Agenda packet — Palm Springs City Council, February 8, 2024 (part 2 of 3)

with such Prevailing Wage Laws. Contractor shall defend, indemnify, and hold the City, its officials, of ficers, employees, and agents free and harmless fr om any claims, liabilitie s, costs, penalties, or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. I t shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provi sions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5) , certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

B. If the Services a re being performed as part of an applicable “ public w orks” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demol ition, installation, or repai r, then pursuant to Labor C ode Sect ions 1725.5 and 1771.1, the Contractor and all subcontractors performing such S ervices must be registered with the Department of Industrial Relations. C ontractor shall maintain registration for the duration of t he Project and require the same of a ny subcontractors, as applicable. This Agreement may also be subject to compliance m onitoring and enf orcement by the Department of Indus trial Relations. I t shall be Contractor’s sole r esponsibility to comply with al l a pplicable registration and labor compliance requirements.

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

7. I NDEMNIFI CATION.

7.1 Indemnification. To t he fullest extent permitted b y law, Contractor shall defend (at Contractor’s sole cost a nd expense), indemnify, protect, and hold harmless City, i ts elected of ficials, officers, e mployees, agents, and volunteers (collect ively the “Indemnified Parties”), from and agai nst any and all liabilities, actions, suit s, claims, demands, losses, costs, ju dgments, arbitration awards, settlements, damages , demands, orders, pe nalties, a nd expenses i ncluding legal costs and attorney fees ( collectively “Claims”), including but not li mited to Cla ims arising from injuries to or death of persons (Contractor’s employees included), for d amage to property, including property owned by City, for any violation of any federal, state, or local law o r o rdinance or in a ny manner arising out of, pertai ning to, or in cident to a ny acts, errors or omissions, or willful misconduct committed by Contractor, its officers, employees, representatives, and agents, that arise out of or relate to Contractor’s performance of Services or this Agreement. This indemnification clause exc ludes Claims arisin g f rom t he sol e negligence or willf ul misconduct of the Indemnified Parties. Under no circum stances shall the insurance requirements and limits set f orth in this Agreeme nt be con strued to limit Contractor’s indemnification obligation or other liability under t his A greement. C ontractor’s indemnification obligatio n shall survive the expirat ion or earlier termi nation of t his Agreement until all actions a gainst the Indemnifi ed Parties for s uch matters indem nified are fully and fi nally barred by t he applicable statute of limitations or, if an a ctio n is tim ely filed, until such action is final.

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the extent which the C laims a rise out of, pertain to, or relate to the negligenc e, recklessness, or willful misconduct of the Contractor in the performance of the Services or this Agreement, and, upon Contractor obtaining a final adjudi cation by a court o f competent juris diction, Contractor’s liability for s uch claim, including the cost to d efend, shall not exceed the Contractor’s proportionate percentage of fault.

8. RECORDS AND REPORTS

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

8.2 Records. Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and e xpenditures pertaining in any way to this Agreement.

Contractor shall keep such books and r ecords as s hall be necessary to properly perform the Services required by t his Agreement and enable the Cont ract Officer to evaluate the performance of such Services. The Contract Of ficer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

8.3 O wnership of Documents. All drawings, spec ifications, r eports, r ecords, documents, and other m aterials prepared by Contractor in the perf ormance of t his Agreement shall be the property of City. Contractor shall deliver a ll abov e-referenced documents to Ci ty u pon request of the Contract Officer or upon the termination of this Agreement. Contractor shall have no claim for further e mployment or additional compensation as a re sult o f the exercise by City of its f ull rights or owner ship of the documents and materials. Co ntractor may ret ain copies of such documents for Contractor's own u se. Contractor shall have an unrestricted right to use th e c oncepts embodied in such documents.

8.4 Release of D ocuments. All dr awings, specification s, reports, rec ords, documents, and ot her materials pre pared by Contractor in the performance of S ervices under this Agreement shall not be released publi cly without the prior written approval of the Contract Officer.

8.5 Audit and Inspection of Records. After receipt of reasonable notice and during the regular business hours of City, Contractor shall prov ide City, or othe r agents of City, such access to C ontractor’s books, r ecords, pay roll docu ments, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, docum ents, and activities d irectly relat ed to Contra ctor’s performance under this Agreement. Cont ractor shall maintain such books, records, data, and documents in accordance with gene rally a ccepted accounting principle s and shall clearly ide ntify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

9. ENFORCEMENT OF AGREEMENT

9.1 California Law. T his Agreement shall be construed and interpr eted both as to validity and to per formance of the parties in accordance with the laws of t he State of California. Legal action s con cerning any dis pute, claim , or m atter arising out of or in relation to this Agr eement shall b e inst ituted in t he Superior C ourt of the C ounty of Riverside, St ate of Californ ia, or any other appropriate court in such coun ty, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

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9.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties.

The term s of this Agreement ar e contractua l and the r esult of negoti ation between t he Parties. Ac cordingly, any rule of c onstruction of contracts (including, without limit ation, California Civil Code Section 1654) that ambiguities are to be constr ued agai nst the drafting party, shall not be employed in the i nterpretation of this Agreement. The caption headings of the various secti ons and paragraphs of this A greement are for convenience and identification pur poses only and shall not be deeme d to li mit, expand, or define the contents of the respective sections or paragraphs.

9.3 Waiver. No delay or omission in t he exercise of any right or remedy of a non - defaulting Party on any default shall impair such right o r re medy or be constru ed as a waiver. No consent or approval of City shall be deemed to waive or render unnecessary City’s consent to or a pproval of any s ubsequent act of Contractor. Any wa iver by either Party of any default must be in writing . No such waiver shall be a w aiver of an y other default concerning the same or any other provision of this Agreement.

9.4 Rights and Re medies are Cum ulative. Except with respect t o rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative. The exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

9.5 L egal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, or r emedy any d efault, to r ecover damages for any defau lt, to c ompel specific performance of this Agreement, t o obtain injunctive relief, a declaratory judgment, or any other remedy consistent with the purposes of this Agreement.

9.6 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to suc h other relief as may be gr anted, t o recover from the non - prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attor ney fe es, ex pert cont ractor fee s, court c osts a nd all fees , cos ts, and expenses incurred in a ny appeal or in collection of any judgment entered in suc h proceeding.

10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

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

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

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characteristics, or ethnici ty), sexual o rientation, gender ident ity, gender ex pression, physical or mental disabi lity, or medical condition (each a “prohibited basis”). Contractor shall ensure that applicants are em ployed, and tha t employees are treated during their employment, with out regard to any prohibited basis. A s a condit ion precedent to City’s lawful capacity to ente r th is Agree ment, and i n executing this A greement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to t he follo wing: emplo yment, upgrading , demotion or tr ansfer; recruitment o r recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Contr actor is in full compliance wit h the provis ions o f Palm Sp rings Municipal Code Secti on 7.09. 040, including without li mitation the pr ovision of benefits, relating to non-discrimination in city contracting.

11. MISCELLANEOUS PROVISIONS

11.1 Notice. Any notice, demand, request, consent, approval, or communication that either Party desires, or is required to give to the other Party or any other person shall be in writing and either served personally or sent by pre-paid, first-class mail to the address set forth below. Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mai led as provided i n this Section. Either Party may change its address by notifying the other Party of the change of address in writing.

To City: City of Palm Springs
A ttention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
To Contractor: BBG, Inc.

Attention: Marc Nassif
3070 Bristol Street, Suite 615
Costa Mesa, CA 92626

11.2 I ntegrated Agreement. This Agreement constitutes the entire under standing between the Parties and s upersedes and cancels all p rior negotiations, a rrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter in this Agreement.

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

11.4 Severability. Whenever possible, each provision of this Agre ement shall b e interpreted in such a manner as to be effective and valid under applicable law. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforce able by valid judgment or decree of a court of competent jurisdic tion, such invalidity or unenforceability shall not affect any of the remaining phrases, sent ences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the Parties.

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

11.6 Third Part y Beneficiary. Except as may be expr essly provi ded fo r in this Agreement, no thing contained in this Agreement is i ntended to confer, nor shal l this Item 1K - Page 12

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Agreement be construed as c onferring, any rights, including, without limitation, any r ights as a third -party beneficiary or othe rwise, upon any entity or p erson not a party to th is Agreement.

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

11.8 Authority. The persons executing this Agreement on behalf of the P arties warrant that t hey are duly authori zed to execute this Agreement on behalf of Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement.

11.9 Counterparts. This Ag reement may be signed in counterpa rts, each of whi ch shall constitute an original.

11.10 Compliance with Economic Sanctions in Response to Russia's A ctions in Ukraine. When funding for the serv ices is pr ovided, in whole or in part, by an agency controlled of the State of California, Consultant shall fully and adequately comply with California Executive Order N -6-22 (“Russian Sanctions Program”). As pa rt of this compliance process, Consultant shall also certify compliance with the Russian S anctions Program by completing the form located in Exhibit “C” (Russian Sanctions Certification), attached hereto and incorporated herein by reference. Consultant shall also requir e any subconsultants to compl y with the Russian Sanctions Program a nd certi fy com pliance pursuant to this Section.

[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO CONTRACT SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM SPRINGS AND BBG, INC.

IN WITNESS WHEREOF, the P arties h ave executed this Agreement as o f the da tes stated below.

CONTRACTOR:

By: _____________________________ By: _____________________________ Signature Signature

(2nd signature required for Corporation)

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 – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

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EXHIBIT “A”

SCOPE OF SERVICES/WORK

Including,

Schedule of Fees

And

Schedule of Performance

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1.1 Background:

The City performed a complete building assessment in 2017. The information from this assessment is used by the City’s insurance broker to purchase property insurance on behalf of the City. At this time this information is becoming out of date and is need of being refreshed to current values and conditions. In addition, the City uses this information to assist in the planning of maintenance and capital improvement progra ms, s
o it critical to the City that this information be updated to current conditions and values.

The Contrac tor is required to reevaluate these City owned facilities and update the condition assessment and values for each facility.

1.2 Scope:

A. The Contractor shall provide an onsite physical inspection and appraisal of the City owned facilities/ properties by professionally trained staff and provide a valuation report on each property.

B. The Contractor shall refresh the data annually for any inflationary trends, large increase or decre ase in property values, and any newly added or renovated properties.

C. The bas is for valuations of each building lies i n the data recorded. A descr iption for each building will be established, depicting Construction, Occupancy, Protection and Exposure (COPE) data. Single digital images will be prepared for each building and integrated into the final reports. Square footage of each building will be developed though physically measuring the building, square footage verified through a review of blueprints, measured using satellite imaging or based on a verificat ion of previous appraisal data. Additionally, a complete physica l address will be recorded for each site a nd unique coding will be assigned for all members, sites, and buil dings for identification purpose.

D. Services will be performed in accordance with industry -wide appraisal standards (USPAP - Uniform Standards of Professional Appraisal Practice).

E. Property data elements and Construction, Occupancy, Protection, and Exposure (COPE) data to be recorded on each building will include the following information:

1. Buil ding Description:
i. Name, address, and zip code of site
ii. Site/Building key
iii. District code
iv. Building occupancy and/or function
v. Appraisal date
vi. Digital Color Photograph

2. Con struction Details:
i. Construction class
ii. Exterior construction
iii. Interior construction
iv. Floor covering
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v. Roof type
vi. Basement (y/n)
vii. Year of Last Electrical Upgrade
viii. Year of Last Plumbing Upgrade
ix. Year of Last HVAC Upgrade
x. Earthquake retrofit date
xi. Type of found ation
xii. Type of ceiling
xiii. Number of stories
xiv. Perimeter wall Height
xv. Building height
xvi. Total squar e footage
xvii. Year of original const ruction and year(s) of subsequent addition(s) xviii. Year of Last Roof Upgrade or replacement
xix. Building Vac ancy
xx. Last Major Renovation Date
xxi. Quality of construction
xxii. General overall condition

3. Building Systems: All relevant features and equipment nameplate data for systems such as, but not limited to:
i. Plumbing
ii. Electrical
iii. HVAC
iv. Pumps
v. Emergency generator
vi. Building automation system
vii. Fire and security protection
viii. Elevators and escalators
ix. Basements
x. Sprinklers
xi. Mezzanines
xii. Balconies

4. Attached and Unattached Exterior Construction and Non-Conforming Structures such as but not limited to:
i. Stairways
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ii. Covered Walkways
iii. Canopies
iv. Grandstands and Bleachers
v. Artificial turf
F. Provide both replacement cost and actual case values for each building or structure appraised. Building and structure values are understood not to include the land values, but to include foundations, underground plumbing, plus costs associated with replacement as required under California contracting requirements such as prevailing wage, etc.

G. Valuation of c ontents on a cost replacement basis for each building or structure appraised; contents understood to include office furniture, equipment, communication equipment, computer hardware, consumable items and any other personal property usual to the intended occupancy, but excluding works of art, intangible assets, mobile equipment, licensed vehicles, and assets and personal property owned by member employees. Valuation of contents would be based on a formula rather than the a
ctual count of assets in the structure.

H. Prov ide comments on any hazards that are seen on or in the structure such as vacancy, general housekeeping issues, code violations, building condition (repair or maintenance such as signs of leaking roof), or presence of high hazard occupancy.

I. Provide itemized detail and values of land improvements described in the report, such as playground equipment, fencing, lights, etc.

J. Details of any additional items listed at the building location such as pumps, generators, etc. are to be included in the reports as features.

K. Inc lude global positioning system location coordinates for each building.

L. Flood zone codes are to be included on the report.

M. Well houses, pump stations, lift stations and treatment plant processes to include permanently installed operating equipment as part of the total building value.

1.3 Deliverable:

An electronic statement of values in excel format with detailed report including supporting documents described above.

1.4 Schedule:

Work
will commence in February 2024 and all work for year 1 shall be completed by June 1, 2024. For years 2 through 5, work shall be completed by February of the applicable year.

1.5 Compensation:

Work will be compensated on a lumpsum basis for the initial update of the facilities condition assessment and the statement of values and then a lumpsum price per year to keep it updated over the remaining contract term. Contract pricing includes all labor, expenses, and incidentals to complete the work outlined in the contract scope. The Contractor may request monthly payments based on the percentage of work completed for the pr evious month as long as a detailed progress report is provided to support the amount requested. No additional compensation will be due by the City unless the contract is modified for additional work requested by the City.

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Item 1K - Page 19
ITEM
1 2
3 4
5 ATTACHMENT "G"

COST PROPOSAL
REQUEST FOR PROPOSAL (RFP 51-23)

FACILITY APPRAISAL AND CONDITION ASSESSMENT SERVICES

THIS FORM MUST BE COMPLETED AND SUBMITTED IN SEPARATE ELECTRONIC FILE #2 " Cost Proposal", NOTwith Electronic File #1 , Techni cal/Work Proposal• )

DESCR IPTION UNIT OF MEASURE TOTAL
Property Appraisal and Lump Sum
Condition Assessment Year 1 $225,000.00
Update Year 2 Lump Sum $75,000.00
Update Year 3 Lump Sum $50,000.00
Update Year 4 Lump Sum $50,000.00
Update Year 5 Lump Sum $50 ,000.00
TOTAL $450,000 .00
Firm Name:_BB_G_,_ln_c_. ----- ------- ~ ------
s;go,tm• ol A,thori,ed P•="' ~a«-- q
Printed Name: Marc Nassif, MAI, LEED AP, MRICS
Title: Senior Managing Director
Date: January 2, 2024

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EXHIBIT “B”

INSURANCE PROVISIONS

Including

Verification of Coverage,

Sufficiency of Insurers,

Errors and Omissions Coverage,

Minimum Scope of Insurance,

Deductibles and Self-Insured Retentions, and

Severability of Interests (Separation of Insureds)
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INSURANCE

1. P rocurement and Maintenance of Insurance. Contractor shall procure and maintain public liability an d pr operty damage insurance against al l cla ims for i njuries against p ersons or d amages to propert y resulting fr om Contractor’s performance under this Agreement. Contractor shall procure and m aintain all insu rance at its sole cost and expense, in a form and cont ent satisfactory to the City, and submit concurrently with its execution of this Agreement. Contractor shall also carry workers’ compensation insurance in accordance with California workers’ compensation laws. Su ch insurance shall be ke pt in full force and effect during the term of this Agreement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing t he foregoing and designating the City, its elected officials, officers, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorsements evidencing the same shall not be construed as a limitation of Contractor’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.

2. M inimum S cope of Insurance. The minimum amount of insu rance required under this Agreement shall be as follows:

1. Comprehensive gener al liability and person al i njury wit h limits of at least o ne million dolla rs ( $1,000,000.00) comb ined single limit coverage pe r oc currence and t wo million dollars ($2,000,000) general aggregate;

2. Automobile liability insurance with l imits of at least one million dollars ($1,000,000.00) per occurrence;

3. Professional liability ( errors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000) annual aggregate is:
_________ required
___x_____ is not required;

4. Wor kers’ Compensation insurance in the st atutory amount as r equired by t he State of Cal ifornia and Em ployer’s Liability Insurance with limi ts of at least one mil lion dollars $1 million per occurrenc e. If Contractor has no empl oyees, Contractor shal l complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3. Primary Insurance. For any claim s related to this Agreement, Co ntractor’s insurance coverage shall be primar y with respect to the City an d it s respecti ve el ected officials, officers, empl oyees, agents, and v olunteers. Any ins urance or self -insurance maintained by Ci ty a nd its respecti ve e lected officials, of ficers, e mployees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all rights of subrogation and contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.

4. E rrors and Omissions Coverage. If Errors & Omissions Insurance is required, and if Con tractor provides claims made prof essional liability insurance, Contractor sh all also agree in writ ing either (1) to purchase t ail insurance in the amount r equired by this Agreement to cov er claims made wit hin three years of t he compl etion of Co ntractor’s Item 1K - Page 21

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services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carr ier in the amount required by this Agreement for at least th ree years after completion of Contractor ’s services under thi s Agreement. Contractor shall also be required to prov ide ev idence to Cit y of the purchase o f the required tail in surance or continuation of the professional liability policy.

5. Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized insurers in good standi ng with the State of California. C overage shall b e provided by insurers admitted in the State of California with an A. M. Best’s Key Rating of B++, Class VII, or better, unless otherwise acceptable to the City.

6. Verification of Coverage. Contractor shall furnish City with both certif icates of insurance and endorsements, including additional insured endorsements, effecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its beh alf. All proof of insurance is to be r eceived an d approved by the City before work co mmences. C ity reserves the right to require Contractor’s insurers to provide complete, certified copies of all r equired insurance poli cies at any ti me. A dditional ins ured endorsements a re no t required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General an d/or Auto Li ability Endorsement Form for the C ity of Palm Sp rings or (2) an acc eptable Certificate of L iability Insurance Cov erage w ith an approved Additional Insured Endorsement with the following endorsements stated on the certificate:

A. "The City of Palm Springs, its officials, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No.___" or "for any and all work performed with the City" may be included in this statement).

B. " This insurance is pri mary and non -contributory ov er any insurance or self - insurance t he City may have... " ("as respects City of Palm S prings Contract No.___" or "for any and all work performed with the City" may be included in this statement).

C. " Should any of the above desc ribed policies b e canceled before t he expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liabil ity o f a ny kind upon the company, its agents or representative" is not acceptable and must be crossed out.

D. B oth the Workers’ Compensation and Employers' Liabil ity policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies.

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All ce rtificates of insurance and endorsements are to be received and approved b y the City before work commences. All certificates of insurance must be authorized by a person with authority to bind cover age, whether that is the authorized agent/broker or in surance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Contractor’s obligation to provide them.

7. Deductibles and S elf-Insured Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected officials, o fficers, employees, agents, and volunteers; or (2) Contr actor sh all procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Certificates of Insurance m ust include evidence of the a mount of any deductible or self-insured retention under the policy. Contractor guarantees payment of all deductibles and self-insured retentions.

8. Severability of I nterests (Separation o f Insured s). This i nsurance applies separately to each insured agains t whom cla im is made or suit is brought except with respect to the limits of the insurer’s liability.

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EXHIBIT “C”

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ATTACHMENT "F"
EXECUTIVE ORDER N-6-22 CERTIFICATION
REQUESTS FOR PROPOSALS (RFP 51-23)

FACILITY APPRAISAL AND CONDITION ASSESSMENT SERVICES
Executive Order N-6-22 issued by Governor Gavin Newsom on March 4, 2022, directs all agencies and departments that are subject to the Governor's authority to (a) terminate any contracts with any individuals or entities that are determined to be a target of economic sanctions against Russia and Russian entities and individuals; and (b) refrain from entering into any new contracts with such individuals or entities while the aforementioned sanctions are in effect.

Executive Order N-6-22 also requires that any contractor that: (1) currently has a contract with the City of Palm Springs funded through grant funds provided by the State of California; and/or (2) submits a bid or proposal or otherwise proposes to or enter into or renew a contract with the City of Palm Springs with State of California grant funds, certify that the person is not the target of any economic sanctions against Russia and Russian entities and individuals.

The contractor hereby certifies, SUBJECT TO PENAL TY FOR PERJURY, that a) the contractor is not a target of any economic sanctions against Russian and Russian entities and individuals as discussed in Executive Order N-6-22 and b) the person signing below is duly authorized to legally bind the Contractor. This certification is made under the laws of the State of California.

Printed Name: Marc Nassif, MAI. LEED AP. MRICS
Title: Senior Manag ing Director
Firm Name:_B_B_G_, i_n_c. _ _ _______ __ _
Date: January 2, 2024

ATTACHMENT B

Item 1K - Page 25
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1. 2.

3. 4.

5. Name of Entity
BBG, Inc.

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
Address of Entity (Principal Place of Business)
8343 Douglas Avenue, Suite 700 Dallas TX 75225
Local or California Address (if different than #2)
3070 Bristol Street , Suite 615, Costa Mesa CA 92626
State where Entity is Registered with Secretary of State Delaware
If other than California , is the Entity also registered in California? [R] Yes D No Type of Entity
[8] Corporation D Limited Liability Company D Partnership D Trust D Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
Chris Roach, MAI, CCIM 0 Officer D Director D Member D Manager [name] D General Partner D Limited Partner
~Other CEO
William Britain ~ Officer D Director D Member D Manager [name] D General Partner D Limited Partner
[R] Other CFO
Blake Holman [Kl Officer D Director D Member D Manager
(name] D General Partner D Limited Partner
I]] Other CAO / CIO
Item 1K - Page 27

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.

Incline Equity Partners >65%
[name of owner/investor] (percentage of beneficial interest in entity and name of entity]
B.

