Agenda packet — Palm Springs City Council, March 28, 2024 (part 2 of 3)

Revised: 10.31.23

AMENDMENT NO. 1 TO THE CONTRACT SERVICES AGREEMENT
A9172 FOR PHLEBOTOMIST SERVICES

BETWEEN THE CITY PALM SPRINGS AND AMERICAN FORENSIC
NURSES, INC.

1. Parties and Date.

This Amendment No. 1 to the contract services agreement is made and entered into as of this 28 th day of March, 2024, by and between the City of Palm Springs (“City”) and American Forensic Nurses, Inc. , a California co rporation, ( “Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. T he City and Contractor have entered into an agreement entitled “Contract Services Agreement A9172 – Phlebotomist Services” dated July 1, 2022 (“Agreement” for the purpose of retaining the services of Contractor to provide as-needed phlebotomist services for an amount not to exceed $75,000 and a term of July 1, 2022 to June 30, 2024.

2.2 Amendment. T he City and Contractor desire to amend the A greement to extend the term and add additional compensation.

2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 3.3 of the Agreement.

3. Terms.

3.1 Compensation of Contractor. Section 3.1 of the Agreement is hereby amended in its entirety to read as follows:

“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 $225,000.”

3.2 Term. Section 4.4 of the Agreement is hereby amended in its entirety to read as follows:

“Unless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement shall continue in full force and effect for a period of two (years), commencing on July 1, 2022, and ending on June 30, 2026, unless extended by mutual written agreement of the Parties.”

3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever Item 1I - Page 4

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Revised: 10.31.23

the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1.

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

3.5 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.6 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.

[SIGNATURES ON FOLLOWING PAGE]

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Revised: 10.31.23

SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND AMERICAN FORENSIC NURSES, INC.

IN WITNESS WHE REOF, the P arties have executed this Agreement as of the dates stated below.

CONTRACTOR:

By: _______________________________________ By: _________________________________________ Signature Signature
(2nd signature required for Corporations)

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

Item 1I - Page 6

ATTACHMENT B

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1. 2.

3. 4.

5. Name of Entity
Ata1e t-,'cqn

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
'f:c tc n � le /J 4 ,.re.r ,, !1tc .

Address of Entity (Principle Place of Business)
S"l3l/ ,4v�f1.iJq Gt r,.." J (.r #1G2 r
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Local or California Address (if different than #2)
State where Entity is Registered with Secretary of State C q /,'f or1>,q
If other than California, is the Entitv also reaistered in California? n Yes n No Type of Entity
D Corporatio�imited 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 Carlos Hat�- riez.. D Officer D Director D Member D Manager [name]
D General Partner D Limited Partner
)Zfother coo
D Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
□ Other
D Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
□ Other

CITY OF PALM SPRINGS-PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

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(Revised 0913 18)
Item 1I - Page 8
f
-
Item 1I - Page 9

7. Owners/Investors with a 5% beneficial interest in the Aoollcant Entitv or a related entitv

EXAMPLE

JANEDOE
[name of owner/investor]
A.
[name of owner/investor]
B.
[name of owner/investor]
C.
[name of owner/investor]
D.
[name of owner/investor]
E.
(name of owner/investor]
50%, ABC COMPANY, Inc.
[percentage of beneficial interest in entity
and name of entitvl
10°;; tr~ertsn b leli£tc tJ(A,ser
[percentage of beneficial interest In
entity
and name of entitvl
[percentage of beneficial interest In
entity
and name of entity]
(percentage of beneficial interest in
entity
and name of entitvl
[percentage of beneficial interest In
entity
and name of entitvl
[percentage of beneficial interest in entity
and name of entitvl

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

Signat~, of Disclosing Party, Printed Name, Title Date
d.rir-6'tt ... f/4w.Rf- o "3/, 2..../2.o2.9-
cHR,snAf./ llJJ f-lfP·rr
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(Revised 09 13 18)

CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
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CITY COUNCIL STAFF REPORT

DATE: MARCH 28, 2024 CONSENT CALENDAR

SUBJECT: A PPROVE CONTRACT SERVICES AGREEMENT NO. 24P057 WITH SDI

PRESENCE LLC FOR PROJECT MANAGEMENT SERVICES FOR

CAD/RMS PROJECT

FROM: Scott C. Stiles, City Manager

BY: Police Department

SUMMARY:

Award a contract services agreement with SDI Presence LLC for project management services for the upgrade of the current Palm Springs Police and Fire Departments Computer Aided Dispatch (CAD) System / Records Management System (RMS).

RECOMMENDATION:

1. Approve Contract Services Agreement No. 24P057 ( Attachment A ) with SDI Presence LLC to provide project management services for the Computer Aided Dispatch System / R ecords Management System upgrade project for a thirty - month term in an amount not to exceed $270,703 beginning April 1, 2024 through September 30, 2026; and

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

BUSINESS PRINCIPAL DISCLOSURE:

According to the Public Integrity Disclosure form ( Attachment B) submitted on January 24, 2024, SDI Presence LLC is registered in the states of Illinois and California.

BACKGROUND:

The City of Palm Springs, California (“City”), with a population of approximately 45,000, is in the process of upgrading the City’s CAD/RMS System. The CAD/RMS system is the backbone of the technological component of the 9-1- 1 system, the Police and Fire Departments dispatching systems, crime prevention, crime analysis, public safety event management, crime scene investigation, and the Police Department’s Records Item 1J - Page 1
City Council Staff Report
March 28, 2024 -- Page 2
Award CAD/RMS Project Management Services Contract

Management System. The current CAD/RMS system has been in use since 2007, is outdated and does not meet the needs of the Police and Fire Departments.

Through multiple CAD/RMS upgrade discussions between the Police Department and the City of Palm Springs Information Technology Department, it was determined that it would be beneficial to engage a consulting vendor to provide the highly specialized technic al skillsets and unique industry knowledge required to successfully undertake a CAD/RMS upgrade project. Other public safety agencies have also demonstrated project efficiency by utilizing consulting services to present decision makers with critical and relevant information in the selection and implementation of an optimal CAD/RMS solution. The consulting services include conducting a needs assessment for both the Police and Fire Departments, overall project management of the CAD/RMS system upgrade, establishing the system requirements, development of the scope of work for the upgrade proj ect, software selection, and system implementation oversight.

STAFF ANALYSIS:

The Police Department worked with the Procurement and Contracting Department to issue a Request for Proposals (RFP) to find a contractor for the needed services related to the CAD/RMS upgrade project. The RFP was advertised in the local newspaper and published on the PlanetBids website. Nine proposals were received by the deadline of January 24, 2024 as follows:

• Avero LLC – Maryville, TN
• Berry, Dunn, McNeil & Parker, LLC – Portland, Maine
• DELTAWRX, LLC – Woodland Hills, CA
• Federal Engineering, Inc. – Fairfax, VA
• GTEL Advisors, LLC – Medina, MN
• Mission Critical Partners, LLC – Port Matilda, PA
• SDI Presence LLC – Chicago, IL (Local Office: Anaheim, CA) • TSSI Consulting, LLC – Beaverton, MI
• Winbourne Consulting, Inc. – Arlington, VA

The evaluation team made up of City staff from the Police, Fire, and Information Technology departments evaluated the proposals received against published criteria that included the firms experience, the staff experience, the understanding of the scope of work, local preference, and price.

DELTAWRX, LLC, Federal Engineering, Inc. and SDI Presence LLC were interviewed and scored by the evaluation team. All scores were then combined to determine the highest-ranking firm. SDI Presence LLC was ranked the highest by the evaluation team and is being recommended for award of the contract.

Item 1J - Page 2
City Council Staff Report
March 28, 2024 -- Page 3
Award CAD/RMS Project Management Services Contract

ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above- mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports City Council priorit y 1 – Quality of Life, area 1B - Crime Reduction, and priority 2 – Community Infrastructure, area 2B – 5- Year Capital Improvement Plan.

FISCAL IMPACT:

Sufficient funds are budgeted and available in the current Fiscal Year 2024-25.

REVIEWED BY:

Department Director: Andrew G. Mills
Procurement and Contracting Director: Kim Baker
City Manager: Scott Stiles

ATTACHMENTS:

A. Agreement No. 24P057
B. Public Integrity Disclosure

Item 1J - Page 3

ATTACHMENT A

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CONTRACT SERVICES AGREEMENT 24P057

PROJECT MANAGEMENT SERVICES FOR CAD/RMS PROJECT

THIS AG REEMENT FO R CONTRACT S ERVICES (“Agreement”) is ma de and ente red into on April 1, 2024, by and between the City of Palm Sp rings, a Califo rnia charter city and m unicipal corporation (“City”), and SDI Presence LLC, a Illinois limited liability company, (“Contractor”). C ity and Contractor are individually referred to as “Party” and are collectively referred to as the “Parties”.

RECITALS
A. City requires the services of a licensed and qualified vendor to provide project management services to replace the City’s CAD/RMS system located at the Palm Springs Police department, (“Project”).

B. C ontractor has submitted to Cit y a pro posal to provide project management services for the City’s CAD/RMS project, under the terms of this Agreement.

C. B ased on its e xperience, educat ion, training, and r eputation, Contractor is qualified and desires to provide the necessary services to City for the Project.

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

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein , and ot her val uable consi deration, t he receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. CO NTRACTOR SERVICES

1.1 Scope of Ser vices. In compliance with all ter ms and c onditions of thi s Agreement, Contractor shall pro vide se rvices to City a s described in the Scope of Services/Work attached to th is Agreement as Exhibit “A” and incorporated herein by reference (the “ Services” or “ Work”). Exhibit "A" in cludes the a greed upon schedule of performance and the schedule of fe es. Contractor warrants that the S ervices shall be performed in a competent, professional, and satisfactory manner consistent with the level of care and skill ordin arily exercised by hig h quali ty, e xperienced, a nd well qualif ied members of t he profession currently practicing under si milar conditions. In the even t of any inconsistency between the terms contai ned in the Scope of S ervices/Work and the terms set forth in this Agreement, the terms set forth in this Agreement shall govern.

1.2 C ompliance 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 t he Services . Con tractor shall be lia ble f or all violati ons of such laws and regulations in connection with the Services and this Agreement.

1.3 Li censes and Permits. Contractor shall obtain at it s sole cost and exp ense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement.

1.4 F amiliarity with Work. By executing this Agreement, Contractor warrants that it has carefully considere d h ow the Work should be per formed and fu lly under stands the Item 1J - Page 5

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facilities, difficulties, and r estrictions atte nding performance of the Work under this Agreement.

2. T IME FOR COMPLETION
The time for comp letion 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 Co ntractor. Con tractor shall be compensated and reimbursed for the s ervices rendered under this Agreement in accordance wi th t he schedule of fees set forth in E xhibit “A” . The total amount of Compensation shall not exceed $270,703.

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 pricing set forth in Exhibit “A” for authorized services performed. City shall pay Contractor for work completed based on a summary report provided with the invoice that reflects the activities that were accomplished for the previous month that are approved by City and consistent with this Agreement, within thirty (30) days of receipt of Contractor’s invoice.

