 1, the annual leave used will not result in a reduction in the amount of annual leave the member will be eligible to cash out.

In addition to the above, a member shall have the option of converting accrued and vested annual leave to their deferred compensation account on both the second pay day in July and the second pay day in November.

20.4 Cash Out of Annual Leave at Separation
Upon separation, an employee shall be paid for their accrued and vested annual leave at their current salary rate as well as those pays set forth in Article 10 that an employee may receive (i.e., Education, Notary and/or Bilingual Pay). The payment of the annual leave shall be paid at the next regularly scheduled pay-day after separation.

All unpaid accrued and vested annual leave of deceased employees shall be paid to the estate of said deceased except as otherwise provided by law.

20.5 Eligible To Use
Unit members shall be eligible to use annual leave as it is accrued. Unless an employee is on a statutorily protected leave (such as FMLA/CFRA or PDL) an employee shall not be permitted to go on a leave without pay until they exhaust all accrued annual leave.

20.6. Accrual Rates
Unit members shall accrue and vest annual leave on a monthly basis in accordance with the following schedule:

Years of Service Hours Accrued & Vested Monthly
0 through 5 16
6 through 10 18
11 and after 20.67
Annual leave shall begin to accrue on the first day of the month following employment with the City.

20.7 Less than full-time employees
Less than full-time employees will accrue and vest annual leave on a pro-rated basis Item 1B - Page 26
19 based on their allocated full time equivalent.

ARTICLE 21, HOLIDAYS

21.1 City Holidays
Employees shall be entitled to the following paid holidays if they were in paid status for the entire day the day before and the day after the holiday, (i.e., either the employee worked or was absent using paid leave for the entire day on such workdays):

New Year's Day January 1
Martin Luther King Day 3rd Monday in January
Presidents’ Day 3rd Monday in February
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day 1st Monday in September
Indigenous Peoples’ Day Second Monday in October
Veterans’ Day November 11
Thanksgiving Day Fourth Thursday in November
Day after Thanksgiving Day After Fourth Thursday in November Christmas Eve December 24
Christmas Day December 25
One Additional Holiday earned into the Holiday Bank on January 1

21.2 Hours Earned For Each Holiday
Employees regularly scheduled to work ten (10) hours per day earn ten (10) hours for each holiday. Employees regularly scheduled to work eight (8) hours per day earn eight (8) hours for each holiday. These employees will also accrue two (2) hours of Annual Leave (for a total of twenty-four (24) hours per calendar year) for each holiday including when the holiday bank is used.

All full-time employees accrue ten (10) hours to their holiday leave bank for each observed holiday. An employee who is regularly scheduled to work less than 40 hours per week shall receive a pro-rated number of hours of holiday leave. Part-time employees will accrue a holiday based on the following: 1.0 allocated FTE = 10 hours, .75 allocated FTE = 7.5 hours, .5 allocated FTE = 5.0 hours and any other allocated FTE percentage shall accrue a pro-rata number of hours based on a factor of one hour for each .1 allocated FTE.

21.3 How City Holidays Are Observed By Employees
For holidays occurring on a Friday or Saturday (i.e., years when July 4, Veterans’ Day, Christmas Eve, Christmas Day or New Year’s Day fall on a Friday or Saturday and every year for the day after Thanksgiving) they will not move to the prior open business day (e.g., the Thursday before or the Wednesday before Thanksgiving). These holiday hours will be placed in each employee’s holiday bank.

If Juneteenth, July 4, Veterans’ Day, Christmas Eve, Christmas Day or New Year’s Day fall on a Sunday, the holiday will be observed as a day off on the following Monday. If Item 1B - Page 27
20 Christmas Eve falls on a Sunday, the hours will be placed in each employee’s holiday bank.

21.3.1 Working on Observed Holidays
If an employee is required by their supervisor to work on an observed holiday, 10 hours (pro-rated for part-time employees) will be credited to the employee’s holiday leave bank.

If an observed holiday occurs on a regularly scheduled workday and the employee is not required to work, the employee will be paid 10 hours (pro-rated for part-time employees) of holiday pay to create a full work week.

For employees who are required to work on the actual day of a holiday, they shall receive time and one half for each hour worked on that day.

21.4 Holiday Bank
All holiday hours (i.e., whenever an employee does not take the day off on a holiday and earns time rather than the day off) shall be placed in a holiday bank for use by employees during the calendar year. Any hours in an employee’s holiday bank on the last pay day of the calendar year shall be paid to the employee. If an employee leaves City employment, any hours in the holiday bank at the time of termination will be paid to the employee.

In calendar year 2023, the first holiday to which the holiday bank will apply is July 4, 2023.

Employees with leave in the floating holiday bank as of the beginning of this 2023-2026 MOU, will have until December 31, 2023 to use any such hours. Those hours will no longer be available starting in 2024.

Employees must request to use holiday leave just like they would request to use Annual Leave. Approval of holiday leave shall not be unreasonably withheld.

ARTICLE 22, BEREAVEMENT LEAVE
Unit members shall be granted three (3) scheduled workdays in the event of a death in the “immediate family” of an employee. Immediate family is defined as any relative by blood or marriage who is a member of the employee's household, or any parent, grandparent, stepparent, spouse, domestic partner, child, grandchild, sibling of the employee, or any parent, grandparent or stepparent of the employee's spouse or domestic partner, regardless of residence.

Effective January 1, 2023, employees who have been with the City for at least thirty (30) days before the leave commences shall receive additional leave up to two (2) days without pay, in any one (1) instance (which must be used within three (3) months from the date of death and which days do not need to be taken consecutively), for bereavement leave related to the death of an immediate family member. Employees may use any accrued annual leave or compensatory time that is otherwise available to the employee for this purpose.

Item 1B - Page 28
21 EMPLOYER / EMPLOYEE RELATIONS
ARTICLE 23, DRUG POLICY/DRUG SCREENING
The parties agree that their drug and alcohol policy is set forth in Appendix A to this MOU.

ARTICLE 24, LAYOFF
Unit members who are laid off and decline the opportunity to bump or are not eligible to bump will receive two months of regular wages upon layoff. It is the intent of the City to provide six months of medical coverage at the same level of employee contribution that was in effect upon the day of layoff. The City will pay one month’s premium directly to CalPERS, and provide the employee with a check for the additional five (5) months’ premiums.

ARTICLE 25, PAYROLL DEDUCTION - ASSOCIATION MEMBERSHIP
City will provide payroll deduction on request of MAPS for dues, assessments, and other deductions authorized by MAPS. Remittance will be bi-weekly to MAPS’s treasurer.

ARTICLE 26, MEETINGS

26.1 MAPS may conduct a Board of Directors meeting once each month during the workday, not to exceed two (2) hours.

26.2 MAPS may conduct one (1) meeting per quarter with all members of MAPS released at 11:30 A.M. and required to return to their work assignment no later than 1:30 P.M.

ARTICLE 27, ASSOCIATION TIME BANK
Unit members shall be permitted voluntarily to donate leave time (annual leave or compensatory time off) to a MAPS Time Bank. The Time Bank shall contain a maximum of forty (40) hours at any given time available to officers of MAPS to conduct Association business. Requests for use of banked hours shall require a request from the President of MAPS on MAPS letterhead authorizing use of Banked Time. The use of the banked time must first be approved by the employee’s immediate supervisor and the City agrees that the use of the time will not be unreasonably denied. In addition, MAPS will provide a report to the Human Resources Department upon request (up to twice a year) of the use of these hours in the previous year.

ARTICLE 28, STRIKES AND WORK STOPPAGES

28.1 Prohibited Conduct
MAPS, its officers, agents, representatives and/or members agree that they will not cause or condone any strike, walkout, slowdown, sick out, or any other job action by withholding Item 1B - Page 29
22 or refusing to perform services.

Any Unit member who participates in any prohibited conduct listed above shall be subject to suspension, demotion, or dismissal by City. In addition to any other lawful remedies or disciplinary actions available to City, if MAPS fails, in good faith, to perform all responsibilities listed below as Association Responsibility, City may suspend any and all rights and privileges accorded to MAPS in this MOU, including but not limited to suspension of the Grievance Procedure and Dues Deduction.

28.2 Association Responsibility
In the event that MAPS, its officers, agents, representatives, or Unit members engage in any Prohibited Conduct, MAPS shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this MOU and unlawful, and they must immediately cease engaging in conduct prohibited in Section 29.1 and return to work.

ARTICLE 29, GRIEVANCE PROCEDURE

29.1 Definition of Grievance
A. A “Grievance” is a dispute of one or more employees or a dispute between one or more employees involving the interpretation, application or enforcement of the provisions of the MOU, or of the Personnel Rules and Regulations that are within the statutory scope of representation, and for which there is no specific method of review provided by federal, State or local law. A grievance may also be filed by the Association.

B. A grievance is also a claim by a Unit member that a letter of reprimand was issued to them was not properly issued.

C. Reviews of allocations or reallocations of positions as described in Personnel Rule

4.3.3 or reviews of examination ratings as described Personnel Rule 7.7 are excluded from the grievance procedure. Allegations of harassment, discrimination or retaliation are also excluded from the grievance procedure as they are addressed by a separate procedure.

D. Release of members during an initial probationary period after hire, reinstatement, or reemployment is not subject to the grievance procedure.

29.2 Time Limits and Waivers
A. Working Days - For purposes of the Grievance Procedure, working days, further referred to as “days", are defined as the period from 8 a.m. to 6 p.m. City Hall working days, currently Monday-Thursday, excluding holidays.

B. Initiation - A Unit member must initiate the grievance within fifteen (15) working days of the occurrence of the event giving rise to the grievance or within fifteen (15) days after the grievant should, with reasonable diligence, have had knowledge of such occurrence, whichever is later.

Item 1B - Page 30
23 C. Management Reply - Failure by management to reply to the member’s grievance within the time limits specified under the grievance procedure shall automatically grant the employee the right to process the grievance to the next level of review.

D. Failure to Submit to Next Level - If a Unit member fails to submit from one level to the next level within the time limits and in the manner provided under the grievance procedure, the grievance shall not be subject to further consideration and will be deemed resolved.

E. Waiver by Mutual Agreement - Any level of review or any time limits established in the procedure may be waived or extended by mutual agreement between the Unit member and management, which must be confirmed in writing.

F. Outside of Authority - If the supervisor, manager, or department head designated by the grievance procedure below to receive the grievance determines that they do not have the authority to resolve it, that supervisor, manager, or department head, shall so inform the grievant and forward the grievance to the next higher level of supervision with authority to resolve it, if applicable, or advise the grievant in writing they may continue to the next level in the process.

29.3 Informal Resolution
A. The responsibility of a Unit member with grievance is to promptly inform and discuss the grievance with the department supervisor or designee in order to, in good faith, endeavor to resolve the matter expeditiously and informally. If the grievance is filed by the Association, it does not need to follow the informal resolution process. It can file a written grievance per Article 29.4 with a manager who works in the department to which the grievance relates.

B. If such informal discussion does not resolve the grievance to the Unit member’s satisfaction, such member may file a formal grievance in accordance with the procedure set forth in this section.

29.4 Procedure
A. The Unit member shall provide the grievance in writing, with signature and date, and submit it to their immediate supervisor within fifteen (15) days of the initial commencement of the occurrence being grieved. The supervisor shall further consider and discuss the grievance with the Unit member and such employee’s designated representative as deemed appropriate, and shall, within fifteen (15) days of having received the written grievance, submit a response thereto in writing to the employee and the member’s representative, if applicable.

B. If the written response of the immediate supervisor does not result in a resolution of the grievance, the Unit member may further submit the grievance, by presenting a written request, with date and signature, to the Unit member’s department head within seven (7) days of the Unit member’s receipt of the supervisor’s response. The department head may investigate the grievance and may set a meeting with the Unit member, member’s designated representative, and other persons as deemed Item 1B - Page 31
24 appropriate to consider the grievance. Within thirty (30) days of receipt of the grievance by the department head, the department head shall submit a response to the grievance to the Unit member and their representative, if applicable.

C. If the response by the department director, does not result in a resolution of the grievance, the Unit member may further submit the grievance, by presenting a written request, with date and signature to the Human Resources Director, for submission to the City Manager, within seven (7) days of the unit member’s receipt of the department head’s response. The City Manager or designated representative may set a meeting with the Unit member, their designated representative, and other persons as deemed appropriate, to consider the grievance. Within thirty (30) days of receipt of the grievance the City Manager or designated representative shall submit a response to the Unit member and their representative, if applicable. The decision of the City Manager is final and binding.

D. This grievance procedure is the sole and exclusive method for alleging a violation, misinterpretation or misapplication of any provision of this MOU or Personnel Rules.

ARTICLE 30, DISCIPLINE
The disciplinary appeals process is as follows:

Such disciplinary action will be subject to the pre-action process described in paragraph A below and the disciplinary appeal procedure in paragraph B below.

Written reprimands and counseling memos are not subject to the pre-action process and may not be appealed. However, a member may submit a written response (within 30 calendar days of receipt of the document) to receiving any of these documents. The member’s response shall be attached to the document in the member’s personnel file.

A. Pre-Action Due Process for Discipline Resulting in Loss of Pay (Termination, Demotion, Suspension, Reduction in Pay)

1. Prior to being subject to any discipline that results in the loss of pay, a member will first be served with a notice of intent to discipline by their supervisor, manager or department head. This document will set forth the grounds for discipline, the facts supporting the grounds and all evidence to which the member is entitled by law. The notice of intent to discipline will also advise the member of any prior discipline which the City representative issuing the notice believes is relevant to the current discipline. In addition, the notice of intent will advise the member of their right to respond to the proposed discipline either in writing or orally at a meeting. If the member does not respond within the time limits, the discipline will be imposed.

2. If the member chooses to respond in writing, they must insure their response is Item 1B - Page 32
25 received by the representative who issued the notice of intent to discipline within seven (7) calendar days of receiving the notice of intent to discipline. If the member wishes to respond orally, they must call or write the City representative who issued the notice of intent to discipline within seven (7) calendar days of receiving the notice of intent to discipline informing the representative that they wish to have an oral response. The City representative will advise the member when the meeting (known as a Skelly meeting) will take place.

3. At the Skelly meeting (assuming the member wants to respond orally) the member has the right to be represented. The Skelly meeting is not a hearing.

It is an opportunity for the member and/or their representative to respond to the notice of intent to discipline. The member may be represented at the Skelly meeting by a representative of their choice.

4. The City representative who will hear the response may or may not be the person who issued the notice of intent to discipline. The decision will either be to impose the proposed discipline, impose no discipline or to impose a lesser discipline. The City representative hearing the response does not have authority to impose discipline that is greater than that which was proposed.

5. If the discipline is imposed or if it is reduced but there is still some discipline imposed, the City representative shall issue a notice of discipline. Like the notice of intent, the notice of discipline shall set forth the grounds, and facts supporting the discipline as well as any prior discipline relied on by the City representative in imposing the discipline. The notice of discipline will also set forth the member’s appeal rights advising the member that if they wish to appeal the discipline, they must do so in writing by serving a notice of appeal to the Human Resources Director within ten (10) calendar days.

6. The Notice of Discipline will set forth the effective date of the discipline.

B. Appeals Procedure

1. If an appeal of a dismissal, suspension, demotion or reduction in salary is filed with the Director of Human Resources within ten (10) days of receipt of a written notice of discipline, this process will be used which includes the use of a hearing officer.

2. The City and the member or the member’s representative may agree on the hearing officer. If they cannot agree, the hearing officer shall be chosen from a panel of seven (7) hearing officers from a list provided State Mediation and Conciliation Service. The parties shall alternately strike names until one hearing officer remains. The parties shall flip a coin with the winner of the coin flip getting to choose whether to strike the first name or the second name.

Names will be struck until the hearing officer is selected.

3. The hearing officer shall submit an advisory decision setting forth findings, conclusions, and recommendations to the City Council.

Item 1B - Page 33
26 C. Hearings

1. The hearing shall commence no more than ninety (90) calendar days from the date the hearing officer is selected provided that the parties may agree to a longer period to commence the hearing.

2. All disciplinary hearings shall be closed to the public unless the affected employee requests that the hearing be open to the public.

3. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule, which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil and criminal actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission and exclusion of evidence.

4. Each party shall have these rights: to be represented by legal counsel or other person of their choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses; to impeach any witness regardless of which party first called the witness to testify; and to rebut the evidence against them. If the employee appealing the discipline does not testify on their own behalf, they may be called and examined as if under cross-examination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing. The cost of the reporter will be split between the City and the Association.

5. The hearing shall proceed in the following order, unless the hearing otherwise directs:
a. Opening statements shall be permitted with the City proceeding first. b. The City shall proceed first in the hearing. If witnesses are called, the opposing party shall have the right to cross-examine the witnesses on any matter relevant to the issues, even though that matter was not covered on direct examination.
c. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason permits them to offer evidence upon their original case.
d. Closing arguments and written briefs shall be permitted. e. The hearing officer shall determine the relevancy, weight, and credibility of Item 1B - Page 34
27 testimony and evidence. The hearing officer shall base findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, for good cause, otherwise directs. The hearing officer, prior to or during a hearing, may grant a continuance for any reason believed to be important to reaching a fair and proper decision.
f. The hearing officer may recommend sustaining, rejecting or modifying the disciplinary action.

6. The hearing officer's findings, conclusion and recommendations shall be filed with the Director of Human Resources, who will forward them to the City Manager who then forward to the City Council. The City Council, in its sole discretion, may hear limited oral arguments and/or request written statements from either party on the hearing officer’s advisory decision. The City Council shall inform the employee appealing the discipline of its decision regarding the appeal within sixty (60) calendar days of the receipt of the hearing officer's report. However, the City Council may extend the time to issue its decision beyond the sixty (60) calendar day period if it believes it is necessary. The decision of the City Council regarding the appeal shall be the final step in the administrative appeal process. However, any disciplinary action is deemed final as of the effective date. Copies of the City Council's decision, including the hearing officer's report shall be filed where appropriate, including the member’s personnel file. The City Council’s decision is subject to review by a superior court pursuant to Code of Civil Procedure Section 1094.6.

7. Subpoenas and subpoenas duces tecum pertaining to the hearing shall be issued at the request of either party, not less than ten (10) calendar days prior to the commencement of the hearing; after commencement, subpoenas shall be issued only at the discretion of the hearing officer.

8. The time limits specified at any step in this procedure may be extended or reduced by written agreement of the employee or representative and the representative for the City.

9. Member or their representative and the representative for the City.

ARTICLE 31, WAIVER OF FURTHER BARGAINING
The terms agreed upon by the MOU shall take effect at the time specified herein upon approval by Resolution of the City Council of the City of Palm Springs and shall remain in full force and effect until midnight, June 30, 2026.

Item 1B - Page 35
28 APPENDIX A – DRUG AND ALCOHOL POLICY
The parties have a vital mutual interest in maintaining safe, healthful and efficient working conditions. Being under the influence of a drug or alcohol on the job may pose serious safety and health risks not only to the user but also to co-workers and the citizens of Palm Springs. The possession, use or sale of an illegal drug, marijuana or of alcohol on the job also poses unacceptable risks for safe, healthful and efficient operations. "On the job" means while on City premises, at work locations, or while on duty or being compensated on standby.

MAPS, City, and Unit members recognize that their future is dependent on the physical and psychological well-being of all employees. MAPS, City, and Unit members mutually acknowledge that a drug and alcohol-free work environment benefits employees and citizens and members agree to comply with this policy at such time as a mutually agreed upon employee assistance program is in place.

The purpose of this Policy is to define the City's drug and alcohol policy as well as the possible consequences of a policy violation.

Section 1
Possession, sale, use or being under the influence of drugs or alcohol while on the job is strictly prohibited.

Section 2
When reasonable suspicion exists, the City may require a Unit member to submit to a substance screening. The employee will be given the option to select a blood test or urinalysis.

Reasonable suspicion is cause based upon objective facts sufficient to lead a reasonably prudent supervisor to suspect that an employee is under the influence of drugs or alcohol so that the employee's ability to perform the functions of the job is impaired or so that the employee's ability to perform the job safely is reduced.

Section 3
Any manager or supervisor requesting that a Unit member submit to a substance screening shall document in writing the facts constituting reasonable suspicion and shall give the employee a copy. This report must advise the Unit member of the right to representation.

Such member shall be given an opportunity to provide additional facts. A Unit member who is then ordered to submit to a substance abuse screening may request to be represented.

Because time is of the essence in drug screening, a representative must be available within a reasonable time or the employee will then be ordered to submit to a substance screening.

Any employee who refuses to submit to a substance screening may be considered insubordinate and shall be subject to disciplinary action up to and including termination.

Section 4
The supervisor, or designee, shall transport the suspected Unit member to the testing facility. Testing shall occur on City time and be paid for by the City. The facility used for Item 1B - Page 36
29 testing shall be certified by the National Institute of Drug Abuse and comply with established guidelines for “chain of custody” to insure that identity and integrity of the sample is preserved throughout the collecting, shipping, testing and storage process.

Section 5
Any positive test for alcohol or drugs will be confirmed by a scientifically sound method.

Any Unit member who tests positive on a confirmatory test will be given the opportunity to discuss the results with a physician to be designated by City. The employee should be prepared at that time to show proof of any valid medical prescription for any detected substance or to otherwise explain, if they so choose, a positive test result.

Section 6
While use of medically prescribed medications and drugs is not per se a violation of this policy, this policy shall establish that no employee shall operate a City vehicle or dangerous machinery or equipment while taking any kind of medication or drugs which are clearly marked that they may cause significant drowsiness or impair a Unit member's performance. Such member shall notify the member’s supervisor, before beginning work, when taking such medications or drugs. In the event there is a question regarding such member's ability to safely and effectively perform assigned duties while using such medications or drugs, clearance from a physician designated by the City may be required.

The City reserves the right to send such member home on Annual Leave under these circumstances.

Section 7
Unit members with substance abuse problems are encouraged to participate voluntarily in the City-sponsored Employee Assistance Program (EAP). Assistance through the EAP may be sought by a member with complete confidentiality and without adverse consequences to employment. Unit members should be aware, however, that a request for assistance through the EAP will not insulate such member from disciplinary action already contemplated.

Depending upon the facts surrounding the reasonable suspicion determination, positive test result, and/or other violation of this policy or other City/department rules and regulations, City will refer such member to the EAP. Such referral shall be made available to such member as an alternative to disciplinary action. Referral would be subject to agreement by such member to enroll, participate in and successfully complete rehabilitation and/or counseling program and other terms and conditions in a "Last Chance Agreement".

Item 1B - Page 37
30 APPENDIX B – MAPS CLASSIFICATIONS AND FLSA EXEMPTION STATUS Position FLSA Exemption
Account Technician, Senior Exempt Administrative
Accountant Exempt Professional
Accounting Manager Exempt Executive
Account Technician, Senior Exempt Administrative
Administrative Coordinator Exempt Administrative
Administrative Secretary Exempt Administrative
Administrative Specialist Exempt Administrative
Airport Administration Manager Exempt Executive
Airport Operations Manager Exempt Executive
Airport Operations Supervisor Exempt Executive
Airport Safety Management Systems Manager Exempt Executive Airport Security Coordinator Exempt Administrative
Airport Security Supervisor Exempt Executive
Aquatics Manager Non-Exempt N/A
Aquatics Supervisor Non-Exempt N/A
Assistant Planner Non-Exempt N/A
Associate Planner Non-Exempt N/A
Aviation Planner Non-Exempt N/A
Audit & Revenue Supervisor Exempt Executive
Auditor Exempt Professional
Budget Analyst Exempt Administrative
Budget Manager Exempt Executive
Building Inspector Supervisor Exempt Executive
Business Systems Analyst Exempt Computer
Central Business District Administrator Exempt Administrative Chief Deputy City Clerk Exempt Executive
Civil Engineer, Associate Exempt Professional
Civil Engineer, Senior Exempt Professional
Climate Action and Sustainability Specialist Exempt Administrative Code Compliance Supervisor Non-Exempt NA
Community Center Manager Exempt Executive
Community Development Administrator Exempt Administrative Deputy City Clerk Non-Exempt N/A
Deputy Director of Aviation – Marketing Exempt Professional Deputy Director of Maintenance & Facilities Exempt Executive Dispatcher Supervisor Non-Exempt N/A
Emergency Management Coordinator Exempt Administrative
Engineering Assistant Non-Exempt N/A
Engineering Assistant, Senior Exempt Administrative
Engineering Associate Exempt Professional
Fire Marshal Exempt Executive
Fleet Maintenance Manager Exempt Executive
GIS Analyst Exempt Professional
Homeless Outreach Coordinator Exempt Administrative
Housing Services Administrator Exempt Administrative
Human Resources Specialist Exempt Administrative
Human Resources Specialist, Senior Exempt Administrative Information Technology Analyst Exempt Computer
Item 1B - Page 38
31 Information Technology Network Engineer Exempt Computer Librarian Exempt Professional
Library & Public Services Manager Exempt Executive
Library Operations & Collections Manager Exempt Executive Maintenance Superintendent Exempt Executive
Maintenance Supervisor Exempt Executive
Marketing and Communications Specialist Non-Exempt Professional Network Administrator Exempt Computer
Parks and Recreation Manager Exempt Executive
Payroll Coordinator Exempt Administrative
Plans Examiner Supervisor Exempt Executive
Police Services Supervisor Non-Exempt N/A
Police Services Manager Exempt Executive
Principal Engineer Exempt Executive
Principal Planner Exempt Professional
Project Manager Exempt Administrative
Procurement & Contracting Manager Exempt Executive
Procurement Specialist I Exempt Administrative
Procurement Specialist II Exempt Administrative
Public Works Inspector, Senior Non-Exempt N/A
Recreation Supervisor Non-Exempt N/A
Redevelopment Coordinator Exempt Administrative
Special Events Manager Exempt Administrative
Street Maintenance Manager Exempt Executive
Item 1B - Page 39
32 MANAGEMENT ASSOCIATION OF PALM SPRINGS REPRESENTATIVE Date:

By:

MAPS President Signature
By:

MAPS Vice President Signature

CITY OF PALM SPRINGS
Date:

By: By:

City Manager Labor Attorney
Attest:

By: By:

City Clerk Director of Human Resources
Approved to form: Council Approval:

By:

City Attorney
Item 1B - Page 40

PUBLIC EMPLOYEES

ASSOCIATION OF PALM

SPRINGS

MEMORANDUM OF

UNDERSTANDING
JULY 1, 2023 – JUNE 30, 2026
Item 1B - Page 41
The Public Employees Association of Palm Springs
Memorandum of Understanding
July 1, 2023 – June 30, 2026
GENERAL PROVISIONS .................................................................................................................... 1 ARTICLE 1, TERM ....................................................................................................................... 1 ARTICLE 2, RECOGNITION......................................................................................................... 1 ARTICLE 3, FEDERAL AND STATE LAWS.................................................................................. 1 ARTICLE 4, MAINTENANCE OF BENEFITS................................................................................ 1 COMPENSATION/OTHER PAY.......................................................................................................... 2 ARTICLE 5, SALARIES ................................................................................................................ 2 ARTICLE 6, SALARY ADVANCEMENT ELIGIBILITY ................................................................... 2 ARTICLE 7, OVERTIME AND COMPENSATORY TIME .............................................................. 2 ARTICLE 8, ACTING OUT OF CLASSIFICATION ........................................................................ 3 ARTICLE 9, STANDBY, CALL BACK AND TRAINING PAY.......................................................... 4 ARTICLE 10, ADDITIONAL PAYS................................................................................................ 5 ARTICLE 11, SUPPLEMENTAL INDUSTRIAL DISABILITY COMPENSATION ............................ 6 ARTICLE 12, UNIFORM ALLOWANCE ........................................................................................ 7 ARTICLE 13, TOOL REIMBURSEMENT ...................................................................................... 7 ARTICLE 14, MILEAGE REIMBURSEMENT ................................................................................ 8 BENEFITS........................................................................................................................................... 9 ARTICLE 15, HEALTH AND WELFARE ....................................................................................... 9 ARTICLE 16, HEALTH INSURANCE FOR RETIREES ...............................................................11 ARTICLE 17, RETIREMENT.......................................................................................................13 ARTICLE 18, EDUCATIONAL REIMBURSEMENT.....................................................................14 ARTICLE 19, SAFETY SHOES...................................................................................................14 WORK HOURS/LEAVE.....................................................................................................................15 ARTICLE 20, HOURS OF WORK, NORMAL WORK WEEK, AND SHIFT DIFFERENTIAL.........15 ARTICLE 21, ATTENDANCE AND LEAVE.................................................................................16 ARTICLE 22, HOLIDAYS............................................................................................................17 ARTICLE 23, BEREAVEMENT LEAVE.......................................................................................19 EMPLOYER/EMPLOYEE RELATIONS.............................................................................................20 ARTICLE 24, REASONABLE DRESS POLICIES........................................................................20 ARTICLE 25, CELLULAR PHONE POLICY................................................................................20 ARTICLE 26, COMMERCIAL LICENSE REQUIREMENT...........................................................20 ARTICLE 27, CHANGE OF PAY PERIOD ENDING DATE.........................................................20 ARTICLE 28, PROBATIONARY PERIODS.................................................................................20 ARTICLE 29, PEAPS RIGHTS AND RESPONSIBILITIES ..........................................................20 ARTICLE 30, QUARTERLY MEETINGS.....................................................................................22 ARTICLE 31, GRIEVANCE PROCEDURE..................................................................................22 ARTICLE 32, DISCIPLINE ..........................................................................................................24 ARTICLE 33, NO STRIKES, WORK STOPPAGES OR LOCKOUTS ..........................................27 ARTICLE 34, CONTINUANCE OF MEMBERSHIP......................................................................27 APPENDIX A – DRUG AND ALCOHOL POLICY..............................................................................28 APPENDIX B – REPRESENTED CLASSIFICATIONS ......................................................................30 Item 1B - Page 42

MEMORANDUM OF UNDERSTANDING BETWEEN

THE CITY OF PALM SPRINGS

AND THE PUBLIC EMPLOYEES ASSOCIATION OF PALM SPRINGS
JULY 1, 2023 - JUNE 30, 2026

GENERAL PROVISIONS
ARTICLE 1, TERM
PEAPS and the CITY agree as follows:

This MOU shall be for the period commencing July 1, 2023 and terminating at 11:59 p.m. on, June 30, 2026; provided, however, that specific sections of this MOU may have later effective dates as specified herein.

ARTICLE 2, RECOGNITION
This Memorandum of Understanding (“MOU”) is entered into with reference to the following facts:

A. The Public Employees Association of Palm Springs (PEAPS) is the recognized employee organization for employees it represents employed by the City within the General Unit (herein called "Employees") set forth In Exhibit B.

B. The Public Employees Association of Palm Springs (PEAPS) and the City have met and conferred in good faith on wages, hours, and other terms and conditions of employment for the employees in the bargaining unit represented by PEAPS and have reached agreements which are set forth in this MOU.

ARTICLE 3, FEDERAL AND STATE LAWS
It is understood and agreed that this MOU is subject to all present and future applicable Federal and State laws and regulations and the provisions hereof shall be effective and implemented only to the extent permitted by such laws and regulations. If any part of this MOU is in conflict or inconsistent with such applicable provisions of Federal or State laws or regulations, or otherwise held to be invalid or unenforceable by any tribunal of competent jurisdiction, such part or provisions shall be suspended and superseded by such applicable laws and regulations, and the remainder of this MOU shall not be affected thereby and shall remain in full force and effect.

ARTICLE 4, MAINTENANCE OF BENEFITS
The status of all existing benefits and conditions of employment now enjoyed by the employees in the Unit represented by PEAPS shall not be deemed to be affected by this MOU, except as specifically modified by provisions hereof or by actions taken in the implementation hereof. All matters within the scope of bargaining have been negotiated and agreed upon. The terms and conditions set forth in this Agreement represent the full and complete understanding and commitment between the City and the Association.

Item 1B - Page 43

COMPENSATION/OTHER PAY
ARTICLE 5, SALARIES
Effective the later of the pay period which includes July 1, 2023 or the pay period following Council approval of this MOU, unit members shall receive a five percent (5.0%) salary increase.

Effective the pay period which includes July 1, 2024, unit members shall receive a five percent (5.0%) salary increase.

Effective the pay period which includes July 1, 2025, unit members shall receive a five percent (5.0%) salary increase.

The City will conduct a compensation survey of bargaining unit positions and provide a copy to the Association by January 31, 2026.

ARTICLE 6, SALARY ADVANCEMENT ELIGIBILITY
Employees shall be advanced one-step on the salary schedule effective on each employee’s anniversary date, provided the employee’s service has been continuous and they have at least a “meets expectations” or higher service rating on their most recent performance evaluation. Such consideration for a salary advancement shall only be given effective on each anniversary date until the employee reaches the top step of the range. Any unpaid leave of absence in excess of twenty (20) consecutive days will extend an employee’s anniversary date by the length of such leave.

ARTICLE 7, OVERTIME AND COMPENSATORY TIME

7.1 Overtime
Employees shall not work overtime unless authorized in advance to do so by the department head, or appropriate authorized supervisor.

Employees are eligible to receive overtime pay or bank compensatory time at the discretion of the Department Head or appropriate designee. Employees who work overtime may advise their Department Head whether their preference is to receive pay or compensatory time, but the Department Head has the ultimate discretion to make that decision. However, Department Heads must exercise that discretion in a manner that does not preclude the accrual of compensatory time off.

A supervisor qualified to perform the work may also sign up for overtime if a PEAPS employee is not available.

Employees will be permitted to trade overtime shifts with their colleagues.

Employees shall be compensated for overtime worked at a rate of 50% above the employee’s rate of pay for the work performed in excess of forty (40) hours per workweek. Paid leave counts as hours worked for purposes of calculating eligibility for overtime.

7.2 Compensatory Time
No employee shall accumulate compensatory time in excess of one hundred and ten (110) hours.

An employee who has accumulated the maximum amount of compensatory time shall not be Item 1B - Page 44
eligible to bank compensatory time until the accumulation has been reduced to less than the maximum accumulation of one hundred and ten (110) hours and shall be paid out in the current pay period for overtime hours worked.

Employees wishing to use their accrued compensatory time off shall provide the City with reasonable notice. A request to use compensatory time off without reasonable notice may still be granted within the discretion of the supervisor or manager responsible for considering the request.

If reasonable notice is provided, the request will not be denied, unless it would be unduly disruptive to grant the request. Approval of compensatory time off shall not be unreasonably withheld.

7.3 Overtime for Operations Specialists at the Palm Springs Airport This Article applies only to the classification of Operations Specialists working at the Palm Springs Airport. Should assigning overtime become necessary (as determined by a supervisor or manager) as a result of an employee in the classification requesting to use leave (e.g., vacation) or because the employee calls in as unable to work the shift (e.g., because they are sick) the following applies:

If an employee requests to use leave in advance (with notification of seven (7) days or greater) and the manager or supervisor determines that the shift would need to be backfilled, other Operations Specialists will have the opportunity to sign up for the shift on an overtime basis and the most senior of those who sign up for the shift (assuming that based on the determination of the manager or supervisor based on all of the facts and circumstances would not cause the employee to be too fatigued). If no Operations Specialist signs up for the shift, a supervisor, at the Operations Manager’s discretion, may sign up for the shift. If no Operations Specialist or supervisor signs up for the shift, the request for leave will be denied.