No others above 5%
[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] [percentag e 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.
1'~~of ~~s!n~ frrty, Printed Name, Title
Marc Nassif ~
Date
January 2, 2024
Senior Managing Director

CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 8, 2024 PUBLIC HEARING
SUBJECT: COMMUNITY DEVELOPME NT BLOCK GRANT (CDBG) 2024–2025 ANNUAL ACTION PLAN AND BUDGET PUBLIC HEARING; AND REVIEW

CDBG SUBSTANTIAL AMENDMENT TO ALLOCATE FUNDS FROM PRIOR YEARS IN THE AMOUNT OF $129,4 90.90 TO THE 2023-2024 CDBG

PROGRAM YEAR FOR THE MAJOR HOME REPAIR PROGRAM
FROM: Scott C. Stiles, City Manager
BY: Housing & Community Development Department
SUMMARY:

This is the first of two public hearings for the 2024-2025 Annual Action Plan (AAP, Attachment A ) and for review of a Draft 2023-2024 Substantial Amendment (Attachment B ). The CDBG Annual Action Plan is prepared by the City every year pursuant to requirements set forth by the Department of Housing and Urban Development (HUD), which mandate that units of government receiving federal housing and community development assistance must prepare an Annual Action Plan as part of the implementation of the Five-Year Consolid ated Plan (ConPlan) which serves as the blueprint for community development activity in the City. A Substantial Amendment to allocate prior year funds to the current CDBG Program Year is also requested for City Council review. Action on these matters cannot take place until after a thirty (30) day review period and second public hearing to be scheduled for March 14, 2024, when the public review process may be completed, resolutions approving these items may be adopted, and the AAP and Substantial Amendment can be submitted to HUD.

RECOMMENDATION:
1) Open the Public Hearing for public testimony.
2) Review the draft 2024-2025 CDBG Budget and Annual Action Plan and Substantial Amendment and provide direction to staff.
3) Schedule a Public Hearing for March 14, 2024, to approve and adopt the 2024- 2025 CDBG Budget and Annual Action Plan and 2023-2024 Substantial Amendment.

Item 2A - Page 1
City Council Staff Report
February 8, 2024 – Page 2
CDBG Annual Action Plan and Substantial Amendment Public Hearing No. 1

BACKGROUND:

Palm Springs is an “entitlement city”, meaning that it is a direct recipient of CDBG funds from the federal government. The CDBG Pr ogram was adopted by Congress fifty years ago. The program offers local governments, along with citizen participation, the opportunity to fund certain projects, programs and/or public services provided that they must meet one of the three national objectives:

1. Benefit Low/moderate- income (LMI) persons.

2. Prevent or elimin ate slums and blight.

3. Meet urgent local comm unity development needs.

In Fiscal Year 2020, the City Council opted to change the way it allocates CDBG funds and to directly select the sub-recipients, which may include only City Departments for funding of City programs, services, or capital projects.

STAFF ANALYSIS:

The total amount of CDBG funds to be a llocated for the 2024-2025 Fiscal Year is estimated to be $413,000. Federal statute requires that at least 70% of the expenditures benefit Low/Mod persons. As an entitlement grantee, the City has and will continue to utilize these funds for neighborhood revitalization, preserving decent housing, expanding economic opportunities, and/or improving community facilities and services, principally to benefit Low/Mod persons. A map showing t he City’s Low/Mod areas is provided in Attachment C.

2024-2025 Annual Action Plan:

Based on the estimated CDBG allocation of $413,000, and given the statutory limitations on the percentage of CDBG funds that may be utilized for Administration (20%) and Public Services (15%), with the remaining funds to be utilized for Public Facilities and Capital Improvements (including Hous ing Rehabilitation), the tota l CDBG resources for 2024- 2025 by eligibility category are estimated as follows (assuming the maximum allowable allocations are applied):

ESTIMTED CDBG 2024–2025 ALLOCATION $413,000

[Less] Administration (20%, Maximum) $ 82,600
[Less] Fair Housing – Public Service
(15%, Maximum) $ 61,950

REMAINING PROGRAMMATIC FUNDS $268,450

In recent years, the City C ouncil has requested that staff not allo cate CDBG funds for Administration and to increase the Programmatic Funds by the amount of the Administration Item 2A - Page 2
City Council Staff Report
February 8, 2024 – Page 3
CDBG Annual Action Plan and Substantial Amendment Public Hearing No. 1

funds. In this case, allocating funds for Ad ministration to the Programmatic Funds would increase the Programmatic Funds by $82,600, from $268,450 to $351,050.

REVISED PROGRAMMATIC FUNDS $351,050

As such, the budget recommendations for the Draft 2024-2025 Annual Action Plan are as follows:

Administration
(20%)
Public
Services
(15%) Pro gram

Total
Estimated Resources
Expenditure Limit 82,600 61,950 268,450 413,000
Transfer In / (Out) (82,600) 0 82,600 0
Resource Total 0 61,950 351,050 413,000

Proposed Allocation
Staffing and Contractual
Services 0 0 0 0
Public Services (Fair
Housing) 0 61,950 0 61,950
Residential Rehabilitation
Program 0 0 351,050 351,050
Allocation Total 0 61,950 351,050 413,000

No CDBG funds are being proposed for Administration expenses.

2024-2025 ANNUAL ACTION PLAN PROGRAM RECOMMENDATIONS

Public Services:

Fair Housing Program: Under CDBG guidelines, the City is required to provide its residents a fair housing program. Staff recomm ends working with a local non-profit fair housing services organization to provide comprehensive services which affirmatively address and promote fair housing rights and landlord/tenant services. These include anti- discrimination investigations, landlord/tenant mediation servic es, training and technical assistance, workshops and seminars, and housing discrimination audits and tests.

The goals for this activity are to provide fa ir housing services to 1,000 Palm Springs households citywide. Of those, 1,000 will be Low- or Moderate-Income Households. The recommended amount of CDBG funding for this activity is $61,950.

Item 2A - Page 3
City Council Staff Report
February 8, 2024 – Page 4
CDBG Annual Action Plan and Substantial Amendment Public Hearing No. 1

Residential Rehabilitation:

Major Home Repair: Under this program, the City would provide grants to qualified low- to moderate-income homeowners to ma ke needed home improvements. Grants would be available to address code deficiencies, e liminate blight, and improve handicapped accessibility. It is recommended the maximum grant amount be increased from $15,000 per household to $25,000 per household as th e average amount of assistance needed this Program Year has been $22,187. The Major Home Repair Program will be provided on a first come/first-served basis to qualified applicants. To participate, the property must be located within the City of Palm Springs, must be owner-occupied, and owners must meet income requirements. Gr ant funds may only be used for costs of services and materials necessary to carry out City-appr oved repair work. This program may also include Minor Repairs below $1,500.

The goals for this activity are to serve 14 Palm Springs households City-wide. Of those, all 14 will be Low- or Moderate-Income Households. The recommended amount of CDBG funding for this activity is $351,050.

Staff will incorporate City Council’s recommendations for use of the CDBG funds into a draft CDBG 2024-2025 Annual Action Plan and Bu dget and will seek approval of the CDBG 2024-2025 Annual Action Plan and Budget as follows:
x February 12 to March 13 – 30-day public re view of Fiscal Year 2024-2025 Annual Action Plan and Budget
x March 14 – Public Hearing #2 Council appr oval of Fiscal Year 2024-2025 Annual Action Plan and Budget
x May 1 – Submittal of Fiscal Year 20 24-2025 Annual Action Plan and Budget to HUD for review and approval.
x July 1 – CDBG funds available for use (reimbursement basis).

These activities are consistent with the City’s 2020-2024 Consolidated Plan (ConPlan) goals as shown in Attachment D.

Substantial Amendment

A Substantial Amendment is required when the reallocati on of CDBG Funds increases existing activities in an amount greater than $50,000. In the current CDBG Program Year (2023-2024), the City received a total of $413,506, of which $355,000 was allocated for the Major Home Repair program as described above. These funds are now exhausted and with 5 months remaining in the Fiscal Year it is proposed that un spent prior year funds in the amount of $129,490.90 be allocated to the 2023-2024 CDBG Program Year Major for the Home Repair program. The f unding being reprogramed comes fr om projects that have been completed and did not require the full aw ard ($71,847.31), and from former CDBG Item 2A - Page 4
City Council Staff Report
February 8, 2024 – Page 5
CDBG Annual Action Plan and Substantial Amendment Public Hearing No. 1

Corona Virus ($57,643.59) projects which also completed their programs and did not utilize the full award. The goal for use of the additional $129,490.90 of funds would be to serve 5 additional Low- or Moderate-Income Palm Springs households City-wide.

If approved, the Substantial Amendment will be available for a 30-day review from February 12 to March 13. A public heari ng will be held on March 14 to consider a resolution approving the Substantial Ame ndment. Funds may be transferred after approval on March 14.

ENVIRONMENTAL ASSESSMENT:

The recommended action does not result in a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a Project means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378( b), a Project does not include: (5) Organizational or administrative ac tivities of governments that will not result in direct or indirect physical changes in the environment.

FISCAL IMPACT:

There is no direct fiscal impact to the General Fund. These dollars are the City’s allocated federal annual entitlement funds from the U.S. Depar tment of Housing & Urban Development Community Development Block Grant program.

REVIEWED BY:

Department Director: Ja
y Virata
Deputy City Manager: Flinn Fa gg
City Manager: Scott Stiles

ATTACHMENTS:

A. Draft 2024-2025 Annual Action Plan
B. Draft Amended 2023-2024 Annual Action Plan
C. ConPlan Goals
D. Low/Moderate Income Census Block Map

Item 2A - Page 5

ATTACHMENT A

Item 2A - Page 6
DRAFT Annual Action Plan PALM SPRINGS 010524-SNV

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Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Palm Springs has been operating as an entitlement community since 1987 under the U.S.

Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program. The Annual Action Plan delineates the City's proposed investment of its allocation in CDBG entitlement funds during the fiscal year 2024 – 2025 spanning July 1, 2024, through June 30, 2025, the fifth (50th) year of operation for Palm Springs' CDBG program. The Action Plan will serve as the City of Palm Springs's annual application to HUD for federal funds over the next year and is the fifth and final year in the five-year (2020 – 2024) Consolidated Plan. The Annual Action Plan builds upon the strategies articulated in the Consolidated Plan. It represents the City's continued effort to provide activities that address the housing and other community-identified priority needs of the very low, low, and moderate- income residents of Palm Springs.

The Consolidated Plan is the primary tool used by the City to accomplish the goals and objectives outlined therein. The City's goals and objectives address social issues related to public services and housing needs for seniors, youth, homeless, handicapped, and those in general that fall within the very low to low and moderate-income levels. During the FY 2024–2025 program year, Palm Springs will focus CDBG funding on supporting the goal of providing a suitable living environment and decent housing by focusing funds on fair housing and home repairs to income eligible residents through the City's housing rehabilitation program.

3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

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gaps in the service and the needs of the community. These efforts are mainly for those that experience financial instability, which manifests into many other areas of need.

Palm Springs continues to address affordable housing by offering home repair assistance and focusing resources on fair housing. CDBG is a vital funding source and is instrumental in carrying out the programs and projects identified to meet the goals and objectives needed to fill gaps in services. The City of Palm Springs will continue to undertake designated programs and projects in FY 2024/2025 designed to meet the goals and objectives outlined within the Five-Year Consolidated Plan but will also begin the planning process for the upcoming Consolidated Planning Period for 2026-2031, keeping an eye on trends in the housing market and economy.

The economy, homeless epidemic, and housing crisis the State continues to face creates a need greater than the City can address in a single year or possibly even in multiple years. The City choses to use the FY 2024-2025 allocation to fund a significant housing rehabilitation program that will assist low /moderate income citizens, with housing repairs that impact the safety and livability of their housing.

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

The City will follow its approved Citizen Participation Plan (CPP) while developing the Action Plan.

The Draft Annual Action Plan was advertised in the local newspaper (Desert Sun) and was available for review in the Office of the City Clerk, City of Palm Springs, 3200 E. Tahquitz Canyon Way, Palm Springs, California, 92262 and on the City’s website (www.palmspringsca.gov). The Draft Annual Action Plan was made available electronically for public review and comment for a 30-day period beginning February 12, 2024, to March 13, 2024.

Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on February 26, 2024, to advertise upcoming public hearings and the upcoming Action Plans 30 -day availability.

Public Hearing - The City Council held its first of two Public Hearings on 3/28/24.

Internet Outreach - Information regarding the Draft Action Plan was published on the City website event calendar for the encouragement of public participation Internet Outreach. Additionally, the City encouraged feedback from the public through written responses to the City Clerk during the public comment period for the Draft Annual Action Plan. Information regarding the Draft Action Plan was made available on the City's website under CDBG webpage to encourage public participation.

Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on March 1, 2024, to advertise a second public hearing on 3/14/24. The City Council held the second required Public Hearing on March 14, 2024.

Item 2A - Page 8
DRAFT Annual Action Plan PALM SPRINGS 010524-SNV

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5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

TBD

6. Summary of comments or views not accept ed and the reasons for not accepting them All views are accepted.

7. Summary
Through the Citizens Participation Plan process, the City is able to approve programs and projects that meet our designated goals and objectives as outlined in the Consolidated Plan.

Item 2A - Page 9
DRAFT Annual Action Plan PALM SPRINGS 010524-SNV

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PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparin g/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency

CDBG Administrator PALM SPRINGS Housing & Community Development Department
Table 1 – Responsible Agencies

Narrative (optional)
The Community and Economic Development Department of the City of Palm Springs is the lead department responsible for the 2024-2025 Annual Action Plan. The Community and Economic Development Department coordinates and consults with City Departments, County Agencies and nonprofit organizations, to ensure that the CDBG program provides vital community supports. The City's coordination and consultation efforts began in early fall and have included numerous meetings, phone calls, forums and input sessions. The City of Palm Springs is a local government jurisdiction with a population of 48,518(2019 ACS). The City has been an Entitlement Community for CDBG Program since FY 1987.

Consolidated Plan Public Contact Information
Contact Person: Jay Virata, Housing & Community Development Director Street Address: 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262-6959 Mailing Address: PO Box 2743, Palm Springs, CA 92263-2743 Item 2A - Page 10
DRAFT Annual Action Plan PALM SPRINGS 010524-SNV

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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The 2024- 2025 Annual Action Plan is a joint effort between multiple public, private, and non-profit community partners.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City is continuing to seek opportunities in enhancing coordination between public and assisted housing providers and private and governmental health, mental health, and other service agencies:
x The Housing Authority of Riverside County provides residents throughout the County with rental assistance to those that are eligible based on income. The Authority administers the Section 8 Rental Assistance Program. They also own and operate affordable housing projects throughout the County and collaborate with local jurisdictions with rehabilitating and upgrading multi- family housing units.
x Riverside County Continuum of Care is comprised of representatives from public, private, and nonprofit agencies including homeless and formerly homeless individuals that are committed to assisting in facilitating a continuum of care planning process throughout the County. This coalition assesses the need for affordable housing and homeless services countywide to provide a seamless delivery of services to those in need.
x The Department of Public and Social Services administers programs under the anti-poverty umbrella for the County of Riverside. The main goal for residents is to move them towards self- sufficiency and moving poor families from poverty. DPSS assists residents on many levels including childcare, education, employment training, health and human services, homeless and housing.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

Essential aspects of Plan development and implementation of project objectives involved meeting and coordinating with the CoC. These meetings helped recognize our priority needs as well as what demands there are for various coordinated homeless and housing services. The City of Palm Springs will continue to consult with the CoC, Housing Authority, and other agencies where necessary to address the needs of the homeless populations as well as housing for persons at risk, however, the City of Palm Springs is not directly involved in the CoC. The City is, however, part of the Coachella Valley Association of Governments (CVAG) Homeless committee which is part of the CoC.

Item 2A - Page 11
DRAFT Annual Action Plan PALM SPRINGS 010524-SNV

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Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Palm Springs is only eligible for CDBG funds.

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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Riverside County Continuum of Care Agency/Group/Organization Type Housing
Services-Victims of Domestic Violence
Services-homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Essential aspects of Plan development and implementation of project objectives involved meeting and coordinating with the CoC. These meetings helped recognize our priority needs as well as what demands there are for various coordinated homeless and housing services. The City of Palm Springs will continue to consult with the CoC, Housing Authority, and other agencies where necessary to address the needs of the homeless populations as well as housing for persons at risk, however, the City of Palm Springs is not directly involved in the CoC. The City is, however, part of the Coachella Valley Association of Governments (CVAG) Homeless committee which is part of the CoC.
2 Agency/Group/Organization HOUSING AUTHORITY OF COUNTY OF RIVERSIDE Agency/Group/Organization Type Housing
PHA
Services - Housing
Item 2A - Page 13
DRAFT Annual Action Plan PALM SPRINGS 010524-SNV

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What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Needs - Chronically homeless
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The PHA has the authority to purchase, construct, maintain, operate, improve, extend, or repair their housing facilities within the City and to eliminate housing conditions which are detrimental to peace, health, safety, and morals or welfare of the City.
3 Agency/Group/Organization The County of Riverside Department of Public Social Services (DPSS) Agency/Group/Organization Type Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Victims of Domestic Violence
Services-homeless
Services-Health
Services-Education
Services-Employment
What section of the Plan was addressed by
Consultation?
Public Housing Needs
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Non-Homeless Special Needs
Anti-poverty Strategy
Item 2A - Page 14
DRAFT Annual Action Plan PALM SPRINGS 010524-SNV

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Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
assists area residents in securing resources
4 Agency/Group/Organization Fair Housing Council of Riverside County, Inc., Agency/Group/Organization Type Housing
Services-Education
Services-Employment
Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Market Analysis
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?

Identify any Agency Types not consulted and provide rationale for not consulting The City made an effort to consult with all agency types relevant to the development of this Plan.

Item 2A - Page 15
DRAFT Annual Action Plan PALM SPRINGS 010524-SNV

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Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of yo ur Strategic Plan overlap with the goals of each plan? Continuum of
Care County of Riverside
The County of Riverside is a Continuum of Care grantee and conducts annual homeless counts, surveys of the homeless population, and strategic planning to end homelessness.

Consistent with the goals of the CoC, the City of Palm Springs Strategic Plan supports nonprofits that meet the social services needs of the residents with an emphasis on the homeless.

Housing
Element City of Palm Springs
Based on the State of California's Regional Housing Needs Allocation(RHNA), The Housing Element is the City's chief policy document for the development of affordable and market- rate housing. Consistent with this policy document, the City will maintain and enhance the quality of existing residential neighborhoods as well as promote and encourage fair housing opportunities for all economic segments of the community, regardless of age, sex, ethnic background, physical condition, or family size.
2023 PIT Count
The County of Riverside
Department of Public Social
Services (DPSS) with University
of California.

This report summarizes the count methodology, data visualization dashboards, and results of the sheltered and unsheltered PIT Count. The PIT Count provides a snapshot of the visible homeless and is not intended to represent a complete accounting of the homeless population.

Table 3 – Other local / regional / federal planning efforts

Narrative (optional)

Item 2A - Page 16
Annual Action Plan

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AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen particip ation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

The City will follow its approved Citizen Participation Plan (CPP) while developing the Action Plan.

Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on January 26, 2024, to advertise upcoming public hearings and the upcoming Action Plans 30 -day availability.

Public Hearing - The City Council held its first of two Public Hearings on 2/8/24.

Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on March 1, 2024, to advertise a second public hearing on 3/14/24.

The City Council held the second required Public Hearing on March 14 Following this plan allowed constituents to have a voice in the process.

Item 2A - Page 17
Annual Action Plan

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Citizen Participation Outreach
Sort Ord
er
Mode of Outr
each
Target of Outr
each
Summary of
response/attend
ance
Summary of
comments rece
ived
Summary of com
ments not
accepted
and reasons
URL (If applicable)
1 Public Meeting
Minorities

Persons with
disabilities

Non-
targeted/broad
community

Residents of
Public and
Assisted
Housing

TBD TBD NA TBD
Item 2A - Page 18
Annual Action Plan

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Sort Ord
er
Mode of Outr
each
Target of Outr
each
Summary of
response/attend
ance
Summary of
comments rece
ived
Summary of com
ments not
accepted
and reasons
URL (If applicable)
2 Internet
Outreach
Minorities

Persons with
disabilities

Non-
targeted/broad
community

Residents of
Public and
Assisted
Housing
TBD TBD NA https://www.palmspringsca.gov/cdb
gprogram
3 Newspaper Ad
Minorities

Persons with
disabilities

Non-
targeted/broad
community

Residents of
Public and
Assisted
Housing

TBD TBD NA TBD
Item 2A - Page 19
Annual Action Plan

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Table 4 – Citizen Participation Outreach
Item 2A - Page 20
Annual Action Plan

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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction

Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 0 0 0 0 0
PY23 CDBG $487,545.11 Remaining CDBG-CV
$57,643.59 TOTAL PY23 EXPENDITURES
$545,188.70 Projects to include Housing
Rehab, Fair Housing, Admin, CV-Housing
Rehab and CV-Admin
Other public -
federal
Housing
0 0 0 0 0

Table 5 - Expected Resources – Priority Table

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how Item 2A - Page 21
Annual Action Plan

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matching requirements will be satisfied
The City does not receive HOME, ESG, HOPWA, or Housing Choice Vouchers (formerly Section 8). The City will leverage CDBG funds with City General Funds and Housing Funds to maximize resources available to provide needed services. The City of Palm Springs also supports local non- profit organizations through local grant funds administered by the City Clerk’s Office. Non-profits can seek grants annually though an application process unassociated with CDBG.

Item 2A - Page 22
Annual Action Plan

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If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan NA
Discussion
The City seeks to use FY 2024-2025 CDBG funds to address critical housing needs through housing rehabilitation and fair housing activities. The funds are for the benefit of eligible low to moderate income households in Palm Springs.

Item 2A - Page 23
Annual Action Plan

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Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Housing Goal 1-Palm
Springs Comm Devpt&
hm rehab
2020 2024 Affordable
Housing
Community-
wide
Housing CDBG:
$342,818
CDBG-CV 3:
$20,000
CDBG-CV:
$20,000
Homeowner Housing Rehabilitated: 20
Household Housing Unit
2 Housing Goal 4 - Fair
Housing
2020 2024 Fair Housing Community-
wide
Housing CDBG:
$62,026
Public service activities for
Low/Moderate Income Housing Benefit:
1000 Households Assisted
Table 6 – Goals Summary

Goal Descriptions

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1 Goal Name Housing Goal 1-Palm Springs Comm Devpt& hm rehab Goal
Description
Under this program the City would provide grants to qualified low to moderate-income homeowners to make needed home improvements. Grants are available to address code deficiencies, eliminate blight, and improve handicapped accessibility.