3.3 Changes. In th e 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 add itional fees. An amendment m ay be entered into:

A. T o provide f or revisions or modifi cations to documents, work product, or Work, when required by the enactment or revision of any subsequent law; or B. To p rovide for additional services n ot included in th is Agreement or not customarily furnished in accordance with generally a ccepted practice in C ontractor’s profession.

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

4. PERFORMANCE SCHEDULE

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

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

4.3 Fo rce Majeure. The time for performance of Services to be rendered under this Agreement may b e extended because of any delays due to a F orce M ajeure Event if Contractor notifies the Contract Officer within ten (10) days of the comm encement of the Force Majeure Event. A Forc e Majeure Event shall mean an event t hat materially affects the Contractor’s performance and is one or more of the following: (1) Acts of God or other Item 1J - Page 6

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natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders o f g overnmental authorities (includ ing, wit hout limitation, u nreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Work); and (4) pandemics, epidemics or quarantine restrictions.

For p urposes of thi s section, “order s of gov ernmental au thorities,” incl udes ordinances, emergency proclam ations and orders, rules to protect t he public h ealth, welf are and safety, and other actions of the City in its capacity as a muni cipal authority. After Contractor notification, the Contract Officer shall investigate the facts and the extent of any necessary delay , and e xtend the ti me for performing the Services fo r the peri od of t he enforced delay when and if, in the Contract Officer’s judgment, such delay is justified. The Contract Of ficer’s determination shal l be final and conclusive upon the Parties to this Agreement. The C ontractor will not rec eive an adjus tment to the contract price or any other compensatio n. Notwithstanding the f oregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

4.4 Term. Unless earlier termin ated in accordance with S ection 4.5 o f this Agreement, this Agreement s hall c ontinue in full force and effect for a period of thirty months, commen cing on April 1, 2024 , and ending on September 30, 2026 , un less extended by mutual written agreement of the Parties.

4.5 Termination Prior to Expiration of Term. City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor. Where termination is due to the fault of Contractor and constitutes an immediate danger to health, safety, and general welfare, the per iod o f notice shall be s uch s horter ti me as may be determined by the City . Upon r eceipt of th e no tice of term ination, Contractor shall immediately ce ase a ll Services excep t such as may be s pecifically a pproved by t he Contract Officer. Contractor shall b e entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for an y costs ot her than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed Services, a nd shall not be entitled to damages or compensation f or termination of Work. If the termination is for cause, the City shall have the right to take whatever steps i t dee ms n ecessary to c orrect Contractor's d eficiencies and charge the cost th ereof to Contractor, who sh all be liable for the ful l cost of th e City's c orrective action. Contractor m ay not terminate this Agr eement except for cause, upon thir ty (30 ) days written notice to City.

5. COORDINATION OF WORK

5.1 Representative o f Contractor. T he f ollowing principal of Contractor is designated as being the principal and representative of Cont ractor authorized to act and make all decisions i n its behalf wit h respect to the specified Services: Sharee L. Wolff, CFO. It is e xpressly underst ood that th e exp erience, knowledge, education, capability, and reputation of the foregoing principal is a substantial inducement for City to enter i nto this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for dire cting all activities of Contractor and dev oting 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.

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refer any decisions that must be made by C ity to the Contr act Officer. U nless otherwise specified, any approval of City shall mean the approval of the Contract Officer.

5.3 Prohibition Against Subcontract ing or Assignment . The exper ience, knowledge, educat ion, capability, and reputation of Contractor, its principals, and employees, were a substant ial inducement for C ity to enter into this Agreement .

Contractor sh all not contra ct with any other individual or entity to perf orm any S ervices required under this Agreement without the City's express wr itten approval. I n ad dition, neither this Agreement nor any inte rest may be assigned or transferred, vo luntarily or by operation of law , witho ut the prior wr itten approval of City . Subcontracts, if a ny, shall contain a provisions making them subjec t to al l p rovisions stipulated in thi s Agreement including without limitation the insurance and indemnific ation requirements. If Contractor is permitted to subcontract a ny part of this A greement by Cit y, Co ntractor shall be responsible to City for the act s and omissions of its subcontractor(s) in the same manner as it is for persons directly employed. Nothing conta ined in this Agreement shall create any contractual relationships between any subcontractor and City.

5.4 Independent Contractor. Neither City nor any of its employees shall have any control over the m anner, mode, or means by which Contractor , its agents, or employees, perform the Services required, except as otherwise specified. Contractor shall perform all required Services as an independent contractor of City and shall not be an employee of City and shall remain at all times as to City a wholly independent contractor with only such obligations a s are consistent with that role ; however, C ity 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 it s agents or employees a re agents or employees of City. Contractor shall pay all wages, salaries, and o ther amounts due personnel in connection with their performance under this A greement and as re quired by l aw.

Contractor shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: so cial security taxes, income tax with holding, 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 i n this A greement. Contractor shall not alter the assi gnment of t he following personnel without the prior written a pproval of the Cont ract Officer. Acting through t he City Ma nager, the City s hall have the unrestricted r ight to order the removal of any personnel assigned by Contractor by providing written notice to Contractor.

N ame: T itle:

Barry Goldberg Project Manager
Kris Head Technical Resource/Account Manager
Phil Danie Lead Technical Resource
Jason Hennessey Technical Background and Security Lead

5.6 California Labor Code Requirements.

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officials, offi cers, 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 wi th 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 r epair, 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 the fullest extent permitted by law, Contractor shall defend (at Contractor’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Contractor’s employees included), for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, or incident to any negligent 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 to the extent arising from the negligence or willful misconduct of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Contractor’s 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 statute of limitations or, if an action is timely filed, until such action is final.

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recklessness, or willful misconduct of the Contractor in the performance of the Services or this Agreement, and, upon Contractor obtaining a final adjudic ation 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 pertainin g 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 d rawings, 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 retain copies of such documents for Contractor's own u se. Contractor shall have an unrestricted right to use th e concepts 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 Agr eement 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 provide City, or othe r agents of City, such access to C ontractor’s b ooks, 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 Contractor’s performance under this Agreement. Cont ractor shall maintain such books, records, data, and documents in accordance with generally 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 interpreted 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 concerning 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 contract ual and the r esult of negoti ation between t he Parties. Ac cordingly, any rule of c onstruction of contrac ts (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 sections and paragraphs of this A greement are for conveni ence 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 s uch other relief as may be gr anted, t o recover from the non - prevailing Party all reasonable costs and exp enses. These include but are not limited to reasonable attor ney fe es, ex pert cont ractor fee s, court c osts and 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 n ot 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 condition precedent to City’s lawful capacity to ente r t his 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 the follo wing: emplo yment, upgradi ng, 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 provisio ns 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, California 92262
To Contractor: SDI Presence LLC
Attention: Sharee L. Wolff
200 E. Randolph Street, Suite 3550
Chicago, IL 60601

11.2 I ntegrated Agreement. This Agreement constitutes the entire under standing between the Parties and supersedes 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 t his Agre ement shall b e interpreted in such a manner as to be effective and valid under applicable law. I n 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 unenfor ceability 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 i nure to the benefit of the Parties’ successors and assignees.

11.6 Third P arty Beneficiary. Except as may be expr essly provi ded fo r in this Agreement, no thing contained in this A greement is i ntended to confer, nor shal l this Agreement be construed as conferring , any rights, including, without limitation, any r ights Item 1J - Page 12

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as a third -party beneficiary or othe rwise, upon any entity or p erson not a party to t his Agreement.

11.7 R ecitals. 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 person s e xecuting this Agreement on behalf of the P arties warrant that t hey 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 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 Actions in Ukraine. When funding for the serv ices is provided, in whole or in part, by an agency controlled of the State of California, Consultant shall fully and adequately comply with California Exe cutive Order N -6-22 (“Russian Sanctions Program”). As part 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 require any subconsultants to compl y with the Russian Sanctions Program and certi fy 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 SDI PRESENCE LLC

IN WITNESS WHEREOF, t he Parties h ave execut ed this Agreement as of 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 City of Palm Springs Background:

The City of Palm Springs, California (“City”), with a population of approximately 45,000 is in the process of replacing the City’s CAD/RMS System including conducting a needs assessment, overall p roject management, system r equirements, scope development, software selection, and implementation.

A. Computer Aided Dispatch System Background

1. The Emergency Communications Department operates in a 6- position center, with a standard shift of 3-4 working dispatchers.

2. The Department uses a blended operation of skill set s, meaning that primarily, dispatchers assigned as call- takers only answer phones and enter calls for service, while police dispatchers only dispatch police calls for s ervice and create incidents for police responder generated events, and fire dispatcher s only dispatch fire calls for se rvice and create incidents for fire responder ge nerated events. All employees are cross trained and rotate through “positions” based on their assignment and throughout their shifts. Dispatchers typically work 10-hour shifts.

3. The Department fields roughly 170,000 phone calls a year and monitor a citywide fire alarm system.

4. The Department enters approximately 75,000 police and fire calls annually.

5. The 911 system we use is Vesta and we currently operate on Motorola radio consoles.

6. The Emer gency Communication Center is located at the Police De partment Dispatch Center. It is the communication hub for both the Police and Fire Departments. Fire responds to medical calls and the City utilizes AMR who provides the City’s medical transportations.

B. Records Management System Background

1. Fire RMS:

a. There are approximately 12,000 annual fire calls for service. b. The new CAD/RMS system will need have to integr ate with the current ESO Fire Reporting Management Software System and with the Phoenix G2 Fi re Station Alerting System.

2. Police RMS:

a. There are approximately 63,000 annual police calls for service. b. The desired CAD/RMS system should include the following functionality:
i. CJIS Integration/Certification.
ii. Inmate tracking intake and release.
iii. NIBRS compliance.
iv. Incident Report: generation and review.
v. Investigative case management.
vi. Evidence tracking.

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vii. RMS function in creating criminal records within the system ( Master Cards).
viii. Standards Best Practice RMS functions found in similar ly sized police departments.

3. In addition to the above capabilities, the modules below are preferred as part of the replacement system:

a. Crime analysis data analytics.
b. Body camera integration.
c. National Information Exchange Model ( “NIEM”), specifically with the Global Justice XML.
d. Data Model (GJXDM).
e. Law Enforcement National Data Exchange (N-DEx).
f. Unified CAD (UCAD).
g. National Crime Information Center (NCIC).
h. Next generation 911 capabilities, standardized data exchange using Automated Secure Alarm Protocol (ASAP) and Public Safety Answering Point (PSAP).
i. Electronic field-based reporting as it pertains to portable computers such as laptops and tablets and mobile devices such as: PDAs; smart phones; etc. j. Locational systems interfaces.
k. Interfaces with cities, counties, states, and federal mapping systems. l. The current system util izes CLETS, DOJ and FBI databases.