Attempts to fill a shift when an Operations Specialist calls off will be conducted in the following order by the supervisor:

A. If an employee in the classification of Operations Specialist calls off (e.g., with less than seven (7) days advance notification, calls in sick or is called for jury duty) and the manager or supervisor determines that the shift would need to be backfilled as time permits, an attempt will be made to fill the shift by placing phone calls to the off-duty Operations Specialists in the order of the greatest seniority to determine if they are able to work.

B. Additionally, supervisors may work this shift to ensure that adequate coverage for the shift is provided.

C. If the phone calls do not cause the shift to be covered and the supervisor cannot cover the shift, the shift will be offered to the Operations Specialists who were working the shift that preceded the shift for which the employee is calling off. If such an offer does not cover the shift, the City retains the right to direct the employee on the current or off-going shift to stay and cover the shift.

In addition, depending on when the City is notified that the employee who is supposed to work the shift will not be coming to work, the City may contact employees on the oncoming shift to come to work early to reduce fatigue on others and potentially split the shift.

ARTICLE 8, ACTING OUT OF CLASSIFICATION
On the second consecutive day that an employee is required to perform the majority of the duties of a higher classification ("acting out of class") the employee shall be entitled to additional compensation Item 1B - Page 45
equal to the lowest step on the range of the higher classification which will provide an increase in pay of 5%, but not to exceed the top step of the classification for which the employee is performing out of class duties ("acting pay"). Such acting pay shall be prospective only, commencing on the third consecutive day the employee is performing the majority of the duties of the higher classification and continuing thereafter until the employee ceases performing those duties.

ARTICLE 9, STANDBY, CALL BACK AND TRAINING PAY

9.1 Standby Pay
Whenever an employee is scheduled by the department for standby duty the employee shall be paid for two (2) hours per day for standby at the employee's regular hourly rate, not subject to overtime premium. If called back to work while on standby, there is no compensation for travel.

Dispatchers and Crime Scene Technicians who are under subpoena during non-working hours shall be paid for actual court time with a minimum of four (4) hours pay for each day’s appearance at the rate of time and one-half.

Employees on standby shall receive a cell phone from the City and will be required to respond to the call or text as quickly as possible. Upon responding, the employee will be instructed as to whether they are required to return to work and will be informed of the location to which they must respond.

Response time will generally be the employee’s normal commute time and any additional minimal time necessary to get ready to return to work. Standby lists shall be created monthly, when feasible, at least two weeks in advance of any standby shift. A supervisor qualified to perform the work regularly assigned to PEAPS may also be assigned to a standby shift and added to the standby list for the month. Employees will be permitted to trade stand-by shifts with their colleagues.

9.2 Call Back Pay
An employee called back to work while not on standby shall be paid both travel time (actual travel time up to a maximum of one hour) and a minimum of two (2) hours per incident, (from when the employee arrives at the work location) at one and one-half (1 1/2) times such employee's regular hourly rate.

Crime Scene Technician(s) called back to work while not on standby shall be paid both travel time (actual travel time up to a maximum of one hour) and a minimum of four (4) hours pay per incident, (from when the employee arrives at the work location) at one and one-half (1 1/2) times such employee's regular hourly rate.

9.3 Training Pay
City shall provide five percent (5%) training pay to anyone required to train new employees or an employee in a new assignment. An employee shall not receive training pay unless they are specifically asked by their supervisor to train another employee. PEAPS acknowledges and agrees that employees may ask their colleagues questions about performing their job and that does not entitle the employee to training pay and employees will not hold back from helping their colleagues with questions. Such training pay is for actual time spent training other employees. Training pay can only be provided in full-shift increments (minus any leave taken if applicable) where the employee has been assigned to train during their full day of work. Assistance provided to employees does not entitle the employee to training pay.

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Training pay will be noted on the employee’s time card under “special pay” and may require a “Personnel Action Form” to be submitted, at the discretion of the City. The Supervisor/Manager of the department is responsible for approving the training pay for the employee. The employee shall not be paid training pay unless authorized in advance to do so by the department head, or appropriate authorized manager/supervisor.

ARTICLE 10, ADDITIONAL PAYS
To the extent permitted by Title 2 CCR Sections 571 and 571.1 any pays in this Article will be reported to CalPERS as special compensation. However, it is ultimately CalPERS who decides whether a pay is reportable as special compensation.

10.1 Educational Incentive Pay
Employees will be eligible to receive an additional five percent (5%) Educational Incentive Pay for a Master's Degree from a college or university recognized as accredited by either the Council for Higher Education Accreditation (“CHEA”) or the U.S. Department of Education (“USDE”).

10.2 Certification Pay
The City agrees to provide two and one half percent (2.5%) certification pay for the following:

Certification Pay
Building Inspectors Intl Code Council (ICC) Building Inspector Code Compliance Officers CACEO
Code Compliance Officers Intl Code Council (ICC) Property Maintenance & Housing Fleet Maintenance Technician III
& IV California Fire Mechanic
Fire Prevention Specialist Intl Code Council (ICC) Fire Inspector II Permit Center Technicians Intl Code Council (ICC) related to position Plans Examiners Intl Code Council (ICC) related to position Public Work Inspectors American Construction Inspection Association (ACIA) related to position

10.3 Notary Pay
Employees selected at the City Manager's discretion who have obtained and maintained the California Public Notary Commission through the California Secretary of State shall be entitled to premium pay of an additional five percent (5%) over their regular base salary for their services.

Any employees hired on or after February 6, 2019 shall receive one hundred dollars ($100) per month for Notary Pay.

10.4 Bilingual Pay
Employees are eligible for Bilingual Pay as provided in this section. The City Manager shall determine the language needs as well as the number of employees eligible for Bilingual Pay. In order to be Item 1B - Page 47
eligible for Bilingual Pay, an employee must pass an examination (and as set forth below, must recertify) demonstrating fluency in listening, writing and speaking the desired second language.

Employees hired before February 6, 2019 are eligible to receive five percent (5%) of base salary in compensation for Bilingual Pay if their position is selected to receive Bilingual Pay and they pass the required examinations. Employees will be required to take both a speaking and listening and a writing bilingual proficiency examination. These employees shall receive two and one half percent (2.5%) for passing the speaking and listening portion of the bilingual proficiency exam and an additional two and one half percent (2.5%) for passing the writing portion of the bilingual proficiency exam for up to a maximum of five percent (5%) of base salary.

Employees hired on or after February 6, 2019 who become eligible for bilingual pay shall receive two hundred and fifty dollars ($250) per month for Bilingual Pay. Employees will be required to take both a speaking and listening and a writing bilingual proficiency examination. Employees shall receive one hundred and twenty-five dollars ($125) per month for passing the speaking and listening portion of the bilingual proficiency exam and an additional one hundred and twenty- five dollars ($125) per month for passing the writing portion of the bilingual proficiency exam for up to a maximum of two hundred and fifty dollars ($250) per month.

The examinations shall be developed and administered by the City to demonstrate fluency in writing, and speaking and listening the desired second language. All employees receiving bilingual pay must pass the prescribed examinations for each skill (one for speaking and listening and the other for writing) every three years to continue to receive bilingual pay for each skill. The City will notify employees when they are required to re-test. An employee who passes one of the tests but not the other, will still be eligible to receive their respective bilingual pay (2.5% or $125 per month for the skill passed. In addition, the employee may take a recertification examination after waiting at least three (3) months after taking the recertification examination to which the employee did not pass. If the employee does not pass that recertification examination, the employee shall not be permitted to take the recertification examination for that skill until their three-year cycle to recertify has passed. The City will notify employees when they are required to re-test.

If the employee passes one of the two examinations they shall receive the respective incentive pay (2.5% or $125 per month) for Bilingual Pay. If the employee does not pass either or both of those subsequent recertification examinations, the employee shall not be permitted to take the recertification examination(s) for that skill until their three-year cycle to recertify has passed. The Human Resources Department will coordinate the recertification examination for each employee receiving bilingual pay.

For any employees who receive Bilingual Pay, they must sign up to be present at and prepared to use their bilingual skills at one City Council meeting per year. On the day of the Council meeting for which the employee signs up, they shall adjust their work schedule that day by starting four hours later than their regular start time so that they can be present at the Council meeting to utilize their bilingual skills.

Sign language is included in the list of recognized languages.

ARTICLE 11, SUPPLEMENTAL INDUSTRIAL DISABILITY COMPENSATION PEAPS agrees that the City will pay the difference between benefits received from the Workers’ Item 1B - Page 48
Compensation Act and full pay (base pay) not to exceed 90 working days. When Supplemental City Industrial Disability Compensation (SCIDC) ends, the employee may make a request in writing to the Payroll Office for leave time to be used to supplement the difference between the benefits received under the Workers’ Compensation Act and their regular pay.

Whenever an employee is disabled temporarily and is entitled to receive temporary disability indemnity benefit payments provided under the Workers’ Compensation Act, the employee shall receive SCIDC sufficient to pay to the employee a combined total amount equal to regular base pay for the period of temporary disability, but not to exceed a total period of ninety (90) working days for any one injury or all combined injuries within one calendar year. If an employee in this situation goes on a vacation while receiving SCIDC, the employee must use vacation leave and SCIDC will stop during the vacation. The SCIDC will continue upon the employee’s return from vacation.

ARTICLE 12, UNIFORM ALLOWANCE
City agrees to pay a monthly uniform allowance to each employee in the job classifications listed below, in the amounts indicated. For classifications who receive $85 per month, the uniform allowance is to compensate for both the acquisition and maintenance of uniforms. For classifications who receive $30 per month, the uniform allowance is to compensate for maintenance of uniforms.

Uniform Allowance
Animal Services Officer $85.00 Plans Examiner II $30.00 Building Inspector $30.00 Police Records Technician $85.00 Code Compliance Officer $30.00 Police Services Officer $85.00 Community Services Officer $85.00 Airport Operations Specialist $30.00 Crime Scene Technician $30.00 Property Technician $30.00 Fire Prevention Specialists $85.00 Public Works Inspectors $30.00 Jail Transport Officers $85.00 Rangemaster $30.00
For employees who receive a uniform from the City, each department will determine the appropriate number of uniforms necessary for each classification.

ARTICLE 13, TOOL REIMBURSEMENT
City agrees to reimburse employees for tools purchased to perform their job for employees in the Fleet Operations Division, the Facilities Maintenance Division, Maintenance Mechanics assigned to the Parks,
Industrial Technicians, Industrial Technician Lead and Airport Maintenance Technicians.

Employees must provide receipts for the purchased tools that must be related to the performance of their job. Employees in the Fleet Operations Division, the Facilities Maintenance Division, and Maintenance Mechanics assigned to the Parks may receive reimbursement up to fifteen hundred ($1,500) per calendar year. Receipts for tool reimbursement must be submitted within the calendar year in which the tools are purchased. The reimbursement will be made through each employee’s department accounts payable.

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ARTICLE 14, MILEAGE REIMBURSEMENT
PEAPS and City agree that employees shall receive mileage reimbursement in accordance with existing City policy, at the prevailing IRS rate. Where extensive vehicle travel is required, a City vehicle may be provided instead.

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BENEFITS
ARTICLE 15, HEALTH AND WELFARE

15.1 Health Care Benefit – Medical, Dental and Vision
The City contracts with the California Public Employees’ Retirement System (CalPERS) for the provision of medical insurance in accordance with the provisions of the Public Employees’ Medical and Hospital Care Act (PEHMCA) per California Government Code section 22750 et seq. The medical care benefit that will be provided through a cafeteria plan in accordance with IRS Code section 125 and will include dental insurance and vision insurance as has been provided in the past.

15.2 City Health Care Benefit Contribution
The parties have agreed to a maximum City contribution for Single Party, Two-Party, and Family coverage for the combined benefits of health, dental, and vision insurance as follows:

For 2023 the Health Care Benefit Amount will be as shown in the table below:

Category Maximum Contribution
Employee Only $873/month
Employee + 1 $1,675/month
Family $2,281/month
The City will modify the employer contribution by a percentage (up to a maximum of five percent (5%)) for each benefit (medical, dental and vision) at each tier – single, two-party and family. Under no circumstances, can the City contribution received increase for each benefit by more than five percent (5%). For medical insurance the modification will be determined by evaluating the average of the modifications (increases or decreases) for all employee enrolled plans provided by CalPERS in the prior calendar year. Thus, if CalPERS adds a new Plan (or deletes a Plan so that it is not offered in the following year, or no one is enrolled) it will not be considered in the modification for medical insurance in the calendar year it is added or deleted. The amount provided by the City for medical insurance provided through CalPERS includes the CalPERS statutory minimum, which, for 2023, is $151 and for subsequent years is still undetermined.

For dental and vision insurance, the modification will be determined in the same manner as the medical plans by the modification (increase or decrease) to the currently provided dental and vision insurance. The amounts for dental and vision insurance cannot increase by more than five percent (5%) for each regardless of whether these benefits increase in cost by more than five percent (5%).

For dental and vision Insurance, the plans may change during the term of the MOU, but the benefits will be equivalent if they do.

The Association acknowledges that the City’s agreement to pay up to five percent (5%) of the increases for health, dental and vision insurance is a valuable benefit. The Association agrees that each year, once the increase in the costs of health, dental and vision is known (CalPERS generally publishes the increases for health insurance for the following calendar year in July), the amount that will be paid for by the City will be calculated based on the then current number of employees in the Item 1B - Page 51
bargaining unit. The City will then inform the Association as to what those increased costs will be so that the Association is aware of how much more the City will be spending on these benefits in the following calendar year. The City will consider these increased costs in evaluating its positions in collective bargaining.

15.2.1 Employees Who Opt Out of the Health Care Benefit Contribution Or Who Choose a Plan Which Does Not Require The City To Make the Maximum Contribution Employees who choose to opt out of receiving the Heath Care Benefit Contribution (i.e., receiving any portion of the total City contribution for any of the three benefits – Medical, Dental and Vision) and who satisfy the Eligible Opt-Out Arrangement rules below shall receive one hundred and fifty dollars ($150) (as taxable wages) per pay period (24 pay periods per year).

1. Employee must provide reasonable evidence that the employee and each member of the employee’s expected tax family (individuals the employee expects to claim personal exemption deduction) have or will have minimum essential coverage (other than coverage in the individual market, whether or not obtained through Covered California) during the period of coverage to which the opt-out arrangement applies;

2. The opt-out payment may not be made if the employer knows or has reason to know that the employee or any other member of the employee’s expected tax family does not have or will not have the alternative coverage;
i. The evidence of alternative coverage must be provided every plan year to which the eligible opt-out arrangement applies; and
ii. The reasonable evidence will be an attestation signed by the employee, attesting to the above, and must be provided no earlier than a reasonable period of time before each plan year begins.

In the event an employee selects a health, dental and/or vision plan which in total does not require the City to make a maximum total contribution, the employee shall receive the remainder of the City total contribution (up to the maximum of $100 (as taxable wages) per pay period). In no event shall a positive balance exceed $100 per pay period or two hundred dollars per month (24 pay periods per year).

15.2.2 Domestic Partner Coverage
The City will follow the CalPERS domestic partner requirements. Domestic partners will only be eligible for coverage as a dependent on the employee’s health insurance if the employee and their domestic partner officially registered their domestic partnership with the State of California in accordance with California Family Code section 297 et seq.

15.3 Life Insurance and Accidental Death and Dismemberment Insurance The City agrees to provide term life insurance coverage of Fifty Thousand Dollars ($50,000) for each employee. The City also agrees to provide Fifty Thousand Dollars $50,000 accidental death and dismemberment (AD&D) coverage for each employee.

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15.4 Short Term Disability
Employees are required to enroll in the short-term disability insurance plan and pay for the benefit by making premium payments through a payroll deduction. There is a fourteen (14) day waiting period for the benefit.

15.5 Long Term Disability
The City agrees to provide long-term disability insurance coverage through any carrier of its choice as long as coverage remains the same or greater. If the City changes carriers it will let the PEAPS know and PEAPS has the right to negotiate over any identified effects of the decision.

ARTICLE 16, HEALTH INSURANCE FOR RETIREES

16.1 Retiree Health Insurance Benefits
Retiree medical insurance is provided through CalPERS pursuant to PEMHCA.

For employees, (as addressed above in Article 15) the provision of additional money for medical insurance (i.e., in addition to the statutory minimum) is provided through a cafeteria plan, which the parties have called the “Health Care Benefit Plan.” For Tier I retirees with at least twenty (20) years of continuous service with the City, in addition to the CalPERS statutory minimum, additional money for retiree medical insurance will be provided pursuant to a Health Reimbursement Account (HRA) which has been established by the City through a third party vendor who administers the Account.

The employees pay for their chosen retiree medical insurance through a deduction from their retirement payment from CalPERS. The third party vendor then disburses the below described HRA benefit to each retiree as the retiree directs. The benefits provided by the HRA are as follows:

A. Tier I – Level 1 – Retirees Who Were First Employed Before December 7, 2005 And Who Have At Least 25 Years of Continuous Service With the City:

These individuals will receive a dollar amount through the HRA which will equal the City’s contribution for medical insurance up to two-party coverage (i.e., a single party will only be provided single party coverage) as described above under the provision of retiree medical insurance (i.e., the employee’s maximum benefit is tied to the plan chosen by the employee at the time the employee leaves active service unless the employee chooses a less costly plan in retirement and then it is tied to that plan because the employee cannot be reimbursed for more than 100% of the cost of the plan) for employees minus the particular calendar year’s CalPERS statutory minimum amount. If an employee chooses a more costly plan as a retiree, they will have additional out-of-pocket medical expenses.

If an employee chooses a more costly health plan prior to retirement, they must have chosen the plan at least one year prior to retirement or the health plan used for determining the maximum benefit under the HRA will be the plan previously chosen.

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B. Tier I – Level 2 – Retirees Who Were First Employed Before December 7, 2005 And Who Have At Least 20 Years Of Continuous Service With the City:

These individuals will receive a dollar amount through the HRA which will equal seventyfive percent (75%) of the City’s contribution for medical insurance up to two-party coverage (i.e., a single party will only be provided single party coverage) as described above under the provision of retiree medical insurance (i.e., the employee’s maximum benefit is tied to the plan at the time the employee leaves active service unless the employee chooses a less costly plan in retirement and then it is tied to that plan because the employee cannot be reimbursed for more than 100% of the cost of the plan) for employees minus the particular calendar year’s CalPERS statutory minimum amount. If an employee chooses a more costly plan as a retiree, they will have additional out-ofpocket medical expenses.

C. Tier I – Level 3 – Retirees Who Were First Employed Before December 7, 2005 But Who Have Less than 20 Years Of Continuous Service With the City:

These individuals will not receive any additional contribution through the HRA. They will receive the CalPERS statutory minimum amount towards their chosen retiree medical benefit.

1. Service Credit for Health Insurance For Retirees in Tier 1 Employees in Tier 1 shall be eligible for two years of service credit for the purpose of being eligible for retiree health insurance (e.g., an employee with 18 years of continuous service will be eligible for the benefits available to those with 20 years of continuous service) if in the month of June the employee makes an irrevocable offer to retire (which will be immediately accepted by the City) by no earlier than ninety (90) days from the date of notice or later than December 31 of that same calendar year. The additional two (2) years of service credit will sunset on December 31, 2028.

D. Tier II – Employees First Hired on December 7, 2005 Or Later:

In addition to being provided the CalPERS statutory minimum for retiree medical insurance once retiring, these individuals, while employed, will receive one-hundred dollars ($100.00) per month (placed into a retiree health savings (RHS) account by the City. The City will pay the administrative costs of this account.

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ARTICLE 17, RETIREMENT

17.1 Retirement Plan Retirement Formula
Employees (and not “new members as defined by the Public Employees’ Pension Reform Act of 2013 - PEPRA) hired prior to December 24, 2012 are covered by the 2.7% @ 55 formula provided for by the Public Employees’ Retirement Law at Government Code section 21354.5. These employees’ retirement will be calculated pursuant to the optional benefit (in the City’s contract with CalPERS) of single highest twelve month period.

Employees (and not “new members as defined by the Public Employees’ Pension Reform Act of 2013 - PEPRA) hired after December 24, 2012 are covered by the 2% @ 60 formula provided for by the Public Employees’ Retirement Law at Government Code section 21353.3. These employees’ retirement will be calculated per the three year average final compensation per Government Code 20037.

Employees who are defined as “new members” under the PEPRA, are covered by the 2% @ 62 formula provided for by the PEPRA at Government Code section 7522.20(a). These employees’ retirement will be calculated per the three year average final compensation as provided for by the PEPRA per Government Code section 7522.32(a).

17.2 Employee Contributions to the Retirement System
A. Employees subject to the 2.7% @ 55 Formula:

These employees shall pay their eight percent (8%) member contribution.

B. Employees subject to the 2% @ 60 Formula:

Employees subject to this formula pay the entire seven percent (7%) of compensation earnable towards the required CalPERS member contribution.

C. Employees subject to the 2% @ 62 Formula – “New Members” as defined by PEPRA:

These employees shall pay the statutorily mandated employee contribution rate of one-half of the total normal cost as determined by CalPERS in their annual valuation.

17.3 Adoption of IRS Code Section 414(h) (2) Resolution The City has adopted the CalPERS resolution in accordance with and as permitted by IRS Code section 414(h)(2) to ensure that the employees’ payment (i.e., “pick up” as that term is used in section 414(h)(2)) of their employee contribution is made on a pre-tax basis.

17.4 Optional Benefits
The City contracts with CalPERS for the following optional benefits:

A. Pre-retirement death benefits to continue after remarriage of survivor – Government Code section 21551
B. Death Benefit – Government Code section 21620
C. Post Retirement Survivor Allowance – Government Code sections 21624/26/28 and 21635 Item 1B - Page 55
D. 1959 Survivor Benefit Level 4– Government Code section 21574. Employees pay the employee premium for this benefit.

E. Military Reallocation Credit - Government Code section 21024 F. Final Compensation Period One Year - Government Code section 20042 for classic members
G. 2% Cost of Living Allowance - Government Code section 21329 H. Prior Service - Government Code section 20055
ARTICLE 18, EDUCATIONAL REIMBURSEMENT
Employees in good standing who hold regular appointments in the City Service shall be eligible for educational reimbursement. Courses must be from a college or university accredited by either the Council for Higher Education Accreditation (“CHEA”) or the U.S. Department of Education (“USDE”).

No employee shall receive, more than $1,500/fiscal year through the Educational Reimbursement Program.

ARTICLE 19, SAFETY SHOES
The City shall pay employees $175.00 per year (which will be paid $14.58 per month) for safety shoes to those positions that meet the general industry standard – (the current ATSM Standard) to those positions necessitating safety footwear protection. Employees are to wear these safety shoes at all times while performing usual and customary duties and failure to do so shall subject employees to potential disciplinary action. Additional requests for safety shoes must be approved by the department head or designee.

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WORK HOURS/LEAVE
ARTICLE 20, HOURS OF WORK, NORMAL WORK WEEK, AND SHIFT DIFFERENTIAL All employees shall be assigned to work a 4/10 work schedule; four consecutive workdays followed by three consecutive days off, with the following exception: employees in the classification of Dispatcher who work either a 3/12 or 4/10 work schedule. City Hall will remain closed on Fridays.

If an employee in Recreation or the Library is working a 4/10 schedule and the City desires to change the work schedule to a 5/8 work schedule, the City will request to meet and confer with the Association who agrees will promptly meet and confer with the City.

Employees are required to take a meal period of at least thirty (30) minutes. The meal period cannot be taken to shorten an employee’s work day at the beginning or end of their shift.

Pursuant to the Fair Labor Standards Act (FLSA), employees shall have a fixed workweek that consists of a regular recurring period of 168 consecutive hours (seven 24 hour periods) which can begin and end on any day of the week and at any time of the day. The designated workweek for an employee may be changed only if the change is intended to be permanent and not designed to evade overtime requirements of the FLSA.

If an employee requests to flex their schedule within a workweek (e.g., if the employee works two (2) additional hours on a Monday, requests to work two (2) hours less on a Wednesday of that same week) the employee’s supervisor can approve such a request as long as the request is made in advance of the time the employee will flex.

20.1 Work Week
The normal work week for full-time employees is forty (40) hours during the seven (7) day FLSA workweek starting 12:01 a.m. Sunday and ending 12:00 midnight of the following Saturday.

20.2 Shift Differential Pay
All employees regularly scheduled to work a shift that begins on or after 8:00 p.m. or prior to 5:00 a.m. will receive an additional 5% as shift differential pay. Shift differential applies when an employee covers for an employee on a scheduled shift which begins on or after 8:00 p.m. or prior to 5:00 a.m.

20.3 Airport Minimum Staffing
For all shifts at the airport there must be two Operations Specialists on duty at all times. The approval of advanced requests for leave will take into consideration this minimum staffing agreement. While requests to use accrued leaves will be accommodated to grant them when the employee wants to use leave, this minimum staffing agreement must be satisfied to ensure the safety of the airport.

If the Executive Director of the Palm Springs International Airport desires to change an employee’s schedule due to changes in flight schedules, the Association agrees that it will meet with the City as soon as possible to address the issue.

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ARTICLE 21, ATTENDANCE AND LEAVE

21.1 General Leave Definition
General leave is any approved absence with pay from regularly scheduled work for any purpose.

General leave shall substitute for either vacation or sick leave. Unless an employee is on a statutorily protected leave (such as FMLA/CFRA or PDL) an employee shall not be permitted to go on a leave without pay until they exhaust all accrued annual leave.

21.2 General Leave for Employees Who Are Re-employed Within Two Years Employees who are reemployed within two years due to a separation or layoff shall receive service credit for the most recent leave commencing with the effective date of reemployment at the accrual rate they were receiving at the time of separation or layoff.

21.3 General Leave General Provisions
General leave must be approved by the department head. General leave shall be paid at the member's straight time hourly rate of pay and the employee shall still receive the additional pays they receive while in paid status. Employees may use General leave once it is earned.

21.4 Maximum Accrual and Minimum Use
Employees shall be able to accrue up to a maximum of five hundred forty (540) hours. The City will expedite leave requests submitted by employees who are at their maximum accrual.

Department heads are responsible for planning work schedules to allow each employee to take at least forty (40) consecutive hours of General Leave each calendar year if they request. Approval of general leave shall not be unreasonably withheld.

21.5 Accrual Rates
General leave shall accrue and vest on the basis of the following schedule:

Years Of Service Hours Accrued & Vested For Each Full Month Worked 0 through 3 12
4 through 7 14
8 through 10 16
11 through 14 18
15 through 17 20
18 and over 20.67
Notification of Supervisor
Employees are responsible for notifying their supervisor as early as possible prior to the start of a shift of any unplanned or non pre-approved absence or tardiness. Such notification must be provided directly to the supervisor or department designee. A text message or email will be sufficient notification if the department approves that method of communication for use of unplanned or non pre-approved absence or tardiness. In order to receive compensation while Item 1B - Page 58
absent on general leave, the employee must comply with the notification requirements of that department and complete a leave request form upon return to work.

General Leave Cash-Out
By December 15 of each year, employees may make an irrevocable election to cash out up to the maximum number of hours of general leave which they can accrue per year which will be earned in the following calendar year at the employee’s base rate of pay. In the following year, the employee can receive the cash for the annual leave they irrevocably elected to cash out in either two (2) separate increments of up to half their annual accrual cap (i.e., for those who accrue 20.67 hours per month - 248 hours per year, 124 hours each) or one (1) increment of up the maximum they can accrue in a year.

The employee would be paid one half of what they irrevocably elect to cash out hours on both the second pay day in July and the second pay day in November or the employee can elect to be paid their full amount they elected to cash out on the second pay day in November. However, if the employee’s general leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out.

If an employee makes an irrevocable election to cash out general leave in the following calendar year and uses general leave in that subsequent year, the general leave used will come from general leave the employee had earned prior to January 1 of the year the employee has elected to cash out general leave. This is to ensure that assuming an employee had a general leave balance prior to January 1, the general leave used will not result in a reduction in the amount of general leave the employee will be eligible to cash out.

Disposition of Accrued and Vested General Leave Bank upon Termination Upon termination, all unpaid accrued and vested general leave will be paid at the employee's current salary rate. All unpaid accrued and vested general leave of deceased employees shall be paid to the estate of said deceased except as otherwise provided by law.

ARTICLE 22, HOLIDAYS

22.1 City Holidays
Employees shall be entitled to the following paid holidays if they were in paid status for the entire day the day before and the day after the holiday, (i.e., either the employee worked or was absent using paid leave for the entire day on such workdays):

New Year's Day January 1
Martin Luther King Day 3rd Monday in January
Presidents’ Day 3rd Monday in February
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day 1st Monday in September
Indigenous Peoples’ Day Second Monday in October
Veterans’ Day November 11
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Thanksgiving Day Fourth Thursday in November
Day after Thanksgiving Day after Fourth Thursday in November Christmas Eve December 24
Christmas Day December 25
One Additional Holiday earned into the Holiday Bank on January 1.

22.2 Hours Earned For Each Holiday
All full-time employees accrue ten (10) hours to their holiday leave bank for each observed holiday.

An employee who is regularly scheduled to work less than 40 hours per week shall receive a prorated number of hours of holiday leave. Part-time employees will accrue a holiday based on the following: 1.0 allocated FTE = 10 hours, .75 allocated FTE = 7.5 hours, .5 allocated FTE = 5.0 hours and any other allocated FTE percentage shall accrue a pro-rata number of hours based on a factor of one hour for each .1 allocated FTE.

22.3 How City Holidays Are Observed By Employees
For holidays occurring on a Friday or Saturday (i.e., years when July 4, Veterans’ Day, Christmas Eve, Christmas Day or New Year’s Day fall on a Friday or Saturday and every year for the day after Thanksgiving) they will not move to the prior open business day (e.g., the Thursday before or the Wednesday before Thanksgiving). These holiday hours will be placed in each employee’s holiday bank.

If Juneteenth, July 4, Veterans’ Day, Christmas Eve, Christmas Day or New Year’s Day fall on a Sunday, the holiday will be observed as a day off on the following Monday. If Christmas Eve falls on a Sunday, the hours will be placed in each employee’s holiday bank.

22.4 Working on Observed Holidays
If an employee is required by their supervisor to work on an observed holiday, 10 hours (pro-rated for part-time employees) will be credited to the employee’s holiday leave bank.

For employees who are required to work on the actual day of a holiday, they shall receive time and one half for each hour worked on that day.

22.5 Holiday Bank
All holiday hours (i.e., whenever an employee does not take the day off on a holiday and earns time rather than the day off) shall be placed in a holiday bank for use by employees during the calendar year. Any hours in an employee’s holiday bank on the last pay day of the calendar year shall be paid to the employee. If an employee leaves City employment, any hours in the holiday bank at the time of termination will be paid to the employee.

In calendar year 2023, the first holiday to which the holiday bank will apply is July 4, 2023.

Employees with leave in the floating holiday bank as of the beginning of this 2023-2026 MOU, will Item 1B - Page 60
have until December 31, 2023 to use any such hours. Those hours will no longer be available starting in 2024.

Employees must request to use holiday leave just like they would request to use general leave.

Approval of holiday leave shall not be unreasonably withheld.

22.6 Holidays While on General Leave
If a holiday falls within an approved general leave, the employee shall be paid for that day as a holiday and the employee’s general leave shall not be reduced for that day.

ARTICLE 23, BEREAVEMENT LEAVE
Employees shall be granted three (3) scheduled workdays in the event of a death in the "immediate family" of an employee, regardless of travel requirements.

23.1 Immediate Family
“Immediate family” shall be defined as any relative by blood or marriage who is a member of the employee’s household, domestic partner or any parent, grandparent, step-parent, spouse, child, step-child, grandchild, sibling, of the employee, or any parent, grandparent, step-parent of the employee’s spouse regardless of residence.

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EMPLOYER/EMPLOYEE RELATIONS
ARTICLE 24, REASONABLE DRESS POLICIES
PEAPS agrees that is in both the City’s and employees’ best interest that employees are dressed professionally for the particular work they perform. PEAPS agrees that Department Heads can develop reasonable professional dress standards that may include a uniform for each of their departments. However, before any dress policies may be implemented, the City agrees that it will provide the proposed policy to PEAPS for its review and input.

24.1 Police Department Uniform Policies
PEAPS agrees that the Uniform Regulations, Specification Section, of the Police Department Manual shall apply to employees to extent that provisions do not conflict with this MOU or the City's personnel rules.

ARTICLE 25, CELLULAR PHONE POLICY
If the City Manager determines that an employee is eligible to receive a City cell phone, the employee shall be issued a City cell phone at the City’s expense.

ARTICLE 26, COMMERCIAL LICENSE REQUIREMENT
Certain positions as identified in the job descriptions shall require possession of a commercial driver's license with a “P” endorsement. For current employees promoted into positions requiring the endorsement, they shall have six (6) months to obtain the required endorsement. Failure to obtain the required endorsement shall subject the employee to disciplinary action.

ARTICLE 27, CHANGE OF PAY PERIOD ENDING DATE
In the event that all units agree to a change in the pay periods PEAPS agrees to the change, as long as there is no loss of pay due to a changeover. PEAPS also agrees that should the City advance any pay, the amount of advance will be deducted from the employee's last paycheck.

ARTICLE 28, PROBATIONARY PERIODS
With the exception of the classification of Dispatcher, the probationary period for employees in the PEAPS bargaining unit is six (6) months. This applies to both new probation as well as promotional probation. For Dispatchers, the probationary period for both new and promotional probation is eighteen (18) months.

ARTICLE 29, PEAPS RIGHTS AND RESPONSIBILITIES
A. Board Meetings
PEAPS may conduct Board Meetings once a month during the weekday, not to exceed two (2) hours (meeting to include lunch break).

B. PEAPS Stewards
The City will provide a bank of one hundred twenty (120) hours per year to be allocated Item 1B - Page 62
by PEAPS among the stewards on the PEAPS Board of Stewards to carry out stewards' functions under this MOU. A steward who intends to use any part of the hours bank shall obtain the prior permission of the supervisor as well as the PEAPS Board and such permission shall not be unreasonably withheld. The PEAPS President shall be personally responsible for notifying the City's Human Resources Department of the use of such hours. The use of the banked time must be approved by the employee’s immediate supervisor and the City agrees that the use of the time will not be unreasonably denied.

PEAPS agrees that it will provide a statement at the City’s request at least twice a year regarding the use of such time. The statement will be provided within one calendar week of the request.

C. Voluntary PAC Contributions
PEAPS members may voluntarily authorize recurrent contributions to the PEAPS Political Action Committee (PAC) by completing and submitting the deduction information on a form furnished by the PEAPS. The City will have the contribution deducted from the employee’s paycheck and forward the contribution to the PEAPS.

D. PEAPS Leave Bank
In addition to the bank of Stewards hours set forth in Article 28(A) above, in the first pay period of April the City will deduct two (2) hours from the vacation bank of each unit member with at least ten (10) hours of accrued vacation. No hours will be taken from employees with less than 3 years on with the City.

These hours will be placed in a separate bank to be used as directed by the Association’s Board for use by Association Officers or members. The Association President will be responsible for notifying the City’s Director of Human Resources of the use of such hours when those hours are used. The use of the banked time must be approved by the employee’s immediate supervisor after receiving written approval from the PEAPS Board .

The written approval must be attached to the employee’s time card. The City agrees that the use of the time will not be unreasonably denied.

If any of the hours in the bank have not been used by the time the two-hour deduction will occur in April, no hours will be deducted until the remaining hours have been used. Once all hours have been used, the two vacation hours (per unit member) will be deducted and placed into the bank in the next pay period.