To participate, the property must be located within the City of Palm Springs, it must be owner-occupied, and owners must meet income requirements. The program is intended to serve low/moderate income seniors. 2 Goal Name Housing Goal 4 - Fair Housing
Goal
Description

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Projects
AP-35 Projects – 91.220(d)
Introduction
Projects were determined based on the greatest needs.

Projects
# Project Name
1 Fair Housing Council of Riversid e County- Fair Housing Services 2 City of Palm Springs Community & Economic Development - Home Repair Program Table 7 - Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
These allocations were based on the outcomes of the needs assessment in the consolidated plan as well as emerging needs within the jurisdiction.

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AP-38 Project Summary
Project Summary Information
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1 Project Name Fair Housing Council of Riverside County- Fair Housing Services Target Area
Goals Supported Housing Goal 4 - Fair Housing
Needs Addressed Housing
Funding CDBG: $62,026
Description Under CDBG guidelines, the City is mandated to provide its residents with a fair housing program. The Fair Housing Council requested these funds to provide comprehensive services that affirmatively address and promote fair housing (anti-discrimination) rights and landlord/tenant services to the City of Palm Springs. This CDBG activity is eligible to be funded under Public Services and Program Administration Target Date 9/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities

Location Description
Planned Activities Landlord/Tenant services such as education (i.e., outreach, public awareness, individualized counseling) and training / technical assistance (i.e., pro-active workshops preventing complaints and violations); and Anti-Discrimination such as enforcement (i.e., compliant intake, investigation, resolution options).
2 Project Name City of Palm Springs Community & Economic Development - Home Repair Program
Target Area Community-wide
Goals Supported
Needs Addressed Housing
Funding CDBG: $342,818
CDBG-CV: $20,000
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Description For the past 35 years, the City has operated a Home Repair Program. This program assists very low-income homeowners with minor routine maintenance, emergency repairs and accessibility modifications at nominal costs, including other related health and safety code work. First- year participants receive standard disaster preparedness items (i.e., hot water heater strapping). The annual $1,500 grant excludes the first-year disaster preparedness items and any Code Enforcement abatement.

Target Date 9/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
18 Low/Moderate income households
Location Description
Planned Activities Funds will be used for a owner occupied housing repair program. Funds will be used to make repairs necessary for the immediate livability of the home. The program is intended to serve low/moderate income households in Palm Springs.
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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Palm Springs CDBG activities can benefit residents Citywide. The City does not direct assistance to specific geographic areas. The housing rehabilitation program and fair housing services are income based.

Geographic Distribution
Target Area Percentage of Funds
Community-wide 100
Table 8 - Geographic Distribution

Rationale for the priorities for allocating investments geographically The City does not direct assistance to specific geographic areas.

Discussion

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The Action Plan must specify goals for the number of homeless, non-homeless, and special needs households to be provided affordable housing within the program year. The plan must also indicate the number of affordable housing units that will be provided by program type, including rental assistance, production of new units, rehabilitation of existing units, or acquisition of existing units. For the purpose of this section, the term “affordable housing” is defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership.

The City supports these goals by offering a owner occupied assistance program which aids in the repair of code deficiencies and other habitability issues.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 20
Special-Needs 0
Total 20
Table 9 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 20
Acquisition of Existing Units 0
Total 20
Table 10 - One Year Goals for Affordable Housing by Support Type

Discussion
The City does not own or operate any units. For this section, the term “affordable housing” is defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership.

Nevertheless, the City has partnered with third parties in the development of affordable units that would own and operate 1,440 to use CDBG funding for the purpose of affordable housing as defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership.

However, the City partners with the County of Riverside to offer Affordable Housing Development and Down Payment Assistance through the Permanent Local Housing Allocation (PLHA) Program. The County is the lead agency for this program and will prepare the reporting and evaluation on behalf of the City.

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The amount of household assisted and/or served shall be documented through coordination with the County and described in the City's CAPER. In FY 2024-2025 The City of Palm Springs anticipates assisting up to 20 low/moderate income households through its CDBG owner occupied housing rehabilitation programs.

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AP-60 Public Housing – 91.220(h)
Introduction
The City is not designated as a public housing agency. Consequently, all questions pertaining to public housing are referred to the County of Riverside Housing Authority.

Actions planned during the next year to address the needs to public housing NA
Actions to encourage public housing residents to become more involved in management and participate in homeownership
The City will continue to follow its Citizens Participation Plan to inform and encourage resident participation and work with a fair housing services provider to educate residents on various topics relative to their rights as residents and homeownership. The City will continue promoting the purchase of affordable housing units for sale throughout the City and educate anyone interested in purchasing or who desires information on how to purchase a home.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
NA
Discussion
The City will continue its efforts to promote affordable housing within the community and maintain existing affordable housing stock. The City will work with a fair housing services provider to continue to educate both residents within the community, as well as residents of affordable housing, on topics including the resident/tenant/landlord laws, discrimination, homeownership, predatory lending practices, and other areas of need that may arise.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
Homelessness and homeless prevention services are identified as a high priority need in the Consolidated Plan. Riverside County, as an Urban County, annually anticipates expending approximately 25 - 50 percent of its public service cap (up to 15 percent of the CDBG annual allocation) to provide homeless and homeless prevention services. Additionally, the City General funds are used to assist and provide housing opportunities for those at risk of becoming homeless as well as supportive services for those homeless.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The County of Riverside CoC has established chronically homeless persons as the highest need priority.

The CoC implements a targeted street-to-home outreach program/campaign that covers 100% of its area and takes a housing-first approach for chronically homeless households and others with a disabling condition. The City has a contractual arrangement with the County's Department of Mental Health for Homeless Outreach Services through its Housing Crisis Response Team using City General Funds. The City has secured match funds from the Desert Healthcare Foundation for a Second Team and established Homeless Wrap-Around Services through Martha's Village & Kitchen (MV&K). Non-disabled persons are housed as quickly as possible.

The CoC has implemented a coordinated assessment system to ensure the right intervention through program admissions that will be marketed to community groups and outreach providers who coordinate outreach efforts with staff trained to guide households through the process regardless of age, gender, ethnicity, disability, etc. The CoC has outreach teams that cover most of County areas. However, the City of Palm Springs took the lead by engaging County Mental Health and funding a Housing Crisis Response Team which conducts daily mobile street outreach and provides client services focused on the chronically homeless populations living on streets to connect them with supportive services and achieve housing stability. The Department of Mental health has outreach peer specialists in the Desert-Mid county region. The Outreach Specialists presents each person with an initial field assessment and an in depth assessment as well as referrals to all contacts, linkage to various community organizations, assistance with entitlement questions and problems, linkage to mental health providers for assessment and services, if appropriate, and housing by partnering with community agencies. In addition, they facilitate referrals and other linkages to services.

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There are 646 emergency shelter beds and 540 transitional housing beds in the County of Riverside CoC system. Transitional Housing (TH) is offered while providing case management and support services; offering a period of stability to enable homeless people to transition successfully to and maintain permanent housing within 24 months of program entry. To achieve its goal of ending homelessness, the CoC continues encourages agencies to transform TH programs to permanent supportive housing or rapid re-housing. The CoC is working with the County’s Economic Development Agency (EDA), which administers ESG funding, to integrate CoC and ESG funding to increase the number of families with children who are assisted through rapid re-housing. In addition, Emergency Food and Shelter Program (EFSP), funded under FEMA will be matched as a source for rental/mortgage assistance for families that are homeless or at-risk of homelessness in the County’s strategy to meet this goal.

The CoC has adopted the HEARTH Act goal of no more than 30-days homeless and the high-performing communities’ goal of reducing LOTH at least 10% from preceding years. The CoC will target non-HUD funded projects to reduce their LOTH, such as those who receive EFSP, CDBG, and HOME funding. The region's 2-1-1 Community Connect phone and internet access are another essential resource for individuals and families who are at-risk of or are imminently losing their housing. By utilizing 2-1-1 Community Connect, those in need can reach specialists, trained to answer questions, listen to caller's needs, and connect callers with accurate referrals. The referral is based on a continuously updated database of hundreds of health and human services programs and non-profits city and countywide.

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low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The County of Riverside CoC Discharge Policy is mandated by the State of California and followed by the CoC.

The CoC established a Discharge Planning Committee, responsible for implementing policies and protocols and coordinating with various organizations to ensure that persons being discharged from a publicly funded institution or system of care are not discharged immediately into homelessness. The goals are to identify discharge housing needs inclusive of housing and supportive services and to link the individual with community resources that will include mental health services, substance abuse support, and housing.

Health Care – The Hospital Association of Southern California Inland Area serves as the lead agency on the Discharge Planning Committee to facilitate communication regarding the discharge planning needs of homeless persons from acute care hospitals including Riverside County Regional Medical Center. They identify those individuals with severe mental health or substance abuse disorders, and veterans, and fully coordinate their discharge plan possible with follow-up to mental health and/or physical service providers.

Mental Health - The County of Riverside Department of Mental Health (DMH) collaborates with DPSS and the CoC in the coordination and implementation of discharge planning for homeless individuals disabled by a serious mental health and/or substance abuse disorder(s). Activities within a mandated policy such as 1) nature of illness and follow-up required, 2) medications and dosage schedules, 3) referrals to mental health providers, 4) financial needs, 5) educational/vocational needs, 6) social needs, and 7) housing needs are prioritized. DMH provides placement assistance to homeless clients leaving the public and private facilities. They also collaborate with the courts and interested parties to determine how best to meet client needs in a community setting. Based on the assessment, homeless individuals are provided with housing placement in board and care, skilled nursing, and privately funded structured residential settings.

Foster Care - Riverside County’s Children’s Services Division Independent Living Extended Foster Care programs help transition dependent youth who are emancipating from foster care to independent living. Services available for homeless young adults who left foster care include: re-entering extended foster care, housing referrals, SSI screening, application assistance with medical and food benefits, transportation vouchers, clothing services, and replacement of lost or stolen vital documents, such as Social Security card, birth certificate, state ID or driver’s license.

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Corrections - The Department of Public Social Services and the Riverside County Sheriff’s and Probation Departments support the Continuum of Care’s mission of working towards reintegrating persons leaving correctional facilities to community-based living and self -sufficiency through effective use of community services. They identify individuals leaving county correctional facilities and work with stakeholders to link these individuals to housing, mental health, substance abuse services, and community supports.

Another resource is the Probation Day Reporting centers established for the Early Release (AB109) offenders and assistance for job placement, food, clothing, and counseling services upon release from county and state correctional institutions.

Discussion
Through the CoC and Collaborative Applicant, the City will continue to address homeless needs within the community. As such, the City will continue to allocate its Pro-Rata Share of funding to the County for distribution through the CoC. The City’s allocation has been estimated to be $XX,XXX. In addition, the City also continues to work with the Coachella Valley Association of Governments (CVAG) to address the Coachella Valley’s homelessness issue by way of providing funds for homeless prevention and rapid- rehousing in the amount of $XXX,XXX, for County Mental Health Housing Crisis Housing Team in the amount of $XXX,XXX, the Alan Seaman Bus Pass Program in the amount of $XXXX, and the MV&K's Homeless Wrap-Around Services in the amount of $XXX,XXX. With these partnerships, the City and the community have been able to determine the needs required to address homelessness and direct available resources such as providing shelter, supportive services, etc. to assist homeless persons to become self-sufficient. The City and County have partnered to construct and operate a $40,000,000 Homeless Navigation Center. The Navigation center will be operational in 2024.

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AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

No governmental constraints have been identified that have a significant adverse impact on housing and affordable housing development in Palm Springs. The City’s permitting process and infrastructure requirements are comparable to those of surrounding Coachella Valley cities. Although some application fees may have increased, they remain among the lowest in the region. General Plan and zoning land use designations allow for all types of development and a broad range of densities. The City’s housing policies and programs have been established and implemented, as necessary, to assure that governmental constraints are minimized. The City’s processes are not a constraint to the provision of affordable housing.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City's Housing Element analyzes the governmental, environmental, physical, and economic constraints associated with the development of housing. The Housing Element does not reflect conditions within Palm Springs' control that would negatively impact affordable housing opportunities or create barriers. The City will continue to use available resources to assist in increasing the availability of affordable housing through services, including fast-tracking for shorter processing time, where possible. Other services include maximizing limited resources to increase affordable housing units to lower-income households in its efforts to remove barriers to affordable housing. The City's Consolidated Plan outlines specific goals and activities that will assist in minimizing or eliminating barriers to affordable and fair housing, which the City will continue to address annually.

Discussion:

Funding a fair housing service provider will assist the City in educating and addressing issues that may arise that create barriers to affordable housing and fair housing throughout the year, as well as educating groups/individuals of these barriers. In addition, the City updated its Analysis of Impediments to Fair Housing Choice and Fair Housing Action Plan that will also assist the City in addressing these types of issues.

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AP-85 Other Actions – 91.220(k)
Introduction:

The City will continue to address obstacles impacting its ability to provide services to those in need. This will be accomplished through the identified resources and funded organizations.

Actions planned to address obstacles to meeting underserved needs The City will continue to work toward the reduction/elimination of obstacles to meet underserved needs through the funding of various organizations designed to provide services to those in need. The City is not equipped to provide direct services required; therefore, funding organizations that do is essential.

The City does partner with these organizations to address obstacles and address barriers that exist.

Actions planned to foster and maintain affordable housing The dissolution of California Community Redevelopment Agencies has dramatically hampered the availability of funds to foster and maintain affordable housing.

The City will use FY 2024-2025 CDBG funds to rehabilitate owner occupied housing. This will assist in the preservation of approximately 20 housing units. The remainder of the City's CDBG allocation will be used to provide fair housing services throughout the City.

The City's Building and Safety Department addresses this issue on a case-by-case basis through the following steps:

Step 1: As newer homes are built, stricter environmental guidelines and the sale and rental of older homes are regulated to protect potential buyers and renters. While lead-based paint hazards are still a potential problem, this has allowed for better protection to children and adults by minimizing lead- based paint hazards in new homes.

Step 2: The City will work with the County, residents, or others to address the issue of lead-based paint hazards through testing and abatement efforts on a case-by-case basis. State law, as amended under Section 302, requires housing agencies to conduct random samples of dwelling units, common areas, and exteriors to determine the presence of lead-based paint in pre-1979 family developments where children live or possibly visit.

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Step 3: The City will conduct outreach and education through the City’s Building and Safety Department.

Outreach and education ensure that regulations related to enforcement of lead-based paint are carried out on City projects and on private projects, when possible, through remodels and rehabilitation of older units that require permits or if brought to the City’s attention.

Step 4: The City will also refer calls to the County of Riverside Environmental Health Department to identify qualified firms that assist residents and businesses with lead-based paint, mold, and other hazards.

Step 5: The City will contract with a fair housing services provider, which will distribute informational brochures and hold events to educate and increase awareness of lead-based paint hazards.

Actions planned to reduce the number of poverty-level families Assisting service providers established to address specific areas of need to those facing poverty is essential in the City’s ability to focus on reducing this issue. Through the partnerships and working relationships with Providers and other Agencies implementing such programs that provide education, job training, supportive services, etc. The City will achieve some success in assisting those facing poverty to improve their situations. Some of the focus areas include: Employment and Education: Jobs, job training, technical assistance, adult literacy, and life skills. Housing: Affordable housing, home repair and rehabilitation, emergency shelters, transitional and permanent housing. Safety Net Services: Food pantries, emergency homeless shelter services, basic nutrition, counseling, and other forms of assistance, when identified. Youth: Programs and services for youth and at-risk youth.

Actions planned to develop institutional structure
The City will continue with the same process as in the past to undertake actions to develop and maintain institutional structure as follows: Work with County of Riverside, Department of Health as well as other County departments and public agencies to address homeless, food, housing, etc. issues throughout the County; Work with non-profit organizations to improve services or address other needs that are focused on addressing underserved needs within the community; Work with private businesses and other residents, where and when possible; and Continue to participate with the County Continuum of Care Board of Governance and CVAG Homeless Committee to address homeless issues and continue to build a strong collaboration to assist homeless efforts. Improving relations with these groups should improve and establish new institutional structures to gather participation, input, information, or any other form of communication or assistance that will improve the process and address unmet needs.

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carry out goals and objectives of the CDBG Program. The City strives to create a more cooperative and collaborative working relationship. The City invites these groups to attend public hearings, community meetings, and special meetings that address specific programs and projects. The City has an approved Citizen’s Participation Plan that it follows in this regard.

Discussion:

The City seeks to build new partnerships and maintain existing relationships to address and further the needs of the homeless, those at-risk of becoming homeless, and very low to low-income individuals and families. Efforts include implementing new support programs that address needs and gaps in existing service, providing and/or maintaining housing/shelter opportunities, rapid re-housing assistance for homeless and those facing homelessness, assistance with negotiating social services available to individuals and families, and tracking activities associated with these programs. Such efforts allow involved agencies and organizations to better be able to identify and address needs of this clientele.

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 75.00%

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Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Palm Springs has been operating as an entitlement community since 1987 under the U.S.

Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program. The Annual Action Plan delineates the City's proposed investment of its allocation in CDBG entitlement funds during the fiscal year 2023 – 2024 spanning July 1, 2023, through June 30, 2024, the forty-nineth year of operation for Palm Springs' CDBG program. The Action Plan will serve as the City of Palm Springs's annual application to HUD for federal funds over the next year and is the fourth in the five-year (2020 – 2024) Consolidated Plan. The Annual Action Plan builds upon the strategies articulated in the Consolidated Plan. It represents the City's continued effort to provide activities that address the housing and other community-identified priority needs of the very low, low, and moderate-income residents of Palm Springs.

2. Summarize the objectives and outc omes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. <div></div><div>The Consolidated Plan is a tool used by the City to bring to accomplish the goals and objectives as outlined within the Consolidated Plan. The City's goals and objectives for the next five years are summarized and address such issues related to seniors and youth, homeless, handicapped, and those in general that fall within the very low to low and moderate-income levels. During the FY 2023–2024-year, Palm Springs will focus CDBG funding on providing home repairs to eligible low and moderate income seniors through a pilot housing rehabilitation program. The goals and objectives address needs within the community and what areas to focus on to address those needs.</div>

3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

The City of Palm Springs collaborates and partners with many organizations, groups, individuals, and agencies that express an interest in providing input and working with the City to identify and address gaps in the service and the needs of the community. These efforts are mainly for those that experience financial instability, which manifests into many other areas of need. Palm Springs has also managed to Item 2A - Page 46
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continue with its affordable housing program. These funding sources are instrumental in carrying out the programs and projects identified to meet the goals and objectives also determined by the City as being essential to provide needed services and fill gaps in services. The City of Palm Springs will be able to undertake designated programs and projects in FY 2023/2024 designed to meet the goals and objectives outlined within the new Five-Year Consolidated Plan for FY 2020/2021 through FY 2024/2025.

The economy, homeless epidemic, and housing crisis the State faces still has created a need greater than the City can address in a single year or possibly even in multiple years. The City chose to use the FY 2023-2024 allocation to fund a housing rehabilitation program that will primarily assist low /moderate income Seniors, with housing repairs that impact the safety and livability of their housing.

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

The City followed its approved Citizen Participation Plan (CPP) while developing the Action Plan. For the FY 2023-2024 Annual Action Plan, the City held two public hearings to gather citizen participation in the planning process and development of proposed activities of the Action Plan. Additionally, the City encourages feedback from the public to submit written responses to the City Clerk during the commenting period of the Draft Annual Action Plan. The Draft Annual Action Plan was advertised in the local newspaper and was available for review in the Office of the City Clerk, City of Palm Springs, 3200 E.

Tahquitz Canyon Way, Palm Springs, California, 92262 and on the City’s website (www.palmspringsca.gov).

The Draft Annual Action Plan was made available electronically for public review and comment for a 30- day period beginning March 25, 2023, to April 23, 2023. Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on March 10, 2023, to advertise upcoming public hearing and the upcoming Action Plans 30 -day availability was published in the local Desert Sun newspaper. Public Hearing - The City Council held its first of two Public Hearings on March 23,2023. Internet Outreach - Information regarding the Draft Action Plan was published on the City website event calendar for the encouragement of public participation Internet Outreach - Information regarding the Draft Action Plan was made available on the City's website under CDBG webpage to encourage public participation.

Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on April 15, 2023, to advertise a second public hearing on April 27, 2023. The City Council held the second required Public Hearing on April 27, 2023.

Substantial Amendment:

For the Substantial Amendment to the PY23 Annual Action Plan, the City held two public hearings to gather citizen participation as outlined in the Citizen Participation Plan. The Draft Substantial Amendment was advertised in the local newspaper and was available for review in the Office of the City Clerk, City of Palm Springs, 3200 E. Tahquitz Canyon Way, Palm Springs, California, 92262 and on the City’s website (www.palmspringsca.gov).

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The Draft Substantial Amendment was made available electronically for public review and comment for a 30-day period beginning February 12, 2024, to March 13, 2024.

Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on January 26, 2024, to advertise upcoming public hearing and the upcoming Action Plans 30 -day availability was published in the local Desert Sun newspaper.

Public Hearing - The City Council held its first of two Public Hearings on February 8, 2024. The City Council will hold the second required Public Hearing on March 14, 2024.

Internet Outreach - Information regarding the Draft Action Plan was published on the City website event calendar for the encouragement of public participation Internet Outreach - Information regarding the Draft Action Plan was made available on the City's website under CDBG webpage to encourage public participation.

Newspaper AD – A Legal Notice was published in the Desert Sun newspaper on March 1, 2024, to advertise a second public hearing on March 14, 2024.

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

The City did not receive any public comments after the 30-day public participation period.

Substantial Amendment:

The City will summarize any public comments after the 30-day public participation period.

6. Summary of comments or views not accept ed and the reasons for not accepting them No comments were rejected.

Substantial Amendment:

The City will summarize any public comments not accepted after the 30-day public participation period.

7. Summary
Through the Citizens Participation Plan process, public hearings, meetings, and applications, the City were able to approve programs and projects of the Annual Action Plan that would meet our designated goals and objectives as outlined in the Consolidated Plan. The goals and objectives will assist the City in Item 2A - Page 48
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determining what programs and activities to fund to continue meeting the needs as identified within the community.

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PR-05 Lead & Responsible Agencies – 91.200(b)

Agency Role Name Department/Agency

CDBG Administrator PALM SPRINGS Community & Economic Development Department Table 1 – Responsible Agencies

Narrative (optional)
The Community and Economic Development Department of the City of Palm Springs is the lead department responsible for the 2023-2024 Annual Action Plan. The Community and Economic Development Department also coordinated and consulted with a variety of City Departments in coordinating extensively, both internally and with other County Agencies or nonprofit organizations, to provide vital community services. The City's coordination and consultation efforts began in early fall and have included numerous forums, one-on-one telephone calls with social service providers, and public hearings held in City Council chambers. The City of Palm Springs is a local government jurisdiction with a population of 48,518(2019 ACS). The City has been an Entitlement Community for CDBG Program since FY 1987.