1.2 Scope:

PHASE I – Scope Development
A. The Contractor will serve as th e project manager of the project and will meet with the City’s Pub lic Safety Project Team, com prised of key departments responsible for CAD/RMS functions, to gather input on current system deficiencies. The primary responsibilities include, but are not limited to, the following:

1. Overall management for the CAD/RMS software system project.

2. Perform a compre hensive ass essment of the City’s current e nvironment, develop and document existing (as is) and proposed (t o be) fun ctional and technical requirements for a replacement CAD/RMS System, including business process workflows, for all applicable departments.

3. Identify inter operability between existi ng systems, gaps between current functions, processes, and requirements and best practice functions, processes, and requirements.

4. Key departments include Police, Fire, Emergency Communications, Information Technical Services.

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B. Prepare the Scope of Work for the new CAD/RMS so ftware with implementation services that will allow for thorough comparison of all qualified vendors.

C. Provide technical expertise and support through the City’s selection process including:

1. Submit a proposed p roject work plan with timelines to accomplis h all tasks outlined in the scope of work with project deliverables.

2. Develop a needs assessment to include in the City’s RFP and to be used in the evaluation process.

3. Attend the City’s pre-proposal conference and possible site walk.

4. Draft and coordinate res ponses to vendor questions du ring the p roposal period.

5. Participate in vendor demonstrations.

6. Provide technical advice as requested to the evaluation team during the evaluation of the vendor proposals fo r the new CAD/ RMS software and implementation.

PHASE II – Project Management
A. As an additional project, the Contractor will provide overall proj ect management oversight throughout the CAD/RMS system implementation process, including data conversion/migration monitoring, identifying project risk and issues, provide recommendations to mitigate risk, user acceptance testing , training, and project close-out. Tasks include, but are not limited to, the following:

1. Assist the awarded software provider with building a detailed project p lan and implementation schedule.

2. Facilitate implementation, schedule, data migration, vendor relationship and contract compliance.

3. Update Project Plan on a bi-weekly basis.

4. Conduct weekly project team meetings.

5. Prepare weekly project team meeting minutes.

6. Prepare monthly project status reports.

7. Manage deliverable review and approval process.

8. Conduct on-site project management activities, as needed.

9. Manage the system implementation to meet schedule and budget targets.

10. Lead the tea m in the development of new workflow diagram s for all functi onal areas i.e., re-engineering of new business processes.

11. Develop go-live readiness assessments.

12. Manage oversight of vendor’s issues log for timely completion by vendor and core project team.

B. Maintain oversight of the selected vendor’s development of testing materials i.e., test plan, functional test scripts and integration end to end test scripts.

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C. Maintain oversight of the selected vendor’s development and execution of a project test plan (system, parallel, stress, user acceptance test) in collaboration with vendor and City.

D. Maintain oversight in the selected vendor’s preparation and execution of a training plan in collaboration with vendor and City.

E. Maintain oversight in the selected vendor’s development of a user security matrix for testing and go- live operations.

F. These tasks will require the Project Manager to be on sight for site meetings, planning, etc. This is not a remote only engagement.

G. Decommission the existing system after “go live” of the new system.

1.3 Schedule:

Work will commence upon issuance of a Notice to Proceed and shall be completed within thirty months.

1.4 Compensation:

W
ork will be compensated on a lumpsum basis. 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 previous 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 1J - Page 20
ATTACHMENT "G"

COST PROPOSAL
REQUEST FOR PROPOSAL (RFP 47-23)

PROJ ECT MANAGEMENT SERVICES

FOR CAD/RMS PROJECT

THIS FORM MUST BE COMPLETED AND SUBMITTED IN SEPARATE ELECTRONIC FILE #2 "Cost Proposal", NOTwit h Electronic File #1, Technical/Wor k Proposal ') ITEM DES CRIPTION Unit of Measure TOTAL
1 Phase 1 - Scope Developmenl Lumpsum $120,750.00
2 Phase 2 - Project Managemen t Lumpsum $149,953.00
Total $270,703.00
Firm Name : __ S_D_I _P_re_s_e_nc_e_L_L_C _________ ______ _ Signa ture of Authorized Person: \,, ;fY\t • .__.("'(, )"'1j4! Sharee L. Wolff Printed Name: _____________________ _
Chief Financial Officer Tille: _________ ___ ____________ _ Date: __ J_an_u_a_ry_2_2_,_2_02_4 _________________ _

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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)
Item 1J - Page 21

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INSURANCE

1. P rocurement and Maintenance of Insurance. Contractor shall procure and maintain public liability an d pr operty damage i nsurance against al l cla ims for i njuries against p ersons or damages to property resulting fr om Contractor’s performance un der this Agreement. Contractor shall procure and maintain 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 Agr eement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any propos ed 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 dollars ( $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 limits of at least one million dollars ($1,000,000.00) per occurrence;

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

4. Wor kers’ Compensation insurance in th e st atutory amount as r equired by t he State of Cal ifornia and Em ployer’s Liability Insurance with limits of at least one mil lion dollars $1 million per occurrence . 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, Contractor’s insurance coverage shall be primary with res pect to the City an d it s respecti ve el ected officials, officers, empl oyees, agents, a nd v olunteers. Any ins urance or self -insurance maintained by Ci ty a nd its respecti ve e lected officials, officers, 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.

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services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carr ier in the amount r equired by this Agreement for at least th ree years after completion of Contractor ’s services under this Agreement. Contractor shall also be required to prov ide ev idence to Cit y of the purchase of 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. Coverage 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 certificates 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 behal f. All proof of insurance is to be received 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 o f the abov e 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' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

In addition to the endorsements listed above, the City of Palm Springs 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) Contractor sh all procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Certificates of Insurance mus t 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 of 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.

Item 1J - Page 24

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EXHIBIT “C”

Item 1J - Page 25
ATTACHMENT "F"
EXECUTIVE ORDER N-6-22 CERTIFICATION
REQUESTS FOR PROPOSALS (RFP 47-23)

PROJECT MANAGEMENT SERVICES

FOR CAD/RMS PROJECT
Executive O rder N-6-22 issued by Governor Gavin Newsom on March 4, 2022, directs all agencies and departments that are subject 10 the Governor 's authority to (a} terminate any contracts with any individuals or entities that are determined to be a target of econom ic sanctions against Russia and Russian entities and individuals; and (b} refrain from entering into any new contracts with such individuals or entities while the aforementione d sanctions are in effect.

Executive Orde r N-6-22 also requi res that any contractor that (1) cyrre n!ly has a contract with the City of Palm Springs funded through grant funds provided by the State of California; and/or (2) submits a b id 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 econom ic sanctions against Russia and Russian entities and individuals.

The contracto r hereby certifies, SUBJEC T TO PENAL TY FOR PERJURY, that a} the contractor is not a target of any economic sanctions against Russia n and Russian entities and individ!uals as discussed in Executive Order N-6-22 and b) the perso n signing below is duly authorized to legally bind the Contractor . This certification is made under the laws of the State of California.

Signatu re: \5f-.o,, a cx4 ,, ). , t ~
Printed Name:. __ S_h_a_r_e_e_L_._W_ o_lff _ ___ _
Tme:. ___ _ .,.Ce1.F~O,t__ _____ _
Firm Name:. _ __ S_D:_I _P_re'-s'--e_n_c_e_L_L_C _ __ _ Date:. _____ Ja_n_u_a_ry_ 3_, 2_0_2_4 _ ___ _

ATTACHMENT B
Item 1J - Page 26
Item 1J - Page 27

1. Name of Entity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
SDI Presence LLC

2. Address of Entity (Principal Place of Business)
200 E. Randolph Street, Suite 3550, Chicaqo, IL 60601

3. Local or California Address (if different than #2)
4368 E. LaPalma Ave., Anaheim, CA 92807

4. State where Entity is Registered with Secretary of State Illinois
If other than California , is the Entity also registered in California? 0 Yes D No

5. Type of Entity
D Corporation 0 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
David Gupta E2l Officer D Director D Member E2l Manager [name] D General Partner D Limited Partner
Other
Hardik Bhatt X Officer
Sharee L. Wolff E2l Officer D Director E2l Member D Manager [name] D General Partner D Limited Partner
D Other
Mark Raffel X Officer
Peggy Koenig & Jay Grossman D Officer D Director E2l Member D Manager [name] D General Partner D Limited Partner
D Other
Item 1J - Page 28

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

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

David Gu~ta 55.14% SDI Presence LLC
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.

Peggy Koenig 21.43% SDI Presence LLC
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.

Jay Grossman 21.43% SDI Presence LLC
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]

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

Signature of Disclosing Party, Printed Name, Title Date Sharee L. Wolff, CFO
~/(w~
January 3, 2024

CITY COUNCIL STAFF REPORT

DATE: MARCH 28, 2024 CONSENT CALENDAR

SUBJECT: A PPROVE CONTRACT SERVICES AGREEMENT NO. 24P041 WITH SDI

PRESENCE, LLC FOR PREPARATION OF INFORMATION

TECHNOLOGY STRATEGIC PLAN

FROM: Scott C. Stiles, City Manager

BY: Department of Information Technology

SUMMARY:

Award a contract services agreement with SDI Presence, LLC to prepare an Information Technology Strategic Plan.

RECOMMENDATION:

1. Approve Contract Services Agreement No. 24P041 ( Attachment A ) with SDI Presence, LLC to prepare an Information Technology Strategic Plan for a one-year term in an amount not to exceed $125,120 beginning April 1, 2024 through March 31, 2025; and

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

BUSINESS PRINCIPAL DISCLOSURE:

According to the Public Integrity Disclosure form (Attachment B) submitted on December 12, 2023, SDI Presence, LLC is registered in the states of Illinois and California.

BACKGROUND:

The Department of Information Technology supports all general government functions for the City, the Cable TV Channel, and Airport operations. The Department also has cyber compliance responsibility for all City functions including the contract operated wastewater treatment plant. The department currently has twenty-one budgeted FTE positions, set to increase to twenty-two in FY 24/25.

The Department has grown rapidly in the last few years and a large part of the growth is attributed to technology changes at the Airport. The Department now provides seven day Item 1K - Page 1
City Council Staff Report
March 28, 2024 -- Page 2
Award Information Technology Strategic Plan Contract

a week support for twenty hours a day. Management of all technology purchases has also been centralized to the D epartment with currently over one hundred applications in the service catalog. Also, in the last couple of years, a hardware replacement fund has been created to centralize and plan systems replacement. The rapid growth of both the City and the Department has pushed the existing structure to its limit.