E. PEAPS Informational Bulletin Boards

1. Space shall be provided on City bulletin boards at their present locations for PEAPS posting of notices and bulletins of the following types:
a. Notices of PEAPS recreational, social affairs, and related PEAPS business news; b. Notices of PEAPS elections and such pertinent campaign material as is appropriate under PEAPS policy;
c. Notices of PEAPS appointments and results of PEAPS elections; d. Notices of PEAPS meetings;
Item 1B - Page 63
e. PEAPS constitution, by-laws, and proposed amendments thereto; and f. Such other notices as may be mutually agreed upon by the PEAPS and the Director of Human Resources.

2. The City will provide either space on existing bulletin boards or will provide space to put up a bulletin in the following facilities: the Airport, City Hall, Demuth Community Center, James O. Jessie Desert Highland Unity Center; Leisure Center, Library, Police Department, and City Yard which will be clearly marked as space available for Public Employees Association of Palm Springs or up to a 4 foot by 4 foot board in the area of the existing boards. The location and size will be mutually agreed upon by the department head and PEAPS.

3. The material posted on a bulletin board is neither official City business nor endorsed by the City and must not contain anything that would identify it as such. PEAPS shall not knowingly post any false or misleading statement. In addition, no obscene or personal attacks on City management or other persons shall be placed on any bulletin board. In the event such material is posted, the City representative will so inform the PEAPS representative, stating the basis for the objection, and such material shall be removed from the bulletin board immediately.

ARTICLE 30, QUARTERLY MEETINGS
Employees may attend up to four PEAPS meetings per fiscal year (once a quarter) from 11:30 a.m. - 1:30 p.m. which shall include their lunch period. Employees are required to inform their supervisors of such meetings in advance. Supervisors have discretion to deny attendance to ensure that work locations are adequately covered if necessary. However, that discretion will be exercised reasonably.

ARTICLE 31, GRIEVANCE PROCEDURE

31.1 Definition of Grievance
A. A “Grievance” is a dispute of one or more employees or a dispute between one or more employees involving the interpretation, application or enforcement of the provisions of the MOU, or of the Personnel Rules and Regulations that are within the statutory scope of representation, and for which there is no specific method of review provided by federal, State or local law. A grievance may also be filed by the Association.

B. A grievance is also a claim by an employee that a letter of reprimand was issued to them without legitimate cause.

C. Reviews of allocations or reallocations of positions as described Personnel Rule 4.3.3 or reviews of examination ratings as described Personnel Rule 7.7 are excluded from the grievance procedure. Allegations of harassment, discrimination or retaliation are also excluded from the grievance procedure as they are addressed by a separate procedure.

D. Release or lay-off of employees during an initial probationary period after hire, reinstatement, or reemployment is not subject to the grievance procedure.

31.2 Time Limits and Waivers
A. Working Days - For purposes of the Grievance Procedure, “days" are defined as the period from 8 a.m. to 6 p.m. City Hall working days, currently Monday-Thursday, excluding holidays.

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B. Initiation - An employee must initiate the grievance within fifteen (15) working days of the occurrence of the event giving rise to the grievance or within fifteen (15) working days after the grievant should, with reasonable diligence, have had knowledge of such occurrence, whichever is later.

C. Management Reply - Failure by management to reply to the employee's grievance within the time limits specified under the grievance procedure shall automatically grant the employee the right to process the grievance to the next level of review.

D. Failure to Submit to Next Level - If an employee fails to submit from one level to the next level within the time limits and in the manner provided under the grievance procedure, the grievance shall not be subject to further consideration and will be deemed resolved.

E. Waiver by Mutual Agreement - Any level of review or any time limits established in the procedure may be waived or extended by mutual agreement between the employee and management, which must be confirmed in writing.

31.3 Informal Resolution
A. The responsibility of an employee with a grievance is to promptly inform and discuss the grievance with the department supervisor or designee in order to, in good faith, endeavor to resolve the matter expeditiously and informally. If the grievance is filed by the Association, it does not need to follow the informal resolution process. It can file a written grievance per Article 30.4 with a supervisor who works in the department to which the grievance relates.

B. If such informal discussion does not resolve the grievance to the employee’s satisfaction, such employee may file a formal grievance in accordance with the procedure set forth in this section.

31.4 Procedure
A. The employee shall submit the grievance in writing, with signature and date, and submit it to their immediate supervisor within fifteen (15) working days of the initial commencement of the occurrence being grieved. The supervisor shall further consider and discuss the grievance with the employee and such employee’s designated representative as deemed appropriate, and shall, within fifteen (15) working days of having received the written grievance, submit a response thereto in writing to the employee and the employee’s representative, if applicable.

B. If the written response of the immediate supervisor does not result in a resolution of the grievance, the employee may further submit the grievance, by presenting a written request, with date and signature, to the employee’s department head within seven (7) working days of the employee’s receipt of the supervisor’s response. The department head may investigate the grievance and may set a meeting with the employee, employee’s designated representative, and other persons as deemed appropriate to consider the grievance. Within thirty (30) working days of receipt of the grievance by the department head, the department head shall submit a response to the grievance to the employee and employee’s representative, if applicable.

C. If the response by the department director, does not result in a resolution of the grievance, the employee may further submit the grievance, by presenting a written request, with date and signature to the Human Resources Director, for submission to the City Manager, within seven (7) working days of the employee’s receipt of the department head’s response. The Item 1B - Page 65
City Manager or designated representative, may set a meeting with the employee, employee’s designated representative, and other persons as deemed appropriate, to consider the grievance. Within thirty (30) working days of receipt of the grievance the City Manager or designated representative shall submit a response to the employee and employee’s representative, if applicable. The decision of the City Manager is final and binding.

D. Other than remedies provided by law, this grievance procedure is the sole and exclusive method for alleging a violation, misinterpretation or misapplication of any provision of this MOU or Personnel Rules.

ARTICLE 32, DISCIPLINE
The disciplinary appeals process is as follows:

Although probationary employees may be rejected from probation for any lawful reason, once an employee passes their probationary period, they shall only be subjected to discipline resulting in the loss of pay (defined as termination, demotion, suspension, or reduction in pay) if the City can support its position by a preponderance of the evidence. Such disciplinary action will be subject to the pre-action process described in paragraph A below and the disciplinary appeal procedure in paragraph B below.

Written reprimands and counseling memos are not subject to the pre-action process and may not be appealed. However, an employee may submit a written response within 30 calendar days of receipt of any such documents. The employee’s response shall be attached to the document in the employee’s personnel file.

A. Pre-Action Due Process for Discipline Resulting in Loss of Pay (Termination, Demotion, Suspension, Reduction in Pay)

1. Prior to being subject to any discipline that results in the loss of pay, an employee will first be served with a notice of intent to discipline by their supervisor, manager or department head. This document will set forth the grounds for discipline, the facts supporting the grounds and all evidence to which the employee is entitled by law. The notice of intent to discipline will also advise the employee of any prior discipline which the City representative issuing the notice believes is relevant to the current discipline. In addition, the notice of intent will advise the employee of their right to respond to the proposed discipline either in writing or orally at a meeting. If the employee does not respond within the time limits, the discipline will be imposed.

2. If the employee chooses to respond in writing, they must insure their response is received by the representative who issued the notice of intent to discipline within seven (7) calendar days of receiving the notice of intent to discipline. If the employee wishes to respond orally, they must call or write the City representative who issued the notice of intent to discipline within seven (7) calendar days of receiving the notice of intent to discipline informing the representative that they wish to have an oral response. The City representative will advise the employee when the meeting (known as a “Skelly process”) will take place.

Item 1B - Page 66

3. During the Skelly process (assuming the employee wants to respond orally) the employee has the right to be represented by a representative of their choice. Participating in a Skelly process is an option to the employee who is the subject of discipline. The employee may waive the Skelly process and proceed with their appeal. It is an opportunity for the employee and/or their representative to respond to the notice of intent to discipline.

4. The City representative who will hear the response may not be the person who issued the notice of intent to discipline. The decision will either be to impose the proposed discipline, impose no discipline or to impose a lesser discipline. The City representative hearing the response shall not have authority to impose discipline that is greater than that which was originally proposed.

5. If the discipline is imposed or if it is recommended to be reduced but there is still some discipline imposed, the City shall issue a notice of said discipline. Like the notice of intent, the notice of discipline shall set forth the grounds, and facts supporting the discipline as well as any prior discipline relied on by the City representative in imposing the discipline.

The notice of discipline will also set forth the employee’s appeal rights advising the employee that if they wish to appeal the discipline, they must do so in writing by serving a notice of appeal to the Human Resources Director within ten (10) calendar days.

6. The Notice of Discipline will set forth the effective date of the discipline.

B. Appeals Procedure

2. The City and the employee or their representative may agree on the hearing officer. If they cannot agree, the hearing officer shall be chosen from a panel of seven (7) hearing officers from a list provided State Mediation and Conciliation Service. The parties shall alternately strike names until one hearing officer remains. The parties shall flip a coin with the winner of the coin flip getting to choose whether to strike the first name or the second name. Names will be struck until the hearing officer is selected.

3. The hearing officer shall submit an advisory decision setting forth their findings, conclusions, and recommendations to the City Council.

C. Hearings

1. The hearing shall commence no more than ninety (90) days from the date of the filing of the appeal provided that the parties may agree to a longer period to commence the hearing.

2. All disciplinary hearings shall be closed to the public unless the affected employee requests that the hearing be open to the public.

3. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule, which might make improper admission of such evidence over objection in civil actions. Hearsay Item 1B - Page 67
evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil and criminal actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission and exclusion of evidence.

4. Each party shall have these rights: to be represented by legal counsel or other person of their choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the employee appealing the discipline does not testify on her/his own behalf, they may be called and examined as if under cross-examination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing. The cost of the reporter will be paid for by the City. However, if the employee wants to order a transcript it will be at their cost.

The cost of the hearing officer will be paid for by the City.

During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, for good cause, otherwise directs. The hearing officer, prior to or during a hearing, may grant a continuance for any reason they believe to be important to reaching a fair and proper decision. f. The hearing officer may recommend sustaining, rejecting or modifying the disciplinary action.

6. The hearing officer's findings, conclusion and recommendations shall be filed with the Director of Human Resources, who will forward them to the City Council. The City Council, in its sole discretion, may hear limited oral arguments and/or request written statements from either party on the hearing officer’s advisory decision. The City Council shall inform the employee appealing their discipline of its decision regarding the appeal within thirty (30) days of the receipt of the hearing officer's report. However, the City Council may extend the time to issue its decision beyond the thirty (30) day period if it believes it is necessary. The decision of the City Council regarding the appeal shall be the final step in the administrative appeal process. However, any disciplinary action is deemed final as of the effective date. Copies of the City Council's decision, including the Item 1B - Page 68
hearing officer's report shall be filed where appropriate, including the employee's personnel file. The City Council’s decision is subject to review by a superior court pursuant to Code of Civil Procedure Section 1094.6.

7. Subpoenas and subpoenas duces tecum pertaining to the hearing shall be issued at the request of either party, not less than ten (10) days prior to the commencement of the hearing; after commencement, subpoenas shall be issued only at the discretion of the hearing officer.

8. The time limits specified at any step in this procedure may be extended or reduced by written agreement of the employee or their representative and the representative for the City.

ARTICLE 33, NO STRIKES, WORK STOPPAGES OR LOCKOUTS
In consideration of the mutual desire of the parties to promote and ensure harmonious relations, the City agrees that there shall be no lockout or the equivalent of employees, and PEAPS and the employees agree that there shall be no strike or other concerted action resulting in the withholding of service by the employees during the term of this MOU. In the event of a work action by the employees, PEAPS shall direct the employees to return to work. It is mutually understood and agreed that the City has the absolute right to impose discipline and, in that regard, shall have the right to take disciplinary action, including discharge, against any employee who participates in any manner in any strike or slowdown, withholding of services, picketing in support of a strike or other concerted action while scheduled to work.

The curtailing of operations by the City in whole or part for operational or economic reasons shall not be construed as a lockout. If the City does not have work for an employee due to the nature of the job (e.g., Cogen employees and those who work at the pool when the pool is closed) such employees will be assigned to perform other tasks within their abilities and they must perform the assigned work to be paid. The provisions of this subsection shall not detract in any way from any restrictions imposed by law on strikes and other types of work stoppages by public employees.

ARTICLE 34, CONTINUANCE OF MEMBERSHIP
All employees who are members of PEAPS shall continue and maintain their membership in PEAPS for the duration of this MOU, except that any employee who is or becomes a member of PEAPS may, during the period of June 16 through June 30, 2026, withdraw their membership in PEAPS by notifying the City and PEAPS in writing of such withdrawal and that after such withdrawal said employee will no longer be required to remain a member of PEAPS.

PEAPS agrees to enforce this provision and to indemnify, defend, and hold the City of Palm Springs, and its employees harmless from any claims, demands, expenses, losses, liabilities, and/or damages arising from the operation of this Section. Provided further, however, that the City reserves the right to file suit in the Superior Court of the State of California for Riverside County for the purpose of seeking declaratory relief as to whether or not this Section is legal and valid under the laws of the State of California, and if said Section is declared invalid or unlawful, it shall be of no force nor effect.

Item 1B - Page 69
APPENDIX A – DRUG AND ALCOHOL POLICY
The parties have a vital mutual interest in maintaining safe, healthful and efficient working conditions. Being under the influence of a drug or alcohol on the job may pose serious safety and health risks not only to the user but also to co-workers and the citizens of Palm Springs. The possession, use or sale of an illegal drug, marijuana or of alcohol on the job also poses unacceptable risks for safe, healthful and efficient operations. "On the job" means while on City premises, at work locations, or while on duty or being compensated on "standby".

PEAPS, City, and employees recognize that their future is dependent on the physical and psychological well-being of all employees. PEAPS, City, and employees mutually acknowledge that a drug and alcohol-free work environment benefits employees and citizens and agree to comply with this policy at such time as a mutually agreed upon employee assistance program is in place.

The purpose of this article is to define the City's drug and alcohol policy as well as the possible consequences of policy violation.

Section 1
Possession, sale, use or being under the influence of drugs or alcohol while on the job is strictly prohibited.

Section 2
When reasonable suspicion exists, the City may require an employee to submit to a substance screening. The employee will be given the option to select a blood test or urinalysis.

Section 3
Any manager or supervisor requesting that an employee submit to a substance screening shall document in writing the facts constituting reasonable suspicion and shall give the employee a copy.

This report must advise the employee of their right to representation. Such member shall be given an opportunity to provide additional facts. An employee who is then ordered to submit to a substance abuse screening may request to be represented. Because time is of the essence in drug screening, a representative must be available within thirty (30) minutes or the employee will then be ordered to submit to a substance screening.

Any employee who refuses to submit to a substance screening may be considered insubordinate and shall be subject to disciplinary action up to and including termination.

Section 4
The supervisor, or designee, shall transport the suspected employee to the testing facility. Testing shall occur on City time and be paid for by the City. The facility used for testing shall be certified by the National Institute of Drug Abuse and comply with established guidelines for “chain of Item 1B - Page 70
custody” to insure that identity and integrity of the sample is preserved throughout the collecting, shipping, testing and storage process.

Section 5
Any positive test for alcohol or drugs will be confirmed by a scientifically sound method. Any employee who tests positive on a confirmatory test will be given the opportunity to discuss the results with a physician. The employee should be prepared at that time to show proof of any valid medical prescription for any detected substance or to otherwise explain, if they so choose, a positive test result.

Section 6
While use of medically prescribed medications and drugs is not per se a violation of this policy, this policy shall establish that no employee shall operate a City vehicle or dangerous machinery or equipment while taking any kind of medication or drugs which are clearly marked that they may cause significant drowsiness or impair an employee’s performance. Such member shall notify their supervisor, before beginning work, when taking such medications or drugs. In the event there is a question regarding such member's ability to safely and effectively perform assigned duties while using such medications or drugs, clearance from a physician designated by the City may be required. The City reserves the right to send such employee home on sick leave under these circumstances.

Section 7
Employees with substance abuse problems are encouraged to participate voluntarily in the Citysponsored Employee Assistance Program (EAP). Assistance through the EAP may be sought by an employee with complete confidentiality and without adverse consequences to their employment.

Employees should be aware, however, that a request for assistance through the EAP will not insulate such employee from disciplinary action already contemplated.

Depending upon the facts surrounding the reasonable suspicion determination, positive test result, and/or other violation of this policy or other City/department rules and regulations, City will refer such employee to the EAP. Such referral shall be made available to the employee as an alternative to disciplinary action. Referral would be subject to agreement by the employee to enroll, participate in and successfully complete rehabilitation and/or counseling program and other terms and conditions in a "Last Chance Agreement".

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APPENDIX B – Represented Classifications
Account Clerk I
Account Clerk II
Account Specialist I
Account Specialist II
Administrative Assistant
Airport Operations Aide
Airport Operations Specialist I
Airport Operations Specialist II
Animal Services Officer
Building Inspector
Clerical Assistant
Code Compliance Officer
Cogeneration Technician
Cogeneration Technician, Senior
Community Outreach & Media Specialist
Community Service Officer
Crime Analyst
Crime Scene Technician
Dispatcher
Executive Services Assistant
Fire Prevention Specialist
Fleet Maintenance Technician II
Fleet Maintenance Technician III
Fleet Maintenance Technician, Lead
GIS Technician
Housing Program Assistant
Human Resources Technician
Industrial Technician
Industrial Technician, Lead
Information Technology Technician
Jail Transport Officer
Library Assistant
Library Assistant, Senior
Library Page
Lifeguard
Lifeguard Trainee
Lifeguard, Lead
Maintenance Electrician
Maintenance Electrician (HVAC)
Maintenance Mechanic I
Maintenance Mechanic, Lead
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Maintenance Mechanic, Senior
Maintenance Technician I
Maintenance Technician II
Maintenance Technician, Senior
Maintenance Worker I
Maintenance Worker, Lead
Park Ranger
Parts & Office Assistant
Permit Center Technician
Planning Technician
Plans Examiner
Plans Examiner II
Police Records Technician
Police Services Officer
Police Trainee
Professional Standards Coordinator
Program Coordinator
Property Technician
Public Works Inspector
Rangemaster
Recreation Program Aide
Recreation Program Assistant
Secretary
Secretary, Senior
Street/Traffic Maintenance Worker
Street/Traffic Maintenance Worker, Lead
Street/Traffic Maint. Worker/Senior Heavy Equipment Operator Item 1B - Page 73

THE PUBLIC EMPLOYEES ASSOCIATION OF PALM SPRINGS
Date:

By:

PEAPS Representative (Print) Signature
By:

PEAPS President (Print) Signature
By:

PEAPS Vice President (Print) Signature

CITY OF PALM SPRINGS
Date:

By: By:

City Manager Labor Attorney
Attest:

By: By:

City Clerk Director of Human Resources
Approved to form:

By:

City Attorney
Council Approval:

Item 1B - Page 74

CITY COUNCIL STAFF REPORT
06/05/2023
SUBJECT:

ACCEPTANCE OF THREE FEDERALLY FUNDED GRANTS FOR THE AIRPORT

MASTER PLAN/GIS STUDY, THE INBOUND BAGGAGE CLAIM SYSTEM AND

THE OUTBOUND BAGGAGE HANDLING SYSTEM EXPANSION-DESIGN, FOR

FUNDING OF THE PALM SPRINGS INTERNATIONAL AIRPORT PROJECTS RECOMMENDATION:

Approve acceptance of Federal Aviation Administration AIP Grant No. 3-06-0181-067-2023 for Airport Master Plan/GIS Study in the amount of $2,108,584.

1. Approve acceptance of Federal Aviation Administration BIL-ATP Grant for Inbound Baggage Claim System in the amount of $5,700,000.

2. Approve acceptance of Transportation Security Administration OTA Grant for Outbound Baggage Handling System Expansion-Design in the amount of $1,388,995.

3. Authorize the City Manager or designee to execute all necessary grant documents.

4. Attachments
Item 1C

CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF THREE FEDERALLY FUNDED GRANTS FOR THE

AIRPORT MASTER PLAN/GIS STUDY, THE INBOUND BAGGAGE

CLAIM SYSTEM AND THE OUTBOUND BAGGAGE HANDLING

SYSTEM EXPANSION-DESIGN, FOR FUNDING OF THE PALM

SPRINGS INTERNATIONAL AIRPORT PROJECTS
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:

This action will authorize the acceptance of one Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant, one FAA Bipartisan Infrastructure Law (BIL) Airport Terminal Program (ATP) grant, and one Transportation Security Administration (TSA) Other Transaction Agreement (OTA) grant to provide funding for upcoming Airport projects.

RECOMMENDATION:

1. Approve acceptance of Federal Aviation Administration AIP Grant No. 3-06-0181- 067-2023 for Airport Master Plan/GIS Study in the amount of $2,108,584.

2. Approve acceptance of Federal Aviation Administration BIL-ATP Grant for Inbound Baggage Claim System in the amount of $5,700,000.

3. Approve acceptance of Transportation Security Administration OTA Grant for Outbound Baggage Handling System Expansion-Design in the amount of $1,388,995.

4. Authorize the City Manager or designee to execute all necessary grant documents.

BACKGROUND:

Palm Springs International Airport (Airport) relies on the Federal Aviation Administration’s Airport Improvement Program funding for aviation-specific qualifying capital improvement projects. In order to qualify for utilization of the Federal Aviation Administration Item 1C - Page 1
City Council Staff Report
June 5, 2023 -- Page 2
Acceptance of Federally Funded Grants for Airport
grant funds, the Airport has to demonstrate projects that have justifiable aviation needs and align with FAA project funding criteria for safety and/or capacity.

In addition to the AIP funding, the Airport has secured funding from the FAA’s competitive discretionary funding through the Bipartisan Infrastructure Law (BIL) Airport Terminal Program (ATP) for the Inbound Baggage Claim Airport terminal project. The competitive discretionary funding program administered by the FAA aims to provide financial assistance to airports for various infrastructure development projects, including the construction or renovation of airport terminals.

The TSA, an agency of the U.S. Department of Homeland Security, is responsible for ensuring the safety of the traveling public and transportation systems across the nation.

As part of its mandate, the TSA offers Other Transaction Agreements (OTAs) to eligible entities, such as airports, to foster collaboration and innovation in addressing evolving security challenges. The TSA OTA offers the Airport access to federal funding and resources that can significantly offset the costs associated with implementing advanced security measures, such as the design of the Outbound Baggage Handling System.

STAFF ANALYSIS:

The Airport is requesting City Council’s authorization to accept the three federally funded grants for the following three projects:

Airport Master Plan / GIS Study Project – Phase 1, Design - AIP Grant No. 3-06-0181- 067-2023
The Airport Master Plan is a comprehensive study that outlines the long-term development and improvement strategies for an airport. The Airport Master Plan is intended to guide the Airport's development in a strategic and sustainable manner. A GIS (Geographic Information System) study is a component of the Airport Master Plan that utilizes spatial data to analyze and map the Airport's infrastructure and surrounding areas.

The study can be used to evaluate land use patterns, assess environmental impacts, and plan for future development.

Mead & Hunt has been selected as a consultant to complete the Airport Master Plan, including the GIS study. The process is expected to take 30 months to complete, during which time Mead & Hunt will work closely with the Airport management team, City, and the community to gather data, analyze trends, and develop strategies for future development. The resulting Airport Master Plan will provide a roadmap for the Airport's growth and development over the coming years.

The total cost of the master plan package amounts to $2,335,018. The FAA contribution under the AIP grant will be funded at 90.66% totaling $2,108,584, and the Airport will be responsible for the remaining amount of $226,434. The City received the grant agreement from the FAA to execute for $2,108,584; included as Attachment A.

Item 1C - Page 2
City Council Staff Report
June 5, 2023 -- Page 3
Acceptance of Federally Funded Grants for Airport
Inbound Baggage Claim System – BIL-ATP
On November 15, 2021, the federal Bipartisan Infrastructure Law (BIL) was passed which provides potential funding for new investments towards infrastructure including airports.

The BIL provided $25 billion to be awarded to eligible U.S. airports for airport infrastructure and terminal development. The BIL funds were split into two funding categories: 1) Airport Infrastructure Grants (AIG), allocated and competitive, and 2) Airport Terminal Program (ATP), competitive.

The Airport recognized the importance of upgrading its infrastructure to meet the increasing demand and expectations of passengers and airlines, and Airport staff identified the requirement for an improved inbound baggage claim system within the terminal. The existing system faced capacity limitations, causing delays and inconveniences for travelers.

Under the BIL-AIG funding, the FAA allocated approximately $5.1 million to the Airport in Fiscal Year 2022 and for the next 4 years the Airport will receive $5.1 million of BIL-AIG allocated funds totaling approximately $25.5 million through Fiscal Year 2026. To secure the necessary additional funding for this crucial project, the Airport diligently prepared a comprehensive proposal that showcased the need for the inbound baggage claim system and its alignment with the FAA's goals. The proposal included concept designs, and cost estimates, demonstrating the project's feasibility and anticipated benefits. Through a rigorous application process, the Airport successfully obtained a competitive BIL-ATP grant from the FAA. This grant provides the necessary financial resources to design and construct the inbound baggage claim system, ultimately improving the efficiency, passenger flow, and overall customer satisfaction at the Airport, and the Airport intends to apply for additional ATP grants in subsequent years. In the meantime, the Airport proposes to fund the remaining $21.6 million with BIL-AIG funding and Passenger Facility Charge (PFCs) funds. The FAA issued Frequently Asked Questions (FAQ) regarding the BIL Grant guidelines which provide guidance on the use of these grant funds is included as Attachment B.

The preliminary cost analysis rough order of magnitude total for the Inbound Baggage Claim System project amounts to $27,348,000. The FAA contribution under the BIL-ATP grant will be funded at 95% for a portion totaling $5,700,000 and the Airport will be responsible for the grantee’s share in the amount of $300,000.

Outbound Baggage Handling System Expansion-Design – TSA-OTA In August 2021, the Airport completed a renovation of its ticketing lobby and installed an outbound baggage handling system (BHS). However, due to the increase in demand from new airlines entering the market and new addition of routes, the BHS is incapable of accommodating the demand on baggage.

Item 1C - Page 3
City Council Staff Report
June 5, 2023 -- Page 4
Acceptance of Federally Funded Grants for Airport
An independent third-party consultant (V-1 Solutions) was procured to assess the BHS and provide recommendations for short-, medium-, and long-term solutions to address the capacity issues. The consultant recommended the Airport either heavily modify or completely replace the current BHS based on the rate of growth the Airport is experiencing. The Transportation Security Administration invited the Airport to apply for a grant to design and replace the current BHS system.

AECOM Technical Services, Inc. has been selected as a consultant to design a fully inline outbound BHS, which may require terminal building modifications or expansion. The OTA grant will cover allocable costs related to the design of the BHS system and under a separate agreement cover a portion of allocable costs of the facility modification. The TSA funding policy regarding the OTA Grant guidelines is included as Attachment C.

The cost for this outbound baggage handling system design amounts to $3,174,638. The TSA allocable costs contribution under the OTA grant will be funded at 95% totaling $1,388,995 and the Airport will be responsible for the remaining share in the amount of $1,785,373.

All projects supported under this action are approved by the FAA and TSA, respectively and considered safety and/or terminal improvement projects to facilitate the FAA’s National Plan of Integrated Airport Systems.

Airport staff believes that the FAA may transmit the ATP grant and the TSA may transmit the OTA grant to the City during the month of August and request for the City to sign the agreements and return them prior to September 30, 2023. Therefore, this action would authorize the City Manager to sign the two grant agreements for the amounts published by the FAA and TSA, as stated above.

ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not 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. According to Section 15378(b), a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports City Council priority 2A, Improve City Facilities.

Item 1C - Page 4
City Council Staff Report
June 5, 2023 -- Page 5
Acceptance of Federally Funded Grants for Airport
FISCAL IMPACT:

The total cost of the master plan package amounts to $2,335,018. The FAA contribution under the AIP grant will be funded at 90.66% totaling $2,108,584 and the Airport will be responsible for the remaining amount of $226,434.

The three projects have a total cost of $32,857,656. The majority of the funding is provided through grants from the FAA and TSA, with the Airport responsible for the remaining shares. The grants will be reimbursed through designated Airport account 4167070.50126, while the Airport's share will be funded from the Airport Special Capital Projects account 4167070.80000.

REVIEWED BY:

Department Director: Harry Barrett Jr.

City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:

A. FAA AIP Grant Agreement No. 3-06-0181-067-2023
B. FAA FAQ Regarding BIL-ATP Funding
C. TSA Funding Policy
Item 1C - Page 5

ATTACHMENT A

FAA AIP GRANT
AGREEMENT NO. 3-06-0181-067-2023
Item 1C - Page 6
3-06-0181-067-2023
1 U.S. Department
of Transportation
Federal Aviation
Administration
Airports Division
Western-Pacific Region
California
Los Angeles Airports District
Office:
777 S Aviation Blvd, Ste 150
El Segundo, CA 90245
{{DateTime_es_:signer1:calc(now()):format(date," mmmm d, yyyy")}} Mr. Scott C. Stiles, City Manager
City of Palm Springs
3400 E. Tahquitz Canyon Way, Suite 1
Palm Springs, CA 92262
Dear Mr. Stiles:

The Grant Offer for Airport Improvement Program (AIP) Project No. 3-06-0181-067-2023 at Palm Springs International Airport is attached for execution. This letter outlines the steps you must take to properly enter into this agreement and provides other useful information. Please read the conditions, special conditions, and assurances that comprise the grant offer carefully.

You may not make any modification to the text, terms or conditions of the grant offer.

Steps You Must Take to Enter Into Agreement.

To properly enter into this agreement, you must do the following:

1. The governing body must give authority to execute the grant to the individual(s) signing the grant, i.e., the person signing the document must be the sponsor’s authorized representative(s) (hereinafter “authorized representative”).

2. The authorized representative must execute the grant by adding their electronic signature to the appropriate certificate at the end of the agreement.

3. Once the authorized representative has electronically signed the grant, the sponsor‘s attorney(s) will automatically receive an email notification.

4. On the same day or after the authorized representative has signed the grant, the sponsor‘s attorney(s) will add their electronic signature to the appropriate certificate at the end of the agreement.

5. If there are co-sponsors, the authorized representative(s) and sponsor‘s attorney(s) must follow the above procedures to fully execute the grant and finalize the process. Signatures must be obtained and finalized no later than June 30, 2023. 6. The fully executed grant will then be automatically sent to all parties as an email attachment.

Payment. Subject to the requirements in 2 CFR § 200.305 (Federal Payment), each payment request for reimbursement under this grant must be made electronically via the Delphi eInvoicing System. Please see the attached Grant Agreement for more information regarding the use of this System.

Project Timing. The terms and conditions of this agreement require you to complete the project without undue delay and no later than the Period of Performance end date (1,460 days from the grant execution date). We will be monitoring your progress to ensure proper stewardship of these Federal funds. We Item 1C - Page 7
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2 expect you to submit payment requests for reimbursement of allowable incurred project expenses consistent with project progress. Your grant may be placed in “inactive” status if you do not make draws on a regular basis, which will affect your ability to receive future grant offers. Costs incurred after the Period of Performance ends are generally not allowable and will be rejected unless authorized by the FAA in advance.

Reporting. Until the grant is completed and closed, you are responsible for submitting formal reports as follows:

For all grants, you must submit by December 31st of each year this grant is open:

1. A signed/dated SF-270 (Request for Advance or Reimbursement for non-construction projects) or SF-271 or equivalent (Outlay Report and Request for Reimbursement for Construction Programs), and

2. An SF-425 (Federal Financial Report).

For non-construction projects, you must submit FAA Form 5100-140, Performance Report within 30 days of the end of the Federal fiscal year.

For construction projects, you must submit FAA Form 5370-1, Construction Progress and Inspection Report, within 30 days of the end of each Federal fiscal quarter.

Audit Requirements. As a condition of receiving Federal assistance under this award, you must comply with audit requirements as established under 2 CFR Part 200. Subpart F requires non-Federal entities that expend $750,000 or more in Federal awards to conduct a single or program specific audit for that year. Note that this includes Federal expenditures made under other Federal-assistance programs.

Please take appropriate and necessary action to ensure your organization will comply with applicable audit requirements and standards.

Closeout. Once the project(s) is completed and all costs are determined, we ask that you work with your FAA contact indicated below to close the project without delay and submit the necessary final closeout documentation as required by your Region/Airports District Office.

FAA Contact Information. Darlene Williams, (424) 405-7279, [email protected] is the assigned program manager for this grant and is readily available to assist you and your designated representative with the requirements stated herein.

We sincerely value your cooperation in these efforts and look forward to working with you to complete this important project.

Sincerely,
{{Sig_es_:signer1: signature}} Luke Garrison
Acting Manager
[ADO has discretion to delegate signature authority to Program Manager] Item 1C - Page 8
•
•
•
L-uf(.e A:. uarrison
Luke A. Garrison (May 9, 202312:12 PDT)
3-06-0181-067-2023
3 U.S. Department
of Transportation
Federal Aviation
Administration

FEDERAL AVIATION ADMINISTRATION AIRPORT IMPROVEMENT PROGRAM FY 2023 Airport Improvement Program (AIP)

GRANT AGREEMENT
Part I - Offer
Federal Award Offer Date {{DateTime_es_:signer1:calc(now()):format(date," mmmm d, yyyy")}} Airport/Planning Area Palm Springs International Airport FY2023 AIP Grant Number 3-06-0181-067-2023
Unique Entity Identifier M81QLC23JVX5
TO: City of Palm Springs
(herein called the "Sponsor")
FROM: The United States of America (acting through the Federal Aviation Administration, herein called the "FAA")
WHEREAS, the Sponsor has submitted to the FAA a Project Application dated February 23, 2023, for a grant of Federal funds for a project at or associated with the Palm Springs International Airport, which is included as part of this Grant Agreement; and
WHEREAS, the FAA has approved a project for the Palm Springs International Airport (herein called the “Project”) consisting of the following:

Update Airport Master Plan or Study/GIS
which is more fully described in the Project Application.

NOW THEREFORE, Pursuant to and for the purpose of carrying out the Title 49, United States Code (U.S.C.), Chapters 471 and 475; 49 U.S.C. §§ 40101 et seq., and 48103; FAA Reauthorization Act of 2018 (Public Law Number 115-254); the Department of Transportation Appropriations Act, 2021 (Public Law 116-260, Division L); the Consolidated Appropriations Act, 2022 (Public Law 117-103); Consolidated Appropriations Act, 2023 (Public Law 117-328); and the representations contained in the Project Item 1C - Page 9
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4 Application; and in consideration of: (a) the Sponsor’s adoption and ratification of the Grant Assurances attached hereto; (b) the Sponsor’s acceptance of this Offer; and (c) the benefits to accrue to the United States and the public from the accomplishment of the Project and compliance with the Grant Assurance and conditions as herein provided;

THE FEDERAL AVIATION ADMINISTRATION, FOR AND ON BEHALF OF THE UNITED STATES, HEREBY OFFERS AND AGREES to pay 90.66 percent of the allowable costs incurred accomplishing the Project as the United States share of the Project. Assistance Listings Number (Formerly CFDA Number): 20.106 This Offer is made on and SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:

CONDITIONS

1. Maximum Obligation. The maximum obligation of the United States payable under this Offer is $2,108,584.

The following amounts represent a breakdown of the maximum obligation for the purpose of establishing allowable amounts for any future grant amendment, which may increase the foregoing maximum obligation of the United States under the provisions of 49 U.S.C. § 47108(b):
$ 2,108,584 for planning;
$ 0 airport development or noise program implementation; and, $ 0 for land acquisition.