Consolidated Plan Public Contact Information
Contact Person: Jay Virata, Housing & Community Development Director Street Address: 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262-6959 Mailing Address: PO Box 2743, Palm Springs, CA 92263-2743 Item 2A - Page 50
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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The 2023- 2024 Annual Action Plan was prepared as a joint effort between multiple public, private, and non-profit community partners as well as through community outreach and engagement.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City developed the FY 2023-2024 Annual Action Plan through consultation with adjacent local governments such as the Riverside County Housing Authority, Palm Springs CoC, Department of Public and Social Services, as well as City Departments, social and health service providers, and other local non- profit organizations.

Essential aspects of the Annual Action Plan development process and implementation of project objectives involved meeting and coordinating with the CoC as well as other organizations and agencies that supply Riverside County residents including those in the City of Palm Springs. These meetings helped recognize our priority needs as well as what demands there are for various coordinated homeless and housing services. The City of Palm Springs will continue to consult with the CoC, Housing Authority, and other agencies where necessary to address the needs of the homeless populations as well as housing for persons at risk. The City of Palm Springs is not directly involved in the CoC. The City is, however, part of the Coachella Valley Association of Governments (CVAG) Homeless committee which is part of the CoC. As part of the effort to ensure the effective and efficient provision of housing and other services to homeless individuals and families, the development of the Consolidated Plan also included active citizen participation, which is described later in the Citizen Participation section.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Palm Springs is not a direct recipient of ESG funds.

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2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Riverside County Continuum of Care Agency/Group/Organization Type Housing
Services-Victims of Domestic Violence
Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied
youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?

2 Agency/Group/Organization HOUSING AUTHORITY OF COUNTY OF

RIVERSIDE
Agency/Group/Organization Type Housing
PHA
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs
Homeless Needs - Chronically homeless
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied
youth
Market Analysis
Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?

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3 Agency/Group/Organization The County of Riverside Department of Public Social Services (DPSS)
Agency/Group/Organization Type Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Victims of Domestic Violence
Services-homeless
Services-Health
Services-Education
Services-Employment
What section of the Plan was addressed by Consultation? Public Housing Needs Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied
youth
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?

4 Agency/Group/Organization FAIR HOUSING COUNCIL OF RIVERSIDE

COUNTY, INC
Agency/Group/Organization Type Services-Education
Services-Employment
Service-Fair Housing
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs
Market Analysis
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Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?

Identify any Agency Types not consulted and provide rationale for not consulting The City made a strong effort to consult with all agency types relevant to the development of this Consolidated Plan.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of yo ur Strategic Plan overlap with the goals of each plan? Continuum of
Care County of Riverside
The County of Riverside is a Continuum of Care applicants and conducts homeless counts, surveys of the homeless population, and strategic planning to end homelessness.

Consistent with the goals of the CoC, the City of Palm Springs Strategic Plan will provide support to nonprofits that meet the social services needs of the residents with an emphasis on the homeless.

Housing
Element City of Palm Springs
Housing Element City of Palm Springs Based on the Regional Housing Needs Allocation (RHNA) set forth by the State of California, The Housing Element is the City's chief policy document for the development of affordable and market-rate housing. Consistent with this policy document, the City will maintain and enhance the quality of existing residential neighborhoods through and, promote and encourage fair housing opportunities for all economic segments of the community, regardless of age, sex, ethnic background, physical condition, or family size.
2022 Point In
Time Report
The County of Riverside
Department of Public Social
Services (DPSS) with University
of California.

Table 3 – Other local / regional / federal planning efforts Narrative (optional)
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AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen particip ation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

Additionally, the City encourages feedback from the public to submit written responses to the City Clerk during the commenting period of the Draft Annual Action Plan.

Substantial Amendment:

The City followed its approved Citizen Participation Plan (CPP) while developing the Substantial Amendment. The City is holding two public hearings to gather citizen participation in the planning process and development of proposed activities of the Substantial Amendment.

Additionally, the City encourages feedback from the public to submit written responses to the City Clerk during the commenting period of the Draft Annual Action Plan.

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Citizen Participation Outreach
Sort Or
der
Mode of Outr
each
Target of Outr
each
Summary of
response/attend
ance
Summary of
comments rece
ived
Summary of com
ments not
accepted
and reasons
URL (If applicable)
1 Public Hearing
Minorities

Non-English
Speaking -
Specify other
language:

Spanish

Persons with
disabilities

Non-
targeted/broa
d community

Residents of
Public and
Assisted
Housing
Two Public
Hearings held
March 23,2023
and April
27,2023. The
public was given
an opportunity
to comment at
both hearings
before the City
Council
Approved the FY
2023-2024
Action Plan.

No comments
received
No comments
received
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Sort Or
der
Mode of Outr
each
Target of Outr
each
Summary of
response/attend
ance
Summary of
comments rece
ived
Summary of com
ments not
accepted
and reasons
URL (If applicable)
2 Internet
Outreach
Minorities

Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broa
d community

Residents of
Public and
Assisted
Housing
Draft documents
were made
available to the
public for review
and comment on
the City of Palm
Springs website.

No comments
received
No comments
received
https://www.palmspringsca.gov/cd
bgprogram
3 Newspaper Ad
Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broa
d community
Public notices
were published
March 10, 2023
and April 15,
2023 in the
Desert Sun, a
newspaper of
general
circulation.

No comments
received
No comments
received

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Substantial Amendment: Citizen Participation Outreach
Sort Or
der
Mode of Outr
each
Target of Outr
each
Summary of
response/attend
ance
Summary of
comments rece
ived
Summary of com
ments not
accepted
and reasons
URL (If applicable)
1 Public Hearing
Minorities

Non-English
Speaking -
Specify other
language:

Spanish

Persons with
disabilities

Non-
targeted/broa
d community

Residents of
Public and
Assisted
Housing
Two Public
Hearings held
February 8, 2024
and XXX. The
public was given
an opportunity
to comment at
both hearings
before the City
Council
Approved the
Substantial
Amendment.

TBD TBD
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Sort Or
der
Mode of Outr
each
Target of Outr
each
Summary of
response/attend
ance
Summary of
comments rece
ived
Summary of com
ments not
accepted
and reasons
URL (If applicable)
2 Internet
Outreach
Minorities

Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broa
d community

Residents of
Public and
Assisted
Housing
Draft documents
were made
available to the
public for review
and comment on
the City of Palm
Springs website.

TBD TBD https://www.palmspringsca.gov/cdb
gprogram
3 Newspaper Ad
Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broa
d community
Public notices
were published
XXX and XXX in
the Desert Sun, a
newspaper of
general
circulation.

TBD No comments
received
Table 4 – Citizen Participation Outreach
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/
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City of Palm Springs anticipates receiving CDBG funds of $2,244,905 during the five years of the Consolidated Plan, and $413,506 will be received in FY 2023-2024.

Substantial Amendment: The City of Palm Springs anticipates reallocating $71,847.31 in prior year resources as well as $57,643.59 in remaining CV funds to increase funding in the rehab/repair program.

Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 413,506 0 0 413,506 0
Substantial Amendment: The City of
Palm Springs anticipates reallocating
$71,847.31 in prior year resources as well
as $57,643.59 in remaining CV funds to
increase funding in the rehab/repair
program.

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Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Other public -
federal
Other
0 0 0 0 0

Other public -
federal
Public Services
0 0 0 0 0

Table 5 - Expected Resources – Priority Table

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City does not receive HOME, ESG, HOPWA, Housing Choice Vouchers (formerly Section 8), Competitive McKinney-Vento Homeless Assistance Act Funds. The City will leverage CDBG funds with City General Funds and Housing Funds to maximize resources available to provide needed services. The City of Palm Springs also supports local non-profit organizations through local grant funds administered by the City Clerk’s Office. Non-profits can seek grants annually though an application process.

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If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Not applicable.

Discussion
The City seeks to use FY 2023-2024 CDBG funds to address critical housing needs through housing rehabilitation and fair housing activities. The funds are for the benefit of eligible low to moderate income households in Palm Springs.

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Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Housing Goal 1-Palm
Springs Comm Devpt
& hm rehab
2020 2024 Affordable
Housing
Community-
wide
Housing CDBG:
$358,506
Homeowner Housing Rehabilitated: 22
Household Housing Unit
2 Housing Goal 4 - Fair
Housing
2020 2024 Fair Housing Community-
wide
Housing CDBG:
$55,000
Public service activities for
Low/Moderate Income Housing
Benefit: 1000 Households Assisted

Substantial Amendment: Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Housing Goal 1-
Palm Springs
Comm Devpt &
hm rehab
2020 2024 Affordable
Housing
Community-
wide
Housing CDBG: $358,506 +
$71,847.31 from prior year
resources as well as
$57,643.59 in CV funds
Homeowner Housing
Rehabilitated: 24 Household
Housing Unit

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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
2 Housing Goal 4 -
Fair Housing
2020 2024 Fair Housing Community-
wide
Housing CDBG: $55,000 Public service activities for
Low/Moderate Income Housing
Benefit: 1000 Households
Assisted
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Housing Goal 1-Palm Springs Comm Devpt & hm rehab Goal
Description
Under this program the City would provide grants to qualified low to moderate-income homeowners to make needed home improvements. Grants are available to address code deficiencies, eliminate blight, and improve handicapped accessibility. To participate, the property must be located within the City of Palm Springs, it must be owner-occupied, and owners must meet income requirements. The program is intended to serve low/moderate income senior citizens. 2 Goal Name Housing Goal 4 - Fair Housing
Goal
Description
Under CDBG guidelines, the City is mandated to consider fair housing impacts in its CDBG program and allows for CDBG funds to use CDBG funding for Fair Housing Activities. Fair Housing and Activities include but are not limited to: fair housing counseling, landlord tenant mediation, education and training about renters rights, leases, etc. This also targets "protected classes" which includes nondiscrimination based on actual or perceived race, religion, color, sex, age, domestic partner status, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition. The City Council requested these funds to provide comprehensive services that affirmatively address and promote fair housing (anti-discrimination) rights and landlord/tenant services to the City of Palm Springs

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Projects
AP-35 Projects – 91.220(d)
Introduction
The City used a grantee survey of qualified organizations with direct solicitation to allow the City Council to select qualified organizations projects based on need. Therefore, the City chose model 3- Grantee survey of qualified organizations with direct solicitation

Projects
# Project Name
1 City of Palm Springs Community & Economic Development Home Repair Program- Substantial 2 Fair Housing and Legal Services
Table 7 - Project Information

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AP-38 Project Summary
Project Summary Information
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1 Project Name City of Palm Springs Community & Economic Development Home Repair Program- Substantial
Target Area Community-wide
Goals Supported Housing Goal 1-Palm Springs Comm Devpt & hm rehab Needs Addressed Housing
Funding CDBG: $358,506
Substantial Amendment:

Add $71,847.31 prior year resources as well as $57,643.59 in CV funds Description Homeowner-occupied housing repair program. CDBG Funds will be used to make repairs necessary for safety and immediate livability of the home. The program is expected to serve low/moderate income seniors in Palm Springs.

Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
22 Low/Moderate income households
Location Description 3200 E Tahquitz Canyon Way, Palm Springs 92262 Planned Activities Funds will be used for a owner occupied housing repair program. Funds will be used to make repairs necessary for the immediate livability of the home. The program is intended to serve low/moderate income seniors in Palm Springs.
2 Project Name Fair Housing and Legal Services
Target Area Community-wide
Goals Supported Housing Goal 4 - Fair Housing
Needs Addressed Housing
Funding CDBG: $55,000
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Description Under CDBG guidelines, the City required to consider fair housing impacts in its CDBG program and allows for CDBG funds to use CDBG funding for Fair Housing Activities. Fair Housing and Activities include but are not limited to fair housing counseling, landlord tenant mediation, education and training about renters’ rights, leases, etc.

This also targets "protected classes" which includes nondiscrimination based on actual or perceived race, religion, color, sex, age, domestic partner status, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition. Funds will be used to provide comprehensive services that affirmatively address and promote fair housing (anti-discrimination) rights and landlord/tenant services to the City of Palm Springs. This CDBG activity is eligible to be funded under Public Services and Program Administration Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed activities
1000 low/moderate income households
Location Description
Planned Activities Landlord/Tenant services such as education (i.e., outreach, public awareness, individualized counseling) and training / technical assistance (i.e., pro-active workshops preventing complaints and violations); and Anti-Discrimination such as enforcement (i.e., compliant intake, investigation, resolution options).

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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Palm Springs CDBG activities can benefit residents Citywide. The City does not direct assistance to specific geographic areas. The housing rehabilitation program and fair housing services are income based.

Geographic Distribution
Target Area Percentage of Funds
Community-wide 100
Table 8 - Geographic Distribution

Rationale for the priorities for allocating investments geographically The City does not direct assistance to specific geographic areas.

Discussion

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City experienced significant economic hardship during the 2021-2022 period, and lost its housing set aside funds as a result of the elimination of redevelopment by the State. These two factors limited the City's ability to facilitate affordable housing projects. However, the City continues to encourage the development of various housing units for extremely low to moderate-income households in a variety of ways. Activities include outreach to non-profits and for-profits housing developers as well as the County CoC/Collaborative Applicant, providing in-kind technical assistance for housing developers, financing and funding assistance, and expedited processing as appropriate. Through the efforts of these entities and the CoC, the housing needs of various segments are carefully reviewed and addressed, to the greatest extent possible. According to the Southern California Association of Governments (SCAG) delegating to the Coachella Valley Association of Governments (CVAG), the responsibility to assign specific housing needs goals; the factors rely on population and employment growth projections. On February 6, 2019, the City approved entering into a Disposition & Development Agreement with Community Housing Opportunity Corporation (CHOC) for a 60-unit multi-family affordable housing development. CHOC has successfully secured tax credit funding in the amount of $ 20,000 and the project will be progressing into the design phase.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 22
Special-Needs 0
Total 22
Table 9 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 22
Acquisition of Existing Units 0
Total 22
Table 10 - One Year Goals for Affordable Housing by Support Type

Nevertheless, the City has partnered with third parties in the development of affordable units that Item 2A - Page 71

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would own and operate 1,440 to use CDBG funding for the purpose of affordable housing as defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership.

The amount of household assisted and/or served shall be documented through coordination with the County and described in the City's CAPER. In FY 2023-2024 The City of Palm Springs anticipates assisting up to 22 low/moderate income households through its CDBG owner occupied housing rehabilitation programs .

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AP-60 Public Housing – 91.220(h)
Introduction
The City is not designated as a public housing agency. Consequently, all questions pertaining to public housing are referred to the County of Riverside Housing Authority.

Actions planned during the next year to address the needs to public housing Not applicable.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
The City will continue to follow its Citizens Participation Plan to inform and encourage resident participation and work with a fair housing services provider to educate residents on various topics relative to their rights as residents and homeownership. The City will continue promoting the purchase of affordable housing units for sale throughout the City and educate anyone interested in purchasing or who desires information on how to purchase a home.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable.

Discussion
The City will continue its efforts to promote affordable housing within the community and maintain existing affordable housing stock. The City will work with a fair housing services provider to continue to educate both residents within the community, as well as residents of affordable housing, on topics including the resident/tenant/landlord laws, discrimination, homeownership, predatory lending practices, and other areas of need that may arise.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
Homelessness and homeless prevention services are identified as a high priority need in the Consolidated Plan. Riverside County, as an Urban County, annually anticipates expending approximately 25 - 50 percent of its public service cap (up to 15 percent of the CDBG annual allocation) to provide homeless and homeless prevention services. Additionally, the City General funds are used to assist and provide housing opportunities for those at risk of becoming homeless as well as supportive services for those homeless.

The CoC implements a targeted street-to-home outreach program/campaign that covers 100% of its area and takes a housing-first approach for chronically homeless households and others with a disabling condition. The City, as well, has engaged contractual arrangements with the County's Department of Mental Health for Homeless Outreach Services through its Housing Crisis Response Team with City General Funds. The City has secured match funds from the Desert Healthcare Foundation for a Second Team and established Homeless Wrap-Around Services through Martha's Village & Kitchen (MV&K).

Non-disabled persons are housed as quickly as possible. The CoC has implemented a coordinated assessment system to ensure the right intervention through program admissions that will be marketed to community groups and outreach providers who coordinate outreach efforts with staff trained to guide households through the process regardless of age, gender, ethnicity, disability, etc. The CoC has outreach teams that cover most of County areas. However, the City of Palm Springs took the lead by engaging County Mental Health and funding a Housing Crisis Response Team which conducts daily mobile street outreach and provides client services focused on the chronically homeless populations living on streets to connect them with supportive services and achieve housing stability. The Department of Mental health has outreach peer specialists in the Desert-Mid county region. The Outreach Specialists presents each person with an initial field assessment and an in depth assessment as well as referrals to all contacts, linkage to various community organizations, assistance with entitlement questions and problems, linkage to mental health providers for assessment and services, if appropriate, and housing by partnering with community agencies. In addition, they facilitate referrals and other linkages to services.

Addressing the emergency shelter and transitional housing needs of homeless persons There are 646 emergency shelter beds and 540 transitional housing beds in the County of Riverside CoC.

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Transitional Housing (TH) is used to cover the costs of housing while providing case management and support services; providing a period of stability to enable homeless people to transition successfully to and maintain permanent housing within 24 months of program entry. To achieve its goal of ending homelessness, the CoC encourages communities to transform transitional housing programs to permanent supportive housing or rapid re-housing. The CoC is working with the County’s Economic Development Agency (EDA), which administers ESG funding, to integrate CoC and ESG funding to increase the number of families with children who are assisted through rapid re-housing. In addition, non-McKinney-Vento funding sources, such as Emergency Food and Shelter Program (EFSP), funded under FEMA will be matched as a source for rental/mortgage assistance for families that are homeless or at-risk of homelessness in the County’s strategy to meet this goal.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The CoC has taken the following steps to reduce the length of time homeless (LOTH): 1) adopted and implemented a CoC wide Housing First approach; 2) adopted and implemented a CoC wide Rapid Re- housing approach. The CoC has recently increased the number of public/private partners to help implement these approaches; 3) the CoC has begun revising intake processes to ensure homeless households are given the appropriate intervention at the time admitted to the program to help reduce their stay; 4) adjusted case management procedures to train CoC and ESG case managers to move away from a housing-ready approach to an evidence-based home-based case management approach; 5) improved data collection through HMIS by training participants to enter related data correctly and timely; and 6) generating monthly reports for outcome measurement. The CoC is in the process of adopting the HEARTH goal of no more than 30-days homeless and the high-performing communities’ goal of reducing LOTH at least 10% from preceding years. The CoC will target non-HUD funded projects to reduce their LOTH, such as those who receive EFSP, CDBG, and HOME funding. The region's 2-1-1 Community Connect phone and internet access are another essential resource for individuals and families who are at-risk of or are imminently losing their housing. By utilizing 2-1-1 Community Connect, those in need can reach specialists, trained to answer questions, listen to caller's needs, and connect callers with accurate referrals. The referral is based on a continuously updated database of hundreds of health and human services programs and non-profits city and countywide.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving Item 2A - Page 75
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assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The County of Riverside CoC Discharge Policy is mandated by the State of California and followed by the CoC. The CoC established a Discharge Planning Committee, responsible for implementing policies and protocols and coordinating with various organizations to ensure that persons being discharged from a publicly funded institution or system of care are not discharged immediately into homelessness. The goals are to identify discharge housing needs inclusive of housing and supportive services and to link the individual with community resources that will include mental health services, substance abuse support, and housing. Health Care – The Hospital Association of Southern California Inland Area serves as the lead agency on the Discharge Planning Committee to facilitate communication regarding the discharge planning needs of homeless persons from acute care hospitals including Riverside County Regional Medical Center. They identify those individuals with severe mental health or substance abuse disorders, and veterans, and fully coordinate their discharge plan possible with follow-up to mental health and/or physical service providers. Mental Health - The County of Riverside Department of Mental Health (DMH) collaborates with DPSS and the CoC in the coordination and implementation of discharge planning for homeless individuals disabled by a serious mental health and/or substance abuse disorder(s). Activities within a mandated policy such as 1) nature of illness and follow-up required, 2) medications and dosage schedules, 3) referrals to mental health providers, 4) financial needs, 5) educational/vocational needs, 6) social needs, and 7) housing needs are prioritized. DMH provides placement assistance to homeless clients leaving the public and private facilities. They also collaborate with the courts and interested parties to determine how best to meet client needs in a community setting. Based on the assessment, homeless individuals are provided with housing placement in board and care, skilled nursing, and privately funded structured residential settings. Foster Care - Riverside County’s Children’s Services Division Independent Living Extended Foster Care programs help transition dependent youth who are emancipating from foster care to independent living. Services available for homeless young adults who left foster care include: re-entering extended foster care, housing referrals, SSI screening, application assistance with medical and food benefits, transportation vouchers, clothing services, and replacement of lost or stolen vital documents, such as Social Security card, birth certificate, state ID or driver’s license. Corrections - The Department of Public Social Services and the Riverside County Sheriff’s and Probation Departments support the Continuum of Care’s mission of working towards reintegrating persons leaving correctional facilities to community-based living and self -sufficiency through effective use of community services. They identify individuals leaving county correctional facilities and work with stakeholders to link these individuals to housing, mental health, substance abuse services, and community supports. Another resource is the Probation Day Reporting centers established for the Early Release (AB109) offenders and assistance for job placement, food, clothing, and counseling services upon release from county and state correctional institutions.

Discussion
Through the CoC and Collaborative Applicant, the City will continue to address homeless needs within Item 2A - Page 76

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the community. As such, the City will continue to allocate its Pro-Rata Share of funding to the County for distribution through the CoC. The City’s allocation has been estimated to be $70000. In addition, the City also continues to work with the Coachella Valley Association of Governments (CVAG) to address the Coachella Valley’s homelessness issue by way of providing funds for homeless prevention and rapid- rehousing in the amount of $100000, for County Mental Health Housing Crisis Housing Team in the amount of $330000, the Alan Seaman Bus Pass Program in the amount of $3000, and the MV&K's Homeless Wrap-Around Services in the amount of $146412. With these partnerships, the City and the community have been able to determine the needs required to address homelessness and direct available resources such as providing shelter, supportive services, etc. to assist homeless persons to become self-sufficient.

Item 2A - Page 77
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AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

Discussion:

Item 2A - Page 78
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AP-85 Other Actions – 91.220(k)
Introduction:

The City will continue to address obstacles impacting its ability to provide services to those in need. This will be accomplished through the identified resources and funded organizations.