STAFF ANALYSIS:

The Information Technology Department worked with the Procurement and Contracting Department to issue a Request for Proposals (RFP) to find a contractor to develop an IT Strategic Plan to guide the City over the next five years in assessing, planning, procuring, implementing, and managing current and future investments in technology. The RFP was advertised in the local newspaper and published on the PlanetBids website. Ten proposals were received by the deadline of December 12, 2023 as follows:

• Avero LLC – Maryville, TN
• Berry, Dunn, McNeil & Parker, LLC – Portland, Maine
• Blackline Consulting – Toronto, Ontario, Canada
• Government Technology Group, LLC – Turlock, CA
• Martin Yarborough & Associates LLC – Fort Worth, TX
• Pariveda Solutions, Inc – El Segundo, CA
• The RMH Group, Inc. – Lakewood, CO
• RSI Systems, Inc. DBA RSI Security – San Diego, CA
• SDI Presence, LLC – Chicago, IL (Local Office: Anaheim, CA) • ThirdWave Corporation – Los Angeles, CA

The evaluation team made up of City staff from the Information Technology, Finance, and the City Manager’s Office evaluated the proposals received against published criteria that included the firms experience, the staff experience, the understanding of the scope of work, local preference, and price.

Berry, Dunn, McNeil & Parker, LLC , Blackline Consulting, Martin Yarborough & Associates LLC, SDI Presence, LLC, and ThirdWave Corporation were interviewed and scored by the evaluation team. All scores were then combined to determine the highest - ranking firm. Berry, Dunn, McNeil & Parker, LLC was ranked the highest by the evaluation team; however, they withdrew their proposal as they could not agree to the City’s Non - Discrimination policy . SDI Presence, LLC was ranked the next highest and is being recommended for award of the contract.

ENVIRONMENTAL ASSESSMENT
:

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

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports the City Council principle of optimizing basic services and facilities.

FISCAL IMPACT:

Sufficient funds are budgeted and available in Information Technology Department Account 1001025 – 40105.

REVIEWED BY:

Department Director: Larry Klingaman
Procurement and Contracting Director: Kim Baker
Deputy City Manager: Jeremy Hammond
City Manager: Scott Stiles

ATTACHMENTS:

A. Agreement No. 24P041
B. Public Integrity Disclosure

Item 1K - Page 3

ATTACHMENT A

Item 1K - Page 4
Revised 12.21.23 Page 1 of 16

CONTRACT SERVICES AGREEMENT 24P041

INFORMATION TECHNOLOGY STRATEGIC PLAN

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 qualified firm to develop and articulate a vision for an Information Technology Strategic Plan, (“Project”).

B. Contractor has submitted to City a proposal to provide develop and articulate a vision for an Information Technology Strategic Plan, to City under the terms of this Agreement.

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

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

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

AGREEMENT

1. CONTRACTOR SERVICES

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Contractor shall provide services to City as described in the Scope of Services/Work attached to this Agreement as Exhibit “A” and incorporated herein by reference (the “Services” or “Work”). Exhibit "A" includes the agreed upon schedule of performance and the schedule of fees. Contractor warrants that the Services shall be performed in a competent, professional, and satisfactory manner consistent with the level of care and skill ordinarily exercised by high quality, experienced, and well qualified members of the 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 Permits. Contractor shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Services required by this Agreement.

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Revised 12.21.23 Page 2 of 16

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

2. TIME FOR COMPLETION

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

3. COMPENSATION OF CONTRACTOR

3.1 Compensation of Contractor. Contractor shall be compensated and reimbursed for the services rendered under this Agreement in accordance with the schedule of fees set forth in Exhibit “A”. The total amount of Compensation shall not exceed $125,120.

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 schedule of fees set forth in Exhibit “A” for authorized services performed. City shall pay Contractor for all expenses stated in the invoice that are approved by City and consistent with this Agreement, within thirty (30) days of receipt of Contractor’s invoice.

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

A. To provide for revisions or modifications to documents, work product, or Work, when required by the enactment or revision of any subsequent law; or

B. To provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Contractor’s profession.

4. PERFORMANCE SCHEDULE

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

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Revised 12.21.23 Page 3 of 16

4.3 Force Majeure. The time for performance of Services to be rendered under this Agreement may be extended because of any delays due to a Force Majeure Event, if Contractor notifies the Contract Officer within ten (10) days of the commencement of the Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Contractor’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Work); and (4) pandemics, epidemics or quarantine restrictions.

For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, 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 final and conclusive upon the Parties to this Agreement.

The Contractor will not receive an adjustment to the contract price or any other compensation. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement shall continue in full force and effect for a period of one year, commencing on April 1, 2024, and ending on March 31, 2025, unless extended by mutual written agreement of the Parties. In addition, the term may be extended at the sole discretion of the City upon written notice to the Contractor, for one (1) additional one (1) year term.

4.5 Termination Prior to Expiration of Term. City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Contractor. 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 entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation for termination of Work. If the termination is for cause, the City shall have the right to take whatever steps it deems necessary to correct Contractor's deficiencies and charge the cost thereof to Contractor, who shall be liable for the full cost of the City's corrective action.

Contractor may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

5. COORDINATION OF WORK

5.1 Representative of Contractor. The following principal of Contractor is designated as being the principal and representative of Contractor authorized to act and make all decisions in its behalf with respect to the specified Services: Patrick Griffin, Delivery Item 1K - Page 7
Revised 12.21.23 Page 4 of 16
Executive. 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 foregoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services under this Agreement. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

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

5.3 Prohibition Against Subcontracting or Assignment . The experience, knowledge, education, capability, and reputation of Contractor, its principals and employees, were a substantial 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 approval of City. Subcontracts, if any, shall contain a provision 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 omissions of its subcontractor(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City.

5.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contractor, its agents or employees, perform the Services required, except as otherwise specified. Contractor shall perform all required Services as an independent contractor of City and shall not be an employee of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role; however, City shall have the ri ght 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 wi thholding, 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 Mana ger, 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:

Patrick Griffin Delivery Executive
Rick Keyes Project Manager
Item 1K - Page 8
Revised 12.21.23 Page 5 of 16
Elliott Ellsworth Project Consultant
Wahab Balogin Project Consultant
Barry Goldberg Project Consultant

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 compe nsation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

B. If the Services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any 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.

7.1 Indemnification. To the fullest extent permitted by law, Contractor shall defend (at Contractor’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Contractor’s employees included), for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, Item 1K - Page 9
Revised 12.21.23 Page 6 of 16
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 c lause excludes Claims arising from the sole negligence or willful misconduct of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Contractor’s 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 statute of limitations or, if an action is timely filed, until such action is final.

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

8. RECORDS AND REPORTS

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

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

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

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

8.5 Audit and Inspection of Records. After receipt of reasonable notice and during the regular business hours of City, Contractor shall provide City, or other agents of City, Item 1K - Page 10
Revised 12.21.23 Page 7 of 16
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 unde r this Agreement. Contractor shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and shall clearly identify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

9. ENFORCEMENT OF AGREEMENT

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

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

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

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

9.4 Rights and Remedies are Cumulative . Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative. 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 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, a declaratory judgment, or any other remedy consistent with the purposes of this Agreement.

9.6 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing 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 1K - Page 11
Revised 12.21.23 Page 8 of 16
expenses incurred in any appeal or in collection of any judgment entered in such proceeding.

10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

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

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

10.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Contractor shall not discriminate against any employee or applicant for 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 condition (each a “prohibited basis”). Contractor shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Contractor certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Contractor activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; 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 benefit s, relating to non- discrimination in city contracting.

11. MISCELLANEOUS PROVISIONS

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

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

To Contractor: SDI Presence, LLC
Attn: Patrick Griffin
4368 E. La Palma Ave.

Anaheim, CA 92807
Item 1K - Page 12
Revised 12.21.23 Page 9 of 16

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

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

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

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

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

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

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

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

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, Consultant shall fully and adequately comply with California Executive Order N-6- 22 (“Russian Sanctions Program”). As part of this compliance process, Consultant shall also certify compliance with the Russian Sanctions Program by completing the form located in Exhibit “C” (Russian Sanctions Certification), attached hereto and incorporated herein by reference. Consultant shall also require any subconsultants to comply with the Russian Sanctions Program and certify compliance pursuant to this Section.

[SIGNATURES ON NEXT PAGE]
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Revised 12.21.23 Page 10 of 16

SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF

PALM SPRINGS AND SDI PRESENCE, LLC

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

CONTRACTOR:

By: By: _
Signature Signature
(2nd signature required for Corporations)

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:

City Manager – over $50,000
Date:

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 1K - Page 15

1.1 Background and Purpose:

A. The Department of Information Technology supports all general government functions for the City, the Cable TV Channel and Airport operations. The department also has cyber compliance responsibility for all City functions including oversight of the contract operated wastewater treatment plant. The department currently has twenty -one budgeted FTE positions set to increase to twenty-two in FY 24/25.

B. The department has grown rapidly in the last few years and a large part of the growth is attributed to technology changes at the Airport. The department now provides seven day a week support for twenty hours a day. Management of all technology purchases has also been centralized to the department with currently over one hundred applications in the service catalog. Also, in the last couple of years, a hardware replacement fund has been created to centralize systems replacement.

C. All department staff are highly trained, and a solid team environment currently exists.

Recent surveys have also shown an exceptionally high- level satisfaction from other departments with service delivery. The department has also succeeded in building trust with other City departments where they now proactively reach out to IT to help improve their service levels.

D. The rapid growth of both the City and the department has pushed the existing structure to its limit, and the City is looking to the Contractor to develop an IT Strategic Plan to guide the City over the next five years in assessing, planning, procuring, implementing and managing current and future investments in IT infrastructure, operations and technical resources.

E. The Current Organization of the City and structure of the IT Department is as follows:

Item 1K - Page 16
City of Palm Springs
IT Organ izat ional Chart
Applications
Business Systems
Analyst
Business Systems
Analyst
GIS Analys t
GIS Technician
Assistant Director
of Information
Technology
Technician
Technicia n
Techn ician
Director of
Informa tion
technology
7---
Support Services
Technician
Tech nician
Admin Assistant
Technician
Technician
Technic ian
Operations
Network
Engineer
Network
Engineer
Network
Administrator
Network
Adm inistr ator

1.2 Scope:

The Contractor shall create an IT Strategic Plan (ITSP) that includes the activities listed within this scope.

A. Current State Assessment

1. Review existing personnel, processes, and technologies.

2. Evaluate the organization's IT capabilities including but not limited to: strengths, weaknesses, opportunities, and threats.

3. Provide analysis of current data management practices, including data sources, quality, and accessibility.

4. Assess cybersecurity measures, vulnerabilities, and compliance with industry standards.

5. Evaluate current governance structure.

B. Vision and Goals

1. Develop a forward-looking vision for the City’s technology, data and information systems.

2. Establish strategic goals and objectives that align with City Council’s goals and objectives.

Item 1K - Page 17
City of Palm Springs
Organizational Chart
Assistant D~uty City Manager City anager
Facilities & Building & Safety Maintenance
Library
Communitx & Economic
Deve opment
Communications Engineering
& Neighborhoods Services
Parks & Planning Services Recreation
Special Program Sustainability &
Compliance Recycling
City Council
City Manager
D~uty City anager
City Clerk
Human Resources
Information
Technology
Procurement &
Contracting
Airport
Finance &
Treasury
Fire
Police

3. Each topic area should be supported by a goal, objectives and/or policy statements that serve to organize the recommendations detailed in the plan.