2. Grant Performance. This Grant Agreement is subject to the following Federal award requirements:
a. Period of Performance:

1. Shall start on the date the Sponsor formally accepts this Agreement and is the date signed by the last Sponsor signatory to the Agreement. The end date of the Period of Performance is 4 years (1,460 calendar days) from the date of acceptance. The Period of Performance end date shall not affect, relieve, or reduce Sponsor obligations and assurances that extend beyond the closeout of this Grant Agreement.

2. Means the total estimated time interval between the start of an initial Federal award and the planned end date, which may include one or more funded portions or budget periods. (2 Code of Federal Regulations (CFR) § 200.1). b. Budget Period:

1. For this Grant is 4 years (1,460 calendar days) and follows the same start and end date as the Period of Performance provided in paragraph (2)(a)(1). Pursuant to 2 CFR § 200.403(h), the Sponsor may charge to the Grant only allowable costs incurred during the Budget Period.

2. Means the time interval from the start date of a funded portion of an award to the end date of that funded portion during which the Sponsor is authorized to expend the funds awarded, including any funds carried forward or other revisions pursuant to 2 CFR § 200.308.
c. Close Out and Termination
Item 1C - Page 10
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5 1. Unless the FAA authorizes a written extension, the Sponsor must submit all Grant closeout documentation and liquidate (pay-off) all obligations incurred under this award no later than 120 calendar days after the end date of the period of performance. If the Sponsor does not submit all required closeout documentation within this time period, the FAA will proceed to close out the grant within one year of the Period of Performance end date with the information available at the end of 120 days. (2 CFR § 200.344).

2. The FAA may terminate this Grant, in whole or in part, in accordance with the conditions set forth in 2 CFR § 200.340, or other Federal regulatory or statutory authorities as applicable.

3. Ineligible or Unallowable Costs. The Sponsor must not include any costs in the project that the FAA has determined to be ineligible or unallowable.

4. Indirect Costs - Sponsor. The Sponsor may charge indirect costs under this award by applying the indirect cost rate identified in the project application as accepted by the FAA, to allowable costs for Sponsor direct salaries and wages.

5. Determining the Final Federal Share of Costs. The United States’ share of allowable project costs will be made in accordance with 49 U.S.C. § 47109, the regulations, policies, and procedures of the Secretary of Transportation (“Secretary”), and any superseding legislation.

Final determination of the United States’ share will be based upon the final audit of the total amount of allowable project costs and settlement will be made for any upward or downward adjustments to the Federal share of costs.

6. Completing the Project Without Delay and in Conformance with Requirements. The Sponsor must carry out and complete the project without undue delays and in accordance with this Agreement, 49 U.S.C. Chapters 471 and 475, the regulations, and the Secretary’s policies and procedures. Per 2 CFR § 200.308, the Sponsor agrees to report and request prior FAA approval for any disengagement from performing the project that exceeds three months or a 25 percent reduction in time devoted to the project. The report must include a reason for the project stoppage. The Sponsor also agrees to comply with the grant assurances, which are part of this Agreement.

7. Amendments or Withdrawals before Grant Acceptance. The FAA reserves the right to amend or withdraw this offer at any time prior to its acceptance by the Sponsor.

8. Offer Expiration Date. This offer will expire and the United States will not be obligated to pay any part of the costs of the project unless this offer has been accepted by the Sponsor on or before June 30, 2023, or such subsequent date as may be prescribed in writing by the FAA.

9. Improper Use of Federal Funds. The Sponsor must take all steps, including litigation if necessary, to recover Federal funds spent fraudulently, wastefully, or in violation of Federal antitrust statutes, or misused in any other manner for any project upon which Federal funds have been expended. For the purposes of this Grant Agreement, the term “Federal funds” means funds however used or dispersed by the Sponsor, that were originally paid pursuant to this or any other Federal grant agreement. The Sponsor must obtain the approval of the Secretary as to any determination of the amount of the Federal share of such funds. The Sponsor must return the recovered Federal share, including funds recovered by settlement, order, or judgment, to the Secretary. The Sponsor must furnish to the Secretary, upon request, all documents and records pertaining to the determination of the amount of the Federal share Item 1C - Page 11
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6 or to any settlement, litigation, negotiation, or other efforts taken to recover such funds. All settlements or other final positions of the Sponsor, in court or otherwise, involving the recovery of such Federal share require advance approval by the Secretary.

10. United States Not Liable for Damage or Injury. The United States is not responsible or liable for damage to property or injury to persons which may arise from, or be incident to, compliance with this Grant Agreement.

11. System for Award Management (SAM) Registration and Unique Entity Identifier (UEI). a. Requirement for System for Award Management (SAM): Unless the Sponsor is exempted from this requirement under 2 CFR § 25.110, the Sponsor must maintain the currency of its information in the SAM until the Sponsor submits the final financial report required under this Grant, or receives the final payment, whichever is later. This requires that the Sponsor review and update the information at least annually after the initial registration and more frequently if required by changes in information or another award term. Additional information about registration procedures may be found at the SAM website (currently at http://www.sam.gov).
b. Unique entity identifier (UEI) means a 12-character alpha-numeric value used to identify a specific commercial, nonprofit or governmental entity. A UEI may be obtained from SAM.gov at https://sam.gov/content/entity-registration. 12. Electronic Grant Payment(s). Unless otherwise directed by the FAA, the Sponsor must make each payment request under this Agreement electronically via the Delphi eInvoicing System for Department of Transportation (DOT) Financial Assistance Awardees.

13. Informal Letter Amendment of AIP Projects. If, during the life of the project, the FAA determines that the maximum grant obligation of the United States exceeds the expected needs of the Sponsor by $25,000 or five percent (5%), whichever is greater, the FAA can issue a letter amendment to the Sponsor unilaterally reducing the maximum obligation.

The FAA can also issue a letter to the Sponsor increasing the maximum obligation if there is an overrun in the total actual eligible and allowable project costs to cover the amount of the overrun provided it will not exceed the statutory limitations for grant amendments. The FAA’s authority to increase the maximum obligation does not apply to the “planning” component of Condition No. 1, Maximum Obligation.

The FAA can also issue an informal letter amendment that modifies the grant description to correct administrative errors or to delete work items if the FAA finds it advantageous and in the best interests of the United States.

An informal letter amendment has the same force and effect as a formal grant amendment.

14. Air and Water Quality. The Sponsor is required to comply with all applicable air and water quality standards for all projects in this grant. If the Sponsor fails to comply with this requirement, the FAA may suspend, cancel, or terminate this Grant Agreement.

15. Financial Reporting and Payment Requirements. The Sponsor will comply with all Federal financial reporting requirements and payment requirements, including submittal of timely and accurate reports.

16. Buy American. Unless otherwise approved in advance by the FAA, in accordance with 49 U.S.C. § 50101, the Sponsor will not acquire or permit any contractor or subcontractor to acquire any Item 1C - Page 12
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7 steel or manufactured products produced outside the United States to be used for any project for which funds are provided under this Grant. The Sponsor will include a provision implementing Buy American in every contract and subcontract awarded under this Grant.

17. Build America, Buy America. The Sponsor must comply with the requirements under the Build America, Buy America Act (Public Law 117-58).

18. Maximum Obligation Increase. In accordance with 49 U.S.C. § 47108(b)(3), as amended, the maximum obligation of the United States, as stated in Condition No. 1, Maximum Obligation, of this Grant Offer:
a. May not be increased for a planning project;
b. May be increased by not more than 15 percent for development projects if funds are available;
c. May be increased by not more than the greater of the following for a land project, if funds are available:

1. 15 percent; or

2. 25 percent of the total increase in allowable project costs attributable to acquiring an interest in the land.

If the Sponsor requests an increase, any eligible increase in funding will be subject to the United States Government share as provided in 49 U.S.C. § 47110, or other superseding legislation if applicable, for the fiscal year appropriation with which the increase is funded. The FAA is not responsible for the same Federal share provided herein for any amount increased over the initial grant amount. The FAA may adjust the Federal share as applicable through an informal letter of amendment.

19. Audits for Sponsors.

PUBLIC SPONSORS. The Sponsor must provide for a Single Audit or program-specific audit in accordance with 2 CFR Part 200. The Sponsor must submit the audit reporting package to the Federal Audit Clearinghouse on the Federal Audit Clearinghouse’s Internet Data Entry System at http://harvester.census.gov/facweb/. Upon request of the FAA, the Sponsor shall provide one copy of the completed audit to the FAA. Sponsors that expend less than $750,000 in Federal awards and are exempt from Federal audit requirements must make records available for review or audit by the appropriate Federal agency officials, State, and Government Accountability Office. The FAA and other appropriate Federal agencies may request additional information to meet all Federal audit requirements.

20. Suspension or Debarment. When entering into a “covered transaction” as defined by 2 CFR § 180.200, the Sponsor must:
a. Verify the non-Federal entity is eligible to participate in this Federal program by:

1. Checking the excluded parties list system (EPLS) as maintained within the System for Award Management (SAM) to determine if the non-Federal entity is excluded or disqualified; or

2. Collecting a certification statement from the non-Federal entity attesting they are not excluded or disqualified from participating; or Item 1C - Page 13
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8 3. Adding a clause or condition to covered transactions attesting the individual or firm are not excluded or disqualified from participating. b. Require prime contractors to comply with 2 CFR § 180.330 when entering into lower-tier transactions with their contractors and sub-contractors. c. Immediately disclose in writing to the FAA whenever (1) the Sponsor learns they have entered into a covered transaction with an ineligible entity or (2) the Public Sponsor suspends or debars a contractor, person, or entity.

21. Ban on Texting While Driving.
a. In accordance with Executive Order 13513, Federal Leadership on Reducing Text Messaging While Driving, October 1, 2009, and DOT Order 3902.10, Text Messaging While Driving, December 30, 2009, the Sponsor is encouraged to:

1. Adopt and enforce workplace safety policies to decrease crashes caused by distracted drivers including policies to ban text messaging while driving when performing any work for, or on behalf of, the Federal government, including work relating to a grant or subgrant.

2. Conduct workplace safety initiatives in a manner commensurate with the size of the business, such as:
i. Establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving; and
ii. Education, awareness, and other outreach to employees about the safety risks associated with texting while driving.
b. The Sponsor must insert the substance of this clause on banning texting while driving in all subgrants, contracts, and subcontracts funded with this Grant.

22. Trafficking in Persons. a. Posting of contact information. 1. The Sponsor must post the contact information of the national human trafficking hotline (including options to reach out to the hotline such as through phone, text, or TTY) in all public airport restrooms.
b. Provisions applicable to a recipient that is a private entity. 1. You as the recipient, your employees, subrecipients under this Grant, and subrecipients’ employees may not:
i. Engage in severe forms of trafficking in persons during the period of time that the Grant and applicable conditions are in effect; ii. Procure a commercial sex act during the period of time that the Grant and applicable conditions are in effect; or
iii. Use forced labor in the performance of the Grant or any subgrants under this Grant.

2. We as the Federal awarding agency, may unilaterally terminate this Grant, without penalty, if you or a subrecipient that is a private entity – Item 1C - Page 14
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9 i. Is determined to have violated a prohibition in paragraph (a) of this Grant Condition; or
ii. Has an employee who is determined by the agency official authorized to terminate the Grant to have violated a prohibition in paragraph (a) of this Grant Condition through conduct that is either –
a) Associated with performance under this Grant; or
b) Imputed to you or the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR Part 180, “OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” as implemented by our agency at 2 CFR Part 1200.
c. Provision applicable to a recipient other than a private entity. We as the Federal awarding agency may unilaterally terminate this Grant, without penalty, if a subrecipient that is a private entity –

1. Is determined to have violated an applicable prohibition in paragraph (a) of this Grant Condition; or

2. Has an employee who is determined by the agency official authorized to terminate the Grant to have violated an applicable prohibition in paragraph (a) of this Grant Condition through conduct that is either – i. Associated with performance under this Grant; or
ii. Imputed to the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR Part 180, “OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” as implemented by our agency at 2 CFR Part 1200.
d. Provisions applicable to any recipient. 1. You must inform us immediately of any information you receive from any source alleging a violation of a prohibition in paragraph (a) of this Grant Condition.

2. Our right to terminate unilaterally that is described in paragraph (a) or (b) of this Grant Condition:
i. Implements section 106(g) of the Trafficking Victims Protection Act of 2000 (TVPA), as amended [22 U.S.C. § 7104(g)], and
ii. Is in addition to all other remedies for noncompliance that are available to us under this Grant.

3. You must include the requirements of paragraph (a) of this Grant Condition in any subgrant you make to a private entity.
e. Definitions. For purposes of this Grant Condition:

1. “Employee” means either:

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10 i. An individual employed by you or a subrecipient who is engaged in the performance of the project or program under this Grant; or ii. Another person engaged in the performance of the project or program under this Grant and not compensated by you including, but not limited to, a volunteer or individual whose services are contributed by a third party as an in-kind contribution toward cost sharing or matching requirements.

2. “Force labor” means labor obtained by any of the following methods: the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.

3. “Private entity”:
i. Means any entity other than a State, local government, Indian tribe, or foreign public entity, as those terms are defined in 2 CFR § 175.25. ii. Includes:
a) A nonprofit organization, including any nonprofit institute of higher education, hospital, or tribal organization other than one included in the definition of Indian tribe at 2 CFR § 175.25(b).
b) A for-profit organization.

4. “Severe forms of trafficking in persons,” “commercial sex act,” and “coercion” have the meanings given at section 103 of the TVPA, as amended (22 U.S.C. § 7102).

23. AIP Funded Work Included in a PFC Application. Within 90 days of acceptance of this Grant Agreement, the Sponsor must submit to the FAA an amendment to any approved Passenger Facility Charge (PFC) application that contains an approved PFC project also covered under this Grant Agreement as described in the project application. The airport sponsor may not make any expenditure under this Grant Agreement until project work addressed under this Grant Agreement is removed from an approved PFC application by amendment.

24. Exhibit “A” Property Map. The Exhibit “A” Property Map dated January 10, 2011, is incorporated herein by reference or is submitted with the project application and made part of this Grant Agreement.

25. Employee Protection from Reprisal. a. Prohibition of Reprisals

1. In accordance with 41 U.S.C. § 4712, an employee of a Sponsor, grantee, subgrantee, contractor, or subcontractor may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to a person or body described in sub-paragraph (a)(2) below, information that the employee reasonably believes is evidence of:
i. Gross mismanagement of a Federal grant;
ii. Gross waste of Federal funds;
iii. An abuse of authority relating to implementation or use of Federal funds; iv. A substantial and specific danger to public health or safety; or Item 1C - Page 16
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11 v. A violation of law, rule, or regulation related to a Federal grant.

2. Persons and bodies covered. The persons and bodies to which a disclosure by an employee is covered are as follows:
i. A member of Congress or a representative of a committee of Congress; ii. An Inspector General;
iii. The Government Accountability Office;
iv. A Federal employee responsible for contract or grant oversight or management at the relevant agency;
v. A court or grand jury;
vi. A management official or other employee of the Sponsor, contractor, or subcontractor who has the responsibility to investigate, discover, or address misconduct; or
vii. An authorized official of the Department of Justice or other law enforcement agency.
b. Investigation of Complaints.

1. Submission of Complaint. A person who believes that they have been subjected to a reprisal prohibited by paragraph (a) of this Condition may submit a complaint regarding the reprisal to the Office of Inspector General (OIG) for the U.S.

Department of Transportation.

2. Time Limitation for Submittal of a Complaint. A complaint may not be brought under this subsection more than three years after the date on which the alleged reprisal took place.

3. Required Actions of the Inspector General. Actions, limitations, and exceptions of the Inspector General’s office are established under 41 U.S.C. § 4712(b). c. Remedy and Enforcement Authority.

1. Assumption of Rights to Civil Remedy. Upon receipt of an explanation of a decision not to conduct or continue an investigation by the OIG, the person submitting a complaint assumes the right to a civil remedy under 41 U.S.C. § 4712(c)(2).

26. Prohibited Telecommunications and Video Surveillance Services and Equipment. The Sponsor agrees to comply with mandatory standards and policies relating to use and procurement of certain telecommunications and video surveillance services or equipment in compliance with the National Defense Authorization Act [Public Law 115-232 § 889(f)(1)] and 2 CFR § 200.216.

27. Critical Infrastructure Security and Resilience. The Sponsor acknowledges that it has considered and addressed physical and cybersecurity and resilience in their project planning, design, and oversight, as determined by the DOT and the Department of Homeland Security (DHS). For airports that do not have specific DOT or DHS cybersecurity requirements, the FAA encourages the voluntary adoption of the cybersecurity requirements from the Transportation Security Administration and Federal Security Director identified for security risk Category X airports.

SPECIAL CONDITIONS

28. Airport Layout Plan. The Sponsor understands and agrees to update the Airport Layout Plan to reflect the construction to standards satisfactory to the FAA and submit it in final form to the Item 1C - Page 17
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12 FAA as prescribed by 49 U.S.C. § 47107(a)(16). It is further mutually agreed that the reasonable cost of developing said Airport Layout Plan Map is an allowable cost within the scope of this project, if applicable. Airport Sponsors Grant Assurance 29 further addresses the Sponsor’s statutory obligations to maintain an airport layout plan in accordance with 49 U.S.C. § 47107(a)(16).

29. Master Plan Coordination. The Sponsor agrees to coordinate this master planning study with metropolitan planning organizations, other local planning agencies, and with the State Airport System Plan prepared by the State’s Department of Transportation and consider any pertinent information, data, projections, and forecasts which are currently available or as will become available. The Sponsor agrees to consider any State Clearinghouse comments and to furnish a copy of the final report to the State’s Department of Transportation.

30. Airport Layout Plan Coordination. The Sponsor has made available to (or will make available to) and has provided (or will provide) upon request to the metropolitan planning organization, if any, in the area in which the airport is located, a copy of the proposed airport layout plan or ALP amendment to depict the project and a copy of any airport master plan in which the project is described or depicted.

31. Airports Geographic Information System (GIS) Survey. If the Airport’s GIS survey is not reflected on an updated Airport Layout Plan (ALP) that meets FAA requirements within four (4) years from the date of the Phase 1 grant (regardless of whether it is generated using the AGIS/eALP system or through some other computer-aided design platform), then the Sponsor may be required to repay that portion of this Grant that relates to the survey work.

32. Buy American Executive Orders. The Sponsor agrees to abide by applicable Executive Orders in effect at the time this Grant Agreement is executed, including Executive Order 14005, Ensuring the Future Is Made in All of America by All of America’s Workers.

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13 The Sponsor’s acceptance of this Offer and ratification and adoption of the Project Application incorporated herein shall be evidenced by execution of this instrument by the Sponsor, as hereinafter provided, and this Offer and Acceptance shall comprise a Grant Agreement, constituting the contractual obligations and rights of the United States and the Sponsor with respect to the accomplishment of the Project and compliance with the Grant Assurances, terms, and conditions as provided herein. Such Grant Agreement shall become effective upon the Sponsor’s acceptance of this Offer.

Please read the following information: By signing this document, you are agreeing that you have reviewed the following consumer disclosure information and consent to transact business using electronic communications, to receive notices and disclosures electronically, and to utilize electronic signatures in lieu of using paper documents. You are not required to receive notices and disclosures or sign documents electronically. If you prefer not to do so, you may request to receive paper copies and withdraw your consent at any time.

I declare under penalty of perjury that the foregoing is true and correct.1 UNITED STATES OF AMERICA

FEDERAL AVIATION ADMINISTRATION
{{Sig_es_:signer1:signature:dimension(height=12mm, width=70mm}} (Signature)
{{N_es_:signer1:fullname }}
(Typed Name)
{{*Ttl_es_:signer1:title }}
(Title of FAA Official)
1 Knowingly and willfully providing false information to the Federal government is a violation of 18 U.S.C. § 1001 (False Statements) and could subject you to fines, imprisonment, or both.

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L-u~e A. uarrison
Luke A. Garrison (May 9, 2023 12:12 PDT)
Luke A. Garrison
Acting Manager, Los Angeles ADO
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14 Part II - Acceptance
The Sponsor does hereby ratify and adopt all assurances, statements, representations, warranties, covenants, and agreements contained in the Project Application and incorporated materials referred to in the foregoing Offer, and does hereby accept this Offer and by such acceptance agrees to comply with all of the Grant Assurances, terms, and conditions in this Offer and in the Project Application.

I declare under penalty of perjury that the foregoing is true and correct.2 Dated {{DateTime_es_:signer2:calc(now()):format(date," mmmm d, yyyy")}} City of Palm Springs
(Name of Sponsor)
{{Sig_es_:signer2:signature:dimension(height=12mm, width=70mm}} (Signature of Sponsor’s Authorized Official)
By: {{N_es_:signer2:fullname }}
(Typed Name of Sponsor’s Authorized Official)
Title:{{*Ttl_es_:signer2:title }}
(Title of Sponsor’s Authorized Official)
2 Knowingly and willfully providing false information to the Federal government is a violation of 18 U.S.C. § 1001 (False Statements) and could subject you to fines, imprisonment, or both.

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May 9, 2023
Scott C. Stiles (May 9, 2023 13:53 PDT)
Scott C. Stiles
City Manager
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15 CERTIFICATE OF SPONSOR’S ATTORNEY
I, {{N_es_:signer3: fullname}}, acting as Attorney for the Sponsor do hereby certify:

That in my opinion the Sponsor is empowered to enter into the foregoing Grant Agreement under the laws of the State of __California__. Further, I have examined the foregoing Grant Agreement and the actions taken by said Sponsor and Sponsor’s official representative, who has been duly authorized to execute this Grant Agreement, which is in all respects due and proper and in accordance with the laws of the said State; and Title 49, United States Code (U.S.C.), Chapters 471 and 475; 49 U.S.C. §§ 40101 et seq., and 48103; FAA Reauthorization Act of 2018 (Public Law Number 115-254); the Department of Transportation Appropriations Act, 2021 (Public Law 116-260, Division L); the Consolidated Appropriations Act, 2022 (Public Law 117-103); Consolidated Appropriations Act, 2023 (Public Law 117- 328); and the representations contained in the Project Application. In addition, for grants involving projects to be carried out on property not owned by the Sponsor, there are no legal impediments that will prevent full performance by the Sponsor. Further, it is my opinion that the said Grant Agreement constitutes a legal and binding obligation of the Sponsor in accordance with the terms thereof.

I declare under penalty of perjury that the foregoing is true and correct.3 Dated at {{DateTime_es_:signer3:calc(now()):format(date," mmmm d, yyyy")}} By: {{Sig_es_:signer3:signature:dimension(height=12mm, width=70mm}} (Signature of Sponsor’s Attorney)
3 Knowingly and willfully providing false information to the Federal government is a violation of 18 U.S.C. § 1001 (False Statements) and could subject you to fines, imprisonment, or both.

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ASSURANCES

AIRPORT SPONSORS
A. General.

1. These assurances shall be complied with in the performance of grant agreements for airport development, airport planning, and noise compatibility program grants for airport sponsors.

2. These assurances are required to be submitted as part of the project application by sponsors requesting funds under the provisions of Title 49, U.S.C., subtitle VII, as amended. As used herein, the term "public agency sponsor" means a public agency with control of a public-use airport; the term "private sponsor" means a private owner of a public-use airport; and the term "sponsor" includes both public agency sponsors and private sponsors.

3. Upon acceptance of this grant offer by the sponsor, these assurances are incorporated in and become part of this Grant Agreement.

B. Duration and Applicability.

1. Airport development or Noise Compatibility Program Projects Undertaken by a Public Agency Sponsor.

The terms, conditions and assurances of this Grant Agreement shall remain in full force and effect throughout the useful life of the facilities developed or equipment acquired for an airport development or noise compatibility program project, or throughout the useful life of the project items installed within a facility under a noise compatibility program project, but in any event not to exceed twenty (20) years from the date of acceptance of a grant offer of Federal funds for the project. However, there shall be no limit on the duration of the assurances regarding Exclusive Rights and Airport Revenue so long as the airport is used as an airport. There shall be no limit on the duration of the terms, conditions, and assurances with respect to real property acquired with federal funds. Furthermore, the duration of the Civil Rights assurance shall be specified in the assurances.

2. Airport Development or Noise Compatibility Projects Undertaken by a Private Sponsor.

The preceding paragraph (1) also applies to a private sponsor except that the useful life of project items installed within a facility or the useful life of the facilities developed or equipment acquired under an airport development or noise compatibility program project shall be no less than ten (10) years from the date of acceptance of Federal aid for the project.

3. Airport Planning Undertaken by a Sponsor.

Unless otherwise specified in this Grant Agreement, only Assurances 1, 2, 3, 5, 6, 13, 18, 23, 25, 30, 32, 33, 34, and 37 in Section C apply to planning projects. The terms, conditions, and assurances of this Grant Agreement shall remain in full force and effect during the life of the project; there shall be no limit on the duration of the assurances regarding Exclusive Rights and Airport Revenue so long as the airport is used as an airport.

C. Sponsor Certification.

The sponsor hereby assures and certifies, with respect to this grant that:

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1. General Federal Requirements
It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance, and use of Federal funds for this Grant including but not limited to the following:

FEDERAL LEGISLATION
a. 49, U.S.C., subtitle VII, as amended.
b. Davis-Bacon Act, as amended — 40 U.S.C. §§ 3141-3144, 3146, and 3147, et seq.1 c. Federal Fair Labor Standards Act - 29 U.S.C. § 201, et seq. d. Hatch Act – 5 U.S.C. § 1501, et seq.2
e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4601, et seq.1
, 2
f. National Historic Preservation Act of 1966 – Section 106 - 54 U.S.C. § 306108.1.1 g. Archeological and Historic Preservation Act of 1974 - 54 U.S.C. § 312501, et seq.1 h. Native Americans Grave Repatriation Act - 25 U.S.C. Section § 3001, et seq. i. Clean Air Act, P.L. 90-148, as amended - 42 U.S.C. § 7401, et seq. j. Coastal Zone Management Act, P.L. 92-583, as amended - 16 U.S.C. § 1451, et seq. k. Flood Disaster Protection Act of 1973 – Section 102(a) - 42 U.S.C. § 4012a.1 l. 49 U.S.C. § 303, (formerly known as Section 4(f)).
m. Rehabilitation Act of 1973 - 29 U.S.C. § 794.
n. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin). o. Americans with Disabilities Act of 1990, as amended, (42 U.S.C. § 12101 et seq.) (prohibits discrimination on the basis of disability).
p. Age Discrimination Act of 1975 - 42 U.S.C. § 6101, et seq. q. American Indian Religious Freedom Act, P.L. 95-341, as amended. r. Architectural Barriers Act of 1968, as amended - 42 U.S.C. § 4151, et seq.1 s. Powerplant and Industrial Fuel Use Act of 1978 – Section 403 - 42 U.S.C. § 8373.1 t. Contract Work Hours and Safety Standards Act - 40 U.S.C. § 3701, et seq.1 u. Copeland Anti-kickback Act - 18 U.S.C. § 874.1 v. National Environmental Policy Act of 1969 - 42 U.S.C. § 4321, et seq.1 w. Wild and Scenic Rivers Act, P.L. 90-542, as amended – 16 U.S.C. § 1271, et seq. x. Single Audit Act of 1984 - 31 U.S.C. § 7501, et seq.2 y. Drug-Free Workplace Act of 1988 - 41 U.S.C. §§ 8101 through 8105. z. The Federal Funding Accountability and Transparency Act of 2006, as amended (P.L. 109-282, as amended by section 6202 of P.L. 110-252).

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aa. Civil Rights Restoration Act of 1987, P.L. 100-259. bb. Build America, Buy America Act, P.L. 117-58, Title IX.

EXECUTIVE ORDERS
a. Executive Order 11246 – Equal Employment Opportunity1 b. Executive Order 11990 – Protection of Wetlands c. Executive Order 11998 – Flood Plain Management
d. Executive Order 12372 – Intergovernmental Review of Federal Programs e. Executive Order 12699 – Seismic Safety of Federal and Federally Assisted New Building Construction1
f. Executive Order 12898 – Environmental Justice
g. Executive Order 13166 – Improving Access to Services for Persons with Limited English Proficiency
h. Executive Order 13985 – Executive Order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government
i. Executive Order 13988 – Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation
j. Executive Order 14005 – Ensuring the Future is Made in all of America by All of America’s Workers
k. Executive Order 14008 – Tackling the Climate Crisis at Home and Abroad

FEDERAL REGULATIONS
a. 2 CFR Part 180 – OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement).
b. 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.4, 5
c. 2 CFR Part 1200 – Nonprocurement Suspension and Debarment. d. 14 CFR Part 13 – Investigative and Enforcement Procedures. e. 14 CFR Part 16 – Rules of Practice For Federally-Assisted Airport Enforcement Proceedings. f. 14 CFR Part 150 – Airport Noise Compatibility Planning. g. 28 CFR Part 35 – Nondiscrimination on the Basis of Disability in State and Local Government Services.
h. 28 CFR § 50.3 – U.S. Department of Justice Guidelines for the Enforcement of Title VI of the Civil Rights Act of 1964.
i. 29 CFR Part 1 – Procedures for Predetermination of Wage Rates.1 j. 29 CFR Part 3 – Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States.1 Item 1C - Page 24
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k. 29 CFR Part 5 – Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction (Also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act).1 l. 41 CFR Part 60 – Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and Federally-assisted contracting requirements).1 m. 49 CFR Part 20 – New Restrictions on Lobbying. n. 49 CFR Part 21 – Nondiscrimination in Federally-Assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964. o. 49 CFR Part 23 – Participation by Disadvantage Business Enterprise in Airport Concessions. p. 49 CFR Part 24 – Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally-Assisted Programs.1 2
q. 49 CFR Part 26 – Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs.
r. 49 CFR Part 27 – Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance.1
s. 49 CFR Part 28 – Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities Conducted by the Department of Transportation. t. 49 CFR Part 30 – Denial of Public Works Contracts to Suppliers of Goods and Services of Countries That Deny Procurement Market Access to U.S. Contractors. u. 49 CFR Part 32 – Governmentwide Requirements for Drug-Free Workplace (Financial Assistance).
v. 49 CFR Part 37 – Transportation Services for Individuals with Disabilities (ADA). w. 49 CFR Part 38 – Americans with Disabilities Act (ADA) Accessibility Specifications for Transportation Vehicles.
x. 49 CFR Part 41 – Seismic Safety.

FOOTNOTES TO ASSURANCE (C)(1) 1
These laws do not apply to airport planning sponsors.
2 These laws do not apply to private sponsors.
3 2 CFR Part 200 contains requirements for State and Local Governments receiving Federal assistance. Any requirement levied upon State and Local Governments by this regulation shall apply where applicable to private sponsors receiving Federal assistance under Title 49, United States Code. 4 Cost principles established in 2 CFR part 200 subpart E must be used as guidelines for determining the eligibility of specific types of expenses. 5 Audit requirements established in 2 CFR part 200 subpart F are the guidelines for audits.

SPECIFIC ASSURANCES
Specific assurances required to be included in grant agreements by any of the above laws, regulations or circulars are incorporated by reference in this grant agreement.

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2. Responsibility and Authority of the Sponsor.
a. Public Agency Sponsor:

It has legal authority to apply for this Grant, and to finance and carry out the proposed project; that a resolution, motion or similar action has been duly adopted or passed as an official act of the applicant's governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. b. Private Sponsor:

It has legal authority to apply for this Grant and to finance and carry out the proposed project and comply with all terms, conditions, and assurances of this Grant Agreement. It shall designate an official representative and shall in writing direct and authorize that person to file this application, including all understandings and assurances contained therein; to act in connection with this application; and to provide such additional information as may be required.

3. Sponsor Fund Availability.

It has sufficient funds available for that portion of the project costs which are not to be paid by the United States. It has sufficient funds available to assure operation and maintenance of items funded under this Grant Agreement which it will own or control.

4. Good Title.
a. It, a public agency or the Federal government, holds good title, satisfactory to the Secretary, to the landing area of the airport or site thereof, or will give assurance satisfactory to the Secretary that good title will be acquired.
b. For noise compatibility program projects to be carried out on the property of the sponsor, it holds good title satisfactory to the Secretary to that portion of the property upon which Federal funds will be expended or will give assurance to the Secretary that good title will be obtained.

5. Preserving Rights and Powers.
a. It will not take or permit any action which would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms, conditions, and assurances in this Grant Agreement without the written approval of the Secretary, and will act promptly to acquire, extinguish or modify any outstanding rights or claims of right of others which would interfere with such performance by the sponsor. This shall be done in a manner acceptable to the Secretary.
b. Subject to the FAA Act of 2018, Public Law 115-254, Section 163, it will not sell, lease, encumber, or otherwise transfer or dispose of any part of its title or other interests in the property shown on Exhibit A to this application or, for a noise compatibility program project, that portion of the property upon which Federal funds have been expended, for the duration of the terms, conditions, and assurances in this Grant Agreement without approval by the Secretary. If the transferee is found by the Secretary to be eligible under Title 49, United States Code, to assume the obligations of this Grant Agreement and to have the power, authority, and financial resources to carry out all such obligations, the sponsor shall insert in the contract or Item 1C - Page 26
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document transferring or disposing of the sponsor's interest, and make binding upon the transferee all of the terms, conditions, and assurances contained in this Grant Agreement. c. For all noise compatibility program projects which are to be carried out by another unit of local government or are on property owned by a unit of local government other than the sponsor, it will enter into an agreement with that government. Except as otherwise specified by the Secretary, that agreement shall obligate that government to the same terms, conditions, and assurances that would be applicable to it if it applied directly to the FAA for a grant to undertake the noise compatibility program project. That agreement and changes thereto must be satisfactory to the Secretary. It will take steps to enforce this agreement against the local government if there is substantial non-compliance with the terms of the agreement. d. For noise compatibility program projects to be carried out on privately owned property, it will enter into an agreement with the owner of that property which includes provisions specified by the Secretary. It will take steps to enforce this agreement against the property owner whenever there is substantial non-compliance with the terms of the agreement. e. If the sponsor is a private sponsor, it will take steps satisfactory to the Secretary to ensure that the airport will continue to function as a public-use airport in accordance with these assurances for the duration of these assurances.
f. If an arrangement is made for management and operation of the airport by any agency or person other than the sponsor or an employee of the sponsor, the sponsor will reserve sufficient rights and authority to ensure that the airport will be operated and maintained in accordance with Title 49, United States Code, the regulations and the terms, conditions and assurances in this Grant Agreement and shall ensure that such arrangement also requires compliance therewith.
g. Sponsors of commercial service airports will not permit or enter into any arrangement that results in permission for the owner or tenant of a property used as a residence, or zoned for residential use, to taxi an aircraft between that property and any location on airport. Sponsors of general aviation airports entering into any arrangement that results in permission for the owner of residential real property adjacent to or near the airport must comply with the requirements of Sec. 136 of Public Law 112-95 and the sponsor assurances.

6. Consistency with Local Plans.

The project is reasonably consistent with plans (existing at the time of submission of this application) of public agencies that are authorized by the State in which the project is located to plan for the development of the area surrounding the airport.

7. Consideration of Local Interest.

It has given fair consideration to the interest of communities in or near where the project may be located.

8. Consultation with Users.

In making a decision to undertake any airport development project under Title 49, United States Code, it has undertaken reasonable consultations with affected parties using the airport at which project is proposed.

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9. Public Hearings.

In projects involving the location of an airport, an airport runway, or a major runway extension, it has afforded the opportunity for public hearings for the purpose of considering the economic, social, and environmental effects of the airport or runway location and its consistency with goals and objectives of such planning as has been carried out by the community and it shall, when requested by the Secretary, submit a copy of the transcript of such hearings to the Secretary.