The City does partner with these organizations to address obstacles and address barriers that exist.

The City will use FY 2023-2024 CDBG funds to rehabilitate owner occupied housing. This will assist in the preservation of approximately 22 housing units. The remainder of the City's CDBG allocation will be used to provide fair housing services throughout the City.

Actions planned to reduce lead-based paint hazards
The City has a low elevated amount of lead-based poisoning due to the majority of construction of owner-occupied/renter-occupied housing units that occurred after 1970, according to the County of Riverside Environmental Health Department. The City's Building and Safety Department addresses this issue on a case-by-case basis through the following steps: Step 1: As newer homes are built, stricter environmental guidelines and the sale and rental of older homes are regulated to protect potential buyers and renters. While lead-based paint hazards are still a potential problem, this has allowed for better protection to children and adults by minimizing lead-based paint hazards in new homes. Step 2:

The City will work with the County, residents, or others to address the issue of lead-based paint hazards through testing and abatement efforts on a case-by-case basis. State law, as amended under Section 302, requires housing agencies to conduct random samples of dwelling units, common areas, and exteriors to determine the presence of lead-based paint in pre-1979 family developments where children live or possibly visit. Step 3: The City will conduct outreach and education through the City’s Building and Safety Department. Outreach and education ensure that regulations related to enforcement of lead-based paint are carried out on City projects and on private projects, when possible, through remodels and rehabilitation of older units that require permits or if brought to the City’s attention. Step 4: The City will also refer calls to the County of Riverside Environmental Health Department to identify qualified firms that assist residents and businesses with lead-based paint, mold, Item 2A - Page 79

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and other hazards. Step 5: The City will contract with a fair housing services provider, which will distribute informational brochures and hold events to educate and increase awareness of lead-based paint hazards.

Actions planned to enhance coordination between public and private housing and social service agencies
The City works with various County Departments, Agencies, and Non-Profit organizations to identify and carry out goals and objectives of the CDBG Program. The City strives to create a more cooperative and collaborative working relationship. The City invites these groups to attend public hearings, community meetings, and special meetings that address specific programs and projects. The City has an approved Citizen’s Participation Plan that it follows in this regard.

Discussion:

The City seeks to build new partnerships and maintain existing relationships to address and further the needs of the homeless, those at-risk of becoming homeless, and very low to low-income individuals and Item 2A - Page 80
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families. Efforts include implementing new support programs that address needs and gaps in existing service, providing and/or maintaining housing/shelter opportunities, rapid re-housing assistance for homeless and those facing homelessness, assistance with negotiating social services available to individuals and families, and tracking activities associated with these programs. Such efforts allow involved agencies and organizations to better be able to identify and address needs of this clientele.

Item 2A - Page 81

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

Item 2A - Page 82

ATTACHMENT C

Item 2A - Page 83

ATTACHMENT C

Consolidated Plan Goals

HOUSING GOALS

GOAL 1: REMOVE CONSTRAINTS THAT HINDER THE PRODUCTION AND

CONSERVATION OF AFFORDABLE HO USING UNITS AND ASSIST IN THE

DEVELOPMENT OF HOUSING OPPORT UNITIES AND ACCESSIBILITY FOR ALL ECONOMIC LEVELS IN THE CITY.

GOAL 2: PROVIDE SUPPORT SERVICES FOR THE CITY'S RESIDENTS TO ENSURE

THAT ALL HOUSING PROGRAMS ARE AVAILABLE WITHOUT

DISCRIMINATION ON THE BASIS OF ACTUAL OR PERCEIVED RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN (I.E., PLAC E OF ORIGIN,

IMMIGRATION STATUS, CULTURAL OR LINGUISTIC CHARACTERISTICS,

OR ETHNICITY), SEXUAL ORIENT ATION, GENDER IDENTITY, GENDER

EXPRESSION, ANCESTRY, DOMESTIC PARTNER STATUS, MARIITAL

STATUS, AGE, HOUSEHOLD COMPOSIT ION, INCOME, SIZE, PHYSICL OR

MENTAL DISABILITY, MEDICAL CONDI TION, OR ANY OTHER ARBITRARY FACTOR.

HOMELESS GOALS

GOAL 1: SUPPORT OR PROVIDE FUNDI NG FOR PROGRAMS THAT OFFER

SERVICES AND/OR SUPPORTIVE HO USING TO ASSIST HOMELESS

INDIVIDUALS AND/OR FAMILIES

NON-HOUSING GOALS

GOAL 1: ESTABLISH NEW AND/OR EXPANDED COLLABORATIONS WITH LOCAL

SERVICE PROVIDERS ON PROJEC TS AND PROGRAMS THAT REDUCE

THE EFFECTS OF POVERTY AND SERV ES SENIORS, AT-RISK YOUTH,

SEVERELY DISABLED ADULTS, AND SPECIAL NEEDS POPULATIONS

NON-HOUSING COMMUNITY DEVELOPMENT GOALS

GOAL 1: PROVIDE PUBLIC FACILITY IMPROVEMENTS THROUGH DESIGN,

ENERGY-EFFICIENCY, REHABILITATION AND NEW CONSTRUCTION

ECONOMIC DEVELOPMENT

GOAL 1: PROMOTE, MAINTAIN AND/OR EXPAND THE CITY’S ECONOMIC BASE

THROUGH ECONOMIC AND EMPLOYMENT OPPORTUNITIES TO EXISTING

LOCAL BUSINESSES AND PROSPECTIVE BUSINESSES

Item 2A - Page 84

ATTACHMENT D

Item 2A - Page 85
S.R. 111
Tram Way
S.R. 111
I-10
N Indian Canyon Dr
N Gene Autry Trl
Dunn Rd
Date Palm Dr
Ramon Rd
Dinah Shore Dr
N Sunshine Way
E Alejo Rd
Landau BlvdVis Chino
448.07
9412
446.05
9407
9413
9408
9414
446.04
448.04
447.01
446.02
448.06
448.05
/
Palm Springs, California
Census Groups
012 0.5
Miles
Legend
Street Centerline
Census Tracts
Palm Springs City Limits
Item 2A - Page 86

CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 8, 2024 BU SINESS & LEGISLATIVE
SUBJECT: INTRODUCE AN ORDINANC E AMENDING SECTION 3.42.020 AND CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE,

REGARDING THE TAXATION AND REGULATION OF CANNABIS IN THE CITY
FROM: Scott C. Stiles, City Manager
BY: Veronica Goedhart, Department of Special Program Compliance SUMMARY:

On September 26, 2023, the Council received an update on several issues related to the commercial cannabis industry in the City. On October 26, 2023, staff returned to Council with a comprehensive report on the state of the cannabis industry in the City and sought input and direction for amendmen ts to Section 3.42.020 and Chapter 5.55 of the Palm Springs Municipal Code.

RECOMMENDATION:

1. Adopt an Ordinance of the Cit y of Palm Springs, California, amending Section

3.42.020 and Chapter 5.55 of the Palm Sp rings Municipal Code, regarding the taxation and regulation of cannabis in the City. (Attachment A)

2. Authorize the City Manager to execute all documents consistent with this Ordinance.

BACKGROUND:

On October 26, 2023, staff presented to Council the state of the cannabis industry in Palm Springs. Council provided staff direction for ordinance revisions to both Chapter 3.42.020 and 5.55 of the Palm Springs Municipal Code.

Council Direction
Council directed staff to prepare a cannabis ordinance amendment. Specific direction was provided to staff related to local taxes and saturation of retail cannabis facilities. The following table provides a summary of the proposed changes based on the direction Item 3A - Page 1
City Council Staff Report
February 8, 2024 -- Page 2
Cannabis Ordinance Revisions

received from Council.

PROPOSED REVISIONS
Local Tax Reduce local retail gross receipts tax from 10% to 5%.

Implement a 2% gross receipts tax for
transportation and distribution.

Allocation of Cannabis Tax Revenue

% amount to be determined by Council
and to be used for social good and a 1%
allocation for the City’s social equity
pro
gram.

Cannabis Tax Definitions Revise the definition of “gross receipts” to clarify that the State’s excise tax is not
included. Add and define the term
“cannabis accessor
y”.

Cap on Retail Dispensaries Establish a cap on the number of retail dispensaries in the City.

Criteria for Transfer of Retail Dispensaries Set forth criteria a business adheres to in order to transfer their business.

Non-Renewal of Inactive Cannabis
Permits
Businesses that are not operational at the
time of renewal will not be eligible to renew
their local permit.

Educational Materials for Dispensaries
and Lounges
Mandatory educational materials on
consumption of cannabis provided at
dispensaries and loun
ges.

STAFF ANALYSIS:

On October 27, 2023, staff presented ca nnabis tax and dispensary cap data from surrounding Coachella Valley cities. The proposed local tax revisions are in line with the surrounding Coachella Valley cites and other cities statewide that have revised their local tax rates to assist the cannabis industry. In addition to the reduction of local cannabis retail tax rate, staff has proposed a reimplement ation of the local distribution tax to two percent (2%). In February 2019, the City suspended the distribution tax and retained the right to reinstate the distribution tax, “The City retains the right to reinstate and resume collection of these “suspended” taxes, i.e., the City may at a future time increase the tax payable by each transportation and distribution facility”. Nearly eighty percent (79.7%) of cities and counties that permit distribution tax distribution, with tax rates ranging from 0% to 15%. The two percent (2%) amount is consist ent with cities across the State that tax cannabis distribution, a state wide comparison of distributio n tax is attached hereto as Attachment B.

The revisions to local cannabis tax include t he explicit removal of the State’s cannabis excise tax from the definition of gross receipts calculations. This clarification is warranted Item 3A - Page 2
City Council Staff Report
February 8, 2024 -- Page 3
Cannabis Ordinance Revisions

because the current construction, without this explicit removal, required City staff to direct licensees to pay taxes on the taxes they would collect from customers. California’s legal cannabis industry already struggles to attract consumers away from illicit competitors who face no tax liabilities and is consistent with the passage of Senate Bill 512 in 2023, which prohibits local governments from considering the collection of state excise taxes within their respective definitions of gross receipts. Lastly, the definition of “cannabis accessory”, the definition is consistent with the State’s definition found in California Health and Safety Code Section 11018.2. and will provide consistency with the City’s ordinance and State law.

The City, at the time of ordinance adoption, opted to let the market dictate the number of cannabis business entities that could be suppor ted in the City. This has resulted in significant oversaturation of retail cannabis businesses in the City and threatens the viability of the industry as a whole in the City. The proposed ordinance allows cannabis retail businesses that have s ubmitted a completed applicati on to continue the process towards full licensure and operation. However, no new applicants will be received until the number of dispensaries falls below the new capped limits. Prio r to the number of dispensaries falling below the cap, Staff will retu rn to Council with criteria for the vetting of new cannabis retail operations. To further assist with the current oversaturation, non- operational businesses will not be allowed to renew their local permits. Lastly, criteria for the transfer of businesses will be required. The criteria includes that the business must be operational at the time of transfer request, must have a two-year history of operations, and must be in compliance with all regulations and local tax payments.

The Department of Special Program Complia nce reviewed cities within the Coachella Valley and other tour ism areas in the State to see how the respective municipality approached retail cannabis and if t he municipality had rules rela ting to limits or caps on the number of permits or licenses issued . The information found offers different approaches to instituting a limit or cap. Cities are implementing limits based on populations, identified areas, or separation and concentrations of use. The limit or cap on the quantity of retail dispensaries permitted reflects a thoughtful consideration of feedback from both stakeholders and policy makers.

Population Approach

Two cities were identified to have a population approach. The City of Indio sets a limit of 1 cannabis retailer per 17,500 residents. The population analysis is based on the U.S. census estimate. The City of Los Angeles uses an approach of “undue concentration” in a community plan area; “undue concentration" means the applicant's business premises is located within a higher canna bis license / population rati o within the community plan based on the American community survey, updated annually, than the following: ratio of one license per 10,000 residents for storefront retailer.

Item 3A - Page 3
City Council Staff Report
February 8, 2024 -- Page 4
Cannabis Ordinance Revisions

Identified Areas

The City of Los Angeles uses community pl an areas to determine undue concentration.

There are 35 areas identified as a community plan area. From their Planning website, The Community Plans establish neighbo rhood-specific goals and implementation strategies to achieve the broad obj ectives laid out in the City’s General Plan. Together, the 35 Community Plans make up the General Plan’s Land Use Element, which plays an important role in bolstering housing and job opportunities, conserving open space and natural resources, and balancing different neighborhoods’ needs. As noted above, the City of Los Angeles considers an area to have undue concentration when there is more the 1 license per 10,000 residents in a Community Plan Area.

The City of San Diego limits the number of cannabis retail to four per City Council District.

There is an exception that any permitted cannabis retail that changes City Council District because of redistricting may remain at its originally permitted location for the duration of its permit. The limit number of 4 was decided by City Council.

The City of Chula Vista limits no more than th ree City Licenses available for operation within each Council District. Of the three City Licenses available for Operation within each Council District, no more than two City Licenses shall be available for Storefront Retailers.

While crafting their ordinance, many me mbers of the community were opposed to legalization of cannabis. A middle ground approach was to limit the number of storefront retailers, to 2 per district, with the possibility to revisit the allowed number in the future if community sentiment became more favorable.

The City of Palm Desert’s Zoning Code states that the city may authorize a total of 6 conditional use permits for retail cannabis bus inesses to operate in the City of Palm Desert. No more than 1 retail cannabis business may locate on El Paseo. Additionally, no more than 3 retail cannabis businesses may locate on any single street.

Separation and Concentrations of Use
The City of San Jose has a zoning rule t hat a proposed location would not lead to a grouping of more than four of any combination of cannabis uses within a 1,000-foot radius.

Additional Findings
The City of San Franciso is not accepting applications for Retail Cannabis as of July 2023, but this policy will sunset at the end December 31, 2027. Based on data from their Office of the Controller regarding pr ofit trends among cannabis re tail businesses, it appears doubtful that the San Francisco market can sustain additional Cannabis Retail businesses in a number greater than those already in t he application pipeline. Findings from their most recent ordinance amendment on May 25, 2023, stated that there were 65 operating retail cannabis locations and 63 pending applications for retail cannabis.

The City of Oakland limits permits for dispens aries to no more than eight (8) new valid permits for the operation of dispensaries in the City per calendar year, with a minimum of Item 3A - Page 4
City Council Staff Report
February 8, 2024 -- Page 5
Cannabis Ordinance Revisions

half of the dispensary permits issued each calendar year issued to equity applicants. No individual or entity shall have a direct or indirect interest in more than two (2) dispensary permits.

The City of Sacramento currently has a cap of 40 dispensary permits. This number was determined by legacy storefront dispensaries that were open prior to the development of regulations and who registered with the City in 2009 and 2010 and then applied for and successfully completed a two-part application process between 2011-2015. On October 13, 2020, the Council authorized ten additional storefront dispensary permit opportunities solely to the Cannabis Opportunity Reinve stment Equity (CORE) program. The Core program is similar to most jurisdictions’ equity programs.

Table of Municipalities reviewed.

Cannabis Retail
City Comments Additional Informat ion Per Capita (per 10,000 population)
City of
Coachella
No Limit identified. 5 dispensaries
Population 42,554
Per capita: 1.174

Ratio: 1:8,510.8
City of
Indio
Resolution
10313;
1:17,500 residents. Based on official US.

Census estimate
5 dispensaries
Population 90,416
Per capita .5529

Ratio: 1: 18,083
City of La
Quinta

5.91 - Medical
Cannabis
Delivery

Cannabis activities other than Medical
Cannabis Delivery prohibited.

Zero dispensaries
Population 38,181
Per capita 0

Ratio 0
City of
Rancho
Mirage
Chapter 5.30 -
Marijuana
Delivery
Services

Cannabis delivery permitted from outside city
into inside city
Zero dispensaries
Population 17,303
Per capita 0

Ratio 0
City of
Palm
Desert
Chapter 5.101

COMMERCIAL

CANNABIS

BUSINESS

REGULATORY

PERMITS

25.34.120 (c) states only 6 conditional use
permits permitted for city
6 dispensaries
Population 51,541
Per capita 1.358

Ratio 1:7,363
City of
Chula Vista

3 per council district. Total 12 permits.

Storefront and Non-Storefront Retailer
Licenses: 12 total, with no more than three City
Licenses available for operation within each
Council District. Of the three City Licenses
available for Operation within each Council
District, no more than two Cit
y Licenses shall
8 Storefront Retailers
Population 277,220
Per Capita .288

Ratio: 1:34,652
Item 3A - Page 5
City Council Staff Report
February 8, 2024 -- Page 6
Cannabis Ordinance Revisions

be available for Storefront Retailers. 4 Council
districts.

City of
Desert Hot
Springs
Not accepting,
no mention on
specific cap
8 operational as of 2022. 19 CUP's 6 Storefront Retailers Population 32,716
Per Capita 2.44

Ratio: 1:4,089.5
City of
Cathedral
City
Not Accepting
applications
As of November 2016, the City of Cathedral
City has a moratorium for new dispensary
licenses located south of the 10 freeway
13 dispensaries
Population: 52,220
Per Capita 2.29

Ratio: 1:4,351.6
Los
Angeles
LAMC
104.3(a)(1)

Public Convenience or Necessity (PCN)
Process. If the Applicant's proposed Business
Premises is located in a Community Plan Area
that has reached Undue Concentration, the
Applicant must request that the City Council
find that approval of the License Application
would serve the public convenience or
necessity. Prior to seeking a finding from the
City Council, the Applicant shall submit Pre-
Application Record and pay a Pre-Application
Review Fee pursuant to Section 104.19 for
DCR to determine if the proposed Business
Premises location complies with Section
104.04(b). Undue Concentration" means the
Applicant's Business Premises is located within
a higher cannabis License / population ratio
within the community plan based on the
American Community Survey, updated
annually, than the following: ratio of one
License per 10,000 residents for Storefront
Retailer
(Type 10). Community Plan Areas
242 dispensaries
Population: 3,849,000
Per Capita .628

Ratio: 1:15,904.9
San Diego SDMC
141.0504

Cannabis outlets that are consistent with the
requirements for retailer or dispensary license
requirements in the California Business and
Professions Code may be permitted with a
Conditional Use Permit decided in accordance
with Process Three in the zones indicated with
a “C” in the Use Regulations Tables in Chapter
13, Article 1 (Base Zones). No more than four
cannabis outlets are permitted in each City
Council District except that any permitted
cannabis outlet that changes City Council
District as aresult of redistricting may remain at
its originally permitted location for the duration
of its permit
36 dispensaries
Population: 1,382,000
Per Capita .260

Ratio: 1:38,388
Item 3A - Page 6
City Council Staff Report
February 8, 2024 -- Page 7
Cannabis Ordinance Revisions

City of San
Francisco
Ordinance
200144
Went into effect on July 23rd, 2023, and
prohibits the Office of Cannabis from accepting
any new applications for Storefront Retail,
Delivery-Only Retail, Medicinal Retail, and
retail-related Microbusinesses. This legislation
is set to sunset on December 31, 2027. Based
on data from the Office of the Controller
regarding profit trends among cannabis retail
businesses, it appears doubtful that the San
Francisco market can sustain additional
Cannabis Retail businesses in a number
greater than those already in the application
pipeline.
65 dispensaries 63
pending apps: 128
Population: 815,201
Per Capita .79/1.57

Ratio: 1:12,541 / 1:6,338
San Jose Not accepting
apps. Zoning
rules.

The proposed Medical Cannabis Collective
Dispensary site only, Medical Cannabis
Dispensary, or Cannabis Retail Storefront
would not lead to the grouping of more than
four of any combination of the following
uses within a one thousand- foot radius:

Medical Cannabis Collective Dispensary sites
only, Medical Cannabis Dispensaries, or
Cannabis Retail Storefronts. This shall be
measured from the nearest exterior wall of the
cannabis business' occupied tenant space in a
shared building, or to the nearest exterior wall
of the cannabis business' building envelope if
the business is the sole tenant of a building.

6.88.310 - Number of Locations.
15 Dispensaries
Population: 983,489
Per Capita .152

Ratio: 1:65,565
Oakland 5.80.020
The City Administrator shall issue no more than
eight (8) new valid permits for the operation of
dispensaries in the City per calendar year, with
a minimum of half of the dispensary permits
issued each calendar year issued to Equity
Applicants. Delivery only dispensaries shall not
be subject to these limits. Dispensary permits
shall be issued through an equity permit
process done in collaboration with the
department of race and equity. No individual or
entity shall have a direct or indirect interest in
more than two
(2) dispensary permits.
18 Dispensaries / 8
conditionally: 26
Population: 433,823
Per Capita .414 / .599

Ratio: 1:24,101 /
1:16,685
Item 3A - Page 7
City Council Staff Report
February 8, 2024 -- Page 8
Cannabis Ordinance Revisions

Sacramento 5.150.350 Limit
on storefront
cannabis
dispensary
permits.

A. Notwithstanding any contrary provision in
this chapter, the city shall not issue a new
storefront cannabis dispensary permit if there
are 40 or more valid storefront cannabis
dispensary permits at the time an application is
submitted.

B. Whenever the number of valid
storefront cannabis dispensary permits is less
than 40, the city manager may issue an
available permit through a process that is
established by city council resolution. The
process must, at a minimum, be consistent with
this code and may:

1. Evaluate whether applicants will be
able to successfully submit a complete
application for a storefront cannabis dispensary
permit;

2. Evaluate whether applicants will be
able to successfully operate a storefront
cannabis dispensary; and

3. Utilize criteria reasonably necessary to
protect the public health, safety, and welfare

STOREFRONT DISPENSARIES
There are 30 permitted storefront dispensaries
in the City of Sacramento. In November 2020,
Council approved the addition of 10 new
permits exclusive to the participants of the
Cannabis Opportunity Reinvestment and Equity
(CORE) Program. Thus, applications for the 10
new storefront dispensary permits will only be
accepted from the 10 highest scoring
participants in the recent Request for
Qualifications
(RFQ) process. Dispensaries
40 Dispensaries
Population: 525,041
Per Capita .7618

Ratio: 1:13,126

Stakeholder Outreach and Feedback

Staff’s outreach efforts consisted of surveys, interviews, and a stakeholder meeting. Staff also reached out to local Coachella Valley citi es for information and data related to their recent ordinance revisions.

The surveys identified the top two challenges of local o perators as taxes and over- saturation. Local cannabis owners unanimous ly supported the reduction of the local cannabis tax from ten percent to five percent (10% to 5%). Additionally, the majority supported a cap on retail dispensaries. One operator requested a change to the City’s taxation of cannabis nurseries; however, this was directed by Council and not included in the proposed revisions. Twenty-tw o (22) responses were received regarding the retail Item 3A - Page 8
City Council Staff Report
February 8, 2024 -- Page 9
Cannabis Ordinance Revisions

dispensary cap. The recommended c ap ranged from a low of five (5) to a high of thirty- five (35), with the majority recommending a cap of ten (10).