4. Identify key performance indicators (KPIs) to measure the success of the ITSP implementation.

C. Technology roadmap

1. Identify and prioritize technology initiatives and projects.

2. Provide a timeline for implementing new systems, upgrading existing technologies, and retiring obsolete solutions.

3. Include an integration plan for emerging technologies such as artificial intelligence, Internet of Things, and cloud computing.

D. Data Management Strategy

1. Define of data governance policies, roles, and responsibilities.

2. Provide strategies for data collection, storage, integration, and analysis.

3. Provide data quality and data lifecycle management guidelines.

E. Security and Privacy

1. Evaluate the current cybersecurity strategy and recommend alternatives and/or areas for improvement.

2. Create a roadmap for continued compliance (e.g., NIST, CISA, PCI, ADA, etc...) F. Change Management and Training

1. Develop a plan for managing organizational change resulting from new technology implementations.

2. Identify training and development programs to ensure staff competence in utilizing new systems effectively.

G. Administration, PMO, Budget, and Staff Allocation

1. Define an organizational structure to effectively manage technology projects.

2. Forecast budget and staffing requirement to specific technology projects and initiatives.

3. Identify training and skills needed to implement the ITSP.

4. Determine appropriate governance structure balancing compliance and performance.

H. Implementation Strategy

1. Identify and prioritize specific action items necessary to achieve the plan’s vision and goals.

2. Create accountability by putting forth a detailed strategy including roles, responsibilities, and milestones.

I. Additional Recommendations
Develop the project plan and activities that will most effectively meet the objectives.

J. Deliverables

1. Draft a 5- year IT Strategic Plan consisting of an executive summary, findings, recommendations, and proposed implementation plan. The plan shall compare current operations with industry standards and use such comparison as the basis for recommended actions.

Item 1K - Page 18

2. Prepare a final IT Strategic Plan - the draft will be reviewed and/or approved by the Director of Information Technology. The final plan will consist of the draft and any recommendations and strategies from the City. A complete IT Strategic Plan will be submitted to City Council for approval. Both the draft and final IT Strategic Plan shall include order of magnitude cost, and staff effort estimates associated with proposed work and resource procurement.

3. Prepare and present a presentation to City Council for approval of the IT Master Plan, including methodologies utilized in its development.

1.3 Schedule:

Work will commence upon issuance of a Notice to Proceed and shall be completed within one year.

1.4 Compensation:

Work will be compensated on a lumpsum basis with a progress payment schedule allowed as follows: fifty percent at completion of stakeholder interviews, twenty -five percent at delivery of ITSP draft report, and the balance after final acceptance of the completed ITSP.

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 previous 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.

Item 1K - Page 19

Item 1K - Page 20
ATTACHMENT "G"

COST PROPOSAL
REQUEST FOR PROPOSAL (RFP 45-23)

INFORMATION TECHNOLOGY STRATEGIC PLAN

THIS FORM MUST BE COMPLETED AND SUBMITTED IN SEPARATE ELECTRONIC FILE #2 "Cost Proposal", NOTwith Electronic File #1, Technical/Work Proposal•) ITEM DESCRIPTION Unit of Measure TOTAL
1 Information Technology Strategic Plan Lumpsum
Total $125,120
SDI Presence LLC Firm Name:. ____________ ____ ______ _ Signature of Authorized Person: _\...-'>'i...,.a..,., ... ,u,.._~~=-""'' '"') ...... _t"'t)t.---- Printed Name: _ _ s_h_ar_e_e_L_. _w_o_lff ____________ ___ _ Title: __ c_h_ie_t_F_in_a_n_c,_·a_l o_ m_ce_r _____ ____ _______ _ Date: _ _ 1_21_1_1_12_3 ____ _ ___ ______ ____ _ _
Revised 12.21.23 Page 12 of 16
EXHIBIT “B”

INSURANCE PROVISIONS

Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
Item 1K - Page 21
Revised 12.21.23 Page 13 of 16

INSURANCE

Contractor shall procure and maintain all insurance at its sole cost and expense, in a form and content satisfactory to the City, and submit concurrently with its execution of this Agreement.

Contractor shall also carry workers’ compensation insurance in accordance with California workers’ compensation laws. Such insurance shall be kept in full force and effect during the term of this Agreement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the City, its elected officials, officers, employees, agents, and volunteers as additional named 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. Minimum Scope of Insurance. The minimum amount of insurance required under this Agreement shall be as follows:

1. Comprehensive general liability and personal injury with limits of at least one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate;

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

3. Professional liability (errors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000) annual aggregate is:

X required

is not required;

4. Workers’ Compensation insurance in the statutory amount as required by the State of California and Employer’s Liability Insurance with limits of at least one million dollars $1 million per occurrence. If Contractor has no employees, Contractor shall comple te the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

3. Primary Insurance. For any claims related to this Agreement, Contractor’s insurance coverage shall be primary with respect to the City and its respective elected officials, officers, employees, agents, and volunteers. Any insurance or self -insurance maintained by City and its respective elected officials, officers, employees, agents, and volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all rights of subrogation and Item 1K - Page 22
Revised 12.21.23 Page 14 of 16
contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.

4. Errors and Omissions Coverage . If Errors & Omissions Insurance is required, and if Contractor provides claims made professional liability insurance, Contractor shall also agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within three years of the completion of Contractor’s services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in the amount required by this Agreement for at least three years after completion of Contractor’s services under this Agreement. Contractor shall also be required to provide evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy.

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

6. Verification of Coverage. Contractor shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting 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 behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Contractor’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.

Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsem ent with the following endorsements stated on the certificate:

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

B. "This insurance is primary and non- contributory over any insurance or self- insurance the City may have..." ("as respects City of Palm Springs Contract No. " or "for any and all work performed with the City" may be included in this statement).

C. "Should any of the above-described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.

Item 1K - Page 23
Revised 12.21.23 Page 15 of 16
D. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.

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

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

7. Deductibles and Self -Insured 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, officers, employees, agents, and volunteers; or (2) Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Certificates of Insurance must include evidence of the amount of any deductible or self -insured retention under the policy. Contractor guarantees payment of all deductibles and self-insured retentions.

8. Severability of Interests (Separation of Insureds) . This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer’s liability.

Item 1K - Page 24
Revised 12.21.23 Page 16 of 16
EXHIBIT “C”

Item 1K - Page 25
ATTACHMENT "F"
EXECUTIVE ORDER N-6-22 CERTIFICATION
REQUESTS FOR PROPOSALS (RFP 45-23)

INFORMA TION TECHNOLOGY STRATEGIC PLAN
Executive Order N-6-22 issued by Governor Gav in 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 i nto 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.

Signature: \, ¼0 , . / /,)
7 _,\)
Sharee L. Wolff Printed Name: _____________ _
Title: ____ C_F_O __________ _
Firm Name: SDI Presence LLC
Date: 11/15/2023
Item 1K - Page 26
ATTACHMENT "G"

COST PROPOSAL
REQUEST FOR PROPOSAL (RFP 45-23)

INFORMATION TECHNOLOGY STRATEGIC PLAN

THIS FORM MUST BE COMPLETED AND SUBMITTED IN SEPARATE ELECTRONIC FILE #2 "Cost Proposal", NOTwith Electronic File #1, Technical/Work Proposal*) ITEM DESCRIPTION Unit of Measure TOTAL
1 Information Technology Strategic Plan
Total
SDI Presence LLC
Firm Name:

Lumpsum
$125,120
----------------------
Signature of Authorized Person: --~--~a~& ..... v-s_ ..... ae~i.,,,,-...... t~)"'""'M"""""-"4r""""'""'J----\) \J Printed Name: __ s_ha_r_e_e_L_. w_o_lff ______________ _ Title: Chief Financial Officer
------------------------
Date: 12/11/23
------------------------

ATTACHMENT B

Item 1K - Page 27
Item 1K - Page 28

1. Name of Entity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
SDI Presence LLC

2. Address of Entity (Principal Place of Business)
200 E. Randolph Street, Suite 3550, Chicago, IL 60601

3. Local or California Address (if different than #2)
4368 E. LaPalma Ave., Anaheim, CA 92807

4. State where Entity is Registered with Secretary of State Illinois If other than California, is the Entity also registered in California? 0 Yes D No

5. Type of Entity
D Corporation [;a 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
David Gupta 0 Officer D Director D Member D
Manager
[name] D General Partner D Limited Partner
Hardik Bhatt X Officer
Other
Sharee L. Wolff 0 Officer D Director 0 Member D Manager [name] D General Partner D Limited Partner
Other
Mark Raffel X Officer
Peggy Koenig D Officer D Director 0 Member D Manager
Item 1K - Page 29
[name] D General Partner D Limited Partner
Other
Jay Grossman X Member

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

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

David Gupta 55.14% SDI Presence LLC
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.

Peggy Koenig 21.43% SDI Presence LLC
[name of owner/inv estor] [percentage of beneficial interest in entity and name of entity]
C.

Jay Grossman 21.43% SDI Presence LLC
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner /investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner /investor] [percentage of beneficial interest in entity and name of entity]

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

Signature of Disclosing Party, Printed Name, Title
Sharee L. Wolff, CFO
1 \
~~w~
Date
11/15/2023

CITY COUNCIL STAFF REPORT
DATE: MARCH 28, 2024 PUBLIC HEARING
SUBJECT: PUBLIC HEARING FOR APPROVAL OF THE 2024-2025 ANNUAL ACTION PLAN (AAP) AND TO APPROVE A 2023-2024 SUBSTANTIAL AMENDMENT FROM: Scott C. Stiles, City Manager
BY: Housing & Community Development Department
SUMM
ARY:

This i
s the second of two public hearings for approval of the 2024-2025 Annual Action Plan (AAP, Attachment A ) and to approve a 2023- 2024 Substantial Amendment . The Community Development Block Grant (C DBG) AAP and Budget is prepared by the City every year pursuant to requirements set forth by the U.S. Department of Housing & Urban Development (HUD), which mandate that units of government receiving federal housing and community development assistance must prepare an AAP as part of the implementation of the Five- Year Consolidated Plan (ConPlan) which serves as the blueprint for CDBG funded community development activity in the City. This action adopts a resolution to approve the 2024- 2025 AAP. The resolution ( Attachment B) al so authorizes the City Manager or designee to execute all agreements with U.S. Department of Housing & Urban Development (HUD) as well as the Community Development Block Grant (CDBG) program’s subrecipients, including City Departments.

This action would also adopt a resolution ( Attachment C) to facilitate a Substantial Amendment to the 2023- 2024 Annual Action Plan. The Substantial Amendment would reallocate $71,847.31 in prior year resources as well as $57,643.59 in remaining Corona Virus (CV) funds from prior years to increase funding in the Residential Rehabilitation program by $129,490.90.