Further, for such projects, it has on its management board either voting representation from the communities where the project is located or has advised the communities that they have the right to petition the Secretary concerning a proposed project.

10. Metropolitan Planning Organization.

In projects involving the location of an airport, an airport runway, or a major runway extension at a medium or large hub airport, the sponsor has made available to and has provided upon request to the metropolitan planning organization in the area in which the airport is located, if any, a copy of the proposed amendment to the airport layout plan to depict the project and a copy of any airport master plan in which the project is described or depicted.

11. Pavement Preventive Maintenance-Management.

With respect to a project approved after January 1, 1995, for the replacement or reconstruction of pavement at the airport, it assures or certifies that it has implemented an effective airport pavement maintenance-management program and it assures that it will use such program for the useful life of any pavement constructed, reconstructed or repaired with Federal financial assistance at the airport. It will provide such reports on pavement condition and pavement management programs as the Secretary determines may be useful.

12. Terminal Development Prerequisites.

For projects which include terminal development at a public use airport, as defined in Title 49, it has, on the date of submittal of the project grant application, all the safety equipment required for certification of such airport under 49 U.S.C. § 44706, and all the security equipment required by rule or regulation, and has provided for access to the passenger enplaning and deplaning area of such airport to passengers enplaning and deplaning from aircraft other than air carrier aircraft.

13. Accounting System, Audit, and Record Keeping Requirements. a. It shall keep all project accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of this Grant, the total cost of the project in connection with which this Grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records shall be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of 1984. b. It shall make available to the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to this Grant. The Secretary may require that an appropriate audit be conducted by a recipient. In any case in which an independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a Grant or relating to the project in connection with which this Grant was given or used, it shall file a certified copy of such audit with the Comptroller General of the United Item 1C - Page 28
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States not later than six (6) months following the close of the fiscal year for which the audit was made.

14. Minimum Wage Rates.

It shall include, in all contracts in excess of $2,000 for work on any projects funded under this Grant Agreement which involve labor, provisions establishing minimum rates of wages, to be predetermined by the Secretary of Labor under 40 U.S.C. §§ 3141-3144, 3146, and 3147, Public Building, Property, and Works), which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work.

15. Veteran's Preference.

It shall include in all contracts for work on any project funded under this Grant Agreement which involve labor, such provisions as are necessary to insure that, in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given to Vietnam era veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small business concerns owned and controlled by disabled veterans as defined in 49 U.S.C. § 47112.

However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates.

16. Conformity to Plans and Specifications.

It will execute the project subject to plans, specifications, and schedules approved by the Secretary.

Such plans, specifications, and schedules shall be submitted to the Secretary prior to commencement of site preparation, construction, or other performance under this Grant Agreement, and, upon approval of the Secretary, shall be incorporated into this Grant Agreement.

Any modification to the approved plans, specifications, and schedules shall also be subject to approval of the Secretary, and incorporated into this Grant Agreement.

17. Construction Inspection and Approval.

It will provide and maintain competent technical supervision at the construction site throughout the project to assure that the work conforms to the plans, specifications, and schedules approved by the Secretary for the project. It shall subject the construction work on any project contained in an approved project application to inspection and approval by the Secretary and such work shall be in accordance with regulations and procedures prescribed by the Secretary. Such regulations and procedures shall require such cost and progress reporting by the sponsor or sponsors of such project as the Secretary shall deem necessary.

18. Planning Projects.

In carrying out planning projects:
a. It will execute the project in accordance with the approved program narrative contained in the project application or with the modifications similarly approved. b. It will furnish the Secretary with such periodic reports as required pertaining to the planning project and planning work activities.
c. It will include in all published material prepared in connection with the planning project a notice that the material was prepared under a grant provided by the United States.

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d. It will make such material available for examination by the public, and agrees that no material prepared with funds under this project shall be subject to copyright in the United States or any other country.
e. It will give the Secretary unrestricted authority to publish, disclose, distribute, and otherwise use any of the material prepared in connection with this grant. f. It will grant the Secretary the right to disapprove the sponsor's employment of specific consultants and their subcontractors to do all or any part of this project as well as the right to disapprove the proposed scope and cost of professional services. g. It will grant the Secretary the right to disapprove the use of the sponsor's employees to do all or any part of the project.
h. It understands and agrees that the Secretary's approval of this project grant or the Secretary's approval of any planning material developed as part of this grant does not constitute or imply any assurance or commitment on the part of the Secretary to approve any pending or future application for a Federal airport grant.

19. Operation and Maintenance.
a. The airport and all facilities which are necessary to serve the aeronautical users of the airport, other than facilities owned or controlled by the United States, shall be operated at all times in a safe and serviceable condition and in accordance with the minimum standards as may be required or prescribed by applicable Federal, State and local agencies for maintenance and operation. It will not cause or permit any activity or action thereon which would interfere with its use for airport purposes. It will suitably operate and maintain the airport and all facilities thereon or connected therewith, with due regard to climatic and flood conditions. Any proposal to temporarily close the airport for non-aeronautical purposes must first be approved by the Secretary. In furtherance of this assurance, the sponsor will have in effect arrangements for:

1. Operating the airport's aeronautical facilities whenever required;

2. Promptly marking and lighting hazards resulting from airport conditions, including temporary conditions; and

3. Promptly notifying pilots of any condition affecting aeronautical use of the airport. Nothing contained herein shall be construed to require that the airport be operated for aeronautical use during temporary periods when snow, flood, or other climatic conditions interfere with such operation and maintenance. Further, nothing herein shall be construed as requiring the maintenance, repair, restoration, or replacement of any structure or facility which is substantially damaged or destroyed due to an act of God or other condition or circumstance beyond the control of the sponsor. b. It will suitably operate and maintain noise compatibility program items that it owns or controls upon which Federal funds have been expended.

20. Hazard Removal and Mitigation.

It will take appropriate action to assure that such terminal airspace as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future airport hazards.

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21. Compatible Land Use.

It will take appropriate action, to the extent reasonable, including the adoption of zoning laws, to restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and purposes compatible with normal airport operations, including landing and takeoff of aircraft. In addition, if the project is for noise compatibility program implementation, it will not cause or permit any change in land use, within its jurisdiction, that will reduce its compatibility, with respect to the airport, of the noise compatibility program measures upon which Federal funds have been expended.

22. Economic Nondiscrimination.
a. It will make the airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities, including commercial aeronautical activities offering services to the public at the airport. b. In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport is granted to any person, firm, or corporation to conduct or to engage in any aeronautical activity for furnishing services to the public at the airport, the sponsor will insert and enforce provisions requiring the contractor to:

1. Furnish said services on a reasonable, and not unjustly discriminatory, basis to all users thereof, and

2. Charge reasonable, and not unjustly discriminatory, prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. c. Each fixed-based operator at the airport shall be subject to the same rates, fees, rentals, and other charges as are uniformly applicable to all other fixed-based operators making the same or similar uses of such airport and utilizing the same or similar facilities. d. Each air carrier using such airport shall have the right to service itself or to use any fixed-based operator that is authorized or permitted by the airport to serve any air carrier at such airport. e. Each air carrier using such airport (whether as a tenant, non-tenant, or subtenant of another air carrier tenant) shall be subject to such nondiscriminatory and substantially comparable rules, regulations, conditions, rates, fees, rentals, and other charges with respect to facilities directly and substantially related to providing air transportation as are applicable to all such air carriers which make similar use of such airport and utilize similar facilities, subject to reasonable classifications such as tenants or non-tenants and signatory carriers and non-signatory carriers.

Classification or status as tenant or signatory shall not be unreasonably withheld by any airport provided an air carrier assumes obligations substantially similar to those already imposed on air carriers in such classification or status.
f. It will not exercise or grant any right or privilege which operates to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees (including, but not limited to maintenance, repair, and fueling) that it may choose to perform.
g. In the event the sponsor itself exercises any of the rights and privileges referred to in this assurance, the services involved will be provided on the same conditions as would apply to the furnishing of such services by commercial aeronautical service providers authorized by the sponsor under these provisions.

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h. The sponsor may establish such reasonable, and not unjustly discriminatory, conditions to be met by all users of the airport as may be necessary for the safe and efficient operation of the airport.
i. The sponsor may prohibit or limit any given type, kind or class of aeronautical use of the airport if such action is necessary for the safe operation of the airport or necessary to serve the civil aviation needs of the public.

23. Exclusive Rights.

It will permit no exclusive right for the use of the airport by any person providing, or intending to provide, aeronautical services to the public. For purposes of this paragraph, the providing of the services at an airport by a single fixed-based operator shall not be construed as an exclusive right if both of the following apply:
a. It would be unreasonably costly, burdensome, or impractical for more than one fixed-based operator to provide such services, and
b. If allowing more than one fixed-based operator to provide such services would require the reduction of space leased pursuant to an existing agreement between such single fixed-based operator and such airport. It further agrees that it will not, either directly or indirectly, grant or permit any person, firm, or corporation, the exclusive right at the airport to conduct any aeronautical activities, including, but not limited to charter flights, pilot training, aircraft rental and sightseeing, aerial photography, crop dusting, aerial advertising and surveying, air carrier operations, aircraft sales and services, sale of aviation petroleum products whether or not conducted in conjunction with other aeronautical activity, repair and maintenance of aircraft, sale of aircraft parts, and any other activities which because of their direct relationship to the operation of aircraft can be regarded as an aeronautical activity, and that it will terminate any exclusive right to conduct an aeronautical activity now existing at such an airport before the grant of any assistance under Title 49, United States Code.

24. Fee and Rental Structure.

It will maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible under the circumstances existing at the particular airport, taking into account such factors as the volume of traffic and economy of collection. No part of the Federal share of an airport development, airport planning or noise compatibility project for which a Grant is made under Title 49, United States Code, the Airport and Airway Improvement Act of 1982, the Federal Airport Act or the Airport and Airway Development Act of 1970 shall be included in the rate basis in establishing fees, rates, and charges for users of that airport.

25. Airport Revenues.
a. All revenues generated by the airport and any local taxes on aviation fuel established after December 30, 1987, will be expended by it for the capital or operating costs of the airport; the local airport system; or other local facilities which are owned or operated by the owner or operator of the airport and which are directly and substantially related to the actual air transportation of passengers or property; or for noise mitigation purposes on or off the airport.

The following exceptions apply to this paragraph:

1. If covenants or assurances in debt obligations issued before September 3, 1982, by the owner or operator of the airport, or provisions enacted before September 3, 1982, in governing statutes controlling the owner or operator's financing, provide for the use of the Item 1C - Page 32
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revenues from any of the airport owner or operator's facilities, including the airport, to support not only the airport but also the airport owner or operator's general debt obligations or other facilities, then this limitation on the use of all revenues generated by the airport (and, in the case of a public airport, local taxes on aviation fuel) shall not apply.

2. If the Secretary approves the sale of a privately owned airport to a public sponsor and provides funding for any portion of the public sponsor’s acquisition of land, this limitation on the use of all revenues generated by the sale shall not apply to certain proceeds from the sale. This is conditioned on repayment to the Secretary by the private owner of an amount equal to the remaining unamortized portion (amortized over a 20-year period) of any airport improvement grant made to the private owner for any purpose other than land acquisition on or after October 1, 1996, plus an amount equal to the federal share of the current fair market value of any land acquired with an airport improvement grant made to that airport on or after October 1, 1996.

3. Certain revenue derived from or generated by mineral extraction, production, lease, or other means at a general aviation airport (as defined at 49 U.S.C. § 47102), if the FAA determines the airport sponsor meets the requirements set forth in Section 813 of Public Law 112-95
b. As part of the annual audit required under the Single Audit Act of 1984, the sponsor will direct that the audit will review, and the resulting audit report will provide an opinion concerning, the use of airport revenue and taxes in paragraph (a), and indicating whether funds paid or transferred to the owner or operator are paid or transferred in a manner consistent with Title 49, United States Code and any other applicable provision of law, including any regulation promulgated by the Secretary or Administrator.
c. Any civil penalties or other sanctions will be imposed for violation of this assurance in accordance with the provisions of 49 U.S.C. § 47107.

26. Reports and Inspections.

It will:
a. submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably request and make such reports available to the public; make available to the public at reasonable times and places a report of the airport budget in a format prescribed by the Secretary;
b. for airport development projects, make the airport and all airport records and documents affecting the airport, including deeds, leases, operation and use agreements, regulations and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request;
c. for noise compatibility program projects, make records and documents relating to the project and continued compliance with the terms, conditions, and assurances of this Grant Agreement including deeds, leases, agreements, regulations, and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; and d. in a format and time prescribed by the Secretary, provide to the Secretary and make available to the public following each of its fiscal years, an annual report listing in detail:

1. all amounts paid by the airport to any other unit of government and the purposes for which each such payment was made; and
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2. all services and property provided by the airport to other units of government and the amount of compensation received for provision of each such service and property.

27. Use by Government Aircraft.

It will make available all of the facilities of the airport developed with Federal financial assistance and all those usable for landing and takeoff of aircraft to the United States for use by Government aircraft in common with other aircraft at all times without charge, except, if the use by Government aircraft is substantial, charge may be made for a reasonable share, proportional to such use, for the cost of operating and maintaining the facilities used. Unless otherwise determined by the Secretary, or otherwise agreed to by the sponsor and the using agency, substantial use of an airport by Government aircraft will be considered to exist when operations of such aircraft are in excess of those which, in the opinion of the Secretary, would unduly interfere with use of the landing areas by other authorized aircraft, or during any calendar month that:
a. Five (5) or more Government aircraft are regularly based at the airport or on land adjacent thereto; or
b. The total number of movements (counting each landing as a movement) of Government aircraft is 300 or more, or the gross accumulative weight of Government aircraft using the airport (the total movement of Government aircraft multiplied by gross weights of such aircraft) is in excess of five million pounds.

28. Land for Federal Facilities.

It will furnish without cost to the Federal Government for use in connection with any air traffic control or air navigation activities, or weather-reporting and communication activities related to air traffic control, any areas of land or water, or estate therein as the Secretary considers necessary or desirable for construction, operation, and maintenance at Federal expense of space or facilities for such purposes. Such areas or any portion thereof will be made available as provided herein within four months after receipt of a written request from the Secretary.

29. Airport Layout Plan.
a. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, it will keep up to date at all times an airport layout plan of the airport showing:

1. boundaries of the airport and all proposed additions thereto, together with the boundaries of all offsite areas owned or controlled by the sponsor for airport purposes and proposed additions thereto;

2. the location and nature of all existing and proposed airport facilities and structures (such as runways, taxiways, aprons, terminal buildings, hangars and roads), including all proposed extensions and reductions of existing airport facilities;

3. the location of all existing and proposed non-aviation areas and of all existing improvements thereon; and

4. all proposed and existing access points used to taxi aircraft across the airport’s property boundary.

Such airport layout plans and each amendment, revision, or modification thereof, shall be subject to the approval of the Secretary which approval shall be evidenced by the signature of a duly authorized representative of the Secretary on the face of the airport layout plan. The Item 1C - Page 34
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sponsor will not make or permit any changes or alterations in the airport or any of its facilities which are not in conformity with the airport layout plan as approved by the Secretary and which might, in the opinion of the Secretary, adversely affect the safety, utility or efficiency of the airport.
b. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, if a change or alteration in the airport or the facilities is made which the Secretary determines adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property on or off the airport and which is not in conformity with the airport layout plan as approved by the Secretary, the owner or operator will, if requested, by the Secretary:

1. eliminate such adverse effect in a manner approved by the Secretary; or

2. bear all costs of relocating such property (or replacement thereof) to a site acceptable to the Secretary and all costs of restoring such property (or replacement thereof) to the level of safety, utility, efficiency, and cost of operation existing before the unapproved change in the airport or its facilities except in the case of a relocation or replacement of an existing airport facility due to a change in the Secretary’s design standards beyond the control of the airport sponsor.

30. Civil Rights.

It will promptly take any measures necessary to ensure that no person in the United States shall, on the grounds of race, color, and national origin (including limited English proficiency) in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4); creed and sex (including sexual orientation and gender identity) per 49 U.S.C. § 47123 and related requirements; age per the Age Discrimination Act of 1975 and related requirements; or disability per the Americans with Disabilities Act of 1990 and related requirements, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination in any program and activity conducted with, or benefiting from, funds received from this Grant. a. Using the definitions of activity, facility, and program as found and defined in 49 CFR §§

21.23(b) and 21.23(e), the sponsor will facilitate all programs, operate all facilities, or conduct all programs in compliance with all non-discrimination requirements imposed by or pursuant to these assurances.
b. Applicability

1. Programs and Activities. If the sponsor has received a grant (or other federal assistance) for any of the sponsor’s program or activities, these requirements extend to all of the sponsor’s programs and activities.

2. Facilities. Where it receives a grant or other federal financial assistance to construct, expand, renovate, remodel, alter, or acquire a facility, or part of a facility, the assurance extends to the entire facility and facilities operated in connection therewith.

3. Real Property. Where the sponsor receives a grant or other Federal financial assistance in the form of, or for the acquisition of real property or an interest in real property, the assurance will extend to rights to space on, over, or under such property. c. Duration.

The sponsor agrees that it is obligated to this assurance for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is Item 1C - Page 35
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to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the assurance obligates the sponsor, or any transferee for the longer of the following periods:

1. So long as the airport is used as an airport, or for another purpose involving the provision of similar services or benefits; or

2. So long as the sponsor retains ownership or possession of the property. d. Required Solicitation Language. It will include the following notification in all solicitations for bids, Requests For Proposals for work, or material under this Grant Agreement and in all proposals for agreements, including airport concessions, regardless of funding source:
“The (City of Palm Springs), in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders or offerors that it will affirmatively ensure that for any contract entered into pursuant to this advertisement, [select businesses, or disadvantaged business enterprises or airport concession disadvantaged business enterprises] will be afforded full and fair opportunity to submit bids in response to this invitation and no businesses will be discriminated against on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability in consideration for an award.”
e. Required Contract Provisions.

1. It will insert the non-discrimination contract clauses requiring compliance with the acts and regulations relative to non-discrimination in Federally-assisted programs of the Department of Transportation (DOT), and incorporating the acts and regulations into the contracts by reference in every contract or agreement subject to the non-discrimination in Federally-assisted programs of the DOT acts and regulations.

2. It will include a list of the pertinent non-discrimination authorities in every contract that is subject to the non-discrimination acts and regulations.

3. It will insert non-discrimination contract clauses as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a sponsor.

4. It will insert non-discrimination contract clauses prohibiting discrimination on the basis of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability as a covenant running with the land, in any future deeds, leases, license, permits, or similar instruments entered into by the sponsor with other parties:
a. For the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. For the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program. f. It will provide for such methods of administration for the program as are found by the Secretary to give reasonable guarantee that it, other recipients, sub-recipients, sub-grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other Item 1C - Page 36
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participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the acts, the regulations, and this assurance. g. It agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the acts, the regulations, and this assurance.

31. Disposal of Land.
a. For land purchased under a grant for airport noise compatibility purposes, including land serving as a noise buffer, it will dispose of the land, when the land is no longer needed for such purposes, at fair market value, at the earliest practicable time. That portion of the proceeds of such disposition which is proportionate to the United States' share of acquisition of such land will be, at the discretion of the Secretary, (1) reinvested in another project at the airport, or (2) transferred to another eligible airport as prescribed by the Secretary. The Secretary shall give preference to the following, in descending order:

1. Reinvestment in an approved noise compatibility project;

2. Reinvestment in an approved project that is eligible for grant funding under 49 U.S.C. § 47117(e);

3. Reinvestment in an approved airport development project that is eligible for grant funding under 49 U.S.C. §§ 47114, 47115, or 47117

4. Transfer to an eligible sponsor of another public airport to be reinvested in an approved noise compatibility project at that airport; or

5. Payment to the Secretary for deposit in the Airport and Airway Trust Fund.

If land acquired under a grant for noise compatibility purposes is leased at fair market value and consistent with noise buffering purposes, the lease will not be considered a disposal of the land. Revenues derived from such a lease may be used for an approved airport development project that would otherwise be eligible for grant funding or any permitted use of airport revenue.
b. For land purchased under a grant for airport development purposes (other than noise compatibility), it will, when the land is no longer needed for airport purposes, dispose of such land at fair market value or make available to the Secretary an amount equal to the United States' proportionate share of the fair market value of the land. That portion of the proceeds of such disposition which is proportionate to the United States' share of the cost of acquisition of such land will, upon application to the Secretary, be reinvested or transferred to another eligible airport as prescribed by the Secretary. The Secretary shall give preference to the following, in descending order:

1. Reinvestment in an approved noise compatibility project;

2. Reinvestment in an approved project that is eligible for grant funding under 49 U.S.C. § 47117(e);

3. Reinvestment in an approved airport development project that is eligible for grant funding under 49 U.S.C. §§ 47114, 47115, or 47117

4. Transfer to an eligible sponsor of another public airport to be reinvested in an approved noise compatibility project at that airport; or

5. Payment to the Secretary for deposit in the Airport and Airway Trust Fund.

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c. Land shall be considered to be needed for airport purposes under this assurance if (1) it may be needed for aeronautical purposes (including runway protection zones) or serve as noise buffer land, and (2) the revenue from interim uses of such land contributes to the financial selfsufficiency of the airport. Further, land purchased with a grant received by an airport operator or owner before December 31, 1987, will be considered to be needed for airport purposes if the Secretary or Federal agency making such grant before December 31, 1987, was notified by the operator or owner of the uses of such land, did not object to such use, and the land continues to be used for that purpose, such use having commenced no later than December 15, 1989.
d. Disposition of such land under (a), (b), or (c) will be subject to the retention or reservation of any interest or right therein necessary to ensure that such land will only be used for purposes which are compatible with noise levels associated with operation of the airport.

32. Engineering and Design Services.

If any phase of such project has received Federal funds under Chapter 471 subchapter 1 of Title 49 U.S.C., it will award each contract, or sub-contract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping or related services in the same manner as a contract for architectural and engineering services is negotiated under Chapter 11 of Title 40 U.S.C., or an equivalent qualifications-based requirement prescribed for or by the sponsor of the airport.

33. Foreign Market Restrictions.

It will not allow funds provided under this Grant to be used to fund any project which uses any product or service of a foreign country during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction.

34. Policies, Standards, and Specifications.

It will carry out any project funded under an Airport Improvement Program Grant in accordance with policies, standards, and specifications approved by the Secretary including, but not limited to, current FAA Advisory Circulars (https://www.faa.gov/airports/aip/media/aip-pfc-checklist.pdf) for AIP projects as of February 23, 2023.

35. Relocation and Real Property Acquisition.
a. It will be guided in acquiring real property, to the greatest extent practicable under State law, by the land acquisition policies in Subpart B of 49 CFR Part 24 and will pay or reimburse property owners for necessary expenses as specified in Subpart B. b. It will provide a relocation assistance program offering the services described in Subpart C of 49 CFR Part 24 and fair and reasonable relocation payments and assistance to displaced persons as required in Subpart D and E of 49 CFR Part 24.
c. It will make available within a reasonable period of time prior to displacement, comparable replacement dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24.

36. Access By Intercity Buses.

The airport owner or operator will permit, to the maximum extent practicable, intercity buses or other modes of transportation to have access to the airport; however, it has no obligation to fund special facilities for intercity buses or for other modes of transportation.

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37. Disadvantaged Business Enterprises.

The sponsor shall not discriminate on the basis of race, color, national origin, or sex, in the award and performance of any DOT-assisted contract covered by 49 CFR Part 26, or in the award and performance of any concession activity contract covered by 49 CFR Part 23. In addition, the sponsor shall not discriminate on the basis of race, color, national origin or sex in the administration of its Disadvantaged Business Enterprise (DBE) and Airport Concessions Disadvantaged Business Enterprise (ACDBE) programs or the requirements of 49 CFR Parts 23 and 26. The sponsor shall take all necessary and reasonable steps under 49 CFR Parts 23 and 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts, and/or concession contracts. The sponsor’s DBE and ACDBE programs, as required by 49 CFR Parts 26 and 23, and as approved by DOT, are incorporated by reference in this agreement. Implementation of these programs is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the sponsor of its failure to carry out its approved program, the Department may impose sanctions as provided for under Parts 26 and 23 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. § 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. §§ 3801-3809, 3812).

38. Hangar Construction.

If the airport owner or operator and a person who owns an aircraft agree that a hangar is to be constructed at the airport for the aircraft at the aircraft owner’s expense, the airport owner or operator will grant to the aircraft owner for the hangar a long term lease that is subject to such terms and conditions on the hangar as the airport owner or operator may impose.

39. Competitive Access.
a. If the airport owner or operator of a medium or large hub airport (as defined in 49 U.S.C. § 47102) has been unable to accommodate one or more requests by an air carrier for access to gates or other facilities at that airport in order to allow the air carrier to provide service to the airport or to expand service at the airport, the airport owner or operator shall transmit a report to the Secretary that:

1. Describes the requests;

2. Provides an explanation as to why the requests could not be accommodated; and

3. Provides a time frame within which, if any, the airport will be able to accommodate the requests.
b. Such report shall be due on either February 1 or August 1 of each year if the airport has been unable to accommodate the request(s) in the six month period prior to the applicable due date.

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ATTACHMENT B

FAA FAQ REGARDING BIL-ATP FUNDING
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March 17, 2023
1 Federal Aviation
Administration
Bipartisan Infrastructure Law
Frequently Asked Questions
This document answers frequently asked questions (FAQs) stakeholders may have related to the grant funds available for airports under the Public Law 117-58-Infrastructure Investment and Jobs Act referred to as the Bipartisan Infrastructure Law (BIL).

The BIL includes approximately $25 billion for the National Airspace System.

Approximately $5 billion is for improvements to FAA owned facilities and equipment. FAA’s Air Traffic Organization (ATO) will administer these funds.

These FAQs pertain to the approximately $20 billion for airport infrastructure improvements that will be administered by FAA’s Office of Airports. The Federal Aviation Administration (FAA) has additional information for airport sponsors at www.faa.gov/bil.

The guidance here is not legally binding in its own right and FAA will not rely on it as a separate basis for affirmative enforcement action or other administrative penalty. Conformity with this guidance, as distinct from existing statutes, regulations, and grant assurances, is voluntary only, and nonconformity will not affect existing rights and obligations.

For questions related to BIL, please email: [email protected].

This March 17, 2023 update includes a revision to question U-16 clarifying that AIG allocation transfers can only be made within the same sponsor and same role.

These FAQs will be updated periodically as new questions arise.

Subjects Addressed
General Questions..............................................................................................................................2 Questions on Allocation of Funds......................................................................................................5 Questions on Use of Grant Funding...................................................................................................9 Questions on Grant Applications, Payments, and Closeouts...........................................................20 Questions related to the State Block Grant Program .......................................................................20 Item 1C - Page 41
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2 General Questions
Q-1: How does the Bipartisan Infrastructure Law (BIL) benefit airports? A: Title VIII of Division J of the Infrastructure Investment and Jobs Act (Public Law 117-58) of 2021 (BIL) provides $25 Billion for the National Aerospace System (NAS). Five billion dollars of the BIL funds will be administered by FAA’s Air Traffic Organization (ATO) will fund much needed FAA facilities upgrades. FAA’s Office of Airports (ARP) will administer the remaining approximately $20 billion in grant funds for airport infrastructure, terminal development, including multimodal terminal development and on-airport rail access projects, and airport owned towers.

Q-2: Where is this funding coming from?
A: The $25 billion comes directly from the U.S. Treasury’s General Fund.

Q-3: Are the BIL funds split into different funding buckets? A: Yes. Five billion dollars is being administered by ATO for improvements to FAAowned facilities. ARP will administer approximately $20 billion of BIL funds to airport sponsors. The $20 billion is allocated over 5 years ($4 billion annually). Of the $20 billion, FAA will receive up to $118 million annually for administration of BIL funds and the Office of Inspector General (OIG) receives $2 million annually for oversight of BIL funds.
(1) Airport Infrastructure Grants (AIG) include formula allocations (AIG Allocated) and competitive (FAA Contract Tower Competitive) funds of up to $14.55 billion.
a) Primary Airports share not more than $2.39 billion annually based enplanement and cargo volume.
b) Non-Primary Airports share not more than $500 million annually, based on airport classification in the National Plan of Integrated Airport System (NPIAS) and the aggregated NPIAS eligible development cost for each classification.
c) AIG provides $20 million annually in competitive grants (FAA Contract Tower Competitive) for sponsor owned contract towers participating in the Federal contract tower program and the contract tower cost share program (FCT). These funds are available to:
construct, repair, improve, rehabilitate, modernize, replace, or relocate an airport control tower; acquire and install air traffic control, communications, and related equipment in an airport control tower; and construct a remote tower certified by the FAA including acquisition and installation of air traffic control, communications, or related equipment. (To date there is no FAA-certified remote tower technology.)
(2) Approximately $4.85 billion ($970 million annually) for competitive Airport Terminal Program (ATP) grants including multi-modal terminal development and on-airport rail access projects. These funds can also be Item 1C - Page 42
March 17, 2023
3 used for projects for relocating, reconstructing, repairing, or improving an airport-owned air traffic control tower (ATCT), whether staffed by FAA or in the FCT program.

Q-4: Who is eligible to receive AIG and ATP funding under BIL? A: AIG Formula Infrastructure Allocations (AIG Allocated): Funds are available to sponsors of airports as defined in 47102 of title 49, United States Code (U.S.C.); that is, airport sponsors meeting statutory and policy requirements under this section and identified in the FAA’s published National Plan of Integrated Airport Systems (NPIAS), updated with current year data, and are eligible to receive discretionary funds per 49 U.S.C. 47115.

FAA Contract Tower Competitive Infrastructure Funds (FCT Competitive):

Funds are available to sponsors of airports eligible to receive discretionary funds per 49 U.S.C. 47115 and participating in the FCT program under 49 U.S.C. 47124.

ATP: Funds are available to sponsors of airports eligible to receive discretionary funds per 49 U.S.C. 47115.

Q-5: Are any airports not eligible to receive funding under BIL? A: All airports in the NPIAS, except unclassified airports, are eligible. Unclassified airports are not eligible for discretionary funding under BIL.

Q-6: Are airport sponsors in the Republic of the Marshall Islands, Federated States of Micronesia, Republic of Palau, and Midway Island eligible for BIL Grants? A: AIG Allocated: Yes, but they do not receive an allocation. Only sponsors of airports in categories defined in 49 U.S.C. 47102 receive allocations. Airports must be included in the NPIAS to receive an allocation of AIG funds. Airports in the Republic of the Marshall Islands, Federated States of Micronesia, Republic of Palau, and Midway Island are not included in the NPIAS. While these airport sponsors may be eligible for some AIP discretionary funding under 49 U.S.C. 47115, they are not eligible for AIG Allocated funds under BIL.

FCT Competitive: Yes. Funds are available to sponsors of airports eligible to receive discretionary funds per 49 U.S.C. 47115 and participating in the FCT program under 49 U.S.C. 47124. Airports in the Republic of the Marshall Islands, Federated States of Micronesia, Republic of Palau, and Midway Island are eligible for discretionary funds. These sponsors could compete for FCT Competitive funding if they are accepted into the FCT program.

ATP: Yes. Funds are available to sponsors of airports eligible to receive discretionary funds per 49 U.S.C. 47115. Airports in the Republic of the Marshall Islands, Federated States of Micronesia, Republic of Palau, and Midway Island are eligible for discretionary funds.

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4 Q-7: Are airports in U.S. territories eligible for BIL Grants? A: Yes. Funds are available to sponsors of airports in categories defined in 49 U.S.C. 47102 and identified in the FAA’s published NPIAS, updated with current year data, and are eligible to receive discretionary funds per 49 U.S.C. 47115. Airports in U.S. territories (American Samoa, Northern Mariana Islands, Puerto Rico, the U.S. Virgin Islands, and Guam) meet these requirements. They receive AIG Allocation funds based on their information in the NPIAS, can compete for FCT Competitive funds if in the FTC program, and can compete for ATP funds.

Q-8: Why do airports with a NPIAS category of Unclassified not receive AIG Allocated funds under BIL?
A: Unclassified airports are not eligible for discretionary funds under BIL (see Q-5).

Also, consistent with their role in the national airport system, unclassified airports have no development needs identified in the published NPIAS, updated with current year data.

Q-9: What is the period of availability for FAA to obligate AIG funds? A: Approximately $2.91 billion (approximately $2.89 billion of AIG Allocated funds and $20 million FCT Competitive funds) is available annually starting fiscal year (FY) 2022 through FY 2026. Funds not obligated at the end of the fourth FY will be recovered and made available for competitive grants in the fifth year. See Q-F3.

FY funds are first made
available:

Funds must be obligated
(under grant) by:

Any unobligated funds must
be obligated (under grant) as
competitive grants in:
2022 September 30, 2025 FY 2026
2023 September 30, 2026 FY 2027
2024 September 30, 2027 FY 2028
2025 September 30, 2028 FY 2029
2026 September 30, 2029 FY 2030
Q-10: What is the period of availability for FAA to obligate ATP funds? A: Approximately $970 million of ATP funds are available annually starting FY 2022 through FY 2026. Funds not obligated at the end of the fifth FY will expire.

See Q-F4.

FY funds are first made
available:

Funds must be obligated
(under grant) by:

Funds recovered after the
following FYs expire:
2022 September 30, 2026 FY 2026
2023 September 30, 2027 FY 2027
2024 September 30, 2028 FY 2028
2025 September 30, 2029 FY 2029
2026 September 30, 2030 FY 2030
Item 1C - Page 44
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5 Questions on Allocation of Funds
Q-F1: How will BIL AIG funds be allocated/awarded to airport sponsors? A: BIL allocates the $14.55 billion into two programs over 5 years; AIG Allocated and FCT Competitive. AIG Allocated funds are specific, annual allocations to each eligible airport. These amounts are allocated separately for primary and non-primary airports. FCT Competitive funds are awarded annually through a competitive Notice of Funding Opportunity (NOFO) process specifically for FCT improvements. (1) AIG Allocated.
a) Primary Commercial Service Airports and eligible Cargo Airports share not more than $2.39 billion annually based first on the statutory Airport Improvement Program (AIP) primary and cargo entitlement formulas. The FY 2022 allocation for primary airports is based on best of calendar year (CY) 2018, CY 2019, or CY 2020 enplanements. The FY 2023 allocation for primary airports will be based on best of CY 2018, CY 2019, or CY 2021 enplanements.

Starting in FY 2024, the amount formulated for each airport is based upon the most recent CY enplanements. Cargo allocations are required by the legislation to be based on the most recent CY per 49 U.S.C. 47114(c)(2). FY 2022 cargo allocations were based on CY 2020.

After allocating based on the statutory AIP entitlement formulas, the remainder is then allocated based on the number of enplanements the airport had in CY 2019 as a percentage of total 2019 enplanements for all primary airports for FY 2022 and FY 2023.

Starting FY 2024, the amount formulated for each airport is based upon the most recent CY enplanements.
b) Non-Primary Airports share not more than $500 million annually.

The apportioned funds for each non-primary airport are based on the categories published in the NPIAS, updated with current year data, reflecting the percentage of the aggregate published eligible development costs for each such category, and then dividing the allocated funds evenly among the eligible airports in each category, rounding up to the nearest thousand dollars. For example, all airports classified as Local receive the same allocation. (2) FCT Competitive.
a) Sponsors of airports participating in the FCT program under 49 U.S.C. 47124, are eligible to share not more than $20 million annually. Instructions for applying for these funds will be outlined in a NOFO, which will be issued annually until the program expires.