Additional items of concern included State ta xes, federal prohibiti on, limited access to banking and capital, illegal operations, code compliance and local permitting fees.

Distributors expressed their opposition to the reimplementation of the distribution tax.

While many of the issues raised by stak eholders are being addressed in the proposed revisions, code compliance and local permitting fees are not included. Code compliance and permitting fees are addressed below.

Code Compliance

On September 29, 2021, the City adopt ed Administrative Regulation, Authority for the Issuance of Administrative Citations, eliminating the pre-citation notice for cannabis citations. The regulation was supported by C ouncil due to the nature and severity of violations and the impact on the community. Dedicated code compliance for the cannabis industry protects the community from the potential harms of cannabis-related activity. The City monitors and enforces licensee compliance with both state and local regulations. In addition to responding to complaints, cr eating a well-regulated business environment requires proactive measures like periodic comp liance inspections. Site inspections are part of the licensing and renewal process. These inspections are scheduled in advance.

Conditions during a scheduled inspection may not represent actual business practices that could violate rules and regulations. The City’s proactive code inspections have found various violations ranging in severity from display of expired permits to retailers providing cannabis product at no cost. A summary of c ode enforcement action is attached hereto as Attachment C . Code Compliance has worked extens ively providing outreach to operators and working with them to correct minor violations rather than immediate citation issuance. Citations are issued for severe violations and violations that were not corrected in a timely manner.

Permitting Fees

In 2021, the City revised the licensing fees for cannabis permitting. The fee is not a revenue stream for the City; rather, it encom passes the costs for the administration of cannabis permitting and regulation. The fee capt ures the costs incurred by the City to ensure administrative and code co mpliance, and to pay for finance department review (including management, accounting, and yearly auditing of cannabis businesses), police time, consultant costs, and City Attorney legal fees. The fee captures the complete costs to administer and enforce regulated cannabis business in the City. It promotes a safe, regulated, and equitable cannabis industry. A complete analysis of the cannabis permit fees calculation can be found in the April 22, 2021 staff report. It should be noted that the City approved unanimously the direction to appl y the fee increase to both the initial and renewal processing of cannabis permits. As ex plained to Council at the April 22, 2021 meeting, the program requires annual facility inspections and on-going proactive investigations for compliance with regulations and laws. As such, renewal permits should Item 3A - Page 9
City Council Staff Report
February 8, 2024 -- Page 10
Cannabis Ordinance Revisions

have the same fee as an initial permit – whether it is the first year or fifth year of a cannabis operation.

FISCAL IMPACT:

Fiscal year 2022-23 local cannabis tax revenue totaled approximately $3.5 million. Of the $3.5 million, $3 million was co llected from the 10% retail tax. A 5% retail tax would decrease retail tax revenue to $1.5 million. Increased volume due to the lower tax could minimize that loss. The reimplementation of a 2% distribution tax could generate $200,000 annually in revenue further minimizing the effect of the retail tax reduction.

Additionally, there are several cannabis cultivation projects in the pipeline. The cultivation tax for these projects is approximately $112,000 in annual revenue.

REVIEWED BY:

Department Director:

Assistant Cit
y Manager: Teresa Gallavan
City Manager: Scott Stiles

ATTACHMENTS:

A. Ordinance No. ____
B. Distribution Tax Summary
C. Code Compliance Overview

Item 3A - Page 10

ATTACHMENT A

Item 3A - Page 11
55575.00001\41888380.2

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING SECTION 3.42.020 AND
CHAPTER 5.55 PALM SPRINGS MUNICIPAL CODE,

REGARDING THE TAXATION AND REGULATION OF

CANNABIS IN THE CITY

City Attorney’s Summary
This ordinance amends the Cit y’s cannabis taxation and regulatory regime. The taxation section is amended to clarify that “gross receipts” does not include the excise tax
collected as required by State law, places a cap on the number of dispensaries in the City, makes adjustments to application requirements, renew al requirements, transfer criteria, additional operational requirements for cannabis consumption lounges and dispensaries, adds a definition of “cannabis accessories” to the be consistent with State law, and established location criteria for temporary cannabis events.

WHEREAS, the City of Palm Springs allows a variet y of Adult-Use Cannabis Activity in the City and continuously monitors the various issues surrounding the Adult- Use Cannabis Activity in the City; and

WHEREAS, the City levies a gross receipts tax on various cannabis businesses in the City at varying rates dependent on that type of cannabis activity being taxed and a tax on cannabis cultivation based on the square footage of the cultivation area.

WHEREAS, Chapter 3.42 of the Palm Springs Municipal Code, among other things, imposes a gross receipts tax on cannabis businesses (sans cultivation businesses) in the City that shall not exceed fifteen percent (15%); and

WHEREAS, Palm Springs Municipa l Code § 3.42.020 (M) defines “gross receipts” and there is some ambiguity if t he State excise tax should be included in the calculation of gross receipts for local cannabis businesses; and

WHEREAS, other jurisdictions in the C oachella Valley do not include the State excise tax in calculating gross receipts for local taxes. The City Council finds that removing the State excise tax from the City’s calculation of gross receipts tax is necessary to maintain and attract successful cannabis businesses in the City and to remain competitive with other jurisdictions; and

WHEREAS, Section 3.42.090 of the Palm Spring Municipal Code allows the City Council to set the cannabis tax at or belo w the maximum found in the Chapter or otherwise amend, modify, change, or revise any provision of the Chapter as the City Item 3A - Page 12
55575.00001\41888380.2

Ordinance No. _____

Page 2 ends

Council deems in the best interest of the City; and

WHEREAS, removing the State excise tax from the City’s calc ulation of gross receipts will set the cannabis tax below t he maximum rate found in Section 3.42.030 and the City Council finds that it is in the best interest of the City to remove the State excise tax in order to maintain and attract successful cannabis businesses in the City; and

WHEREAS, the City’s current cannabis regulation does not define “cannabis accessories” and this lack of definition has led to some confusion about what is and is not permitted for the City’s local cannabis businesses; and

WHEREAS, defining “cannabis accessories” to match the State’s definition found in the California Health and Safety Code will resolve any confusion and clearly delineate what is and is not allowed by the City’s local cannabis businesses; and

WHEREAS, Chapter 5.55 of the Palm Springs Municipal Code states the City’s application, operational and other regulations pertaining to the various forms of Adult- Use Cannabis Activity in the City; and

WHEREAS, City staff have continued to monitor the operations and best practices for Adult-Use Cannabis Activity in the City and the impa ct these businesses have had on the general public health and safety in the City; and

WHEREAS, through years of implementati on, City staff have also noted certain ambiguities and provisions in its Adult-Us e Cannabis regulations that are no longer entirely consistent with the City’s policies and goals related to Adult-Use Cannabis and have resulted in scenarios and requests to City staff by Adult-Use Cannabis Businesses that are not ideal; and

WHEREAS, the number of dispensaries in the City has far exceeded the demand in the City with the City havi ng one of the highest (if not th e highest) concentration of retail cannabis stores per ratio to individual per square block; and

WHEREAS, specifically, the City desir es to amend its Adult-Use Cannabis regulations to: (i) cap the number of A dult-Use Cannabis Permits for dispensaries issued by the City; (ii) curta il the renewal of Adult-Use Cannabis Permits for businesses that are not operational ; (iii) implement a one-owner/one- dispensary requirement; (iv) require mandatory educational materials for safe cannabis consumption ate Adult-Use Cannabis Dispensaries and Cannabis Lounges; and (v ) update criteria for the transfer of an Adult-Use Cannabis Permit; and

WHEREAS, these proposed changes will a ll contribute to a more sustainable Adult-Use Cannabis industry in the City while ensuring other vital City interests are protected and maintained.

Item 3A - Page 13
55575.00001\41888380.2

Ordinance No. _____

Page 3 ends

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

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

SECTION 2. Code Amendment. Section 3.42.020 (M) of the Palm Springs Municipal Code is hereby amended to read as follows:

M. Except as otherwise specifically pr ovided in this code or by regulation authorized by this code, “gross receip ts” means the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, ro yalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. Included in “gross receipts” shall be all receipts, cash, credits and property of any kind or nature, without any deduction or set off th erefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses what soever. Collection of any State excise tax shall be excluded from “gross receipts.”

SECTION 3. Code Amendment. Section 5.55. 050 of the Palm Springs Municipal Code is hereby amended to add the following definition:

“Cannabis accessories” means any equipment, products or materials of any kind which are used, intended for use, or des igned for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, test ing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body.

SECTION 4. Code Amendment. Section 5.55.095 (A) of the Palm Springs Municipal Code is hereby amended to read as follows:

“A. A permit for an Adult- Use Cannabis dispensary shall not be granted by the City Manager unless all of the following findings are made based on substantial evidence:

1. The dispensary, as proposed, has demonstrated that it can and will comply with all of the requirem ents of the State and City to operate an Adult-Use Cannabis dispensary.

Item 3A - Page 14
55575.00001\41888380.2

Ordinance No. _____

Page 4 ends

2. The dispensary complies with the lo cational requiremen ts of the City’s Zoning Ordinance.

3. The dispensary, as approved and conditi oned, will not result in significant unavoidable impacts on the environment.

4. The dispensary includes adequate meas ures that minimize, to the extent feasible, nuisances to the immediat e neighborhood and community including minimizing the detection of odor from of fsite, minimizing the effects of loitering, providing adequate security measures, and not exceeding any applicable land use entitlements’ limits on hours of operation.

5. The dispensary will provide adequate measures that address the federal enforcement priorities for Cannabis acti vities including restricting drugged driving, restricting access to minors, and ensuring that Cannabis goods are supplied from permitted and licensed sources.

6. The total number of Adult-Use C annabis Dispensary permits issued in the City is less than twenty-five (25) at the time of permit issuance. Legally established, operational existing Adult-Use Cannabis dispensaries shall be allowed to renew their Adult-Use Canna bis Permits provided that the renewal application is otherwise found to be in compliance with this Chapter.

Applicants with complete applications submitted by October 26, 2023, shall be allowed to proceed with the applic ation process and secure a permit in excess of the limit posited by this section.

SECTION 5. Code Amendment. Section 5.55.105 (C) of the Palm Springs Municipal Code is hereby amended to read as follows:

“C. Any Application for re newal shall be denied if:

1. The permittee fails to conform to the criteria set forth in this Chapter;

2. The permittee is delinquent in payment of any City taxes on commercial Cannabis activity; or

3. The permit is suspended or revoked at the time of the Application.

4. The Adult-Use Cannabis Business for which the renewal is sought is not operational as determined by the City Manager .

SECTION 6. Code Amendment. Section 5.55.200 (A) of the Palm Springs Municipal Code is hereby amended to add subsection (28) to read as follows:

“28. Adult-Use Cannabis Dispensaries and Lounges shall display educational materials, either provided or approved by the City Manager, for the safe consumption of cannabis. These materials shall be displayed in a conspicuous location visible to the patrons, approved by the City Manager, at all times the dispensary or lounge is open.”

SECTION 7. Code Amendment. Section 5.55.080 (A) of the Palm Springs Municipal Code is hereby amended to read as follows:

Item 3A - Page 15
55575.00001\41888380.2

Ordinance No. _____

Page 5 ends

A It is unlawful for any person to engage in, operate, conduct, carry on, or allow to be carried on, adult-use cannabis ac tivity in the City without having first met all of the following requirements:

1. The person holds a valid Adult- Use Cannabis Permit pursuant to the requirements of this chapter;

2. The person holds all necessary l and use entitlements pursuant to the requirements of the Zoning ordinance;

3. The person has paid any business tax license pursuant to Chapter 3.56 of this Code; and

4. The person holds a State license in accordance with the MAUCRSA and any applicable regulations implemented by the state or any of its departments or divisions.

Exception. Permittees with Condition al Cannabis Permits may conduct the limited actions permitted by these permits . Conditional Cannabi s Permits issued for Adult-Use Cannabis Acti vity at newly constructed buildings shall expire 24 months from the date of issuance if the Adult-Use Cannabis Business is not operational. Conditional Cannabis Permits issued for Adult-Use Cannabis Activity at existing buildings shall expire 12 months from issuance if the Adult-Use Cannabis Business is not operational. Permi ttees may appeal the expiration of a Conditional Cannabis Permit to the City Manager an d be granted a 12 month extension based on a showing of s ubstantial progress toward becoming operational and no unreasonable delay (i.e ., Permittee should demonstrate measurable progress to becoming operati onal and identify unique factors that impeded the Permittee from becoming operat ional) City Council. Permittees may apply for a second 12 month extension based on the same findings; however, if granted, the Permittee shall pay a penalty determined by the City Council and not to exceed $10,000. Any decision by the Cit y Manager under this section shall be final. Permittees who have Conditiona l Cannabis Permits expire shall be prohibited from applying fo r a Conditional Cannabis Permit or an Adult-Use Cannabis Permit for a period of 12 months.

SECTION 8. Compliance with California Environmental Quality Act. City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical c hange in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment , directly or indirectly. Further, if the activity is deemed a project this City Counc il finds that this Ordinance is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines, as it can be seen with certainty that there is no possi bility that this Ordinance may have a significant effect on the environment.

SECTION 9. Severability. If any section, sentence, clause or phrase of this Ordinance or the application ther eof to any entity, person or circumstance is held for Item 3A - Page 16
55575.00001\41888380.2

Ordinance No. _____

Page 6 ends

any reason to be invalid or unconstitutional, su ch invalidity or unconstitutionality shall not affect other provisions or applications of this Ordi nance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The Ci ty Council of the City of Palm Springs hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fa ct that any one or more sect ion, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 10. Effective Date. This Ordinance shall become effective thirty (30) days following its adoption.

PASSED, APPROVED, AND ADOPTE D BY THE PALM SPRINGS CITY COUNCIL THIS _____ DAY OF ______________, 2024

JEFFREY BERNSTEIN
MAYOR

ATTEST:

BRENDA PREE

CITY CLERK

Item 3A - Page 17
55575.00001\41888380.2

Ordinance No. _____

Page 7 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

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

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, 2023

BRENDA PREE

CITY CLERK

Item 3A - Page 18
55575.00001\41888380.2

Ordinance No. _____

Page 8 ends

Item 3A - Page 19

ATTACHMENT B

Item 3A - Page 20
15 13
23 333
0 3
00 2
0000
1 0
5 10
15 20
25 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% CountiesandMunicipalities
TaxPercentage
DistributionTaxRates
Item 3A - Page 21

Jurisdiction Distribution Tax
Rate
Jurisdiction Distribution Tax
Rate
Paso Robles 15% Montebello 2%
Davis 10% Nevada City 2%
Needles 10% Oceanside 2%
Chula Vista 7% Palm Desert 2%
Hayward 7% Pasadena 2%
Berkeley 5% Rio Dell 2%
Hollister 5% San Bernardino 2%
Yolo County 5% San Diego 2%
Marysville 4% San Jose 2%
Sacramento 4% San Leandro 2%
San Benito County 4% San Luis Obispo 2%
Adelanto 3% Santa Cruz 2%
Pomona 3% Thousand Oaks 2%
Redding 3% Vallejo 2%
Lake County 2.5% Willits 2%
Modesto 2.5% Brisbane 1%
Nevada County 2.5% Costa Mesa 1%
West Sacramento 2.5% Emeryville 1%
Contra Costa 2% Fresno 1%
El Dorado County 2% Goleta 1%
Grover Beach 2% Long Beach 1%
Hanford 2% Los Angeles 1%
La Mesa 2% San Rafael 1%
Lassen County 2% Santa Ana 1%
Mammoth Lakes 2% Santa Barbara
County
1%
Merced 2% Santa Monica 1%
Stockton 1% Firebaugh 0%
Woodlake 1% Monterey County 0%
Alameda County 0% Palm Springs 0%
Cathedral City 0% Santa Cruz County 0%
Commerce 0% Santa Rosa 0%
Culver City 0% Shasta Lake 0%
Desert Hot Springs 0% Sonoma County 0%
Eureka 0% Stanislaus County 0%

Item 3A - Page 22
Special Cases
South Lake Tahoe currently charges a flat annual tax of $8635, plus an additional $85 per employee each year. They have a measure for the upcoming November 2024 ballot (Measure G) that will convert this to a percentage-based tax with a maximum of 6% Coalinga taxes non-retail cannabis operations based on the square footage of the facility. $25 per SqFt for the first 3000 SqFt, and $10 per SqFt for each additional square foot thereafter of operational footprint. This footprint does not include driveways, sidewalks, landscaping, vacant unused space, exclusive office space, break rooms, restrooms, and non-cannabis storage.

Oakland’s Distribution Tax is variable based on the total revenue. $1.5 million or less at 0.12%.

Up to $5 million 3%, and 4% for greater than $5 million.

Lompoc charges a per-dollar tax rate on distribution based on total revenue. $10 million or less – 0.5 cents per dollar. Up to $25 million – 1.0 cents per dollar. Up to $40 million – 1.5 cents per dollar. Up to $55 million – 2.0 cents per dollar. More than $55 million – 2.5 cents per dollar.

San Francisco is implementing a variable 1% – 1.5% distribution tax based on total revenue, which will become effective January 1, 2026.

Mendocino County has a $2500 flat distribution tax, charged annually.

Item 3A - Page 23

ATTACHMENT C

Item 3A - Page 24
Cannabis Code Compliance Overview

Drop-In Inspections

Drop-In Inspection – Out of Compliance Stats

0 50 100 150 200
Compliance Findings
In Compliance
Drop-In Inspections
Compliance Findings In Compliance
Compliance Findings by Type
Employee Roster Not Updated Inventory Sales Transactions Advertising Inspection Type Count
Compliance Findings 32
In Compliance 175
Finding Type
Count of
Findings
Percentage
of Out of
Compliance
Employee Roster Not
Updated 20 63
Inventory 7 22
Sales Transactions 2 6
Advertisin
g 3 9

Item 3A - Page 25

0 5 10 15 20 25 30 35
Retail
Distribution
Cultivation
Manufacturing
Security Plan Inspections By
License Type
02468 1 0
Courtesy Notice
Notice of Violation W/ Citation
Enforcement Action
Security Plan Inspection Count
Retail 35
Distribution 4
Cultivation 5
Manufacturin
g 3

Enforcement Action Count
Courtesy Notice 5
Notice of Violation W/
Citation 9

Item 3A - Page 26

Violation By Type
Minor Moderate Serious
0 1 02 03 04 05 06 0
Retail
Distribution
Cultivation
Manufacturing
Annual Operational Compliance
Inspection
Violation Type Count Percenta ge
Minor 2 22
Moderate 0 0
Serious 7 78

Operation Compliance Count
Retail 53
Distribution 8
Cultivation 6
Manufacturing 5

Item 3A - Page 27

CITY COUNCIL STAFF REPORT
D
ATE: FEBRUARY 8, 2024 BUSINESS & LEGISLATIVE
SU
BJECT: APPROPRIATE $1,000,000 IN HOUSING SET ASIDE FUNDS FOR

TENANT-BASED RENTAL ASSISTANCE PROGRAM
F
ROM: Scott C. Stiles, City Manager
BY: H
ousing & Community Development
SUMMARY:

I
n 2023, there were many changes to the Housing and Community Development Department, including updated and new programs. This report provides an update to the City Council on various housing programs and serves as a request for additional funding for the Tenant-Based Rental Assistance (TBRA) Program.

RECOMMENDATION:

1. Appropriate $1,000,000 (one million dollars) in Housing Set Aside funds for the TBRA Program.

BACKGROUND:

O
n September 26, 2023, City Council approved the Tenant -Based Rental Assistance (TBRA) program and requested that staff give an update on how funding has been spent, how the program works, and any changes that need to be made to the program moving forward. This program came about due to Development Services staff working to understand the housing needs of residents. With the work on the Housing Element, the proposed Inclusionary Housing Ordinance, and fees to pay for affordable housing, it has been clear there is a need for more housing options that Palm Springs residents can afford without major barriers.

O
ne option in the affordable housing toolkit is the T enant-Based Rental Assistance Program (TBRA). The TBRA Program is based on the premise that decent, safe, sanitary, habitable, and affordable housing can be obtained on the private market for very low to low-income families. In addition to obtaining housing with lower barriers to entry, residents are also able to stay housed, which can lead to fewer people being housing insecure and in need of assistance in the future.

Item 3B - Page 1
City Council Staff Report
February 8, 2024 -- Page 2
Rental Assistance Program

Tenant-Based Rental Assistance Program funds are used to provide financial assistance and housing stability services to eligible households for eligible forms of assistance, dependent on the demonstrated need and funding availability. To be eligible for the one- time payment assistance, a household must meet the following criteria:

• Must be a City of Palm Springs resident with proof of residency and residing in the property as the primary address. The only exception is if the Household is moving to a new property within Palm Springs, has signed at least a six -month lease agreement or submitted a completed Letter of Intent with future apartment complex, and is requesting prospective rent;
• Be obligated to pay rent on a residential dwelling or manufactured home lot in the City of Palm Springs;
• Qualify as a low -income household per HUD’s household income definition of being at or below 80% of the area median income (AMI);
• One or more individuals within the household has qualified for unemployment benefits or experienced a reduction in household income, incurred significant costs, or experienced other financial or health hardship; • One or more individuals within the household can demonstrate a risk of experiencing homelessness or housing instability.

Eligible forms of assistance include:

• Rental arrears up to four months, the maximum term of assistance. • Prospective rent up to a maximum of three (3) months per application or Additional Funds Request (AFR) based on any application by or on behalf of the household.

This amount is calculated in the maximum term of assistance. • Outstanding utility and home energy costs (arrears) up to the maximum term of utility assistance.
• Costs associated with turning on utilities due to poor credit or outstanding fees from a previous residence in Palm Springs.

STAFF ANALYSIS:

Since starting the T enant-Based Rental Assistance Program on September 27, 2023, staff has assisted 1 80 households and spent $850,000 (as of January 10, 2024) . The households include:

a. 51 families
b. 76 individuals
c. 33 couples
d. 11 platonic roommates
e. 9 multi-generational families

Item 3B - Page 2
City Council Staff Report
February 8, 2024 -- Page 3
Rental Assistance Program

The program funding has been spent for the following expenses:

• Utility Breakdowns (total $67,755.93):
a. $58,118.33 to Southern California Edison, with an average of $1,019.62 per household for three months; the highest bills coming in July, August, and September.
b. $ 2,658.87 to SoCal Gas, with higher bills in the cooler months of November, December and January.
c. $ 2,394.87 to Spectrum for internet costs.
d. $464.75 to Desert Water Agency for residents renting single family homes. e. $ 402.06 to Palm Springs Disposal Services for residents renting single family homes.
• $ 781,194.95 has been spent on rental assistance, with an average of $5,057.69 per household of total rent assistance for a period of three months.