RECOMMENDATION:
1) Open the P
ublic Hearing for public testimony.
2) A dopt R
esolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE 2024 -2025

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION
PLAN; APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT
BUDGET FOR FISCAL YEAR 2024 -2025 IN THE AMOUNT OF $413,000; Item 2A - Page 1

AUTHORIZING THE SUBMITTAL OF THE PLAN AND BUDGET TO THE UNITED STATES DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD);

AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE FUNDING APPROVAL/AGREEMENT WITH HUD – GRANT # B-24-MC-06-0561 IN THE AMOUNT OF $4 13,000; AND TO EXECUTE THE SUBRECIPIENT

AGREEMENTS AND ALL NECESSARY DOCUMENTS IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY”.

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

CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A SUBSTANTIAL AMENDMENT TO THE 2023 -2024 ANNUAL ACTION PLAN TO REALLOCATE COMMUNITY DEVELOPMENT BLOCK GRANT – CORONA VIRUS FUNDS IN THE AMOUNT OF $57,643.59 AND PRIOR YEAR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS IN THE AMOUNT OF $74,039.11 TO FUND THE MAJOR HOME REPAIR PROGRAM; AND TO AUTHORIZE SUBMITTAL OF THE

SUBSTANTIAL AMENDMENT TO THE UNITED STATES DEPARTMENT OF

HOUSING AND URBAN DEVELOPMENT, AND AUTHORIZING THE CITY

MANAGER OR DESIGNEE TO EXECUTE ALL NECESSARY DOCUMENTS IN A FORM ACCEPTABLE TO THE CITY ATTORNEY.”

BACKGROUND:

Palm Springs is an “entitlement city”, meaning that it is a direct recipient of CDBG funds from the federal government. The CDBG Program was adopted by Congress in 1974 to provide a flexible funding source for local governments to meet the community development needs of their low and moderate-income (Low/Mod) residents and was the first federal block grant. A map showing the City’s Low/Mod areas is provided in Attachment D. This direct grant from HUD enables entitlement units of governments to fund three National Objectives: benefiting Low/Mod persons; preventing or eliminating slums or blight; and meeting urgent need.

On February 8, 2024, the City Council held a public hearing to discuss potential uses for the 2024-2025 CDBG Funds and 2023-2024 Substantial Amendment. At this meeting, the City Council was presented with potential Public Service and Residential Rehabilitation projects which meet HUD’s National Objectives. A draft AAP was made available for public review from February 12, 2024, through March 13, 2024, as required by HUD.

STAFF ANALYSIS:

The 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.

Item 2A - Page 2

Based on an estimated CDBG allocation of $413,000, and given the statutory limitations on the percentage of CDBG funds that may be utilized for Administration (20%), Public Services (15%), with the remaining funds to be utilized for Public Facilities and Capital Improvements, including Housing Rehabilitation, the total CDBG resources for 2023- 2024, by eligibility category, are as follows:

Public Facilities, Capital Improvements,
and Residential Rehabilitation (Minimum) $268,450
Public Services (15%, Maximum) $ 61,950
TOTAL PROGRAMMATIC FUNDS (80%) $330,400

ADMINISTRATION (20%, Maximum) $ 82,600

TOTAL CDBG 2023–2024 FUNDING $413,000

2024-2025 ANNUAL ACTION PLAN

At the February 8, 2024 meeting, City Council agreed to allocate the CDBG funds typically used for Administration to instead increase the Programmatic Funds. In this case, allocating funds for Administration 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%) Program

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
Item 2A - Page 3

No CDBG funds are being proposed for Administration expenses.

Residential Rehabilitation:

Major Home Repair: Under this program, the City would provide grants to qualified low- to moderate-income homeowners to make needed home improvements. Grants would be available to address code deficiencies, eliminate 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 the 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. Grant funds may only be used for costs of services and materials necessary to carry out City approved 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, 14 will be Low- or Moderate-Income Households. The recommended amount of CDBG funding for this activity is $351,050.

Public Services:

Fair Housing Program: Under CDBG guidelines , the City is required to provide its residents a fair housing program . Staff recommends 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 services, training and technical assistance, workshops and seminars, and housing discrimination audits and tests.

The goals for this activity are to provide fair housing services to 2,000 Palm Springs households citywide. Of those, 2,000 will be Low- or Moderate-Income Households. The recommended amount of CDBG funding for this activity is up to $61,950.

Upon approval of the AAP by City Council, the AAP will be submitted to HUD on May 1, 2024, for its review and approval.

Substantial Amendment

A Substantial Amendment is required when reallocating CDBG Funds increases existing activities in an amount greater than $50,000. For t he current 2023-2024 CDBG Program Year (Attachment E) the City received $413,506, of which $355,000 was allocated for the Major Home Repair program as described above. These funds are now exhausted and with five months remaining in the Fiscal Year it is proposed that unspent prior year funds in the amount of $129,490.90 be allocated to the 2023-2024 CDBG Program Year for the Major Home Repair program. The funding being reprogramed comes from projects that have Item 2A - Page 4
been completed and did not require the full award, and from former CDBG Corona Virus recipients 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 five (5) additional Low- or Moderate-Income Palm Springs households City-wide. If approved, the Substantial Amendment will be submitted to HUD for approval.

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

ENVIRONMENTAL IMPACT:

The recommended ac tion 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:

Strategic Planning Priority 1C - Examples to explore land banking, acquire new land, and financing programs.

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. Department of Housing & Urban Development Community Development Block Grant program.

REVIEWED BY:

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

ATTACHMENTS:

A. 2024-2025 Annual Action Plan
B. Annual Action Plan Resolution
C. Substantial Amendment Resolution
D. Low/Moderate Income Census Block Map
E. Draft Amended 2023-2024 Annual Action Plan
F. 2020-2024 ConPlan Goals
Item 2A - Page 5

ATTACHMENT A
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.

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 Item 2A - Page 6
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 15, 2024, to advertise a second public hearing on 3/28/24. The City Council held the second required Public Hearing on March 28, 2024.

Item 2A - Page 7

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 accepted 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 8
PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/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 9
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:
• 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.
• 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.
• 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 10
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.

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
Item 2A - Page 11
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 12
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 13
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 14
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your 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 15
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation 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 15, 2024, to advertise a second public hearing on 3/28/24.

The City Council held the second required Public Hearing on March 28 2024 Following this plan allowed constituents to have a voice in the process.

Item 2A - Page 16
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 17
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 18
Table 4 – Citizen Participation Outreach
Item 2A - Page 19

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 20
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 21
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 22
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

Item 2A - Page 23
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

Item 2A - Page 24
Projects
AP-35 Projects – 91.220(d)
Introduction
Projects were determined based on the greatest needs.

Projects
# Project Name
1 Fair Housing Council of Riverside County- Fair Housing Services 2 City of Palm Springs Housing & Community 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.

Item 2A - Page 25

AP-38 Project Summary
Project Summary Information
Item 2A - Page 26
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 Housing & Community Development - Home Repair Program
Target Area Community-wide
Goals Supported
Needs Addressed Housing
Funding CDBG: $342,818
CDBG-CV: $20,000
Item 2A - Page 27
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.
3 Item 2A - Page 28
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

Item 2A - Page 29
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.

Item 2A - Page 30
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.

Item 2A - Page 31
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.

Item 2A - Page 32
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.

Addressing the emergency shelter and transitional housing needs of homeless persons Item 2A - Page 33
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.

Helping low-income individuals and families avoid becoming homeless, especially extremely Item 2A - Page 34
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.

Item 2A - Page 35
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 $406,000. 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 $100,000, for County Mental Health Housing Crisis Housing Team, and the MV&K's Homeless Wrap-Around Services in the amount of $116,000. 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.

Item 2A - Page 36
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.

Item 2A - Page 37
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.

Item 2A - Page 38
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.

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 Item 2A - Page 39
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.

Item 2A - Page 40
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%

Item 2A - Page 41

ATTACHMENT B

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING THE 202 4-
2025 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) ANNUAL ACTION PLAN; APPROVING THE

COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET
FOR FISCAL YEAR 202 4-2025 IN THE AMOUNT OF
$413,000; AUTHORIZING THE SUBMITTAL OF THE PLAN

AND BUDGET TO THE UNITED STATES DEPARTMENT
OF HOUSING & URBAN DEVELOPMENT (HUD);

AUTHORIZING THE CITY MANAGER OR DESIGNEE TO

EXECUTE THE FUNDING APPROVAL/AGREEMENT WITH
HUD – GRANT # B-24- MC-06-0561 IN THE AMOUNT OF
$413,000; AND TO EXECUTE THE SUBRECIPIENT

AGREEMENTS AND ALL NECESSARY DOCUMENTS IN A

FORM ACCEPTABLE TO THE CITY ATTORNEY

WHEREAS, as a Community Development Block Grant entitlement community, the City of Palm Springs has prepared and subm itted a Five-Year Consolidated Plan and Annual Action Plan for the use of the federal funds received; and

WHEREAS, the City of Palm Springs is eligible to receive an entitlement of $413,000 of Community Development Block Grant funds under the U.S. Department of Housing & Urban Development regulations; and

WHEREAS, these funds, totaling $413 ,000, must be used for eligible activities which principally benefit low- and moderate-income persons; and

WHEREAS, the City Council held two public hearings on February 8, 202 4, and March 28, 2024, to receive public input on the allocation of these funds;

WHEREAS, the funds must be used for eligible activities which principally benefit low and moderate income persons; and

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

SECTION 1. The 2024-2025 Annual Action Plan is hereby approved. The City Manager or his designee is authorized to submit the Annual Action Plan, which accurately reflects the 2024-2025 CDBG budget and projects approved by the City Council to the United States Department of Housing & Urban Development.

Item 2A - Page 42

SECTION 2. The total Community Development Block Grants funds available for 2024- 2025, by authorized category of basic eligibility, are approved as follows:

2024-2025 CDBG FUNDING ELIGIBILITY CATEGORIES

Public Facilities, Capital Improvements, $ 268,450
and Residential Rehabilitation
Public Services $ 61,950
TOTAL PROGRAMMATIC FUNDS (80%) $ 330,400

ADMINISTRATION (20%) $ 82,600

TOTAL CDBG 2023–2024 FUNDING $413,000

SECTION 3. The City Manager or designee is hereby authorized to accept and execute the Funding Approval/Agreement with HUD – Grant #: B-24- MC-06-0561 in the amount of $413,000, for the Fiscal Year 2024-2025 CDBG Program, 50 th Program Year.

SECTION 4. The City Manager or designee is hereby authorized to execute the following Subrecipient Agreements and all necessary documents, in a form acceptable to the City Attorney:

2024-2025 CDBG:

City of Palm Springs Department of Housing & Community
Development – Residential Rehabilitation Home Repair
Program
$351,050
Fair Housing Services $61,950
Allocation Total $413,000

Item 2A - Page 43
ADOPTED this ___ day of March 2024.