Projects will be selected by FAA based on sponsor’s information submitted in response to the criteria as outlined in the NOFO.

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6 Q-F2: How will BIL ATP funds be awarded to airport sponsors? A: Sponsors of primary and non-primary airports eligible for discretionary funding under 49 U.S.C. 47115(a) are eligible to share approximately $970 million annually.

Not more than 55% of these funds go to large hub airports, not more than 15% go to medium hub airports, not more than 20% go to small hub airports, and not less than 10% go to non-hub and non-primary airports. Instructions for applying for these funds will be outlined in a NOFO, which will be issued annually until the program expires. Projects will be selected by FAA based on sponsor’s information submitted in response to the criteria as outlined in the NOFO.

Q-F3: What happens to unobligated BIL AIG funds?
A: Funds not obligated at the end of the fourth fiscal year will be recovered and made available for competitive grants in the fifth year. Up to $100 million of these recovered funds will first be provided for competitive grants for FCTs. Any remaining funds will be available for competitive grants for eligible work that reduces airport emissions, reduces noise impact to the surrounding community, reduces dependence on the electrical grid, or provides general benefits to the surrounding community. Instructions for applying for these recovered funds will be outlined in a NOFO, which will be issued annually so the recovered funds are assigned to the competitive projects beginning in FY 2026 (October 1, 2025) through FY 2030 (September 30, 2030). Projects will be selected by FAA, based on sponsor’s information submitted as outlined in the NOFO. Funds recovered after the fifth year will return to the General Fund.

Q-F4: What happens to unobligated BIL ATP funds?
A: Funds not obligated at the end of the fifth fiscal year will expire. ATP funds recovered prior to the end of the fifth fiscal year can be used to amend open ATP grants or made available for new ATP grants based on a competitive process. At the end of the fifth fiscal year, any unobligated or recovered funds will return to the General Fund.

Q-F5: What is the Federal share under BIL?
A: AIG Allocated: The Federal share is the same as for AIP grants, ranging from 50% to 95%, as outlined in 49 U.S.C. 47109. (For further explanation of the statutory provision see Section 4-9 of FAA Order 5100.38D, Change 1 (AIP Handbook)). This includes grants made using unobligated AIG funds for projects not related to FCTs.

See Q-F3.

FCT Competitive: The Federal share for FCT improvements is 100%. This includes grants made using unobligated AIG funds for FCT projects. See Q-F3.

ATP: The Federal share for terminal and sponsor owned ATCT improvements is 80% for large and medium hub airports and 95% for small hub, non-hub, and nonprimary airports.

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7 Q-F6: Do airport sponsors have to contribute a local match for AIG and ATP grants under the BIL?
A: AIG Allocated: Yes. The sponsor’s match is the same as for sponsor’s AIP grants, ranging from 5% to 50%. This includes grants made using unobligated AIG funds for projects not related to FCT. See Q-F3.

FCT Competitive: No. The Federal share for FCT improvements is 100%. This includes grants made using unobligated AIG funds for FCT projects. See Q-F3.

ATP: Yes. The sponsor’s match is 20% for large and medium hub airports and 5% for small hub, non-hub, and non-primary airports.

Q-F7: Is the BIL funding tied to the annual appropriation process? A: No. BIL does not require an annual appropriation. The funding is appropriated and will be available at the beginning of each FY.

Q-F8: How is the NPIAS airport categorization used to determine BIL AIG Allocated funds for non-primary airport sponsors?
A: Under BIL, not more than $500 million is allocated annually to non-primary airports based on the categories published in the NPIAS, updated with current year data.

FAA Order 5090.5, Formulation of the NPIAS and ACIP, defines the criteria for each category or role.

Q-F9: Will FY 2023-FY 2026 AIG Allocated funds for primary and cargo eligible airports vary from FY 2022 allocations?
A: Yes. The AIG allocations will be determined each year based on the enplanement and cargo landed weight. The FY 2023 allocation for primary airports will be based on best of CY 2018, CY 2019, or CY 2021 enplanements, and CY 2021 cargo landed weight. After FY 2023, enplanement and cargo allocations will be based on the most recent CY data. We expect there will be changes each year in the allocation. The extent of the changes will be impacted on changes in enplanements, cargo data, or if the airport changes between the primary and non-primary categories after FY 2023.

Q-F10: How are airports that change from primary to non-primary status handled in AIG allocation formulas?
A: FY 2022 and FY 2023 primary airport allocations are based on highest enplanements for CY 2018, CY 2019 and next full CY (CY 2020 or CY 2021 respectively). An airport that was classified as a primary airport in any of those years is considered a primary airport for FY 2022 and FY 2023. The most recent CY enplanements are used to determine an airport’s classification for FY 2024-FY 2026 allocations. An airport classified as non-primary after FY 2023 will receive a non-primary allocation.

Q-F11: Will FY 2023-FY 2026 AIG Allocated funds for non-primary airports vary from FY 2022 allocations?
A: Airports changing from primary to non-primary, or visa-versa, or changes to the number of unclassified airports could impact the overall non-primary allocations.

Airports changing classification (National, Regional, Local, Basic) in updated Item 1C - Page 47
March 17, 2023
8 versions of the NPIAS could also impact the overall non-primary allocations.

Allocations for non-primary airports that do not change NPIAS classification should not vary significantly from year to year.

Q-F12: Will non-primary airports that change from unclassified to classified as the NPIAS is updated with current year data qualify for AIG Allocated funds? A: Yes. If the airport’s classification changes from unclassified to classified, that airport would be eligible for an allocation the following FY based on the airport’s new classification. Similarly, if an airport drops to unclassified it would lose allocations the following FY.

Q-F13: Does a non-primary airport that has unobligated AIG allocations and changes from classified to unclassified lose those funds?
A: No. Unobligated AIG allocations are available until they expire (see Q-9).

Q-F14: Will unobligated AIG Allocated funds be converted to discretionary funding annually?
A: No. The funds are available for obligation until the end of the fourth FY. In the fifth FY, unobligated funds are recovered and used for competitive grants. See Q-9 and Q-F3.

Q-F15: Is there a cap limiting the maximum amount of AIG Allocated funds? A: No. The legislation specifically states that there shall be no maximum apportionment limit under 49 U.S.C. 47114(c)(1)(C)(iii).

Q-F16: Is there a reduction in AIG Allocated funds for medium and large hub airports collecting a Passenger Facility Charge (PFC)?
A: No. The legislation specifically states that these funds are not subject to the reduced apportionments of 49 U.S.C. 47114(f).

Q-F17: Does the “best of” calculation apply to cargo?
A: No. The legislation references section 49 U.S.C. 47114(2), requiring cargo apportionments to be based on prior CY landed weight. There was no “best of” provision for cargo.

Item 1C - Page 48
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9 Questions on Use of Grant Funding
Q-U1: How can an airport sponsor use BIL AIG funds?
A: AIG funds under BIL include AIG Allocated and FCT Competitive funds.

Allowable use of AIG funds are as follows:
(1) AIG Allocated. An airport sponsor may use these funds for airport-related projects defined under 49 U.S.C. 40117(a)(3). AIG Allocated funds cannot be used to pay for debt service. The FAA has used the guidance in the AIP Handbook as a component of PFC eligibility determination under section 40117.
(2) FCT Competitive. An airport sponsor may use these funds to sustain, construct, repair, improve, rehabilitate, modernize, replace, or relocate a nonapproach FCT ATCT, and to acquire and install air traffic control, communications, and related equipment to be used in those ATCT. (For further information on ATCT construction see Table O-3 Other Building Project Requirement (Other than Terminal), Item h, in the AIP Handbook. For further information on FCT minimum equipment and facilities list and FAA FCT new start and replacement tower process, see FAA Order JO 7210.78 FAA Contract Tower (FCT) New Start and Replacement Tower Process). A list of eligible equipment is found in Appendix A of Reauthorization Program Guidance Letter (R-PGL) 19-02: Planning and Project Eligibility. FCT Competitive funds can also be used to construct a remote tower certified by the FAA including acquisition and installation of air traffic control, communications, or related equipment. To date there is no FAA certified remote tower technology. FCT Competitive funds cannot be used to pay for debt service.

Q-U2: What are the eligible uses of ATP funds?
A: ATP grants under BIL are awarded competitively and can be used for justified terminal development projects as defined under 49 U.S.C. 47102(28), including multi-modal projects. On-airport rail access projects, as outlined in 86 FR 48793 (PFC Update 75-21), are also eligible. Finally, projects for relocating, reconstructing, repairing, or improving an airport-owned ATCT, either staffed by FAA or in the FCT program, are also eligible.

Q-U3: Can BIL funds be used at an airport that cannot meet FAA design standards? A: Standard Airport Sponsor Assurances, which require airports to meet standards and specifications approved by the FAA, will apply to BIL grants, unless a Modification to Standards has been approved by FAA.

Q-U4: What grant obligations will an airport be required to meet by accepting a BIL grant?
A: Standard Airport Sponsor Assurances, will apply to BIL grants. The grant assurances apply for the useful life of the facilities developed or equipment acquired under the grant, except for exclusive rights, airport revenue, and civil rights, which are perpetual. There is no limit on the duration of the terms, conditions, and assurances with respect to real property acquired with BIL funds.

Item 1C - Page 49
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10 Q-U5: Are projects constructed with BIL funds expected to meet a minimum useful life?
A: Yes. See section 3-12 of the AIP Handbook on minimum useful life.

Q-U6: Can BIL funds be used to pay the matching share for AIP grants? A: No. 49 U.S.C. 40117(a)(3) is referenced in the legislation with respect to project eligibility. BIL funds are Federal funds from the General Treasury, which require a sponsor match. They are not PFC funds, which are considered local funds.

Q-U7: Can BIL matching share be paid using pay as you go PFC funds? A: Yes. Projects must be included in an approved PFC application. The review and approval of a new application, if one is needed due to an amendment of an approved application, takes a significant amount of time from notification to carriers/public to start of PFC collection.

Q-U8: Will requests to use BIL funds for projects included in an approved PFC application be considered?
A: Yes. Sponsors must submit an amendment to an approved PFC, which decreases the total collection authority or deletes an approved project, before submitting for payment under a BIL grant. Sponsors should consult with their local ADO/RO if considering changes to an approved PFC application.

Q-U9: Can BIL funds be used to pay debt service?
A: No. The legislation does not allow funds to be used for debt service, including the financing cost of bonding.

Q-U10: Do any BIL funded projects require a Benefit-Cost Analysis (BCA)? A: No. Title 49 U.S.C. 47115(d) identifies the requirements for a BCA for certain AIP discretionary projects. Section 47115(d) is not referenced in the BIL, therefore BCAs are not required. Also, a BCA is not required for installation of weather reporting equipment (AWOS-III or better). Other controls are in place to ensure projects are justified and reasonable.

Q-U11: Can multi-year (MY) grants be issued using BIL funds? A: No. BIL grants cannot include future year allocations. Allocations may change annually. See U-32 and U-33.

Q-U12: Can AIP/BIL funds be included in a single grant? A: No. AIP and BIL funds come from different sources and cannot be mingled into a single grant.

Q-U13: Will AIG and ATP grants include a period of performance (POP)? A: Yes, they will include the standard four (4) years POP.

Q-U14: Are BIL funds tied to the AIP funding schedule?
A: No. BIL funds are administered separately throughout the FY.

Item 1C - Page 50
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11 Q-U15: Can AIG Allocated funds be transferred between airport sponsors? A: No. AIG Allocated funds are airport sponsor specific funds.

Q-U16: Can an airport sponsor that owns multiple airports transfer AIG Allocated funds between its airports?
A: Yes with limitations. BIL specifically limits the amount of funding available for primary and nonprimary airports each fiscal year. BIL Airport Infrastructure allocated funds are airport sponsor specific funds, which can only be transferred between airports of the same funding type. Primary AIG allocations can only be transferred to an airport that was classified as primary in the year of the allocation. Similarly, nonprimary AIG allocations can only be transferred to an airport that was classified as nonprimary in the year of allocation.

For example: airport A is classified as primary in FY22 and nonprimary in FY23 while airport B is classified as primary in FY22 and FY23. Airport A can transfer FY22 money to airport B in FY 22 but not FY23. These funds can be transferred in any year until expired.

Q-U17: The BIL indicates that AIG funds are available for four years and ATP funds are available for five years. How far along must a project be at the end of these obligation periods to not lose BIL funds?
A: Funds need to be obligated as outlined under Q-F3 and Q-F4. Funds not obligated as outlined will expire and return to the General Fund.

Q-U18: Will design only grants be allowed using AIG Allocated funds? A: Yes. AIG Allocated funds can be used to fund a design only grant. A design only grant will include a grant condition that the associated development will begin within two years after the design is completed.

Q-U19: Will design only grants be eligible using FCT Competitive or ATP funds? A: Yes. Design only grants may not compete as well as those projects that are already designed or part of an alternative delivery method. Any design only grant will require a realistic funding plan to ensure completion of the project. A design only grant will include a grant condition that the associated development will begin within two years after the design is completed.

Q-U20: In order to qualify for a grant under the BIL, must projects be "shovel ready" or is a project still under design eligible?
A: No. As with PFC eligibility, a grant can be for design or environmental review, taking into consideration the normal AIP requirement. Construction grants will be issued based on bids. The annual NOFO for FCT Competitive and ATP funds will outline the application and screening process for these funds.

Q-U21: What happens to unused BIL funds if grants are closed with a recovery? A: AIG Allocated funds recovered before the end of the fourth year remain available for the airport’s use. FCT Competitive and ATP funds recovered before they expire will be returned to a competitive process. See Q-F3 and Q-F4.

Item 1C - Page 51
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12 Q-U22: How can an airport sponsor use BIL recovered funds? A: AIG Allocated funds that have not expired can be either used in a new, AIG-allocated grant or amended into an existing AIG-allocated grant for eligible projects as outlined in Q-U23. Recovered FCT Competitive and ATP funds that have not expired can be either used in a new competitive grant or amended into an existing grant as outlined in Q-U23.

Q-U23: Can BIL grants be amended to cover cost overruns? A: Yes. BIL grants using AIG Allocated funds can be amended within their four-year period of availability, but only with sponsor’s available AIG Allocated funds.

Grants funded with FCT Competitive or ATP funds will be considered by FAA competitively at a national level.

Q-U24: Can BIL funds be used to reimburse costs previously incurred? A: For all AIG Allocated funds and funds awarded under the FY 2022 ATP NOFO and the FY 2022 FAA Contract Tower (FCT) Competitive Grant Program NOFO, FAA will reimburse sponsors for eligible project related costs incurred on or after November 15, 2021, which is the date of enactment of BIL, as long as all Federal funding procurement requirements and FAA design and construction standards, are met (see the AIP Handbook).

After further legal review, the FY 2023 and future ATP, FCT Competitive, and other BIL related NOFOs will be adjusted to further ensure consistency with other DOT grant programs. Project formulation costs (airport development), incurred after November 15, 2021, are reimbursable. The specific costs eligible for reimbursement are outlined under 49 U.S.C. 47110(c), and further described in Table 3-60 of the AIP Handbook. All other costs must be incurred after grant execution.

Q-U25: Can BIL funds be used to fund future phases of a project that is already under construction?
A: Yes. BIL funds can be used for eligible costs of future phases of projects incurred on or after November 15, 2021, as long Federal procurement requirements per 2 CFR 200 and FAA design and construction standards are met (see AIP Handbook). See Q-U24 for reimbursement requirements for the FY 2023 and future ATP, FCT Competitive, and other BIL related NOFOs.

Q-U26: Will requests to use competitive BIL funds for projects with planned AIP discretionary [on FAA’s Airports Capital Improvement Plan (ACIP)] be considered?
A: Yes. Priority will not be given to such projects and selection for competitive BIL funds is not guaranteed. AIP discretionary funded projects that are removed from the FAA’s ACIP and not selected for BIL funding will likely be delayed until funding (AIP, BIL, PFC, etc.) is available. Replacement AIP discretionary projects will not be considered.

Q-U27: Are AIG Allocated funds required to be used for higher priority projects if the airport is receiving AIP discretionary funds in the same FY? Item 1C - Page 52
March 17, 2023
13 A: No. AIG Allocated funds have expanded availability for projects considered lower priority under AIP. Airports are still required to meet basic planning guidelines for AIG funds such as project justification, project consistency with the master plans, appropriate project scope, and project documentation on an approved Airport Layout Plan (ALP). Additional guidelines with specific examples will be developed and included in future BIL guidance and AIP guidance. If an ADO has concerns about the types of projects being funded with AIG and an airport’s requested discretionary project, then it should reach out to the BIL Team and APP for further discussions.

Q-U28: Can a Sponsor still request AIP discretionary funds while saving AIG Allocated funds?
A: Yes. AIG Allocated funds have expanded availability for projects considered lower priority under AIP. Airports are still required to meet basic planning guidelines for AIG funds such as project justification, project consistency with the master plans, appropriate project scope, and project documentation on an approved ALP.

Additional guidelines with specific examples will be developed and included in future BIL guidance and AIP guidance. If an ADO has concerns about the types of projects being funded with AIG and an airport’s requested discretionary project, then it should reach out to the BIL Team and APP for further discussions.

Q-U29: Will airports be expected to use AIG Allocated funds before receiving FCT Competitive or ATP funds?
A: No, sponsors can receive an FCT Competitive or ATP grant while saving AIG Allocated funds for a larger project. The use of AIG Allocated funding will be taken into consideration when making FCT Competitive and ATP funding decisions.

Q-U30: Can alternative delivery methods be used for projects funded under BIL? A: Yes. Use of Design-Build, and Construction Manager at Risk (CMAR), in addition to the traditional design, bid, build delivery are allowable. Please refer to Section 3-43 and Table U-9 of the AIP Handbook.

Q-U31: If using alternative delivery methods, does the sponsor need to have a maximum guaranteed price to be to be considered for an FCT Competitive or ATP grant? A: No. Sponsors must provide the information outlined in the annual NOFO.

Projects will be selected by FAA based on sponsor’s information submitted in response to the criteria as outlined in the NOFO. A guaranteed maximum price is required to receive a grant (see Q-U20).

Q-U32: If a project costs more than an airport’s annual AIG Allocated funds, can the airport proceed with the project in year one, or will it have to wait until enough funds have accumulated?
A: An airport has options in this scenario. In addition to waiting to accumulate AIG allocations; a sponsor can phase the project so that annual grants can be issued using available BIL funds; use AIP funds for a defined project phase; or construct the project and request reimbursement with future allocations, at the sponsor’s risk.

Q-U33: Can an Airport borrow AIG Allocated funds from a future year? Item 1C - Page 53
March 17, 2023
14 A: No, funding will not be available ahead of the FY in which it is allocated. AIG allocations can be used for phased projects, saved for up to four years to use on a larger project, or construct a project and request reimbursement with future allocations, at the sponsor’s risk.

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15 Q-U34: Can AIG Allocated funds be transferred from an airport being replaced to its replacement airport?
A: Yes, provided the replacement airport has been approved by FAA and has an airport identification code assigned.

Q-U35: Can AIG Allocated funds be used to acquire vehicles or ground support equipment equipped with low-emission technology if the airport is located outside of an air quality nonattainment area or maintenance area? A: No. Title 49 USC 40117(a)(3)(G) (incorporated into BIL-eligibility) requires airports to be located in a nonattainment area or maintenance area for this type of equipment.

Q-U36: Can FCT Competitive or ATP funds be used to replace a FAA owned ATCT with a sponsor owned FCT?
A: No. FAA owned ATCT are the responsibility of ATO, not ARP. Use of ARP BIL funding to replace a FAA owned ATCT would be supplementing ATO’s appropriated funds, which is impermissible.

Q-U37: Is the construction, improvement, or expansion of Customs and Border Patrol (CBP) or United States Department of Agriculture (USDA) inspection facilities as part of a terminal project eligible for BIL grants?
A: For either AIG Allocated or ATP funds, the shell of the CBP facilities is eligible. The USDA inspection facilities are only eligible for AIG Allocated or ATP funds if they are required in the terminal for screening passengers or their baggage, for example in Hawaii where all passenger baggage (checked and carry-on) is screened by the USDA.

Q-U38: Are eligibility calculations required for terminal development grants using AIG Allocated or ATP funds?
A: Yes. Eligibility calculations similar to those done under PFC will be required for AIG Allocated and ATP terminal grants.

Q-U39: Are eligibility calculations required for on-airport rail access grants under ATP?
A: Yes. The process for making eligibility calculations is outlined in PFC Update 75-21 (86 FR 48793, August 31, 2021).

Q-U40: Can ATP funds be used to fund improvements for Terminals at non-primary airports?
A: Yes. Not less than 10% of the annual ATP funding is available for non-hub and non-primary airports. Instructions for applying for these funds will be outlined in a NOFO, which will be issued annually for FY 2022-2026. Projects will be selected by FAA based on sponsor’s information submitted in response to the criteria as outlined in the NOFO.

Q-U41: Do ATP grants count toward the $20M discretionary cap? A: No. The $20M cap under 49 U.S.C. 47119(f) applies to AIP funds and is not incorporated into BIL legislation.

Item 1C - Page 55
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16 Q-U42: Are ATP grants for terminal development for non-primary airports limited to the $200,000 cap?
A: No. The $200,000 cap under 49 U.S.C. 47119(b)(2) applies to AIP funds and is not incorporated into BIL legislation.

Q-U43: How will roadway projects that meet the definition of Terminal Development be prioritized for ATP funding?
A: Access roads servicing exclusively airport traffic that leads directly to or from an airport passenger terminal building and walkways that lead directly to or from an airport passenger terminal building are considered terminal development. These projects will be evaluated as terminal development projects as outlined in the annual NOFO. Sponsors should consider use of AIG Allocated funds for eligible, standalone access road improvements.

Q-U44: Can BIL funded projects include a local hiring preference? A: The BIL provides authority to use geographical and economic hiring preferences, including local hiring preferences, for construction jobs, subject to any applicable State and local laws, policies, and procedures. Local hiring preferences cannot be used for any portions of a project funded under AIP per 2 CFR 200.319(c).

Q-U45: Why must an airport comply with 2 CFR 200 under BIL? A: The BIL grants are funded from the General Fund; therefore, the Airport Infrastructure Program and the Airport Terminal Program make Federal Awards to non-Federal entities. These programs are subject to 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR § 200.101). In addition, BIL requires us to use the project grant authority required under 49 USC 47104 which further federalizes the funds.

Q-U46: Do limits for grant amendments apply to BIL funds? A: Yes. For consistency across programs, and to reflect what FAA believes to be best practices, AIP amendment limits will apply to BIL funds. FCT Competitive and ATP funds must use like year funds and are not guaranteed. For more information see QU23.

Q-U47: Can BIL AIG Allocated funds be used on sponsor-owned revenue producing aeronautical support facilities such as fuel farms and hangars? A: Yes. Revenue producing aeronautical support facilities are defined under 49 U.S.C. 47102(24) as fuel farms, hangar buildings, self-service credit card aeronautical fueling systems, airplane wash racks, major rehabilitation of a hangar owned by a sponsor, or other aeronautical support facilities that the Secretary determines will increase the revenue producing ability of the airport.

AIG Allocated funds have expanded eligibility beyond AIP. BIL eligibility allows these types of projects to be funded at any airport, regardless of size. The AIP statutory “airside needs” test is not applicable to BIL projects. However, to be BILeligible, the project would still need to be a new installation or major improvement to increase revenue production at the airport. Because the goal of BIL is to improve the nation’s infrastructure, maintenance and repair are not eligible. For Item 1C - Page 56
March 17, 2023
17 example, the expansion of a fuel farm to include a new fuel tank, increasing capacity, would be eligible as a new installation. A project to replace old fuel tank supply lines would be considered general maintenance and ineligible.

Q-U48: If using AIG Allocated funds for sponsor-owned revenue producing aeronautical support facilities, does the airside need test apply? A: No. There is no requirement in BIL to certify or demonstrate that airside needs within the next three years will be met. Section 49 U.S.C 47110(h), which places limitations on these types of projects, including the airside needs test, does not apply to AIG Allocated funds.

Q-U49: Can AIG Allocated funds be transferred from a primary airport to a nonprimary airport if they have the same sponsor?
A: No. See Q-U16.

Q-U50: Can a sponsor transfer AIG Allocated funds to an unclassified airport in their system?
A: No. Unclassified airports are not eligible to receive BIL funds. See Q-8.

Q-U51: If an airport transfers its AIG Allocated funds between a primary airport and a nonprimary airport, how is the Federal share calculated? A: The Federal share of the AIG Allocated grant will be calculated according to the statutory Federal share of the airport receiving the grant offer. See Q-F5.

Q-U52: If an airport banks AIG Allocated funds, is the Federal share based on when the funds were allocated or when the grant is issued?
A: The Federal share of the AIG Allocated grant will be the airport’s statutory Federal share for the FY of the grant offer.

Q-U53: Is the Federal share for ATP funds based on the FY the project is announced or the FY when the grant is issued?
A: Due to the different percentages of ATP funds available for large, medium, small, and nonhub/nonprimary airports, the federal share is based on the FY the project is announced by the Secretary through our Notice of Intent to Fund process.

Q-U54: Can BIL funds be used to acquire and install Explosive Detection System (EDS) machines?
A: Use of AIG Allocated or ATP funds for acquisition and installation of the EDS machines used to screen passenger checked baggage is potentially eligible. The Transportation Security Administration (TSA) must agree in writing that the EDS machines are required, and TSA must provide evidence that they cannot finance them in the near term. Coordinate with your local ADO/RO.

Q-U55: Can BIL funds be used to construct building modifications necessary to support an EDS?
A: Use of AIG Allocated or ATP funds for building modifications needed to accommodate EDS machines used to screen passenger-checked baggage is Item 1C - Page 57
March 17, 2023
18 eligible. TSA must agree in writing that the proposed space for EDS machines is only that which is needed to meet the minimum space requirement. Coordinate with your local ADO/RO.

Q-U56: Does the provision to use CY 2018, CY 2019, or the most recent CY enplanements (See Q-F1(1)(a)) apply when determining an airport’s hub status for ATP funding?
A: No, 49 U.S.C. 47114(c)(1)(J) only applies to AIP and AIG formula allocations.

The airport’s hub status is based on the most recent full calendar year enplanements.

Q-U57: When using annual AIG Allocated grants to reimburse a large multi-year project, will each grant require its own specific usable unit of work? A: No. For phased projects, the grant offer must include a special condition that requires the sponsor to complete a safe, useful, and usable unit of work within a reasonable timeframe. Each grant agreement must specifically describe the work being reimbursed under that grant. Refer to Section 3-21 of the AIP Handbook.

Q-U58: Are airports required to certify that they have all safety and security equipment, and access and equipment for passengers boarding or exiting nonair carrier aircraft to receive a BIL grant for terminal development? A: No. This requirement under 49 U.S.C. 47119(a)(1)(A) applies to AIP funds and is not incorporated into BIL.

Q-U59: Does the requirement for the sponsor to certify that projects affecting safety, security, or capacity, including pavement condition, for projects that include eligible terminal revenue producing areas apply to BIL? A: No. This requirement under 49 U.S.C. 47119(a)(2)(B) applies to AIP funds and is not incorporated into BIL legislation.

Q-U60: Can BIL AIG Allocated funds be used for revenue generating parking for vehicles of passengers or delivering of passengers?
A: No. Use of AIG Allocated funds for revenue generating parking lots (including parking structures or garages) is not eligible for BIL funding for any size airport.

Q-U61: What is the Build America, Buy America (BABA) Act? A: Buy American requirements under 49 U.S.C. 50101, Build America, Buy America requirements in sections 70912(6) and 70914 in Public Law No: 117-58, the Infrastructure Investment and Jobs Act, also known as BIL. The BABA Act will be required for both BIL and AIP grants. FAA’s Buy American requirements are more restrictive than BABA, but BABA includes more specific requirements for construction materials. More information and implementation guidance will be provided as it becomes available.

Q-U62: Can alternative delivery methods be used for airside construction? A: Yes, refer to 2 CFR 200 and Appendix U of the AIP Handbook.

Item 1C - Page 58
March 17, 2023
19 Q-U63: The statute lists achieving Leadership in Energy and Environmental Design (LEED) accreditation standards as one example of improving energy efficiency.

Can a similar standard be used?
A: Yes. One goal of ATP is to fund projects that improve energy efficiency.

Achieving LEED or similar standards provides a method for measuring a project’s impact.

Q-U64: Can engineering or other project formulation costs incurred prior to enactment of the BIL be reimbursed?
A: No. Costs incurred prior to November 15, 2021, cannot be reimbursed with BIL funds. The airport must verify that an invoice submitted after November 15, 2021, does not include costs incurred prior to that date.

Q-U65: Can a Reimbursable Agreement (RA) signed or paid prior to enactment of the BIL be reimbursed?
A: Costs incurred prior to November 15, 2021 (when the work was actually performed), cannot be reimbursed with BIL funds. If the RA was signed and/or paid prior to that date, BIL funds can be used but only for costs incurred after November 15, 2021. See Q-U24 for reimbursement requirements for the FY 2023 and future ATP, FCT Competitive, and other BIL related NOFOs.

Q-U66: Can AIG Allocated funds and ATP funds be combined in a single grant? A: No. They can be combined to fund a project or phase of a project but must be separate grants.

Q-U67: Are projects that increase energy efficiency of an airport’s power sources, such as solar or geo-thermal, eligible for BIL funding?
A: Yes. If in a nonattainment or maintenance area meeting the criteria for the VALE program see Q-U35.

For all other airports AIG Allocated funds can be used to assess the airport’s energy requirements in order to identify opportunities to increase energy efficiency at the airport as outlined under 49 U.S.C. 47140(a). AIG Allocated funds can be used for improvements identified in the energy assessment that increase energy efficiency at the airport under 49 U.S.C. 47140(b). Contact your ADO for additional guidance.

Q-U68: Is an energy efficiency assessment required for an ATP project to increase energy efficiency?
A: No. FAA will not require an assessment if the energy efficiency project is in support of the terminal. One of the project considerations for ATP projects is to improve energy efficiency, including upgrading environmental systems, upgrading plant facilities, and achieving LEED (or similar) accreditation standards as part of a new terminal construction, expansion, or rehabilitation.

Q-U69: Do FAA’s AIP or similar contract provisions apply to BIL funded projects? A: Yes. The BIL grants are funded from the General Fund; therefore, the Airport Infrastructure Program and the Airport Terminal Program are both Federal Grant Item 1C - Page 59
March 17, 2023
20 Programs. BIL funded projects must comply with FAA’s Contract Provision Guidelines for Obligated Sponsors and Airport Improvement Program Projects. This includes Disadvantaged Business Enterprise, Davis-Bacon, Civil Rights, Equal Employment Opportunity (EEO), and Veteran’s Preference, among other required contract provisions.

Q-U70: What procurement method must be used for alternative project delivery such as Construction Manager at Risk (CMAR) or Design-Build (D-B)? A: Sponsors must use the competitive proposal method as outlined in 2 CFR 200(b)(2)(iii) and FAA guidance in Appendix U of the AIP Handbook. Price (fee/profit) must be a consideration in the selection process and sponsor must provide a cost or price analysis per 2 CFR 200.320. For D-B, 49 U.S.C. 47142(a)(6) requires three (3) or more proposals. Applicable Federal contract requirements must be included as part of the sponsor’s solicitation and in all contracts and subcontracts resulting from the procurement (See Q-U69). Selection of a CMAR or D-B that doesn’t meet these requirements is not eligible for BIL funding. Contracts and grants for CMAR or D-B are based on a negotiated guaranteed maximum price (GMP), representing the ceiling project price.

Q-U71: Can a sponsor be reimbursed for sponsor-furnished proprietary equipment and materials (i.e., baggage handling system equipment or steel for a terminal project) that were procured separately for a non-federally funded project? A: FAA will only reimburse sponsors for eligible project related costs incurred on or after November 15, 2021, which is the date of enactment of BIL. See Q-U24.

Sponsor furnished materials and equipment must be purchased (cost incurred) after BIL was enacted and follow federal contract provisions, including 2 CFR 200, to be eligible for reimbursement, installation, inspection, and testing. In addition, Buy American and Buy America, Build America must be followed for the costs of the equipment and/or materials to be eligible for reimbursement. See Q-U24 for reimbursement requirements for the FY 2023 and future ATP, FCT Competitive, and other BIL related NOFOs.

Q-U72: If a sponsor has been put in pending noncompliance or noncompliance with AIP grant assurances are they eligible to receive AIG Allocations? A: All eligible airports will receive an AIG allocation. Sponsors with a Part 16 noncompliance finding by a Director’s Determination, Final Agency Decision, or Hearing will not receive an AIG Allocated grant until the compliance finding is resolved. All other sponsors, including those with a Part 13 noncompliance finding, can receive an AIG Allocated grant. However, grants issued to a sponsor with a Part 13 noncompliance finding must contain a special condition requiring Agency approval of a Corrective Action Plan before the sponsor can drawdown funds.

Item 1C - Page 60
March 17, 2023
21 Questions on Grant Application, Payments, and Closeouts Q-A1: How does an airport apply for a BIL grant?
A: AIG Allocated: Follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports Standard Operating Procedure (SOP) 6.00 and the local ADO or RO.

FCT Competitive: For projects selected through the competitive process under the annual NOFO, follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports SOP 6.00 and the local ADO or RO.

ATP: For projects selected through the competitive process under the annual NOFO, follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports SOP 6.00 and the local ADO or RO.

Q-A2: Can a project using a combination of AIP and BIL funds be included on a single grant application?
A: No. Separate applications are required for each fund type.

Q-A3: How will an airport sponsor submit payment requests? A: FAA will use the existing U.S. Department of Transportation Delphi eInvoicing system for payment requests, following FAA’s payment policy.

Q-A4: What documentation is required for closing out a BIL Grant? A: ADOs will use AIP closeout process per FAA Airports SOP 10.00. After the grant is closed, it remains subject to audit. The airport sponsor must retain grant documentation for three years after the grant is closed asrequired by 2 CFR 200.334.

Questions related to the State Block Grant Program
Q-SB1: How will BIL funds be administered to airports covered under the FAA’s State Block Grant Program (SBGP)?
A: FAA interprets 49 U.S.C. 47128, State Block Grant Program, as giving direction to provide each State Block Grant participating state program administration responsibilities for grants issued under BIL. This interpretation is consistent with our long-standing practice. For airports covered under the FAA’s SBGP, the FAA will issue block grants to states designated for projects at specific locations. BIL funds are location specific, similar to AIP discretionary funding.

When projects are ready to move forward, location-specific funding will be awarded based on BIL availability and actual construction bids or negotiated agreement.

Item 1C - Page 61
March 17, 2023
22 Q-SB2: Will the State Block Grant Participating State be provided program administration costs related to BIL funding?
A: No. The FAA is applying many of the same program administration rules for BIL as for AIP. For states that participate in the FAA’s SBGP, program administration costs are not allowable for BIL grants, but project administrative costs could be allowable through direct billing. See Q-SB3.

Q-SB3: Can the State Block Grant Participating State be reimbursed for project administrative costs related to BIL grants?
A: Yes. The state can charge for project administrative costs that are directly related to administering the eligible project (many are normally done by a consultant or other hired company) such as application preparation, contract management, engineering oversight, bidding, etc. BIL programs, like AIP, are subject to the requirements of 2 CFR Part 200. See the AIP Handbook for further detail on how FAA applies these requirements in the airport development grant context.