These numbers only tell a part of the story. Eighty-one of the households (or 46 percent) assisted by the Tenant-Based Rental Assistance Program have at least one person who works in the hospitality industry – a vital part of our economy and lifestyle, ensuring our visitors experience the best of Palm Springs. Fifty–eight of the households (or 33 percent) assisted have at least one person on a benefit (Social Security, Disability, Cal Fresh, etc.).

These types of incomes can be extremely low and are volatile depending on the season or happenings within the City and Coachella Valley. Thank you notes from program recipients (Attachment A) demonstrate how well the program has been received, how it has helped the household, and the variety of circumstances impacting each household.

Administration of the program has provided some valuable insight into the needs of the community. Every resident that calls need some type of assistance. Approximately half of the recipients were referred from at least one other agency. No other municipality in the Coachella Valley is assisting residents to the level that the C ity of Palm Springs is, and there are still many places where we fall short of the residents’ needs due to capacity issues. To best assist our residents, Staff continues to make connections with resources in the Valley, including Property Managers and other organizations. In learning about the resources in the Valley, it has been made clear that very few direct assistance organizations exist and if they do exist, they have very little funding.

There is more work to do. Staff is working diligently on rental assistance, home repair, and affordable housing preservation, affordable housing infill projects, and new affordable housing development. Many of the long- standing issues staff needs to focus on include items that are mandated by the recently certified Housing Element and will take time to bring to fruition. This includes projects such as:

• A Rent Registry for Landlords and Tenants
• More financial assistance for new affordable housing developments • Landlord and Renter education and counseling on State and City ordinances Item 3B - Page 3
City Council Staff Report
February 8, 2024 -- Page 4
Rental Assistance Program

• Mobile home preservation projects
• Additional affordable housing project preservation (those with expiring affordability restrictions)
• Emergency housing assistance

The success of the Tenant-Based Rental Assistance Program to date demonstrates the ongoing need for programs to serve those who are experiencing housing insecurity. It is requested that $1,000,000 in additional funding be appropriated for the TBRA program.

ENVIRONMENTAL ASSESSMENT:

The recommended action does not result in a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a Project means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. 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:

This action would further Strategy 1C, Quality of Life, Expand Affordable Housing, Pursue new affordable housing.

FISCAL IMPACT
:

Staff is requesting $1,000,000 from Housing set-aside funds be used for the Tenant Based Rental Assistance (TBRA) Program. This funding would come from the Housing Set Aside funds in Project 23- 56 Account # 1001060 40105; there is $2,306,936 currently available in the account.

REVIEWED BY:

Department Director: Jay Virata
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles

ATTACHMENTS:

A. Letters from Program Recipients

Item 3B - Page 4

ATTACHMENT A
Ariel Tolefree-Williams
From:

Sent:

To:

Cc:

Subject:
celeste octavia <[email protected]>
Monday, November 27, 2023 5:36 PM
Brent Rasi
Ariel Tolefree-Williams; Roman Ruiz
Re: Ariel Tolefree and Roman Ruiz
NOTICE: This message originated outside of The City of Palm Springs -DO NOT CLICK on links or open attachm41rnts unless you are sure the content Is safe.

Dear Brent,
I'm writing to let you know that I walked into City Hall last Monday towards the end of the day. My friend Karen was also with me ..

We were directed to the office for social services/ housing and had the greatest experience meeting Ariel and Roman.

We both have fallen upon Finacial hardships, mine due to having 7 surgeries in the past 2 years ...

After I moved out of my last apartment, I've tried everything possible, consistently since April to rent a modest studio apartment.

Corporate has taken over the PS renters Market and with low inventory, and higher credit expectations, I spent over $500.00 in application fees and almost had given up hope.

At 7:35 a.m. on Tuesday after meeting Ariel and Roman at 4:00 p.m. on Monday, she had an apartment lead and followed up via email and making phone calls throughout the day with the Management Company.

By Wednesday, she had secured a rental for me, much to my surprise. I've never met two kinder people that are great listeners, paying attention to details, while also being incredibly respectful, and genuinely compassionate.

This experience comes after very trying times, with no resources left to work with.

I signed a lease to my new place and am forever grateful for this program and the absolutely brilliant team working at City Hall.

Ariel has offered solutions for my friends situation as well. I can't say enough to express my gratitude and
have to say that this experience has saved my life in many ways.

I will highly recommend this program to others in hard times. They went above and beyond anything I could have imagined.

All My Best,
1 Item 3B - Page 5
The City of Palm Springs
Rent and Uality Assistance Progran1
Recipient Testimonies : JJnwr/011 Allen
My sincerest !,rratitude goes out to this program and its affiliates ...

I'm a :13-year-old male who found himself facing homelessness in 2023 after leaving San Diego due to exorbitant housing costs. The SoCal rental market's strict re<1uirements with demanding >700 credit scores and monthly income multiples. It truly makes even finding a home to rent feel like an impossible task. I had a rapidly failing business as a result of the COVID pandemic. Like many others in the state was living mainly off my saving and more personally by means the of an inheritance from my recently deceased Father in Nov. 2019.

I was paying almost '1-k per month at my short term (six-month rental) home in Grant Hill (a neighborhood just north of downtown San Diego. I made the decision without much choice to move inland with hopes of finding something more maintainable. Much to my surprise I couldn't find anything long term to rent. The struggling and despair continued for nearly eight months. I began to search for reason to wake up and continue each day, and by night sleeping in my car and the occasional strangers couch was my bleak reality. Completely losing my last bit of hope, with r~jections from 8-10 rental agencies per week throughout Palm Springs. I felt like I was chasing shadows until the end of October this year. I refused to give up when God insisted I woke up each day with blood in my veins in love in my heart.

One evening in late October, alter viewing a sister property I arrived at The 29 Hundred Apartments. Ruth tile leas1i1g,wentactually heard me ... her empathy and understanding of where I was in my journey coupled with the kindness to meet me where I was in tl1at moment without judgement by giving me respect was enough to make me cry.

That was the first time in months I had felt heard by someone who was willing to help me vs. judge me. She provided me with some information and encouraged me to apply for the newest rent and utility program. I filled out and submitted my forms online. It was a Friday and so I did my diligence by visiting the City office in person the following Monday to insure the required document'i were received. A smiling, courteous and informative woman nan1ed Ariel tile J10us1i1g services admi11istrat01: After my interview witJ1 her, a decision was made that same day. The 29 Hundred Apartments became my new place to call home, at last piece of mind with shelter.

Item 3B - Page 6
..

Having a roof over ones head should be a right to every citizen in this country. The safety and good health of a human is necessary to ensure the survival of that human. The help from this Palm Springs housing association has re-transformed my lite. It provides me wid1 die stability I needed to secure ajob and reg-<lin my footing. To have the ability to get al1ead and not feel as d1ough I'm constandy trying to tread water. The peace of mind diat has come wid1 having a home was and is truly life-changing.

This newfound stability also re-ignited an old passion within me. The homele ss community has grown and is increasing by the day. Seeing what od1ers are going th.rough with a Birds Eye compelled me to also pour and express my experiences, struggles, and hopes into a series of artworks. Each piece individually depicts the true and harsh reality of die homeless pandemic. A crisis driven by greedy landlord s and a severe lack of housing for d1ose facing financial difficulties.

My journey wasn't just about overcoming personal obstacles; it becan1e a testament to resilience, empad1y, and the transformative power of compassion. It showed that even in the darkest times, a helping hand and understanding can make an incredible difference in someone' s life. My artworks aid as a voice for countless other s going d1rough similar challenges, sparking conversations and fostering empathy among those who view them. It is my hope to continue helping raise awareness by advocating for change in housing policies.

Best,
Brandon Allen
PS. PLEASE SEE ATTACHED AR'IWORK
Item 3B - Page 7
Ariel Tolefree-Williams
From:

Sent:

To:

Subject:
zarifa fard <[email protected]>
Friday, November 10, 2023 10:37 AM
Brent Rasi
City of Palm Springs Rental and Util ity Assistance
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on llnks or open attachm4!!nts unless you are sure the content is safe.

Ms. Ariel responded to my urgent need to engage my housing voucher , and benefit from utility assistance with the urgency and care that was very comforting and encouraging . Without this program, I would NOT have been able to make the move and improve my life. I have had a heart attack and am 75, she demonstrated sincerity and care in capably address ing my timelines and resources. She is professional and efficient and executing these delicate issues.

Thank you for letting me be heard.

Car ol y n Roberson
Live Y our Dreams ..... Carpe Diem
1 Item 3B - Page 8
Ariel Tolefree-Williams
From:

Sent:

To:

Subject:

Latrisha Powe <[email protected]>
Wednesday, November 8, 2023 8:30 AM
Brent Rasi
My Experience with the City of Palm Springs Rental & Utility Assistance Program NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on llnks or open attachments unless you are sure the content is safe.

Good Morning Mr. Rasi,
Proverbs 19: 17
Whoever is kind to the poor lends to the Lord,
and he will reward them for what they have done.

My name is Latrisha L. Powe and I am a recipient of the City of Palm Springs Rental & Utility Assistance Program. My 8 year-old-son and I needed to relocate back to CA for personal and safety reasons and I was told about this program through the apartment manager at the home J'm now in, thanks to the rental assistance program. I am a disabled veteran and single mom so my income is considered to be of low income here in CA. I thank the Lord for this program because I thought that my son and I would have to be in mote ls until we found housing and/or received assistance from the VA. That being said, the Lord had better plans for my son and I . Mrs. Ariel Tolefree-Williams has been a blessing .

Ariel's professionalism and compassion towards her clients is exemplary I I emailed her to get information on the program and to see if I qualified for assistance and Ariel replied the same day! I have worked and have been a recipient of a lot of non-profit programs in my life and some of the workers have been rude and have no compassion towards a client's situation. I understand that discernment has to be used in this agency and funds are limited, but compassion is very important. Ariel was understanding and she made sure that everything was done in a timely matter. , arrived in CA on November 3, 2023 after having a 20 hr layover, my funds were limited and I was exhausted. Ariel and my new apartment manager, Ruth Muwwakkil, worked together to get my son and I housed. My application for assistance was approved on November 6, 2023 and my apartment manager will receive funds on November 9, 2023.

This is a blessing because I have never had a program like this that helped so quickly. I believe that this program should remain funded. I believe it should remain funded because it helps people with urgent needs get assistance immediately, the compassion and professionalism of the staff is beyond words, and it changes lives. I'm a strong believer in Christ and I want to say His hands are on this program, This program stands out in my opinion! The more you give to others in need the more the Lord will bless the City of Palm Springs. May you have a blessed day in the Lord! Blessings,
Latrisha L. Powe
1 Item 3B - Page 9
Ariel Tolefree-Williams
From: Brent Rasi
Sent:

To:

Tuesday, November 7, 2023 5:12 PM
29hundred Assistant Manager
Cc: Ariel Tolefree-Williams
Subject: RE: Ariel Tollefree-Williams
Good afternoon,
Thank you for your email. Your comments will be shared with the City Council and retained as part of the official record.

Respectfully,
Uke no place else:·
Brent Rasi
Deputy City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Direct: 760.323.8284
www.palm springsca.gov
From: 29hundred Assistant Manager <[email protected]> Sent: Tuesday, November 7, 2023 4:18 PM
To: Brent Rasi <[email protected]>
Subject: Ariel Tollefree -Williams
NOTICE: This message originated outside of The City of Palm Springs - DO NOT CLICK on links or open attachments unless you are sure the content is safe.

Brent,
I just wanted to take a moment of your time and let you know that the program that Ariel is overseeing has been extremly beneficial to a few of my current resident. A breast cancer survivor who just underwent a double macectetomy, a family with a new baby who decided to surprise her parents with a new arrival , as well as a single woman who had lost her job, and was just offered a union position . All of these residents were about to be sent to my legal department for non payment this week. ·
In additional to my current residents, we had two individuals that were homeless living in hotels, able to obtain freedom from the streets and the ability to call 29hundred Apartments their home .

Thank you for all that you do for the Palm Springs Community 1 Item 3B - Page 10
Ariel Tolefree-Williams
From:

Sent:

To:

Subject:

Tanya J. Figueroa <[email protected]>
Tuesday, November 7, 2023 9:06 AM
Brent Rasi; Ariel Tolefree-Williams
Re: Rental Assistance Program
• NOTICE: This message originated ou~side of ri,e City of Palm Springs - DO NOT CLICK on links or open attachments unless you are i sure the content is safe.

Good morning . Brent, my name is Tanya Figueroa, and I am a recipient of rental assistance. I wanted to reach out because I was recently faced with an EXCEEDINGLY difficult situation. I reached out to Ariel regarding the program and eligibility requirements. Ariel responded extremely timely and gave me all the resources that I needed to apply for assistance. Ariel was able to tum my application around within days and got me approved for rental assistance. I am going to be honest, I have NEVER in my life had an application process that fast, she was extremely prompt, efficient, and very professional and courteous. I am extremely grateful for her assistance in such a challenging time, and I cannot thank her enough. On behalf of myself and my family~ I want to extend my gratitude to the City of Palm Springs, and all its representatives for providing relief during these trying times. I especially want to thank Ariel for her prompt responses to my needs and her diligence in attending to pressing matters. Again~ thank you all for this wonderful opportunity of relief.

Respectfully .

Tanya J. Figueroa
MS Forensic Psychology
l
Item 3B - Page 11
Ariel Tolefree-Williams
From: Brent Rasi
Sent:

To:

Tuesday, November 7, 2023 8:29 AM
MarkM
Cc: Ariel Tolefree-Williams
Subject: Public Comment - TBRA Program
Good Morning,
Thank you for your email. Your comments will be shared with the City Council and retained as part of the official record.

Respectfully,
Like no place else."'
Brent Rasi
Deputy City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Direct: 760.323.8284
www.palmspringsca.gov
From: Mark M <[email protected]>
Sent: Monday, November 6, 2023 9:04 PM
To: Brent Rasi <[email protected]>
Subject:

NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.

Well, If it wasn't for this program, I wou ld be the another number for the city to add to their homeless list. I was 4 days from my court date and my friend saw the ad for the program on Nextdoor. I sent an email to her and on Tuesday I was able to talk to her on the phone. let me just say this, Ariel was so reassuring and was so so so nice and understanding and I could tell that she was there to help. She even was able to make arrangements for this wonderful program to not only pay for past utilit ies, but the back rent and court cost. I still have to go to court, but I had something to give to the court to show that I was able to pay and not have to be evicted or move. If the City of Palm Springs didn't have this program, I know id be sitting outside somewhere and have lost everything I owned .

PLEASE, do not take away this program that can help others like it helped me. I know this has helped me soooo much and words can't express my thanks and gratitude for the help.

A HUGE thank you to the city of Palm Springs and the program. 1 Item 3B - Page 12
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Item 3B - Page 13
Ariel Tolefree-Williams
From:

Sent:

To:

Subject:

Anthony Greenwood <anthonygreenwood @windermere.com>
Thursday, November 16, 2023 12:10 PM
Brent Rasi; Ariel Tolefree-Williams
Rental Assistance Program
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the conte.ot is safe.

To City Council,
As a single individual trying to stay afloat during this inflation time in life, the rental assistance program was a huge help, and a weight has been lifted from my shoulders. I realfy appreciate the city's commitment in assisting their community and residents with this program and keeping them- in their homes. I spoke with Ariel when I called the city for the first time when we got into October letting her know my situation and she was very responsive and helpful letting me know she was going to send me the applk ation and to turn it in as soon as possible to get the process started. The application was very detailed and easy to fill out. After spending all morning at the public library to print out documents that were asked, I met with Ariel that same day to turn in my application. I wasn't sure how long the process would take as i was . worrying to receive an eviction notice but the process of getting the assistance was very quick. It took a week or a week and half the most. I was happy and relieved that Ariel was very nice and quick responding to my emails with my questions and seeing my rent being taken care of in such a short period of time.

I really appreciate the assistance I've received from the city and program. I hope this program continues to stay available for anyone who needs the help for their health and strength to continue in a positive direction .

All the best
Sincerely,
Anthony
760-333-6549
Get Outlook for iOS
Item 3B - Page 14
From:

To:

Date:

Leonel Ayala
Brent Rasi
Wednesday, November 22, 2023 7:53:31 AM
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.

Hello Brent and my name is Leonel Ayala and I just want to say how happy I am that Palm Springs has a program that helps those in need of rental assistance help, and me and my mom Olga Lechuga, who I care for at home, really appreciate it more than you know. It wasn't that hard to get approved, as I asked and received and we are forever greatful and I'm here for the program if it ever needs anything, to do labor (painting) or what have you, as a way to show my thanks, sincerely, Leonel and Olga.

Item 3B - Page 15
From:

To:

Subject:

Date:

Kev!o Mgss
Brent Rasi
Rental Assistance
Monday, November 13, 2023 3:13:39 PM
NOTICE: This message originated outside of The City of Palm Springs •· DO NOT CLICK on links or open attachments untess you are sure the content is safe.

Hi Brent good afternoon,
My name is Kevin Moss and I recently received rental assistance from the City of Palm Springs, processed by Ariel Tollfree-Williams. She was such a delight to work with and made the application process as easy as possible. We both felt very comfortable around her and felt genuine concern for our wellbeing and to keep us from loosing our apartment. Both myself and Brandon Lesane are very much appreciative of the help we have received.

We have received rental assistance and utility assistance as well, with a total of 4 months.

The timeframe of getting help and assistance form your department, took about three weeks to confirm for the first month of October. Then a week later confirming the extended rental and utility assistance through the months of November, December and January.

We can't thank you enough for all the help we have received and I hope this email helps to let you know how very much we appreciated your services and housing assistance. Thanks again!
Best Regards
Kevin Moss
Item 3B - Page 16
From:

To:

Subject:

Date:
zarifa faro
Brent Rasi
Qty of Palm Springs Rental and Utility Assistance
Friday, November 10, 2023 10:37:16 AM
NOTICE: This message originated outside of The City of Palm Springs-- DO NOT CLICK on links or open attachments unless you are sure the content is safe.

Ms. Ariel responded to my urgent need to engage my housing voucher, and benefit from utility assistance with the urgency and care that was very comforting and encouraging. Without this program, I would NOT have been able to make the move and fmprove my life. I have had a heart attack and am 75, she demonstrated sincerity and care in capably addressing my timelines and resources. She is professional and efficient and executing these delicate issues.

Thank you for letting me be heard.

Carolyn Roberson
Live Your Dreams . .... Carpe Diem
Item 3B - Page 17
Item 3B - Page 18
Item 3B - Page 19

CITY COUNCIL STAFF REPORT

DATE: FEBRUARY 8, 2024 BUSINESS & LEGISLATIVE

SUBJECT: APPROVE USE OF OPIOID SETTLEMENT FUNDS FOR THE

REHABILITATION RE-ENTRY PROGRAM, SUBSTANCE MISUSE HARM

REDUCTION PROGRAM, AND TENANT-BASED RENTAL ASSISTANCE

PROGRAM

FROM: Scott C. Stiles, City Manager

BY: Housing & Community Development

SUMMARY:

The City of Palm Springs has received $215,838 in opioid settlement funds from the State of California, which are required to be used primarily for opioid abatement. It is requested that the settlement funds be used for a rehabilitation re- entry program, a substance misuse reduction program, and the Tenant-Based Rental Assistance Program specifically for individuals in need of housing at sober living facilities.

RECOMMENDATION:

Approve use of Opioid Settlement Funds fo r the Rehabilitation Re-Entry Program, the Substance Misuse Harm Reduction Program, and the Rental Assistance Program.

BACKGROUND:

On July 21, 2021, a $26 billion offer to settle was made by opioid manufacturer Janssen Pharmaceuticals (parent company of Johnson & Johnson) and the “big three" distributors, McKesson, AmerisourceBergen, and Cardinal Health (“the Distributors") to resolve their liabilities in over 3,000 opioid crisis-related lawsuits nationwide. California will receive approximately $2.05 billion fr om the Janssen and Distribut ors Settlement Agreements through 2038.

On July 9, 2023, five additional settlem ents were announced. The pharmacies (CVS, Walgreens, and Walmart) and manufacturers Allergan and Teva Pharmaceuticals together proposed settling on $17.3 billion to addres s their roles in the opioid crisis.

California may see up to $470 million, $510 million, and $265 milli on from the CVS, Walgreens, and Walmart settlements respective ly, up to $205 million from the Allergan Item 3C - Page 1
City Council Staff Report
February 8, 2024 -- Page 2
Opioid Settlement Funds for Rehabilitation Support Fund

settlement, and up to $375 million from the Teva settlement for their roles in the producing and distributing opioids.

As a result of these settlements, the City of Palm Springs has received $215,838 this year and will continue to receive approximately $150,000 annually for 18 years.

STAFF ANALYSIS:

The Opioid Settlement Funds are to be used on opioid remediation activities focused on prevention, intervention, harm reduction, treatment, and recove ry services in California communities. In reviewing opioid abatement programs conducted by other agencies and following discussions with the City’s Police and Fire Departments, it is proposed that the settlement funds be used for the following:

x Rehabilitation Re-entry Progr am: A program to assist individuals that are unable to enter or complete drug rehabilitation due to lack of funds. x Substance Misuse Harm Reduction Prog ram: A program to make Narcan (Naloxone) available to health/social serv ice providers, public safety staff, and opioid users to combat opioid-related fatalities.
x Tenant-Based Rental Assistance Program : Allocate settlement funds to the existing Tenant-Based Rental Assistance Program specifically for individuals that are seeking shelter at a sober living facility but do not have adequate funds.

It is important to remember that addiction and seeking treatment is an individual process and as such the request for treatment can only be made by the person who wants the help. The decision to seek treatment or to find shelter in a supportive environment is often hampered by a lack of resources. Addiction treatment has various costs associated and can vary between services offered, length of stay, and the quality of the facility itself.

According to the National Center for Drug Abuse Statistics (2022) , the average cost of drug rehabilitation per person per episode is $13,475 (per episode cost means one singular occurrence of a fu ll program). Consequently, the expenditure of Opioid Settlement Funds to assist individuals with tr eatment and housing will assist in reducing the health impacts and societal impacts of opioid addiction.