Scott C. Stiles, City Manager

ATTEST:

Brenda Pree, MMC, City Clerk

Item 2A - Page 44

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that Resolution No. ______ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on March __, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Brenda Pree, MMC, City Clerk
City of Palm Springs, California
Item 2A - Page 45

ATTACHMENT C

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, APPROVING A
SUBSTANTIAL AMENDMENT TO THE 2023-2024 ANNUAL

ACTION PLAN TO REALLOCATE COMMUNITY
DEVELOPMENT BLOCK GRANT – CORONA VIRUS
FUNDS IN THE AMOUNT OF $57,643.59 AND PRIOR

YEAR COMMUNITY DEVELO PMENT BLOCK GRANT
FUNDS IN THE AMOUNT OF $ 74,039.11 TO FUND THE
MAJOR HOME REPAIR PROGRAM ; AND TO AUTHORIZE

SUBMITTAL OF THE SUBSTANTIAL AMENDMENT TO THE

UNITED STATES DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT , AND AUTHORIZING THE CITY

MANAGER OR DESIGNEE TO EXECUTE ALL

NECESSARY DOCUMENTS IN A FORM ACCEPTABLE TO

THE CITY ATTORNEY

WHEREAS, On March 27, 2020, in response to the COVID -19 pandemic, Congress passed HR 748, Public Law 116- 136, commonly known as the Coronavirus Aid, Relief, and Economic Security Act (the CARES ACT) which appropriated significant financial resources to local communities to meet urgent community needs in the form of Community Development Block Grant Corona Virus formula grant funds including $264,161 for the City of Palm Springs; and

WHEREAS, HUD has made available supplemental formula grant funds under the CARES ACT to The City of Palm Springs including $584,613 in supplemental Community Development Block Grant Corona Virus Round 3 formula grant funds that may be used to prevent, prepare for, and respond to coronavirus; and

WHEREAS, HUD requires recipient jurisdictions to execute a substantial amendment when allocating new funding to an existing Action Plan, to carry out a new activity using funds covered under the Consolidated Plan, to make a change in the Item 2A - Page 46
City’s allocation priorities or a change in its method of distributing funds, to change the purpose, scope, location or beneficiaries of an activity, or other program changes activities; and

WHEREAS, HUD allowed the use of CARES Act funds for residential rehabilitation programs such as the Major Home Repair Program; and

WHEREAS, the funds must be used for eligible activities which principally benefit low- and moderate-income persons; and

WHEREAS, the City Council held a public hearing on February 8, 2024, and March 28, 2024, to receive public input on the allocation of these funds;

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Palm Springs hereby:

1. Adopts the substantial amendment to the Annual Action Plan for Program Year 2023-2024 for the federal CDBG program 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 by $129,490.90 increasing the Budget for Program Year 2023-2024 from $413,506 to $542,996.90; and

2. Authorizes and directs the City Manager or his designee to execute any agreements, contracts or other documents required by HUD in a form acceptable to the City Attorney for submission of the substantial amendment to the 2023- 2024 Annual Action Plan; and

3. Authorizes and directs the City Manager or his designee to submit the substantial amendment to the 2023-2024 Annual Action Plan to HUD.

Item 2A - Page 47
ADOPTED this ___ day of March 2024.

Scott C. Stiles, City Manager

ATTEST:

Brenda Pree, MMC, CERA, City Clerk

Item 2A - Page 48

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

AYES:

NOES:

ABSENT:

ABSTAIN:

Brenda Pree, MMC, CERA, City Clerk
City of Palm Springs, California
Item 2A - Page 49
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
0 1 20.5
Miles
Legend
Street Centerline
Census Tracts
Palm Springs City Limits
Item 2A - Page 50
D D

ATTACHMENT E
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 outcomes 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.

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

Item 2A - Page 51
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 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:

Item 2A - Page 52
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).

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 28, 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 15, 2024, to advertise a second public hearing on March 28, 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 accepted 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.

Item 2A - Page 53

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 determining what programs and activities to fund to continue meeting the needs as identified within the community.

Item 2A - Page 54
PR-05 Lead & Responsible Agencies – 91.200(b)

Agency Role Name Department/Agency

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

Narrative (optional)
The Housing & Community Development Department of the City of Palm Springs is the lead department responsible for the 2023-2024 Annual Action Plan. The Housing & Community 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 55
I I
I I
I I
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.

Item 2A - Page 56

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?

Item 2A - Page 58
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
Item 2A - Page 59
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 your 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)
Item 2A - Page 60
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation 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.

Item 2A - Page 61
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 Hearing
Minorities

Non-English
Speaking -
Specify other
language:

Spanish

Persons with
disabilities

Non-
targeted/broad
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
Item 2A - Page 62
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

Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broad
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/cdb
gprogram
3 Newspaper Ad
Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broad
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

Item 2A - Page 63
Substantial Amendment: Citizen Participation Outreach
Sort Ord
er
Mode of Outre
ach
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/broad
community

Residents of
Public and
Assisted
Housing
Two Public
Hearings held
February 8, 2024
and March 28,
2024. The public
was given an
opportunity to
comment at both
hearings before
the City Council
Approved the
Substantial
Amendment.

TBD TBD
Item 2A - Page 64
Sort Ord
er
Mode of Outre
ach
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/broad
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/broad
community
Public notices
were published
January 26, 2024,
and March 15,
2024, in the
Desert Sun, a
newspaper of
general
circulation.

TBD No comments
received
Table 4 – Citizen Participation Outreach
Item 2A - Page 65
/
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.

Item 2A - Page 66
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.

Item 2A - Page 67
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.

Item 2A - Page 68
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

Item 2A - Page 69
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 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

Item 2A - Page 70
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 Housing & Community Development Home Repair Program- Substantial 2 Fair Housing and Legal Services
Table 7 - Project Information

Item 2A - Page 71

AP-38 Project Summary
Project Summary Information
Item 2A - Page 72
1 Project Name City of Palm Springs Housing & Community 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
Item 2A - Page 73
Description Under CDBG guidelines, the City required toto 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).

Item 2A - Page 74
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

Item 2A - Page 75
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

Item 2A - Page 76
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.

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 .

Item 2A - Page 77
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.

Item 2A - Page 78
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.

Item 2A - Page 79
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 80
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 81
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 82
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

Discussion:

Item 2A - Page 83
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 84
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 85
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 86
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

75.00%

Item 2A - Page 87

ATTACHMENT F
Consolidated Plan Goals

HOUSING GOALS
GOAL 1: REMO

VE CONSTRAINTS THAT HINDER THE PRODUCTION AND

CONSERVATION OF AFFORDABLE HOUSING UNITS AND ASSIST IN THE

DEVELOPMENT OF HOUSING OPPORTUNITIES 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., PLACE OF ORIGIN,

IMMIGRATION STATUS, CULTURAL OR LINGUISTIC CHARACTERISTICS,

OR ETHNICITY), SEXUAL ORIENTATION, GENDER IDENTITY, GENDER

EXPRESSION, ANCESTRY, DOMESTIC PARTNER STATUS, MARIITAL

STATUS, AGE, HOUSEHOLD COMPOSITION, INCOME, SIZE, PHYSICL OR

MENTAL DISABILITY, MEDICAL CONDITION, OR ANY OTHER ARBITRARY FACTOR.

HOMELESS GOALS
GOAL 1: SUPP

ORT OR PROVIDE FUNDING FOR PROGRAMS THAT OFFER

SERVICES AND/OR SUPPORTIVE HOUSING TO ASSIST HOMELESS

INDIVIDUALS AND/OR FAMILIES

NON-HOUSING GOALS
GOAL 1: EST

ABLISH NEW AND/OR EXPANDED COLLABORATIONS WITH LOCAL

SERVICE PROVIDERS ON PROJECTS AND PROGRAMS THAT REDUCE

THE EFFECTS OF POVERTY AND SERVES SENIORS, AT -RISK YOUTH,

SEVERELY DISABLED ADULTS, AND SPECIAL NEEDS POPULATIONS Item 2A - Page 88

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 89

CITY COUNCIL STAFF REPORT

DATE: MARCH 28, 2024 PUBLIC HEARING

SUBJECT: CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE

CALIFORNIA GOVERNMENT CODE TO APPROVE A HOTEL

OPERATIONS COVENANT BETWEEN THE CITY OF PALM SPRINGS

AND CALIENTE TROPICS, LL C, A CALIFORNIA LIMITED COMPANY, PURSUANT TO MUNICIPAL CODE CHAPTER 5.26 OF THE CITY’S

HOTEL OPERATIONS INCENTIVE PROGRAM

FROM: Scott C. Stiles, City Manager

BY: Economic Development Department

SUMMARY:

The City’s Hotel Operations Incentive Program (HOIP) (Chapter 5.26) provides an incentive to hoteliers in the form of a share of enhanced Transient Occupancy Tax (TOT) based on improvements made at the applicant’s property. The program assumes a baseline tax rate established in the prior three years of operation. The difference between the baseline and future tax as a result of improvements, if any, is split 50/50 between the owner and the City. The split is shared until either the agreed upon amount of improvements is achieved, or ten (10) years passes - whichever occurs first. In order to comply with City Ordinance 5.26, an operator is required to execute and record an Operations Covenant on the property to ensure that the hotel will be operated and maintained continuously as a hotel consistent with the Program. In addition, before granting an economic development subsidy of $100,000 or greater, California Government Code Section 53083 requires that local agencies provide public notice and conduct a hearing regarding the economic development subsidy. Therefore, this action seeks to satisfy the conditions of a public hearing and seeks approval of the economic development subsidy in the form of the Operations Covenant agreement with Caliente Tropics, LLC, (Operator) for the Caliente Tropics Resort (Project), located at 411 E. Palm Canyon Drive, Palm Springs.

RECOMMENDATION:

1) Open the public hearing and receive public testimony. 2) Approve a Hotel Operations Covenant Agreement with Caliente Tropics, LLC for the Caliente Tropics Resort located at 411 E. Palm Canyon Drive, Palm Springs. 3) Authorize the City Manager to execute all necessary documents.

Item 2B - Page 1
City Council Staff Report
March 28, 2024 -- Page 2
Caliente Tropics Hotel Operations Covenant

BUSINESS PRINCIPAL DISCLOSURE:

The property is owned by Caliente Tropics, LLC; Harry Litke is the Principal of the LLC.

A Public Integrity Disclosure form is provided as Attachment A.

BACKGROUND:

The City Council adopted Chapter 5.26 of the Palm Springs Municipal Code in December 2007 (amended on May 15, 2013, February 6, 2019, and September 14, 2023) to provide the Program for the operation and maintenance of hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals.

In October 2013, Section 53083 was added to the California Government Code. Section 53083 states that before granting an economic development subsidy, each local agency shall provide public notice and conduct a hearing regarding the economic development subsidy. "Economic development subsidy" under Section 53083 means any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits.

STAFF ANALYSIS:

Operator has committed to a property improvement project that will invest no less than the equivalent of five thousand dollars ($5,000) per room. The renovation project is to be completed in Summer 2024. Upon City Council approval and after the City’s execution of the Operation Covenant Agreement (Attachment B), Caliente Tropics, LLC will provide satisfactory documentation certifying its recent renovation and completion of the project as a qualified renovation under the Program.