Q-SB4: For those BIL projects administered under the block grant, who would have the responsibility to complete NEPA?
A: The state’s environmental compliance responsibilities when administering BIL funds under the Block Grant Program will vary depending on if the project involves the use of only BIL funds, or a mixture of funding sources. In general, BIL AIG Allocated funds will be similar to AIP entitlement and state apportionment funds, where the state retains NEPA responsibility. For ATP and FCT Competitive funded projects, the FAA retains oversight and NEPA responsibility, similar to AIP discretionary funded projects.

Q-SB5: What is the State Block Grant state’s role in planning for AIG Allocated funded projects?
A: The FAA sent guidance out to states and sponsors early in CY 2022, with specific instructions to start updating state Capital Improvement Program (CIP) submissions.

This information will be used by FAA to update our NPIAS, as well as our three year Airports Capital Improvement Program (ACIP). State Block Grant states should incorporate the additional AIG specific project into the state’s CIPs. Contact your local ADO for additional details.

Q-SB6: How does the State Block Grant state apply for an AIG grant? A: The state’s application process will mirror the AIP discretionary application process.

This includes ensuring projects are shown in state’s CIP, the project is on the airport’s approved ALP, and submittal of the SF-424, Application for Federal Assistance and other documents as required. See Q-A1. When projects are ready to move forward, location-specific funding will be granted based on BIL availability and actual construction bids or negotiated agreements.

Item 1C - Page 62

ATTACHMENT C

TSA FUNDING POLICY
Item 1C - Page 63
1 ELECTRONIC BAGGAGE SCREENING PROGRAM TSA

FUNDING OF CHECKED BAGGAGE INSPECTION SYSTEM
PROJECTS COSTS VERSION 4.0
TSA approved this document on October 6, 2020
Item 1C - Page 64
Transportation
Security
Administration
2 Table of Contents
Section A. Introduction.......................................................................................................... ....................................................
......................................................... ............................................................................................. .................................................................................... ...
3 Section B. CBISProject and Funding Application Eligibility 3 Section C. Allowable, Allocable and Reasonable Costs 5
C.1 Allowable Design Costs 6
C.2 Allowable Construction Costs 6
C.3 Allowable Project Management, Construction Management, and Contingency Costs 9 C.4 Unallowable Costs.................................................................................................... ............................................................................................. ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... 10 Appendix. Revision Summary 12
Version 2.0 12
Version 3.0 13
Version 4.0 13
Item 1C - Page 65
3 Section A. Introduction
49 U.S.C. §44923 authorizes the Transportation Security Administration (TSA) to make other transaction agreements with Project Sponsors for:

1. Projects to replace baggage conveyer systems related to aviation security;

2. Projects to reconfigure terminal baggage areas as needed to install explosive detection systems;

3. Projects to enable the Under Secretary to deploy explosive detection systems behind the ticket counter, in the baggage sorting area, or in line with the baggage handling system; and

4. Other airport security capital improvement projects.

TSA utilizes Other Transaction Agreements (OTAs) as funding instruments to reimburse Project Sponsors for eligible aviation security projects. Project Sponsors may obtain any additional information, guidance, and applications for funding at TSA’s Baggage Screening web page.

Acquisition Program Management (APM) within TSA is responsible for managing the Electronic Baggage Screening Program (EBSP). EBSP’s mission is to satisfy the requirements of the Aviation and Transportation Security Act (ATSA, Pub.L. 107–71 November 19, 2001).

ATSA requires that all checked baggage be screened using explosive detection technology.

EBSP’s mission is to deploy and maintain screening technology in support of ATSA requirements.

EBSP develops an annual spend plan by prioritizing and then selecting aviation security improvement projects that meet the Program’s mission. EBSP selects projects that will achieve the maximum increase in security capability within the funding appropriations set by Congress.

The Planning Guidelines and Design Standards (PGDS) for Checked Baggage Inspection Systems (CBIS) details TSA’s requirements and documented best practices for implementing a high performance and cost-effective CBIS. The PGDS is available on SAM.gov.

TSA is not a party to the contracts a Project Sponsor executes with third parties in support of a TSA CBIS project. The Project Sponsor (including its appropriate procurement authority) is the responsible contractual authority for establishing and administering the contract agreements. The Project Sponsor is responsible for all contractual matters, including evaluation and award of contract, resolution of claims and disputes, and settlement of litigation issues regarding the satisfaction of all contractual and administrative issues arising from procurements entered into in support of a TSA CBIS project, without recourse to TSA. This includes, but is not limited to, disputes, claims, protests of award, source evaluation, or other matters of a contractual nature.

Section B. CBIS Project andFunding Application Eligibility Design and Facility Modification OTA Applications are the primary vehicles through which TSA invites communication from a Project Sponsor regarding project needs and funding requests, thereby providing a controlled manner for a Project Sponsor to submit funding Item 1C - Page 66
4 requests. This process allows for proper tracking and handling of funding requests and subsequent communications between TSA and the Project Sponsor.

The Project Sponsor should be aware of the following while making an OTA application submission:
• TSA will accept all OTA applications on a continuous basis at [email protected].
• The initial requirement for applying for a CBIS project is for the Federal Security Director (FSD) to acquire a Requirements Management Advisory Group (ReMAG) number prior to the Project Sponsor submitting the current In-line Support Application Form through the FSD.

The Project Sponsor is strongly encouraged to coordinate with local and headquarters TSA entities via TSA Project Coordinators as early as possible when CBIS projects are being considered and conceptually planned. Early notification assists TSA in justifying and budgeting federal funding for the EBSP. Similarly, TSA Project Coordinators will also notify airports as early as possible when a TSA-initiated project is being forecasted or considered at their location.

Projects types are typically categorized as:

1. New In-line – A new in-line project creates a fully integrated baggage screening system that is built without needing to modify an existing in-line CBIS. New in-line projects are generally at greenfield sites (a new terminal, a newly created CBIS within an existing terminal, etc.) or can occur when an existing system is completely removed and replaced.

For a new in-line system to be eligible for TSA funding, it must not replace an existing full in-line system (previous screening for the airport must have been via stand-alone EDS, semi-integrated EDS, mini-inline EDS, or primary ETD equipment). New fully integrated In-line projects with sufficient baggage demand are generally eligible for TSA funding. New mini-inline projects are not eligible for TSA funding.

2. Recapitalization – Recapitalization projects are TSA-initiated projects that replace existing screening equipment due to technical obsolescence. The scope of a recapitalization project is limited to only those actions necessary to replace existing screening equipment while maintaining existing capabilities and is defined by TSA in advance. Any additional work that an airport would like to conduct beyond the recapitalization scope is considered optimization activity. Recapitalization projects are generally eligible for TSA funding.

3. Optimization – Optimization projects are airport-initiated modifications to an existing CBIS for any reason other than screening equipment recapitalization. Optimization projects or activities are generally not eligible for TSA funding.

4. PGDS Upgrades – PGDS Upgrade projects are TSA-initiated efforts to close gaps between existing system capabilities and current PGDS requirements. PGDS Upgrade projects are generally eligible for TSA funding.

5. Expansion – Expansion projects are limited to efforts that add screening equipment to an existing in-line system. These projects are generally not eligible for TSA funding.

Item 1C - Page 67
5 A Project Sponsor may apply for design project funding prior to the start of any design engineering. For projects in which the Project Sponsor has already completed a portion of the project design without funding from TSA, the Project Sponsor may apply for funding of the remaining design costs.

While not needed for the initial application, the Project Sponsor must submit a quote from their designer, including all allowable costs for the design effort, in order for TSA to make a final determination regarding funding for a Design OTA. Similarly, for a facility modification OTA, the Project Sponsor must have obtained bids, determined the prospective winning bidder, and provided bid information to TSA before TSA will make a final decision regarding funding.

Any project costs incurred by the Project Sponsor prior to receiving a fully executed OTA from TSA are ineligible for reimbursement. As every project is unique, the Project Sponsor must be cognizant of the terms and conditions associated with their respective OTA in order to ensure that potential costs meet the requirements for reimbursement.

The Project Sponsor is strongly encouraged to submit their application for Facility Modification project funding early in design; TSA recommends that this be coordinated between the Project Sponsor and TSA as part of the design process. TSA will not proceed towards finalizing a Facility Modification OTA until the 100% Design Phase has been successfully completed, bids are obtained and provided, a winning bid is chosen, and TSA conducts its own internal cost analysis.

TSA will retain a certain percentage of invoiced amounts until certain project milestones are completed. The OTA will provide specific milestones and the percentages to be retained. If a Project Sponsor’s system is required to repeat integrated site acceptance testing (ISAT), this may impact retainage.

Section C. Allowable, Allocable and Reasonable Costs
Cost share is dependent on the project category and hub type, and it will be stipulated in the OTA. Project costs may be eligible for inclusion in a Facility Modification OTA if they:

1. Are essential to the checked baggage inspection system solution and not otherwise excluded

2. Are allowable, in that they conform to the terms and conditions of the OTA to include all legal references listed in this policy and the OTA;

3. Are allocable, in that they directly attributed to only the TSA CBIS project – a project cost must be chargeable to a TSA project objective necessary for the operation of the CBIS;

4. Are reasonable in their nature and amount, and do not exceed that which would be incurred by a prudent person in the conduct of competitive business. (See generally:

Federal Acquisition Regulations Subpart 31.2, Contracts with Commercial Organizations, for further guidance.);

5. Are also considered allowable, allocable, and reasonable according to OMB Circular A87, or OMB Circular A-122 depending on the Project Sponsor’s business structure.

Item 1C - Page 68
6 The Project Sponsor must also review project costs to ensure conflicts do not exist with any additional federal grants that the Project Sponsor has or intends to accept. In some instances, Federal Aviation Administration grants may preclude the reimbursement of TSA project costs, and vice versa. The Project Sponsor should consult their legal counsel and the appropriate federal agencies for guidance.

Typical Costs for TSA Checked Baggage Inspection System Projects C.1 Allowable Design Costs

1. TSA will only reimburse design fees that can be directly apportioned to the TSA “allocable” portion of the CBIS project.

2. TSA will reimburse for reasonable project management costs associated with the design portion of a CBIS project.

3. TSA will reimburse for reasonable bid support costs associated with the construction portion of a CBIS project.

C.2 Allowable Construction Costs

1. Basic interior construction and fit out is considered an allocable cost and must be limited to areas directly supporting the baggage screening operation to include CBIS areas, including the CBRA areas and OSR room(s). Costs in excess of basic finishes are not allowable.

Interior construction is defined as:
• Interior wall construction as a result of space reconfiguration(s) to accommodate and support TSA screening operations
• Installation of electrical and communications systems, including:
− Circuit panels
− Telephone or communication junctions
− Transformers and other electrical components required to support TSA • Installation of heating ventilation and air conditioning (HVAC) of spaces to support EDS machine operation, the OSR room, the CBRA, and other areas that will be staffed by TSA field personnel. The exact extent of the HVAC cost that will be considered eligible for TSA reimbursement is assessed on a case-by-case basis.
• Installation of uninterruptable power supply (UPS) to support EDS machine operation.
• Sprinkler systems and alarms as required by local fire and safety codes • Insulation, drywall, acoustical ceiling tiles, and sound baffles associated specifically with the CBRA and/or OSR room noise attenuation Item 1C - Page 69
7 • Interior construction in support of Occupational Safety and Health Administration (OSHA) requirements for spaces inhabited by Transportation Security Officers • Floor reinforcement in the CBIS, including CBRA and OSR areas tomeet structural load requirements if applicable

2. Demolition and site preparation of the existing conditions to support EDS installation, CBRA and OSR construction.

3. Basic lighting, fixtures, switching, and appurtenances in CBIS areas, including the CBRA, and the OSR room that meet current minimum National Electrical Code, International Building Code, and OSHA requirements for lighting (lumen per square foot) for office space and to support allocable computers, conditioning units, printers, and other ancillary equipment. If allocable to the CBIS, OSR room, or CBRA, the costs for the following may be eligible for reimbursement:
• New power drops
• Associated transformers
• Electrical panels or subpanels
• Communication and network wiring
• Network and/or communications exchanges

4. Basic furnishings within the CBRA and OSR room only, such as adjustable height work stations, chairs, non-powered gravity rollers or other “no-lift” devices.

5. Conveyor within the Secure Tracking Zone (STZ), generally defined as the portion of the BHS beginning at the pre-EDS automated tag reader (ATR) and ending the downstream clear line(s). This is limited to conveyor from the ATR to the EDS shunts (if there is an upstream ATR), the EDS shunts to and from the EDS, the OSR line, the CBRA line, the reinsert line, and all diverters/merges required for baggage screening.

6. The costs of design or construction of dual mainlines feeding the CBIS are allowable only if the rated throughput of the CBIS exceeds the capacity of a single mainline. The costs of dual mainlines for the purpose of redundancy, in systems where a single mainline has sufficient capacity to feed the CBIS at its rated throughput, are not allowable.

7. ATRs are allowable by TSA if they are:
• Installed pre-EDS and used to support bag tracking in a security zone (see Figure 1), or;
• Installed post-CBIS, only when the existing BHS is decentralized and the ATR is required for sortation from a centralized CBIS to the existing bag make-up units (see Figure 2).

Eligibility and the exact amount of allocable cost will be determined on a case-by-case basis. ATRs post-CBIS are non-allowable where the existing BHS is already centralized and requires bag sortation. Figures 1 and 2 show high-level block diagrams exemplifying allowable ATRs in centralized and de-centralized sortation configurations.

Item 1C - Page 70
8 Figure 1: Diagram of Allowable ATRs (Centralized Sortation) Figure 2: Diagram of Allowable ATRs (Decentralized Sortation)

8. Sortation cost may be considered allocable for existing decentralized systems where bags from multiple ticket counter inputs are screened in a common matrix and sorted back to the original delivery system (see Figure 2). Conveyor sections required to intercept bags on original delivery lines, deliver to CBIS, and return back to the original conveyance Item 1C - Page 71
Check-in
Counters
--~
t
Check-in
Counters
Centralized
CBIS
Check-In
Counters
Check-in
Counters
• ---~
Check-In
Counters
Baggage
Makeup Unit
, I. : ... .. :.
. ;.. .

Centralized
CBIS
....
t
t
LEGEND
Cl
Cl
-
Cl
LEGEND
Unscreened bags conveyed to
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Screened bags conveyed
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Pre-existing BHS incorporated
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Reimbursable ATR
Unscreened bags conveyed to
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Screened bags conveyed
bacl< to BMUs
Pre-existing BHS incorporated
in CBIS design
Pre-existing BHS to be removed
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9 will be considered for reimbursement. TSA will not reimburse for a host Baggage Sortation Message to a sort controller for the purpose of individual air carrier sort functions.

9. Telephone, radio, intercom, airport-only cellular phones, or other voice communications may be considered if essential for TSA CBIS, including CBRA and OSR operations.

10. Closed Circuit Television at the following locations:
• The divert point going into the EDS shunt
• The EDS entrance
• The EDS exit
• The machine clear bag divert point
• The point where the OSR line merges into the mainline • Last chance divert point
• OSR Room
• CBRA Room

11. BHS monitors in the OSR room and/or in the CBRA.

12. Programmable logic controllers (PLC) if the addition of an in-line screening system requires a modification and/or addition to current systems. TSA will only consider allowing for the programming to integrate and control the in-line screening portion of the BHS, and will only consider the costs of that portion of the controls necessary to support CBIS, OSR, and CBRA operations.

13. Replacement, relocation, and/or upgrade of the existing CBIS necessary to support recapitalization of the EDS machines on a case-by-case basis within the TSA-designated areas.

14. Phasing costs identified and agreed to by TSA in the design review process to support EDS installation, CBRA and OSR construction.

15. Security Technology Integration Program (STIP) requirements. STIP provides for connectivity of security technology such as EDS, Explosive Trace Detection, and primary and secondary EDS workstations to the TSA network (see PGDS for general connectivity requirements; TSA will also provide any current STIP requirements documents to a Project Sponsor upon request).

C.3 Allowable Project Management, Construction Management, and Contingency Costs

1. The following fees are considered to be allowable costs:
• Insurance
• Home office overhead
• Profit
• Sales tax
• Design w/ Construction Administration
Item 1C - Page 72
10 • Project Management
• Construction Management
• Design Contingency
• Construction Contingency
TSA will only reimburse such costs that can be directly apportioned to the TSA “allocable” portion of the CBIS project. Specific justification for fees must be provided and approved at the time of negotiation prior to the OTA being signed.

2. The inclusion of construction contingency funds for allocable items is only allowable for projects with Facility Modification OTAs. Construction contingencies are not expected to exceed 5% of the total projected construction budget unless the total construction budget is low or there are other extenuating circumstances.

3. Contingency may be considered for Design OTAs. Contingencies for Design OTAs shall be applied to the sum total of design, project management and bid support costs.

4. In order to invoice TSA for any of the contingency funds, a change request must be submitted to TSA outlining the change in condition that requires the additional funding and supplying the necessary supporting documentation, including modified plans and specifications for the change. Further, Project Sponsor should submit a cost estimate, meeting all requirements of this document, with the change request justifying the change in cost. Access to the contingency funding will only be provided based on written approval of the proposed change request by TSA’s Contracting Officer Representative (COR). If the change requires a modification of the contract, written approval must come from TSA’s Contracting Officer.

C.4 Unallowable Costs
The following list presents examples of items which costs are considered unallowable for reimbursement under an OTA agreement with TSA. This list does not represent a complete list of unallowable items. TSA’s requirements for the design of CBIS are presented in the PGDS for CBIS.

1. Design and construction costs for TSA-leased spaces.

2. Construction costs for centralized BHS control rooms.

3. Design or construction of “bricks and mortar”, which refers to any new physical structure built to house the CBIS, CBRA, and/or OSR areas.

4. Costs for extended warranties.

5. Costs for CBIS operations and maintenance.

6. Costs incurred outside of the OTA period of performance.

7. Spare parts and storage areas for spare parts.

8. Replacement of PLC components and PLC programming. See Section C.2.11 above for more details on PLC eligibility.

9. Laptop computers used for maintenance of the BHS.

Item 1C - Page 73
11 10. BHS components outside of the CBIS area (including, but not limited to):
a. Baggage reconciliation systems (carousels or sortation systems). b. Baggage System Management (BSM) data providers and/or BSM systems. c. Manual encoding systems, with the exception of ICS systems where the manual encode is used
d. Replacements of ticket counter conveyors and sortation area conveyors. e. Inbound mainline conveyors upstream of the Secure Tracking Zone (STZ). f. Outbound conveyors downstream of the STZ.
g. Replacement of inbound and outbound sortation conveyors.

11. Retrofit of an existing CBIS as a result of airline mergers or relocations within an airport unless such construction is proven to be cost-beneficial to TSA, as determined by TSA’s cost analysis. TSA does not support allocation of BHS system costs borne by airlines or airports outside of the OTA process

12. Mainlines in excess of the capacity needed to feed the CBIS at its rated throughput.

13. Automatic recirculation loops (not including the automatic reinsertion lines in the CBRA), either pre-EDS screening or post-EDS screening.

14. Dynamic simulation modeling.

15. Additional ISAT beyond the initial test.
a. The Project Sponsor’s cost for additional ISAT will be borne by the Project Sponsor and will not be reimbursed by TSA.
b. TSA’s cost for additional ISAT will be deducted from the OTA retainage.

16. Re-design work the airport elects to do after TSA approves a design.

17. Costs incurred by the airport or its contractors or agents to perform work not in compliance with TSA requirements as stated in the OTA.

18. Airport profit or the general costs of government.

19. Repair or replacement of any equipment not identified as being “TSA Maintained” in Table 1 below.

Table 1: TSA Procurement and Maintenance Responsibility Matrix Category Equipment Type TSA Procured TSA Maintained
Screening Equipment EDS, ETD Yes Yes
Ancillary Equipment SVS, PVS, MCS, UPS,
Network Servers Yes Yes
Furniture OSR Chairs Yes Yes
Item 1C - Page 74
12 Appendix. Revision Summary
Version 2.0

LOCATION COMMENT
Throughout • Updated URL links to connect with new TSA web pages • Letter of Intent (LOI) references removed
• References to “Airport Sponsors” changed to “Project Sponsor” • Eliminated references to the ILDT, since all requirements set forth in this document are for the Project Sponsor
Section B • Paragraph 1: TSA will only sign a Facility Modification after a project has completed their 100% design review and the Project Sponsors have gone to bid, determine a prospective bid winner and provided their bid information to TSA. • Paragraph 6: Optimization projects will now be referred to in the document as “Efficiency project” to align with EBSP nomenclature
Section C.

Intro
• Added cost share language
Section C.1 • Added Design Costs section, moved various info from C.1.2 to the new section • Added “pursuant to Table 1 in this document”.

Section C.2 • Removed CBRA Table References
• Added dual mainline language to state circumstances under which a dual mainline is considered allowable for a TSA CBIS project.

Section C.3 • Added language to reflect the COR can approve change requests (which do not include modification of contract).
• Amended Construction Administration percentage, removed Design Fee. • Added number 3 to the list (design fees, project management, construction management, and construction administration reimbursement). • Added “which must be negotiated prior to OTA award. Otherwise, such expenses will not be considered allowable and reimbursed”.

Section C.4 • Added items to the list of “Unallowable Costs”: Automatic Recirculation Loop, Dynamic Simulation, additional ISATs beyond the initial test, CBRA tables and design resubmittals.
• Added language to state that additional ISAT costs will be the responsibility of the Project Sponsor and they will be deducted from the OTA retainage. • Added number 5 to the list “Costs incurred outside of the OTA period of performance”.
• Added item to the list of “Unallowable Costs” regarding airport-elected re- design after TSA approval and repair of any equipment airport sponsor purchases or is reimbursed for.
• Added number 16 to the list (TSA will not reimburse airports for profit or the general costs of government).
• Deleted bullet on unallowable CBRA table costs.

Item 1C - Page 75
13 Version 3.0

LOCATION COMMENT
Throughout • Updated URL link to PGDS
• Updated “OSC” to “OAPM”
• Updated references to PGDS
Section C.1 • Added “combined Design/Facility Modification” • Removed reference to 2 percent of design fees and that TSA will not reimburse for any other costs associated with the design portion
• Added number 4 – “TSA will reimburse for bid support costs associated with the construction portion of a CBIS project.”
Section C.3 • Updated Table 1 format. Removed PGDS section references. Added note “Targeted scope or non-full in-line projects may deviate from the percentages shown above.” • Updated number 4 with language “Design contingency funds are allocated as a percentage of the total construction costs based on the level of design at time of OTA award” and changed the following three bullets to sub- bullets under number 4 • Updated the language to number 6 to align with how contingency for Design OTAs will be applied and moved to number 7 on list
Version 4.0

LOCATION COMMENT
Throughout • Updated “OAPM” to “APM”
• Updated URL link to PGDS
• Updated references to PGDS
• Rearranged text to improve flow and readability
Section B.1 • Revised document order
• Updated project categorization definitions
• Removed sentence indicating “costs are eligible for funding if they are essential to the design and construction of the CBIS, CBRA, and OSR room…” Section C
Intro
• Updated wording for requirements to be met for a cost to be “allowable, allocable, and reasonable” to reduce ambiguity
Section C.1 • Updated wording throughout
• Removed specific mention of limiting design fees to 6% of construction estimate Section C.2 • Updated wording throughout
• Included UPS/HVAC requirements
• Added defined area in which conveyor is considered to be an allocable cost • Revised ATR language regarding allowable ATRs and sortation • Added OSR and CBRA as allowable CCTV locations
Section C.3 • Updated wording throughout
• Removed Table 1, replaced with list of allowable fees • Removed all discussion of design contingencies, as no OTAs are awarded before 100% design completion
• Softened language regarding construction contingencies as higher percentages may be needed for smaller projects
Item 1C - Page 76
14 LOCATION COMMENT
Section C.4 • Added bricks and mortar to unallowable costs • Added ICS exception to manual encoding systems
• Added defined start/end of allowable CBIS area
• Removed mention of resubmittals not being allowable
• Added TSA procurement and maintenance responsibility matrix (Table 1) Item 1C - Page 77

CITY COUNCIL STAFF REPORT
06/05/2023
SUBJECT:

APPROVAL OF AMENDMENT NO. 6 TO THE AIRPORT CAR RENTAL
CONCESSIONAIRE AGREEMENTS AND APPROVAL OF AMENDMENT NO. 7

FOR AVIS-BUDGET AT PALM SPRINGS INTERNATIONAL AIRPORT
RECOMMENDATION:

1. 2. Authorize the City Manager or his designee to execute all necessary documents.

Attachments
Item 1D

CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 6 TO THE AIRPORT CAR RENTAL

CONCESSIONAIRE AGREEMENTS AND APPROVAL OF AMENDMENT
NO. 7 FOR AVIS-BUDGET AT PALM SPRINGS INTERNATIONAL

AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:

This item will approve Amendment No. 6 to the existing car rental concession agreements at the Palm Springs International Airport (Airport), and Amendment No. 7 for Avis-Budget.

The Agreement amendments will extend the term by 12 months from July 1, 2023 through June 30, 2024, with two one-year extension options and will adjust certain fixed rent charges.

RECOMMENDATION:
1) Approve Amendment No. 6 and Avis-Budget Amendment No. 7 (Attachment A) to all Airport rental car concession agreements doing business as eight car rental agencies at PSP which include:
• Avis/Budget Car Rental, LLC (Amendment No. 7)
• The Hertz Corporation (Amendment No.6)
• Enterprise Rent-A-Car, LLC dba Alamo Rent a Car / National Car Rental (Amendment No. 6)
• Enterprise Rent-A-Car Company of Los Angeles (Amendment No. 6) • DTG Operations, Inc. dba Dollar Rent a Car /Thrifty Car Rental (Amendment No. 6)
2) Authorize the City Manager or his designee to execute all necessary documents.

BUSINESS PRINCIPAL DISCLOSURE:

A copy of the Public Integrity Disclosure Form for each of the rental car companies is included as Attachment B.

Item 1D - Page 1
City Council Staff Report
June 5, 2023 – Page 2
Amendments to Airport Car Rental Concessions Agreements BACKGROUND:

The original Rental Car Agreements were approved after a Public Bid in 2011 with an original term that expired June 30, 2014.

At City staff’s request, the City Council approved four subsequent term extensions, as follows:
• Amendment No. 1 extended the term through June 30, 2017 • Amendment No. 2 extended the term through June 30, 2020 • Amendment No. 3 extended the term through June 30, 2021 • Amendment No. 4 extended the term through June 30, 2022 • Amendment No. 5 extended the term through June 30, 2023 Historically, the car rental concession program at the Airport has been the largest of all Airport revenue sources. Due to record passenger traffic in 2019, the number of rental transactions generated record amounts of revenue for the car rental companies.

However, COVID-19’s impact to the travel and tourism industry resulted in an unprecedented drop in airline passenger traffic at the Airport in 2020 which significantly impacted the car rental concessions through mid-2021, as evidenced in the drop of car rental transactions and gross receipts. It was during that period that the Minimum Annual Guarantee (MAG) was waived. While traffic and gross revenues have increased in 2021, they remain below 2019 levels.

Calendar
Year
Total Passengers Transactions Gross Receipts
2019 2,593,955 259,028 $74,399,672
2020 1,252,094 138,373 $44,692,255
2021 2,092,943 174,960 $70,657,398
2022 2,981,844 277,405 $104,149,629
The primary customers for airport car rental companies are deplaning passengers, who are approximately 50% of an airport’s total passengers.

STAFF ANALYSIS:

Airport staff and the car rental companies agreed to extend the length of the term by 12 months, from July 1, 2023 through June 30, 2024, with two one-year extension options.

Airport staff agrees to continue to abate the Minimum Annual Guarantee (MAG) through June 30, 2024, and any further MAG waiving will be evaluated upon the exercise of each of the extension options. The rental car companies will pay the 10% of actual gross revenues which Airport Staff estimates would exceed the MAG over the entire Fiscal Year 2023-24.

Item 1D - Page 2
City Council Staff Report
June 5, 2023 – Page 3
Amendments to Airport Car Rental Concessions Agreements Term Extension (12 Months with two one-year extension options) The Airport intends to initiate a solicitation process during Fiscal Year 2024-25, providing an opportunity for other concessionaires to enter the Palm Springs International Airport (PSP) market. While the completion of the consolidated car rental facility (CONRAC) is still years away, the Airport aims to ensure fairness and reasonableness in allowing new entrants into the PSP market. Therefore, it is recommended to extend the current term by an additional 12 months, with two one-year extension options, at the discretion of the City.

The extension of 12 months will enable the Airport to assess potential longer-term agreements and consider releasing a new competitive bid in a more informed manner. It will also contribute to a stronger car rental industry that can effectively respond to a bid if issued by the City. Furthermore, this extension will allow the City staff to proceed with conceptual planning for the consolidated car rental facility, which is still several years away from completion. By prioritizing fairness and ensuring a reasonable opportunity for new entrants, the Airport aims to create an environment conducive to a thriving PSP market.

CPI Increase
According to the Rental Car Agreements, Section 5.3 D, facility rental rates are subject to a Consumer Price Index (CPI) adjustment each year on the anniversary date of the agreement.

On April 27, 2023, the City Council approved the Airport Use and Lease Agreement (AULA) with the Signatory Airlines which changed the Airports ratemaking methodology from a residual agreement to Hybrid methodology. The change resulted in the terminal rates for all terminal operations to increase, to allow the Airport the ability to be selfsustaining. The terminal rates will be calculated on an annual basis and effective July 1 of each subsequent year. The Rental Car Agreements require modification to reflect the change in terminal rates as outlined by the AULA. In addition, the Rental Car Agreements allow for an adjustment to all other charges including; service facilities, ready return spaces and overflow parking spaces to increase according to the Consumer Price Index (CPI). The new terminal rates and facility rates are adjusted to reflect CPI increases as of July 1, 2023 as shown below.

Current Rates Rates as of 7-1-23
Terminal Area $72.25 per sq. ft. $104.51 per sq. ft.

Service Facilities $1.34 per sq. ft. $1.40 per sq. ft.

Ready Return spaces $2,162.55 per space
annually
$2,262.03 per space
annually
Overflow Parking
Spaces
$2.32 per space per
day
$2.43 per space per
day
ALIGNMENT WITH STRATEGIC PLANNING:

N/A.

Item 1D - Page 3
City Council Staff Report
June 5, 2023 – Page 4
Amendments to Airport Car Rental Concessions Agreements FISCAL IMPACT:

This action should result in Airport Revenues of approximately $11,944,780 from car rental gross revenue and $1,816,290 for leased space and other fees, for a total of $13,761,070 in Fiscal Year 2023-24.

REVIEWED BY:

Department Director: Harry Barrett Jr.

City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:

A. Car Rental Lease Amendments No. 6 (Avis-Budget No. 7) B. Public Integrity Disclosure Forms
Item 1D - Page 4

ATTACHMENT A
CAR RENTAL LEASE AMENDMENTS NO. 6
(AVIS-BUDGET NO. 7)
Item 1D - Page 5
Avis-Budget Amdt No. 7 - Page 1
AMENDMENT NO. 7 TO OPERATING AND LEASE AGREEMENT A6110

AVIS BUDGET CAR RENTAL, LLC

FOR OPERATION OF A CAR RENTAL CONCESSION

AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT No. 7 to that certain NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT No. A6110, (“Agreement”), is made and entered into this 1st day of July, 2023, by and between the CITY OF PALM SPRINGS, a California charter city and municipal corporation, (“City”), and AVIS BUDGET CAR RENTAL, LLC, a Delaware limited liability company, doing business as AVIS RENT A CAR SYSTEM, LLC and BUDGET RENT A CAR SYSTEM, INC. (“Tenant”), having its usual place of business at the Palm Springs International Airport, 3400 E. Tahquitz Canyon Way, Palm Springs, California 92262, and a permanent mailing address at 6 Sylvan Way, Parsippany, New Jersey, 07054. City and Tenant may hereinafter be referred to individually as a “Party” and collectively as “Parties”.

RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement for Tenant’s lease and operation at Palm Springs International Airport (“Airport”), as more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and WHEREAS, effective January 1, 2016, City and Tenant entered into that certain Amendment No. 2 to lease 130 square feet of customer counter space on a seasonal basis through April 30, 2016, and from January 1, 2017, through April 30, 2017; and WHEREAS, effective June 21, 2017, City and Tenant entered into that certain Amendment No. 3 to extend the term from July 1, 2017, through June 30, 2020; and WHEREAS, effective July 1, 2020, City and Tenant entered into that certain Amendment No. 4 to extend the term from July 1, 2020, through June 30, 2021; and WHEREAS, effective July 1, 2021, City and Tenant entered into that certain Amendment No. 5 to extend the term from July 1, 2021, through June 30, 2022; and WHEREAS, effective July 1, 2022, City and Tenant entered into that certain Amendment No. 5 to extend the term from July 1, 2022, through June 30, 2023, subject to two additional one-year optional extensions to be exercised at the City’s sole discretion, and to increase certain fixed rent charges as specified in the Agreement.

WHEREAS, the Parties wish to amend the Agreement to extend the term by one year through June 30, 2024, pursuant to City’s first extension option, and to increase Item 1D - Page 6
Avis-Budget Amdt No. 7 - Page 2
certain fixed rent charges as specified in the Agreement, as more specifically described herein this Amendment No. 7.

AGREEMENT
NOW THEREFORE, in consideration of the City’s covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Tenant mutually agree as follows:

Term: Extend the term for one additional year, commencing on July 1, 2023, through June 30, 2024, with two additional one-year optional extensions remaining.

Premises: Each rental car agency shall retain its existing rental location for customer ticketing and transactions, along with vehicle maintenance buildings and adjacent vehicle storage. Ready and return car spaces will be subject to existing terms and conditions of the Lease Agreement.

Lease Rates:

Terminal Rental Car Service Counter Rent is due and payable in equal monthly installments by the tenth of each month. This paragraph replaces the provisions regarding the calculation of the Customer Service Counter rental rate outlined in Section 5.03 (B) of the Agreement.

Pursuant to Section 5.03 (D), facility rental rates are subject to a Consumer Price Index (CPI) adjustment each year on the anniversary date of the agreement. According to the CPI for All Urban Consumers (CPI-U) for Riverside-San Bernardino-Ontario, based on the months of March of the previous and current year, the annual space rent shall be adjusted as follows effective July 1, 2023:

Current Rates Rates as of 7-1-23
Terminal Area $72.25 per sq. ft. $104.51 per sq. ft.

Service Facilities $1.34 per sq. ft. $1.40 per sq. ft.

Ready Return spaces $2,162.55 per space
annually
$2,262.03 per space
annually
Overflow Parking
Spaces
$2.32 per space per
day
$2.43 per space per
day
Item 1D - Page 7
Avis-Budget Amdt No. 7 - Page 3
Covenant Against Discrimination:

In connection with its performance under this Agreement, Tenant shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, marital status, ancestry, national origin, sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each an “Impermissible Basis for Discrimination”). Tenant shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any Impermissible Basis for Discrimination. Such actions shall include, but not be 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 apprenticeship.

Full Force and Effect:

Except as expressly modified herein all other provisions of the Agreement, as previously amended, shall remain unmodified and in full force and effect.

Corporate Authority:

The persons executing this Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are dully authorized to execute and deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of the Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
Item 1D - Page 8
Avis-Budget Amdt No. 7 – Page 4
SIGNATURE PAGE TO AMENDMENT NO. 7 TO AGREEMENT A6110 BY AND

BETWEEN THE CITY OF PALM SPRINGS AND AVIS BUDGET CAR RENTAL, LLC IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

TENANT:

By:____________________________ By: ____________________________ Signature Signature

Name: Name:

Title: Title:

Date: Date:

Corporations require two 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.