The following sections of this report provi de greater detail on programs that would be supported by the use of Opioid Settlement Funds:

1. Rehabilitation Re-entry Program

It is proposed that a portion of the Opioid Funds be allocated to the Rehabilitation Re-entry Program which will as sist individuals who are at risk of having to leave addiction rehabilitation progr ams due to lack of fundin g. Applicants for the Rehabilitation Re-entry Program would be eligible to receive the following services from qualified participating providers:

Item 3C - Page 2
City Council Staff Report
February 8, 2024 -- Page 3
Opioid Settlement Funds for Rehabilitation Support Fund

x Inpatient programming of both detox and residential levels of care x A step-down outpatient program with housing
x Partial hospital programming
x Intensive outpatient programming.

In terms of the program guidelines, applicants would be able to receive a maximum reimbursement of $5,000. In addition to the costs of the rehabilitation program, the program could also be used to reimburse the cost of medications not covered by insurance, as well as other costs determined to be necessa ry in the treatment of the patient during their stay.

The availability of funding such as th is may be the deciding factor for someone seeking treatment and may encourage more individuals to pursue rehabilitation.

2. Substance Misuse Harm Reduction

The Substance Misuse Harm Reduction Program would make Narcan (Naloxone) and other harm reduction items available to qualified health and social services providers, Police and Fire Department personnel, and opioid users to prevent overdoses. Harm reduction is a key co mponent in a multi-faceted overdose prevention strategy.

The Palm Springs Fire Department repo rts that they received 275 calls for individuals who had overdosed in 2023. Of the 275 calls, there were 101 calls (36%) that required the use of Naloxone. In addition, 38 (14%) of the calls requiring the use of Naloxone were for homeless indi viduals. It should be noted that not all overdose responses are due to narcotic overdoses.

Staff recommends expanding the availabi lity and access to overdose reversal products, including Naloxone and other harm reduction items. These items will be made available to trained City staff, Police Department Homeless Task Force staff, and qualified community organizations to administer to individuals they encounter who are suffering from an opioid overdose. Additionally, public access to such items would be made available through the use of an outside vending machine to be placed in an area of the city to be det ermined. The City of Palm Springs will work with DAP Harm Reduction Program to identify a location for the vending machine and DAP would be responsible for maintaining and stocking the machine.

3. Tenant-Based Rental Assistance Program

In addition to the above-mentioned progr ams, staff recommends that the City Council approve use of these funds to assist with the rental assistance program that was started at the end of last year. There is a continued need for affordable housing in the community, including housing for those who are receiving treatment Item 3C - Page 3
City Council Staff Report
February 8, 2024 -- Page 4
Opioid Settlement Funds for Rehabilitation Support Fund

for opioid addiction. Even individuals who have completed a rehabilitation program find that there is still the need for assistance of others in order to maintain sobriety.

Sober Living facilities provide an environm ent and services that are aligned with the goals highlighted in the Opioid Settl ement Fund requirements. The funding would provide housing and services for a limited number of individuals under the existing Tenant-Based Rental Assistance Program for those needing Sober Living facilities that may otherwise have become homeless in the city.

Rather than allocating a specific dollar am ount to each of the three programs, it is recommended that a single account for the Opioid Settlement Funds be maintained and that any qualifying programmati c activities could then be re imbursed from that account.

As this is the first year of program operations, t here isn’t data to assist in determining which program area may have the greatest need. The City Council may wish to allocate specific amounts to each progr am area in the future once reports are available on program needs and successes.

ALIGNMENT WITH STRATEGIC PLANNING:

This action would further Strategy 1B, Crime Reduction – Drugs and Mental Health.

FISCAL IMPACT:

There will be no fiscal impact to City funds. The funds for the programs will be provided by the Opioid Settlement Funds received.

REVIEWED BY:

Department Director: Ja
y Virata
Deputy City Manager: Flinn Fa gg
City Manager: Scott Stiles

ATTACHMENTS:

None.

Item 3C - Page 4

CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 8, 2024 BUSINESS & LEGISLATIVE
SUBJECT: AWARD A SERVICE AGREEM ENT FOR ZONING CODE UPDATE

SERVICES
FROM: Scott C. Stiles, City Manager
BY: Department of Planning Services
SUMMARY:

Award a service agreement for zoning code update services with Code Studio, Inc. in the amount of $640,885 for a twenty-month term.

RECOMMENDATION:

1. Award a service agreement for zoning code upda te services with Code Studio, Inc. in the amount of $640,885 for a twenty-month term as outlined in the Agreement included as Attachment A.

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

BUSINESS PRINCIPAL DISCLOSURE:

Code Studio, Inc. is a Texas and Califor nia Corporation in accordance with the Attachment B Public Integrity Disclosure Form.

BACKGROUND:

The City’s Zoning Code provides the regulatory framework by which development occurs within the City of Palm Springs. It establishes the types and locations of land use that are permitted through the City, as well as the development standards by which development occurs, including height, density, and parking requirements. It also outlines the City’s land use entitlement procedures, in cluding the architectural review process. The current Zoning Code, while updated many times over the years, has not been comprehensively updated in many years. This effort would undertake a comprehensive update and rewrite of the City’s Zoning Code with the overall pu rpose of incorporating the 2023 Limited General Plan Update and Housing Element (r ecently certified by the State) and modernizing regulations to reflect today’s needs. It would also promote public health and Item 3D - Page 1
City Council Staff Report
February 8, 2024 -- Page 2
Zoning Code Update Services

safety and ensure the continued orderly gr owth and development of the City. The proposed Zoning Code would be applicable to a ll land within the City, including Allotted and Fee Tribal land.

Based on prior direction from the City Council and Planning Commission, staff experience, and stakeholder input, it is intended that the update will achieve several goals, including but not limited to the following:

x Undertaking a robust public consultati on process to understand the long-term needs of our community.
x Defining and preserving impor tant natural resources. x Promoting uses and development patterns that support pedestrians, cyclists, and transit use.
x Strengthening our thriving downtown and encouraging economic diversification and job creation.
x Building upon our historic preservation ru les to ensure consistency with State and Federal requirements and ens ure the preservation of our important historic resources.
x Implementing strategies for climate res iliency, conservation, urban heat mitigation, and promoting renewable energy.
x Removing barriers to developm ent, with an emphasis on housing. x Creating tools to incentivize housing produc tion across the full spectrum of housing needs, including affordable housing, seniors housing, and rental housing. x Expediting development approvals, wher e appropriate, to ensure the City is attracting a mix of jobs and housing to support continued growth and prosperity. x Establishing Design Standards and Gui delines to shape new development and inform the architectural review process.

City Council and the Planning Commission have been requesting an update for many years, and funds were first allocated in the 2022-2023 Fiscal Year. Delays in the General Plan update, including receiving State certification of the Housing Element, have delayed the City’s ability to begin the Zone Code Update process until now.

STAFF ANALYSIS:

The Procurement and Contracting Department, in coordination with the Department of Planning Services, issued a Request for Pr oposals (RFP) for Zoning Code Update Services on October 30, 2023. The RFP was advertised in the local newspaper and on Planetbids, the City’s electronic bid site. A preproposal conf erence was held November 7, 2023. Four proposals were received by the deadline of December 6, 2023, as follows:

CASC Engineering and Consulting, Inc. – Colton, CA with local office in Palm Desert, CA
Code Studio, Inc. – Austin TX with local office in Santa Monica, CA Item 3D - Page 2
City Council Staff Report
February 8, 2024 -- Page 3
Zoning Code Update Services

Sagecrest Planning + Environmental – San Juan Capistrano, CA ZoneCo, LLC – Cincinnati, OH

An evaluation team made up of City sta ff from the Planning and Sustainability Departments evaluated the proposals received against the published evaluation criteria.

The evaluation criteria consisted of the fi rm’s experience; the team’s experience; a demonstration of the understandi ng of the work; local prefer ence; and cost. In addition, references were checked to confirm successful completion of past projects. The cost of the work was overbudget, so best and final offe rs were sent to th e two highest ranked firms before interviews were conducted, whic h reduced the cost and allowed staff to continue with the evaluation process.

Two firms were chosen to move forward in the interview phase and interviews were conducted on January 17, 2024, for the following firms:

CASC Engineering and Consulting, Inc. – Colton, CA with local office in Palm Desert, CA
Code Studio, Inc. – Austin TX with local office in Santa Monica, CA

Interviews were scored and proposal and interview scores were combined to determine the highest-ranking proposer. Code Studio, Inc. was ranked as the highest scoring proposer and is being recommended by staff for award of the Agreement. It is worth noting that Code Studio is subcontracting with Bu rke Rix Communications, a Palm Springs- based communication team, who will lead the outreach and community engagement portion of the work plan.

The amount recommended for award is $640,885 for this agreement, which includes $563,195 for the zoning code update and $77,690 for the urban design guidelines.

If approved by the Council, it is anticipated that the upda te will commence within a few weeks and conclude within 20 months, or approximately by the end of 2025.

ENVIRONMENTAL ASSESSMENT
:

In accordance with the California Environment al Quality Act (“CEQA”) Guidelines the requested City Council action is not a “Project” pursuant to Section 15378(b)(5).

Organizational or administrative ac tivities of governments that will not result in direct or indirect physical changes in the environment are not considered a “Project”.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports the City Council’s Overarching Principles of Sustainability and Social Equity, as well as Council priorities 1C – Affordable Housing, 1D – Economic Development, and 2C - Community Design.

Item 3D - Page 3
City Council Staff Report
February 8, 2024 -- Page 4
Zoning Code Update Services

FISCAL IMPACT:

Sufficient funds have been budgeted in Planning Department account 1002010-40105 to cover project expenses for Fiscal Year 2023 -24. Additional funds in the amount of $150,000 will be appropriat ed in Fiscal Year 2024-25 to cover the balance of the agreement.

REVIEWED BY:

Department Director: Christopher Hadwin
Procurement and Contractin
g Director: Kim Baker
Deputy City Manager Flinn Fa gg
City Manager: Scott Stiles

ATTACHMENTS:

A. Service Agreement 24P108
B. Public Integrit y Disclosure Form
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ATTACHMENT $
Item 3D - Page 5

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CONTRACT SERVICES AGREEMENT 24P018

ZONING CODE UPDATE

THIS AGREEMENT FOR CONTRACT SERVICES (“Agreement”) is made and entered into on February 12, 2024, by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and Code Studio, Inc., a Texas and California Corporation, (“Contractor”). City and Contractor are individually referred to as “Party” and are collectively referred to as the “Parties”.

RECITALS
A. City requires the services of a Contra ctor, for preparing a zoning code update and urban design guidelines (“Project”).

B. Contractor has submitted to City a proposal to provide a zoning code update and urban design guidelines, under the terms of this Agreement.

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

D. City desir es to retain the services of Contractor for the Project.

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

AGREEMENT

1. CONTRACTOR SERVICES

1.1 Scope of Services . In compliance with all terms and conditions of this Agreement, Contractor shall provide services to City as described in the Scope of Services/Work attached to this Agreement as Exhibit “A” and incorporated herein by reference (the “Services” or “Work”). Exhibit "A" includes the agreed upon schedule of performance and the schedule of fees. Contract or warrants that the Services shall be performed in a competent, professional, and satisfactory manner consistent with the level of care and skill ordinarily exercised by high quality, experienced, and well qualified members of the profession currently practicing under similar conditions. In the event of any inconsistency between the terms contained in the Scope of Services/Work and the terms set forth in this Agreement, the terms set forth in this Agreement shall govern.

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

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

1.4 Familiarity with Work . By executing this Agreement, Contractor warrants that it has carefully considered how the Work should be performed and fully understands the Item 3D - Page 6

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facilities, difficulties, and restrictions a ttending performance of the Work under this Agreement.

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

3. COMPENSATION OF CONTRACTOR

3.1 Compensation of Contr actor. Contractor shall be compensated and reimbursed for the services rendered under this Agreement in accordance with the schedule of fees set forth in Exhibit “A”. The total amount of Compensation shall not exceed $640,885.00.

3.2 Method of Payment . In any month in which Contractor wishes to receive payment, Contractor shall submit to City an invoice for Services rendered prior to the date of the invoice, no later than the first working day of such month, in the form approved by City’s finance director. Payments shall be based on the hourly rates set forth in Exhibit “A” for authorized services performed. City shall pay Contractor for all expenses stated in the invoice that are approved by City and consistent with this Agreement, within thirty (30) days of receipt of Contractor’s invoice.

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

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

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

4. PERFORMANCE SCHEDULE

4.1 Time of Es sence. Time is of the essence in the performance of this Agreement.

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

4.3 Force Majeur e. The time for performance of Services to be rendered under this Agreement may be extended because of any delays due to a Force Majeure Event if Contractor notifies the Contract Officer within ten (10) days of the commencement of the Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Contractor’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2 ) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and Item 3D - Page 7

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unforeseeable delay in the issuance of permit s or approvals by governmental authorities that are required for the Work); and (4) pandemics, epidemics or quarantine restrictions.

For purposes of this section, “orders of go vernmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority. After Contractor notification, the Contract Officer shall investigate the facts and the extent of any necessary delay, and extend the time for performing the Services for the period of the enforced delay when and if, in the Contract Officer’s judgment, such delay is justified. The Contract Officer’s determination shall be fi nal and conclusive upon the Parties to this Agreement. The Contractor will not receive an adjustment to the contract price or any other compensation. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

4.4 Term . U nless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement shall continue in full force and effect for a period of twenty months, commencing on February 12, 2024, and ending on October 11, 2025, unless extended by mutual written agreement of the Parties.

4.5 Termination Pr ior to Expiration of Term. City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor. Where termination is due to the fault of Contractor and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon receipt of the notice of termination, Contractor shall immediately cease all Services except such as may be specifically approved by the Contract Officer. Contractor shall be entitl ed to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Cont ractor shall not be entitled to payment for unperformed Services, and shall not be enti tled to damages or compensation for termination of Work. If the termination is for cause, the City shall have the right to take whatever steps it deems necessary to correct Contractor's deficiencies and charge the cost thereof to Contractor, who shall be liable for the full cost of the City's corrective action. Contractor may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

5. COORDINATION OF WORK

5.1 Representative of Con tractor. The following principal of Contractor is designated as being the principal and representati ve of Contractor authorized to act and make all decisions in its behalf with respec t to the specified Services: Colin Scarff , Vice President. It is expressly understood that the experience, knowledge, education, capability, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the fo regoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services under this Agreement. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

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

5.3 Prohibition Against Subcontracting or Assignment . The experience, knowledge, education, capability, and reputation of Contractor, its principals, and Item 3D - Page 8

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employees, were a substantial inducement for City to enter into this Agreement.

Contractor shall not contract with any other individual or entity to perform any Services required under this Agreement without the City's express written approval. In addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by operation of law, without the prior written appr oval of City. Subcontracts, if any, shall contain a provisions making them subject to all provisions stipulated in this Agreement including without limitation the insurance and indemnification requirements. If Contractor is permitted to subcontract any part of this Agreement by City, Contractor shall be responsible to City for the acts and omission s of its subcontractor(s) in the same manner as it is for persons directly employed. Noth ing contained in this Agreement shall create any contractual relationships between any subcontractor and City.

5.4 Independent C ontractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contractor, its agents, or employees, perform the Services required, except as otherwi se specified. Contractor shall perform all required Services as an independent contractor of City and shall not be an employee of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role; however, City shall have the right to review Contractor’s work product, result, and advice. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. Contractor shall pay all wages, salaries, and other amounts due personnel in connection with their performance under this Agreement and as required by law.

Contractor shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance. Contractor shall not have any authority to bind City in any manner.

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

Name: Title:

CODE STUDIO (PROJECT MANAGEMENT, CODE DRAFTING LEAD)
Colin Scarff Principal In Charge
Max Pastore Co-Project Manager
Christy Dodson, AICP Co-Project Manager
Ryan Johnson, AICP Drafting Support
Wtadka Kijewska Urban Design
Shanique Mason Drafting Support
TORTI GALLAS + PARTNERS (URBAN DESIGN, ARCHITECTURE)
Neal Payton, FAIA, CNU-A Principal
Nicolle Cotes Project Manager

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PAGE & TURNBULL (HISTORIC PRESERVATION)
John K. Lesak, AIA, FAPT Principal
Flora Chou, LEED AP Project Manager

SAPPHOS ENVIRONMENTAL (ENVIRONMENTAL RESILIENCY)
Marie C. Campbell, MA Principal and CEO
Rory J. Baker, BS Project Manager

BURKE RIX COMMUNICATIONS (PUBLIC OUTREACH, ENGAGEMENT)
Brian G. Rix Principal
Josh Zipperman Project Manager

5.6 California Labor Code Requirements .

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

B. If the Services are being performed as par t of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services mu st be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements.

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

7. INDEMNIFICATION.

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orders, penalties, and expenses including lega l costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Contractor’s employees included), for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct committed by Contractor, its officers, employees, representatives, and agents, that arise out of or relate to Contractor’s performance of Services or this Agreement. This indemnification clause excludes Claims arisin g from the sole negligence or willful misconduct of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits set forth in this Agre ement be construed to limit Contractor’s indemnification obligation or other liability under this Agreement. Contractor’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable stat ute of limitations or, if an action is timely filed, until such action is final.

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

8. RECORDS AND REPORTS

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

8.2 Records . Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement.

Contractor shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

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

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

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

9. ENFORCEMENT OF A GREEMENT

9.1 California Law . This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

9.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties.

The terms of this Agreement are contractual and the result of negotiation between the Parties. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragr aphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

9.3 Waiver . No delay or omission in the exercise of any right or remedy of a non- defaulting Party on any default shall impair such right or remedy or be construed as a waiver. No consent or approval of City shall be deemed to waive or render unnecessary City’s consent to or approval of any subseque nt act of Contractor. Any waiver by either Party of any default must be in writing. No such waiver shall be a waiver of any other default concerning the same or any other provision of this Agreement.

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

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

9.6 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judici al proceeding, the prev ailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non- prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attorney fees, expert contractor fees, court costs and all fees, costs, and Item 3D - Page 12

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expenses incurred in any appeal or in collec tion of any judgment entered in such proceeding.

10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

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

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

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

11. MISCELLANEOUS PRO VISIONS

11.1 Notice . Any notice, demand, request, consent, approval, or communication that either Party desires, or is required to give to the other Party or any other person shall be in writing and either served personally or sent by pre-paid, first-class mail to the address set forth below. Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed as provided in this Section. Either Party may change its address by notifying the other Party of the change of address in writing.

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

Attention: Colin Scarff
1800 East 4
th Street
Austin, Texas 78702

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

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

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

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

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

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

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

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

11.10 Compliance with Economic Sanctions in Response to Russia's Actions in Ukraine. When funding for the services is provided, in whole or in part, by an agency controlled of the State of California, Contractor shall fully and adequately comply with California Executive Order N-6-22 (“Russian Sanctions Program”). As part of this compliance process, Contractor shall also certify compliance with the Russian Sanctions Program by completing the form located in Ex hibit “C” (Russian Sanctions Certification), attached hereto and incorporated herein by reference. Contractor shall also require any subContractors to comply with the Russian Sanctions Program and certify compliance pursuant to this Section.

[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO CONTRACT SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM SPRINGS AND CODE STUDIO, INC.

IN WITNESS WHEREOF, the Parties have ex ecuted this Agreement as of the dates stated below.

CONTRACTOR:

By: _____________________________ By: _____________________________ Signature Signature

(2nd signature required for Corporation)

Date: ___________________________ Date: ___________________________

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: _______ Item No. ________ Agreement No. _________

APPROVED AS TO FORM: ATTEST:

By: _____________________________ By: _____________________________ City Attorney City Clerk

APPROVED:

By: _____________________________ Date: ____________________________ City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

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EXHIBIT “A”

SCOPE OF SERVICES/WORK

Including,

Schedule of Fees

And

Schedule of Performance
Item 3D - Page 16

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SECTION 4 – SCOPE OF WORK

1.1 Background:

A. Project Summary: The Contractor will prepare a comprehensive update to the City’s Zoning Code. The Zoning Code, last published in 1988 and updated many times over the years, establishes the City’s land uses; permitted, prohibited, and conditional uses; development standards, in cluding, but not limited to, setbacks, height, open space, density, lot coverage, and parking requirements; land use entitlement procedures; composition of the City’s Planning Commission and Architectural Review Committee; and the architectural review process. The update would undertake a comprehensive update and rewrite of the City of Palm Springs Zoning Code with the overall purpose of incorporating the 2023 Limited General Plan Update and Housing Element (underway) and modernizing regulations to reflect today’s needs, while promoting public health and safety and ensuring the continued orderly growth and development of the City. The proposed Zoning Code would be applicable to all land within the City, including allotted and fee Tribal land. While the regulations are not enforceable on Tribal Trust land, the Code should evaluate and incorporate that land into the Zoning Code.

B. Specifically, the Code shall provide deve lopment standards and guidelines, establish a compatible pattern of land uses and zoning designations, conserve the City’s important and defining natural resources, including its mountain, hillside, desert, and water course areas, and encourage development patterns that promote the efficient use of infrastructure. It should emphasiz e pedestrian- and cycling-focused activities, promote transit, and evaluate minimum park ing requirements to minimize congestion and promote a more walkable community. The Code should contain regulations that strengthen and support a thriving downtown while also ensuring a variety of commercial and job generating uses throughout the City, taking advantage of the Palm Springs International Airport, I-10 Corridor, and abundance of renewable energy opportunities. As an internationally renowned tourist destination, best- practices for supporting the tourism industry should be considered. In response to climate change, the Code will need to evaluate strategies for managing urban heat, including shading, landscaping, and built form standards that minimize the impact of increasing heat on our residents and visitors. It will also need to evaluate pending State regulatory changes regarding water use and conservation and implement pertinent regulations as required. The Code should aim to remove barriers to development, with an examination of development standards such as lot coverage, open space, height, and parking requirements. To aid in the implementation of the City’s Housing Element, the Zoning Code will need to incorporate housing incentives beyond state density bonus law, identify and remove barriers to housing production, and incorporate potential inclusionary housing and commercial linkage fee programs that will be considered by the City Council in late 2023 or early 2024.

C. Finally, some land use regulations, including those pertaining to historic resources, are codified in the Municipal Code and will need to be evaluated and updated accordingly to ensure consistency between t he Code and other regulations, as well as to reflect broader changes.

D. Location and Population. The City of Palm Springs, California, incorporated in 1938, is located at the base of the San Jacinto and Santa Rosa Mountains, and serves as the western gateway to the Coachella Valley. The city maintains the charm of a small town, while offering the amenities of an urban center. The city is 95 square miles in area and has 47,000 permanent residents and another 30,000 seasonal residents Item 3D - Page 17

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Palm Springs City CouncilFebruary 8, 2024

Palm Springs City Council
February 8, 2024