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No. ________
APPROVED AS TO FORM: ATTEST:

By: _____________________________ By: __________________________ City Attorney City Clerk
APPROVED:

By: ____________________________ Date: ________________________ City Manager
Item 1D - Page 9
Hertz – Amdt No. 6 – Page 1
AMENDMENT NO. 6 TO OPERATING AND LEASE AGREEMENT A6111

THE HERTZ CORPORATION

FOR OPERATION OF A CAR RENTAL CONCESSION

AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT No. 6 to that certain NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT No. A6111, (“Agreement”), is made and entered into this 1st day of July, 2023, by and between the CITY OF PALM SPRINGS, a California charter city and municipal corporation, (“City”), and THE HERTZ CORPORATION, a Delaware corporation, (“Tenant”), having its usual place of business at the Palm Springs International Airport, 3400 E. Tahquitz Canyon Way, Palm Springs, California 92262, and a permanent mailing address at 8501 Williams Road, Estero, Florida, 33928. City and Tenant may hereinafter be referred to individually as a “Party” and collectively as “Parties”.

RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement for Tenant’s lease and operation at Palm Springs International Airport (“Airport”), as more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and WHEREAS, effective June 21, 2017, City and Tenant entered into that certain Amendment No. 2 to extend the term from July 1, 2017, through June 30, 2020; and WHEREAS, effective July 1, 2020, City and Tenant entered into that certain Amendment No. 3 to extend the term from July 1, 2020, through June 30, 2021; and WHEREAS, effective July 1, 2021, City and Tenant entered into that certain Amendment No. 4 to extend the term from July 1, 2021, through June 30, 2022; and WHEREAS, effective July 1, 2022, City and Tenant entered into that certain Amendment No. 5 to extend the term from July 1, 2022, through June 30, 2023, subject to two additional one-year optional extensions to be exercised at the City’s sole discretion, and to increase certain fixed rent charges as specified in the Agreement.

WHEREAS, the Parties wish to amend the Agreement to extend the term by one year through June 30, 2024, pursuant to City’s first extension option, and to increase certain fixed rent charges as specified in the Agreement, as more specifically described herein this Amendment No. 6.

Item 1D - Page 10
Hertz – Amdt No. 6 – Page 2

Term: Extend the term for one additional year, commencing on July 1, 2023, through June 30, 2024, with two one-year optional extensions remaining.

Lease Rates:

Terminal Area Rental Car Service Counter Rent is due and payable in equal monthly installments by the tenth of each month. This paragraph replaces the provisions regarding the calculation of the Customer Service Counter rental rate outlined in Section 5.03 (B) of the Agreement.

Current Rates Rates as of 7-1-23
Terminal Area $72.25 per sq. ft. $104.51 per sq. ft.

Service Facilities $1.34 per sq. ft. $1.40 per sq. ft.

Ready Return spaces $2,162.55 per space
annually
$2,262.03 per space
annually
Overflow Parking
Spaces
$2.32 per space per
day
$2.43 per space per
day
Item 1D - Page 11
Hertz – Amdt No. 6 – Page 3
Covenant Against Discrimination:

Full Force and Effect:

Except as expressly modified herein all other provisions of the Agreement, as previously amended, shall remain unmodified and in full force and effect.

Corporate Authority:

The persons executing this Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are dully authorized to execute and deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of the Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
Item 1D - Page 12
Hertz – Amdt No. 6 – Page 4
SIGNATURE PAGE TO AMENDMENT No. 6 TO AGREEMENT A6111 BY AND

BETWEEN THE CITY OF PALM SPRINGS AND THE HERTZ CORPORATION IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

TENANT:

By:____________________________ By: ____________________________ Signature Signature

Name: Name:

Title: Title:

Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No. ________
APPROVED AS TO FORM: ATTEST:

By: _____________________________ By: __________________________ City Attorney City Clerk
APPROVED:

By: _____________________________ Date: ________________________ City Manager
Item 1D - Page 13
Enterprise Rent-a-Car Amdt No. 6 - Page 1
AMENDMENT NO. 6 TO OPERATING AND LEASE AGREEMENT A6112

ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC

DBA ALAMO RENT A CAR AND NATIONAL CAR RENTAL

FOR OPERATION OF A CAR RENTAL CONCESSIONAT PALM SPRINGS

INTERNATIONAL AIRPORT
This AMENDMENT No. 6 to that certain NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT No. A6112, (“Agreement”), is made and entered into this 1st day of July, 2023, by and between the CITY OF PALM SPRINGS, a California charter city and municipal corporation, (“City”), and ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC, a Delaware limited liability company, doing business as ALAMO RENT A CAR AND NATIONAL CAR RENTAL (“Tenant”), having its usual place of business at the Palm Springs International Airport, 3400 E. Tahquitz Canyon Way, Palm Springs, California 92262, and a permanent mailing address at 333 City Blvd West, Suite 1000, Orange, California, 92868.City and Tenant may hereinafter be referred to individually as a “Party” and collectively as “Parties”.

RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement for Tenant’s lease and operation at Palm Springs International Airport (“Airport”), as more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and WHEREAS, effective June 21, 2017, City and Tenant entered into that certain Amendment No. 2 to extend the term from July 1, 2017, through June 30, 2020; and WHEREAS, effective July 1, 2020, City and Tenant entered into that certain Amendment No. 3 to extend the term from July 1, 2020, through June 30, 2021; and WHEREAS, effective July 1, 2021, City and Tenant entered into that certain Amendment No. 4 to extend the term from July 1, 2021, through June 30, 2022; and WHEREAS, effective July 1, 2022, City and Tenant entered into that certain Amendment No. 5 to extend the term from July 1, 2022, through June 30, 2023, subject to two additional one-year optional extensions to be exercised at the City’s sole discretion, and to increase certain fixed rent charges as specified in the Agreement.

Item 1D - Page 14
Enterprise Rent-a-Car Amdt No. 6 - Page 2

Term: Extend the term for one additional year, commencing on July 1, 2023, through June 30, 2024, with two one-year optional extensions remaining.

Lease Rates:

Current Rates Rates as of 7-1-23
Terminal Area $72.25 per sq. ft. $104.51 per sq. ft.

Service Facilities $1.34 per sq. ft. $1.40 per sq. ft.

Ready Return spaces $2,162.55 per space
annually
$2,262.03 per space
annually
Overflow Parking
Spaces
$2.32 per space per
day
$2.43 per space per
day
Item 1D - Page 15
Enterprise Rent-a-Car Amdt No. 6 - Page 3
Covenant Against Discrimination:

Full Force and Effect:

Except as expressly modified herein all other provisions of the Agreement, as previously amended, shall remain unmodified and in full force and effect.

Corporate Authority:

The persons executing this Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are dully authorized to execute and deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of the Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
Item 1D - Page 16
DTG-Dollar-Thrifty Amdt No. 6 – Page 4
SIGNATURE PAGE TO AMENDMENT NO. 6 TO AGREEMENT A6112

BY AND BETWEEN THE CITY OF PALM SPRINGS AND

ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC

DBA ALAMO RENT A CAR AND NATIONAL CAR RENTAL
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

TENANT:

By:____________________________ By: ____________________________ Signature Signature
Name: Name:

Title: Title:

Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No. ________
APPROVED AS TO FORM: ATTEST:

By: _____________________________ By: __________________________ City Attorney City Clerk
APPROVED:

By: _____________________________ Date: ________________________ City Manager
Item 1D - Page 17
Enterprise – Amdt. No. 6 - Page 1 of 4
AMENDMENT NO. 6 TO OPERATING AND LEASE AGREEMENT A6113

ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC

DBA ENTERPRISE RENT A CAR

FOR OPERATION OF A CAR RENTAL CONCESSION

AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT No. 6 to that certain NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT No. A6113, (“Agreement”) is made and entered into this 1st day of July, 2023, by and between the CITY OF PALM SPRINGS, a California charter city and municipal corporation, and ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, a Delaware limited liability company, dba ENTERPRISE RENT A CAR, (“Tenant”), having its usual place of business at the Palm Springs International Airport, 3400 E. Tahquitz Canyon Way, Palm Springs, California 92262, and a permanent mailing address at 333 City Blvd West, Suite 1000, Orange, California, 92868. City and Tenant may hereinafter be referred to individually as a “Party” and collectively as “Parties”.

RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement for Tenant’s lease and operation at Palm Springs International Airport (“Airport”), as more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and WHEREAS, effective June 21, 2017, City and Tenant entered into that certain Amendment No. 2 to extend the term from July 1, 2017, through June 30, 2020; and WHEREAS, effective July 1, 2020, City and Tenant entered into that certain Amendment No. 3 to extend the term from July 1, 2020, through June 30, 2021; and WHEREAS, effective July 1, 2021, City and Tenant entered into that certain Amendment No. 4 to extend the term from July 1, 2021, through June 30, 2022; and WHEREAS, effective July 1, 2022, City and Tenant entered into that certain Amendment No. 5 to extend the term from July 1, 2022, through June 30, 2023, subject to two additional one-year optional extensions to be exercised at the City’s sole discretion, and to increase certain fixed rent charges as specified in the Agreement.

Item 1D - Page 18
Enterprise – Amdt. No. 6 - Page 2 of 4

Term: Extend the term for one additional year, commencing on July 1, 2023, through June 30, 2024, with two one-year optional extensions remaining.

Lease Rates:

Rental Car Service Counter Area. Tenant shall pay to the City annual rental fees for the use and occupancy of its assigned Terminal Area Rental Car Service Counter Space consisting of ticket counter space, ticket counter customer queueing, and office space (“Terminal Area Rental Car Service Counter Rent”). The annual Terminal Area Rental Car Service Counter Area rental rate charged by the City shall be commensurate with the Signatory Airline Terminal Rental Rate as calculated by the City for each Fiscal Year during the Agreement. Terminal Area Rental Car Service Counter Rent is due and payable in equal monthly installments by the tenth of each month. This paragraph replaces the provisions regarding the calculation of the Customer Service Counter rental rate outlined in Section

5.03 (B) of the Agreement.

Current Rates Rates as of 7-1-23
Terminal Area $72.25 per sq. ft. $104.51 per sq. ft.

Service Facilities $1.34 per sq. ft. $1.40 per sq. ft.

Ready Return spaces $2,162.55 per space
annually
$2,262.03 per space
annually
Overflow Parking
Spaces
$2.32 per space per
day
$2.43 per space per
day
Item 1D - Page 19
Enterprise – Amdt. No. 6 - Page 3 of 4
Covenant Against Discrimination:

Full Force and Effect:

Except as expressly modified herein all other provisions of the Agreement, as previously amended, shall remain unmodified and in full force and effect.

Corporate Authority:

The persons executing this Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are dully authorized to execute and deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of the Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
Item 1D - Page 20
Enterprise – Amdt. No. 6 - Page 4 of 4
SIGNATURE PAGE TO AMENDMENT NO. 6 TO AGREEMENT A6113

BY AND BETWEEN THE CITY OF PALM SPRINGS AND

ENTERPRISE RENT-A-CAR COMPANY OF LOS ANGELES, LLC

DBA ENTERPRISE RENT A CAR
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date stated below.

TENANT:

By: _____________________________ By: __________________________ Signature Signature
Name: ___________________________ Name: _______________________ Title: ____________________________ Title: _________________________ Date: ____________________________ Date: ________________________ Corporations require two 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.

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No. ________
APPROVED AS TO FORM: ATTEST:

By: _____________________________ By: __________________________ City Attorney City Clerk
APPROVED:

By: ____________________________ Date: ________________________ City Manager
Item 1D - Page 21
DTG-Dollar-Thrifty Amdt No. 6 - Page 1
AMENDMENT NO. 6 TO OPERATING AND LEASE AGREEMENT A6114
DTG OPERATIONS, INC.

DBA DOLLAR RENT A CAR and THRIFTY CAR RENTAL

FOR OPERATION OF A CAR RENTAL CONCESSION

AT PALM SPRINGS INTERNATIONAL AIRPORT
This AMENDMENT No. 6 to that certain NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT No. A6114, (“Agreement”), is made and entered into this 1st day of July, 2023, by and between the CITY OF PALM SPRINGS, a California charter city and municipal corporation, (“City”), and DTG OPERATIONS, INC. an Oklahoma corporation, doing business as DOLLAR RENT A CAR and THRIFTY CAR RENTAL (“Tenant”), having its usual place of business at the Palm Springs International Airport, 3400 E. Tahquitz Canyon Way, Palm Springs, California 92262, and a permanent mailing address at 8501 Williams Road, Estero, Florida, 33928. City and Tenant may hereinafter be referred to individually as a “Party” and collectively as “Parties”.

RECITALS
WHEREAS, effective July 1, 2011, City and Tenant entered into the Agreement for Tenant’s lease and operation at Palm Springs International Airport (“Airport”), as more specifically described in the Agreement; and
WHEREAS, effective July 1, 2014, City and Tenant entered into that certain Amendment No. 1 to extend the term from July 1, 2014, through June 30, 2017; and WHEREAS, effective June 21, 2017, City and Tenant entered into that certain Amendment No. 2 to extend the term from July 1, 2017, through June 30, 2020; and WHEREAS, effective July 1, 2020, City and Tenant entered into that certain Amendment No. 3 to extend the term from July 1, 2020, through June 30, 2021; and WHEREAS, effective July 1, 2021, City and Tenant entered into that certain Amendment No. 4 to extend the term from July 1, 2021, through June 30, 2022; and WHEREAS, effective July 1, 2022, City and Tenant entered into that certain Amendment No. 5 to extend the term from July 1, 2022, through June 30, 2023, subject to two additional one-year optional extensions to be exercised at the City’s sole discretion, and to increase certain fixed rent charges as specified in the Agreement.

Item 1D - Page 22
DTG-Dollar-Thrifty Amdt No. 6 - Page 2

Term: Extend the term for one additional year, commencing on July 1, 2023, through June 30, 2024, with two one-year optional extensions remaining.

Lease Rates:

Current Rates Rates as of 7-1-23
Terminal Area $72.25 per sq. ft. $104.51 per sq. ft.

Service Facilities $1.34 per sq. ft. $1.40 per sq. ft.

Ready Return spaces $2,162.55 per space
annually
$2,262.03 per space
annually
Overflow Parking
Spaces
$2.32 per space per
day
$2.43 per space per
day
Item 1D - Page 23
DTG-Dollar-Thrifty Amdt No. 6 - Page 3
Covenant Against Discrimination:

Full Force and Effect:

Except as expressly modified herein all other provisions of the Agreement, as previously amended, shall remain unmodified and in full force and effect.

Corporate Authority:

The persons executing this Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are dully authorized to execute and deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of the Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which said party is bound.
(SIGNATURE PAGE FOLLOWS)
Item 1D - Page 24
DTG-Dollar-Thrifty Amdt No. 6 – Page 4
SIGNATURE PAGE TO AMENDMENT NO. 6 TO AGREEMENT A6114

BY AND BETWEEN THE CITY OF PALM SPRINGS AND
DTG OPERATIONS, INC.

DBA DOLLAR RENT A CAR and THRIFTY CAR RENTAL
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

TENANT:

By:____________________________ By: ____________________________ Signature Signature
Name: Name:

Title: Title:

Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No. ________
APPROVED AS TO FORM: ATTEST:

By: _____________________________ By: __________________________ City Attorney City Clerk
APPROVED:

By: _____________________________ Date: ________________________ City Manager
Item 1D - Page 25

ATTACHMENT B

PUBLIC INTEGRITY DISCLOSURE FORMS
Item 1D - Page 26

1. 2.

3. 4.

5. Name of Entity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

AVIS BUDGET CAR RENTAL, LLC
Address of Entity (Principle Place of Business)
6 SYLVAN WAY, PARSIPPANY, NEW JERSEY,
Local or California Address (if different than #2)
513 Eccles Avenue, South San Francisco, CA 94080
State where Entity is Registered with Secretary of State

DELAWARE
If other than California, is the Entity also registered in California? fxl Yes n No Type of Entity
D Corporation [XI 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

PLEASE SEE ATTACHED
D Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
□ Other
D Officer D Director D Member D Manager
[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
(Revised 09 13 18)
Item 1D - Page 27
-~t"4l1,011.ll't- ~~
I I
'
-
'
-
'
-
- -
-
/

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.
[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.
(Revised 09 13.18)
Date

CITY OF PALM SPRINGS- PUBLIC INTEGRITY DISCLOSURE FORM

APPLICANT DISCLOSURE FORM
Item 1D - Page 28
Signature 5, Printed Name, Title
Avis Budget Car Rental, LLC
Date
06/01/2022 Company Profile
Main Details
Name: Avis Budget Car Rental, LLC
QuickRef: AVISBUCARL
Country: United States
Region: Delaware
Tax ID: 22-3475741
Incorporated: 04/29/1996
Company Type: Limited Liability Company
Company Status: Active
Dissolved:

Primary Addresses
Registered: 251 Little Falls Drive, Wilmington DE 19808, United States Primary: Parsippany, New Jersey, 07054
Accounting Dates
Accounting Dates:

Annointments
Mar''lagEirilerlt Boi:ird
1·• Last PefiOd End' ·• I Clitrerit Peridd End·;- j,·- LastEX.tended 'Name.,. .,-: -•-_,;• ::· _,; ·:,: �--,,,_-,:-_--<'···-;:,:::,.-;-::> :·<;'."_-·.•_:-: QuickRef l-POSition-0 •
Choi, Brian CHOI-B l Mana"ner
Ferraro, Josenh Anthonv FERRARO-JA I Mana-ner
Officers·<, i·i;c:<:<· -<�·-' -:>> \�-::;:c-,•::-:<-'i'ci:;:::7?:-.- : .c::,.,-.i -·,::,:c:·: << ' Ni.I.me QuiCkRef POsitiOn<
:(·:

Blaskey, David D. BLASKEY-DD Senior Vice President, Development and lntenration
Calabria, David T. CALABRI-DT Senior Vice President
Treasurer
Choi, Brian CHOI-B Chief Financial Officer
Coss, Tom COSS-T Car Sales Mananer
DeGenova, Cathleen DEGENOVA-C Chief Accountina Officer
Ferraro, Jos�h Anthon" FERRARO-JA Chief Executive Officer President, Americas
Gall�her, Paul GALLAGHE-P Assistant Secretarv
lnsall, Gerard INSALL-G Executive Vice President and Chief Information Officer
Linnen, Edward P. LINNEN-EP Executive Vice President and Chief Human Resources Officer
Martins, lzilda P. MARTINS-IP Executive Vice President, Americas Morrison, Anne MORRISON-A Vice President
Muhs, Robert E. MUHS-RE Vice President and Assistant Secretarv Nierenbern, Gre,.,,., NIERENBE-G Vice President
Palumbo, Jeannine PALUMBO-J Director, Tax
Panicoe, Suzanne PANICOE-S Assistant Secretarv
Sera, Jean Marie SERA-JM Senior Vice President
General Counsel and Secretarv
Other.PoSltio"ns·:: :-,
Name· :

QllickRef P:Ositiori
Blaske", David D. BLASKEY-DD Power of Attornev
Koiffman, Mauro KOIFFMAN-M Power of Attornev
Marsili, Massimo MARSILI-M Power of Attornev
Muhs, Robert E. MUHS-RE Power of Attornev
Sera, Jean Marie SERA-JM Power of Attorne"
Other:sr,:;r1atories
Name·.:i><<:_;:>.:::::·._ - .QulckRef Y POSiticin
Bi�as, Bria;;et BIAGAS-B Authorized Sianatorv
Blask�. David D. BLASKEY-DD Authorized SianatolV
Brown, James BROWN-J 0001 Authorized Sianatorv
camnbell, BIV It CAMPBELL-B Authorized Sianatorv CamMan, Dennis CORRIGAN-D Authorized SinnatO"'' Feelet/, Michael FEELEY-M Authorized SinnatO"''
Finkel, Lvnn B. FINKEL-LB Authorized SinnatO"''
Gall°anher, Paul GALLAGHE-P Authorized Sinnat□"''
Kinerk, Beth KINERK-B Authorized Sinnat□"''
Date 06/01/2022
Tax ID
22-3475741
I oiilte'd. __ l
I 08/24/2020 I
I 01/01/2020 I
A"'-ointed;
07/03/2013
09/09/2015
08/07/2019
08/24/2020
09/04/2019
08/07/2019
01/01/2020
01/01/2015
03/27/2020
01/28/2015
01/28/2015
06/12/2020
03/29/2019
04/28/2006
01/01/2018
08/07/2019
12/01/2017
03/27/2020
03/27/2020
,. , ·-.-n. ...... olnted·
03/19/2010
11/06/2013
11/14/2011
03/19/2010
03/27/2020
>1 ,a ...... ointed
04/19/2017
04/13/2016
05/22/2018
04/19/2017
05/22/2018
04/19/2017
05/22/2018
11/09/2018
05/22/2018
Item 1D - Page 29
Avis Budget Car Rental, LLC
Date
06/01/2022
.othelSig·natories
Nallle/f ';'--;<·,•.: ii ': :,•>.·,i:::_::_",,";--;· ___ < -;::,:,:/·,.-:::_.::_ :,;:>:': -;::+::-> Kaines, Alan
Macri, Donna
Minnitte, Matthew
Morrison, Anne
Mueller, Hans Waldemar
Muhs, Robert E.

Orduna, Arthur
Saperstein, Jessica
Sera, Jean Marie
Stark, David E.

Tallarico, Lorraine
Wriaht, Stephen
Zamore, Neal
Date 06/01/2022
Company Profile
QuickRE!f:-i .POsitioll.

KOINES-A Authorized Sianatorv
MACRI-D Authorized Sianatorv
MINNITTE-M Authorized Sianatorv
MORRISON-A Authorized Sianatorv
MUELLER-HW Authorized Sianatorv
MUHS-RE Authorized Sionatorv
ORDUNA-A Authorized Sionatorv
SAPERSTE-J Authorized Sianatorv
SERA-JM Authorized Sianatorv
STARK-DE Authorized Sianatorv
TALLARIC-L Authorized Sianatorv
WRIGHT-S0001 Authorized Sianatorv
ZAMORE-N Authorized Sionatorv
.. ...

Tax ID
22-3475741
ointed05/12/2014
04/19/2017
02/28/2018
04/13/2016
08/03/2020
04/13/2016
12/12/2016
03/24/2017
03/27/2020
04/19/2017
04/19/2017
05/22/2018
09/10/2015
Item 1D - Page 30
Item 1D - Page 31

PUBLIC INTEGRITY APPLICANT DISCLOSURE
Name (Print last, first, middle Initial) E-mail Address Blum, Stephen A. (on behalf of The Hertz Corporation) [email protected] Positionfrltle
Senior Vice President, Real Estate and Facilities
Address
8501 Williams Road, Estero, Florida 3328
Work Phone: 239-301-7794 Reporting Status
Cell Phone: 781-389-6334 New Disclosure: X
Update:

Every applicant that is not an individual natural person, or comprised exclusively of natural persons with no outside investors, must disclose to the City the identity of each natural person who holds or occupies a ·significant position with respect to that applicant" entity or any entity that owns an interest or derives profits with respect to the applicant entity, i.e., a sub-entity.

In addition, every applicant must disclose to the City the identity of each owner or investor who has both of the following: (i) an ownership interest in the applicant entity with a value of two thousand dollars ($2,000.00) or more, and (ii) a material financial relationship with any official who has the opportunity to vote upon, or advocate for a particular result or outcome with respect to the application in question.

A "significant position" shall be defined as follows:
i. Officers and Directors (in the instance of a corporation); ii. Members and Managers (in the instance of limited liability company); or iii. Trustees and other Fiduciaries (in the instance of a trust or another organization).

A "material financial relationship" shall be defined as a relationship between an owner or investor on one hand, and a voting or potentially advocating official on the other hand, whereby the official has an interest in the outcome of the City's action upon the application in question arising from or related to any of the following:

1. Any business that the owner or investor in the applicant and the official do together during the year prior to the filing of the application;

2. Any income that the official has earned from the owner or investor in the applicant entity during the year prior to the filing of application;

3. One or more gifts, that the owner or investor in the applicant has given to the official during a year prior to the filing of the application with a total of more than fifty dollars;

4. Any money or value that the official will or might reasonably be anticipated to gain or lose, based upon the ownership interest of the owner or investor in the applicant entity, in relation to the outcome of the City's action upon the application.

Item 1D - Page 32
Organization/ Type of organization: Ownership Interest: Position: No ff nclude the address, city and state where the longer he organization is located) held:
1 The Hertz Corporation, a Delaware corporation 100% owned by Sr. Vice Pres., 8501 Williams Road Hertz Global Holdings, Real Estate & F acil i ies Estero, FL 33928 Inc.
2 Please find attached a list of the Officers and Dir ectors of The Hertz Corporatic n. Our Board of Dire ~ors must approve all changes, and we will submit an updated list at a later date sir ce we are awaiting formal approval of several changes.
3 4

5. 6.

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

ISC OS ng Party,/;/_ / / ~4~z___ ae May 31, 2020
On the basis of Information contained In this report, I conclude that the filer Is in compliance with Palm Springs Municipal Code Section 2.60, except as noted In the "comments" box below.

Comments:

Signature and Title of Agency's Final Reviewing Official Item 1D - Page 33

PUBLIC INTEGRITY APPLICANT DISCLOSURE
Name (Print last, first, middle Initial) E-mail Address SCOTT CLEMMER [email protected]
Position/Title

VICE PRESIDENT/GENERAL MANAGER
Address
333 CITY BLVD WEST, ST 1000, ORANGE, CA 92868
Work Phone: 657-221-4400 Reporting Status
Cell Phone: New Disclosure:

Update:

Every applicant that is not an individual natural person, or comprised exclusively of natural persons with no outside investors, must disclose to the City the identity of each natural person who holds or occupies a significant position with respect to that applicant entity or any entity that owns an interest or derives profits with respect to the applicant entity, i.e., a sub-entity.

1. Any business that the owner or investor in the applicant and the official do together during the year prior to the filing of the application;

2. Any income that the official has earned from the owner or investor in the applicant entity during the year prior to the filing of application;

3. One or more gifts, that the owner or investor in the applicant has given to the official during a year prior to the filing of the application with a total of more than fifty dollars;

Item 1D - Page 34
Organization/ Type of organization: Ownership Interest: Position: No f {nclude the address, city and state where the longer he organization is located) held:
1 ENTERPRISE HOLDINGS, INC.
600 CORPORATE PARK DRIVE 100% Sole Member
ST. LOUIS, MO 63106
2 3
4 5.

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

On the basis of Information contained in this report, I conclude that the filer is In compliance with Palm Springs Municipal Code Section 2.60, except as noted In the "comments" box below.

Comments:

Signature and Title of Agency's Final Reviewing Official Item 1D - Page 35

PUBLIC INTEGRITY APPLICANT DISCLOSURE
Name (Print last, first, middle initial) E-mail Address Blum, Stephen A. (on behalf of DTG Operations, Inc.) [email protected] Position/Title
Vice President, Real Estate
Address
8501 Williams Road, Estero, Florida 3328
Work Phone: 239-301-7794 Reporting Status
Cell Phone: 781-389-6334 New Disclosure: x
Update:

Every applicant that is not an individual natural person, or comprised exclusively of natural persons with no outside investors, must disclose to the City the identity of each natural person who holds or occupies a significant position with respect to that applicant entity or any entity that owns an interest or derives profits with respect to the applicant entity, i.e., a sub-entity.

1. Any business that the owner or investor in the applicant and the official do together during the year prior to the filing of the application;

2. Any income that the official has earned from the owner or investor in the applicant entity during the year prior to the filing of application;

3. One or more gifts, that the owner or investor in the applicant has given to the official during a year prior to the filing of the application with a total of more than fifty dollars;

Item 1D - Page 36
Organization/ Type of organization: Ownership Interest: Position: No f {nclude the address, city and state where the longer he organization is located) held:
1 DTG Operations, Inc., an Oklahoma corporatio, 100% owned by The Vice President, 8501 Williams Road Hertz Corporation Real Estate
Estero, FL 33928
2 Please find attached a list of the Officers and Dir ectors of DTG Operations, Inc . Our Board of Direc ors must approve all changes, and we will submit an updated list at a later date sir ce we are awaiting formal aooroval of several changes.
3 4

5. 6.

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

I Signature of Disclosing Date
May 31, 2020
On the basis of information contained In this report, I conclude that the filer Is in compliance with Palm Springs Municipal Code Section 2.60, except as noted in the "comments" box below. Comments:

Signature and Title of Agency's Final Reviewing Official Item 1D - Page 37
DTG OPERATIONS, INC.

LIST OF OFFICERS & DIRECTORS
Nanter , ··i~'.::".D ;;~-~14_~;~ ,:,., · .\S ... , '1tttle . 6 .tf;l-;~fl/1( '"j ",ft1rt:::~:~· )Fi 'lff)'~" :f:~,,~~~ !~": il1tlf ,.Bole .:ti Jackson, Jamere Director Director
Stone, Paul Director Director
Arrington, Darren Vice President Officer
Blum, Stephen A. Vice President, Real Estate Officer
Bridges, Scott Vice President, Franchise Operations Officer Burns, John C. Vice President and Assistant Treasurer Officer Costello, Lesley Assistant Secretary Officer
Drake, Julie Assistant Secretary Officer
Drumright, Janet L. Assistant Secretary Officer
Dubin, Clark Vice President, Insurance Officer
Ergas, Tim Vice President, Sales Americas Officer
Esper, R. Eric Vice President Officer
Galainena, M David Vice President and General Counsel Officer Griffith Spence, Terai Assistant Secretary Officer
Havis, Marc Vice President, Global Tax Officer
Honor, Maurice Vice President Officer
Jackson, Jamere Vice President, Finance Officer Jacobs, Susan Vice President, Brand Marketing Officer Johnson, Mark E. Vice President and Assistant Treasurer Officer Massengill, Scott Vice President and Treasurer Officer
McEvily, Richard P. Vice President, Deputy General Counsel Officer McGinley, Dennis Assistant Secretary Officer
Oates, Kennedy Vice President, Procurement and GCI Officer Potalivo, Matthew C Assistant Secretary Officer
Powell, Shontra Vice President, Sales Strategy and Operations Officer Schloss, Adam R. Assistant Secretary Officer
Sell, Monica Assistant Secretary Officer
Item 1D - Page 38
Silvan, Adam Assistant Secretary Officer Stone, Paul President Officer Stuart, Robert J. Vice President Officer
Watson, Albert Assistant Secretary Officer
Weinstein, Michael Vice President Officer
White, Randall Vice President, Labor and Employment Law Officer Effective on May 28, 2020

CITY COUNCIL STAFF REPORT
06/05/2023
SUBJECT:

APPROVE CONSULTING SERVICES AGREEMENT NO. 23Q112 FOR THE

DESIGN OF AN INLINE BAGGAGE HANDLING SYSTEM FOR THE PALM

SPRINGS INTERNATIONAL AIRPORT
RECOMMENDATION:

1. 2. Authorize the City Manager or designee to execute all necessary documents.

Attachments
Item 1E

CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 CONSENT CALENDAR
SUBJECT: APPROVE CONSULTING SERVICES AGREEMENT NO. 23Q112 FOR

THE DESIGN OF AN INLINE BAGGAGE HANDLING SYSTEM FOR THE

PALM SPRINGS INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:

Award a consulting services agreement with AECOM Technical Services, Inc. for the design of an inline baggage handling system for the Palm Springs International Airport (Airport).

RECOMMENDATION:

1. Approve Consulting Services Agreement No. 23Q112 (Attachment A) with AECOM Technical Services, Inc. to provide inline baggage handling system design services for the Airport for a three-year term in an amount not to exceed $3,174,638.

2. Authorize the City Manager or designee to execute all necessary documents.

BUSINESS PRINCIPAL DISCLOSURE:

According to the Public Integrity Disclosure Form (Attachment B), AECOM Technical Services, Inc. is a California Corporation.

BACKGROUND:

The Airport completed a $32 million ticketing wing expansion project in August 2021, which included renovation and expansion of the ticketing lobby, installation of new ticket counters and flooring, build-out of new Airline Ticketing Offices (ATOs), and the installation of a new baggage handling system. In May 2022, a third-party consultant, V1 Solutions, collected passenger baggage data from the Airport and the airlines. Based on the data, V-1 Solutions concluded that the current installed baggage handling system was obsolete and unable to accommodate growth shortly after being installed at the Item 1E - Page 1
City Council Staff Report
June 5, 2023 -- Page 2
Inline Baggage Handling System Design Services
Airport. As a result, further expansion of the baggage handling is necessary to keep up with the anticipated growth of the Airport (the “Project”). V-1 Solutions provided three different concepts to expand the baggage handling system, and the concept that would best accommodate the Airport’s growth was selected for this project.

This Project will be funded by a Design Other Transaction Agreement grant from the Transportation Security Administration (TSA) on a reimbursement basis for allocable costs. The TSA allocable costs contribution under the OTA grant will be funded at 95% totaling $1,388,995 and the Airport will be responsible for the remaining share in the amount of $1,785,373. There is an urgency to get the design completed, which is estimated to take one year, so that construction can begin on the new system to relieve the stress on the existing system.

STAFF ANALYSIS:

The Aviation Department worked with the Procurement and Contracting Department to develop a Request for Qualifications (RFQ) for the design of this project. The RFQ was advertised in the local newspaper and published on the PlanetBids website. Procurement and Contracting staff conducted a preproposal meeting to review the requirements and scope with prospective design firms and to address their questions.

Five highly qualified firms submitted their statements of qualifications by the deadline.

The evaluation team, composed of City staff from the Aviation and Engineering Departments, evaluated the statements of qualifications against the published criteria that included the firm’s experience, staff’s experience and understanding of the scope of work.

Local preference and price were not allowed as part of the initial evaluation process due to the funding requirements.

Firms were ranked from highest to lowest scoring and the highest ranked firm, AECOM Technical Services, was asked to submit a cost proposal for the work. In order to prepare for negotiations, a third-party consultant prepared an independent fee/cost estimate, so that staff could develop a negotiating position. The cost proposal was reduced by $375,000 at the conclusion of the negotiations. Staff feels that the $3,174,638 is fair and reasonable for the work that needs to be done for the design of a new inline system, and is recommending AECOM Technical Services, Inc. for award of the contract.

ENVIRONMENTAL ASSESSMENT:

In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15301 “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of existing or former use. Therefore, Staff has determined that the Inline Baggage Handling System Design Services is considered categorically exempt from CEQA.

Item 1E - Page 2
City Council Staff Report
June 5, 2023 -- Page 3
Inline Baggage Handling System Design Services
In addition, in accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15302 “Replacement or Reconstruction”, Class 2 projects consist of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Therefore, Staff has determined that the Inline Baggage Handling System Design Services, is considered categorically exempt from CEQA.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports City Council priority 2A, Improve City Facilities.

FISCAL IMPACT:

The project amount totals $3,174,638. The Transportation Security Administration will cover the costs of $1,388,995 through a Design Other Transaction Agreement (OTA) reimbursement and the Airport will fund the remaining $1,785,643 from the special capital projects fund 416.

REVIEWED BY:

Department Director: Harry Barrett Jr.

Procurement & Contracting Manager: Kim Baker
City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:

A. Consulting Services Agreement 23Q112
B. Public Integrity Disclosure Form
Item 1E - Page 3

ATTACHMENT A
AGREEMENT NO. 23Q112 WITH
AECOM TECHNICAL SERVICES, INC.

Item 1E - Page 4

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Palm Springs City CouncilJune 5, 2023

Palm Springs City Council
June 5, 2023