The Caliente Tropics Resort is located at 411 E Palm Canyon Drive and consists of 92 total hotel rooms. The renovation project included upgraded amenities to improve the guest experience. Improvements were made to the guest room furnishings, outdoor furnishings, and common area furnishings. This includes new beds, carpeting, AC units, new linens, TV’s, mini fridges, laundry equipment, room accessories, new door, sign paint, new Wi -Fi equipment, office equipment, landscape plants, 21 tankless water heaters, pool resurfacing and pool heater.

Consistent with the provisions of the Program, the Operator now agrees to place restrictions upon the use and operation of the hotel, to ensure that the Project shall be operated and maintained continuously as a hotel available for short-term rentals. The Item 2B - Page 2
City Council Staff Report
March 28, 2024 -- Page 3
Caliente Tropics Hotel Operations Covenant

hotel operator also agrees to participate in the Palm Springs Convention Center's Committable Rooms Program and provide designated room-nights per month for official City use. City will share a percentage of Transient Occupancy Tax Increment with Operator pursuant to the Program guidelines.

As noted above, California Government Code Section 53083 requires a public hearing for economic development subsidies where expenditure of public funds is in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency. Accordingly, before approving such economic development subsidies, the local jurisdiction is to pr ovide specific information in written form available to the public, and through its Internet Web site.

For the Caliente Tropics Resort, the information is as follows:

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.

Operator is a single purpose entity domiciled in the State of California doing business from 411 E Palm Canyon Drive, Palm Springs, CA 92264. The Agent for service of process to Operator is Caliente Tropics, LLC, doing business at 411 E Palm Canyon Drive, Palm Springs, CA 92264.

2. The start and end dates, and schedule, if applicable, for the economic development subsidy.

If approved, the Covenant would provide an economic subsidy to Operator through a term of ten (10) years, or until the Operator has received $884,833.00 pursuant to the Program, whichever event occurs first.

3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

A. The Program provides operating assistance to hotels in the form of a rebate of adjusted transient occupancy tax (“Adjusted TOT”) at a fixed level for existing hotels that meet Program criteria. The City Council has adopted the Phase II Renovation Project Program for improvement projects constructed by an existing hotel that invests no less than the equivalent of five thousand dollars ($5,000) per room, including this project.

B. Per the Program, the existing hotel project planned by Operator is rebated 50% of adjusted TOT for ten (10) years or until the rebate totals $884,833.00, whichever comes first. For purposes of the Covenant, an existing Hotel is defined as a property improvement project constructed by an existing hotel that Item 2B - Page 3
City Council Staff Report
March 28, 2024 -- Page 4
Caliente Tropics Hotel Operations Covenant

invests no less than the equivalent of five thousand dollars ($5,000) per room.

The renovation project must commence no more than twelve (12) months after the City’s execution of the Operation Covenant Agreement and be completed no later than December 31, 2024.

C. The public funds to be spent if the City approves this Covenant will be the staff costs of administration, and statutorily mandated reporting through the term of the Program rebate/subsidy.

4. A statement of the public purposes for the economic development subsidy.

A. The City Council established the incentive program for the operation and maintenance of quality and first-class hotel facilities which enhance the tourist and travel experience for visitors to the City of Palm Springs, maximize the use of the City’s convention center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. In the implementation of this program, the City Council determined: (1) The general welfare and material wellbeing of the residents of the City of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the City; (2) The operation, maintenance, and expansion of the inventory of quality hotels and first class hotels in the City of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the City, ensure utilization of the City’s convention center, provide employment opportunities for the residents of the City, and promote and enhance the economy of the City; (3) It is in the best interest of the City of Palm Springs to induce and encourage the operation and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the City’s general fund which supports the public services that the City provides its residents; and (4) The authority granted and the purposes to be accomplished are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of quality and first class hotels is of paramount importance to the City of Palm Springs, its residents, and businesses. (Ord. 1730 § 2, 2008)
B. No less than five thousand dollars ($5,000) per room, or if the project includes any common area or amenity, or any other area for guest use at the hotel, the amount of the investment shall not be less than the amount, if any, invested in rooms, added to the total number of rooms at the hotel that will exist at the end of the project multiplied by five thousand dollars ($5,000).

C. The Project would help beautify the neighborhood through and implement energy saving and sustainable components.

5. Projected tax revenue to the local agency as a result of the economic development subsidy.

A. Per the Program, the City will receive 50% of Adjusted TOT for ten (10) years Item 2B - Page 4
City Council Staff Report
March 28, 2024 -- Page 5
Caliente Tropics Hotel Operations Covenant

or until the rebate to the Operator totals $884,833.00, whichever comes first.

After ten (10) years the City will receive 100% of the TOT revenue (Adjusted TOT plus Unadjusted TOT).

6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The Operator anticipates increasing employment by four (4) full time positions and two part- time positions, for a total of 15 FTEs. The estimated annual payroll for employees and contracted maintenance services is estimated to be $620,000.

Project Description

The Caliente Tropics Resort is located at 411 E. Palm Canyon Drive and consists of 92 total hotel rooms. The project location is shown below in Figure 1.

Figure 1
Item 2B - Page 5
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Caliente Tropics Resort
- Palm Springs, CA

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Motel 6 Palm Springs,
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575
City Council Staff Report
March 28, 2024 -- Page 6
Caliente Tropics Hotel Operations Covenant

No square footage additions were added to the existing Caliente Tropics Resort buildings.

All improvements occurred within the current footprint of the site and were completed on all guest rooms as part of the Project. Additionally, Caliente Tropics Resort, LLC expects the renovations, upgrades, and enhancements to bring a heightened level of experience to the guests, thereby increasing occupancy, revenues and tax receipts.

Images of the upgrades are provided below.

New monument entry sign

Item 2B - Page 6
I
I.

City Council Staff Report
March 28, 2024 -- Page 7
Caliente Tropics Hotel Operations Covenant

Landscaping and Site Signage

Pool Lining and Deck Updates
Item 2B - Page 7
City Council Staff Report
March 28, 2024 -- Page 8
Caliente Tropics Hotel Operations Covenant

Room and Case Good Upgrades

Bathroom Upgrades
Item 2B - Page 8
City Council Staff Report
March 28, 2024 -- Page 9
Caliente Tropics Hotel Operations Covenant

ENVIRONMENTAL ASSESSMENT:

The extension of the Program considered at this time is not a “project” for purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) section 15378. This action is organizational or administrative activity by the City of Palm Springs in furtherance of its police power and will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines.

ALIGNMENT WITH STRATEGIC PLANNING:

Quality of Life, Advance Economic Development – Stimulate investment in activities that create living wage employment opportunities and increase livability of the community.

FISCAL IMPACT:

An amount equal to 50% of transient occupancy tax increment derived from the Caliente Tropics Resort, over the annual base amount, will be paid to the Operator for a ten- year period.

REVIEWED BY:

Department Director: Wayne Olson
City Manager: Scott Stiles

ATTACHMENTS:

A. Public Integrity Disclosure Form
B. Hotel Operations Covenant Agreement – Caliente Tropics Resort, LLC

Item 2B - Page 9

ATTACHMENT A

Item 2B - Page 10
Item 2B - Page 11
Who Must Fife?

CITY OF PALM SPRINGS

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

Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in municipal government and assists public officials in avoiding conflicts of interest. The City's Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the City's interest in ensuring that companies (and other legal entities that are not natural people) doing business in the community are transparent and make disclosure as to their ownership and management, and further that those companies disclose the identity of any person, with an ownership interest worth two thousand dollars ($2,000) or more, who has a material financial relationship with any elected or appointed voting City official, or with the City Manager or City Attorney.

Note: A material flnanclal relationship is a relationship between someone who is an owner/investor in the applicant entity and a voting official (or the City Manager or City Attorney), which relationship Includes any of the following:
(1) the owner/investor and the official have done business together during the year prior to the application;
(2) the official has earned income from the owner/investor during the year prior to the filing of the application;
(3) the owner/investor has given the official gifts worth fifty dollars ($50) or more during the year prior to the filing of the application; or
(4) the official might reasonably be anticipated to gain or lose money or a thing of value, based upon the owner/investor's interest in the applicant entity, in relation to the application's outcome.

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

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

Page 1 ends

Item 2B - Page 12
What Must I Disclose?
A. The names of all natural persons who are officers, directors, members, managers, trustees, and other fiduciaries serving trusts or other types of organizations (attorneys, accountants, etc.).

Note: (1) only trusts or other organizations that are not the fiduciaries, (2) if a second entity that is not a natural person serves the applicant entity (e.g., as a member of an applicant LLC), then all officers, directors, members, managers, trustees, etc., of the second entity must be disclosed).

B. The names of persons owning an interest with a value of two thousand dollars ($2,000) or more who have a material financial relationship with an elected or appointed City official who will vote on the applicant's application, or with the City Manager or City Attorney.

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

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

Page 2 of 2 ends

Item 2B - Page 13

1. Name of Entity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
Caliente Tropics, LLC

2. Address of Entity (Principle Place of Business)
411 E Palm Canyon Drive Palm Springs, CA 92264

3. local or California Address (If different than #2)

4. State where Entity Is Registered with Secretary of State California
If other than California, is the Entitv also reaistered in California? n Yes n No

5. Type of Entity
D Corporation D limited Liability Company D Partnership 13 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 entlt;y Harry Litke
Nooshin Rafiee
(Revised 09 13 18)
[name]
~ Officer ~ Director ~ Member O Manager
13 General Partner D Limited Partner
Other
[name)
~ Officer ~ Director 13 Member ~ Manager
13 General Partner D limited Partner
13 Other Financial Controller
[name]
D Officer D Director D Member D Manager
D General Partner D limited Partner
Other

CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

Item 2B - Page 14

7. Owners/Investors with a 5% beneficial Interest in the Annlicant Entltv or a related entitv

EXAMPLE
JANEDOE 50%, ABC COMPANY, Inc.
[name of owner/Investor] [percentage of beneficial Interest in entity and name of entltvl
A.
[name of owner/Investor] [percentage of beneficial Interest in entity
and name of entitvl
B.
[name of owner/investor] [percentage of beneficial interest In entity
and name of entltvl
C.
[name of owner/investor] [percentage of beneficial interest In entity
and name of entitvl
D.
[name of owner/Investor] [percentage of beneficial Interest In entity
and name of entitvl
E.
[name of owner/investor] [percentage of beneficial Interest in· entity and name of entitvl

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

Date
r //1 t:Af1 CI
(Revised 0913 18)

CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

ATTACHMENT B

Item 2B - Page 15
1 FREE RECORDING REQUESTED BY
A
ND WHEN RECORDED MAIL TO:

THE CITY OF PALM SPRINGS
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Clerk
(Space Above This Line for Recorder's Office Use Only)

OPERATIONS COVENANT

THIS OPERATIONS COVENANT AND DECLARATION OF COVENANTS AND RESTRICTIONS ("Agreement" or “Covenant”) is made and entered into this day of , 2024, by and between the CITY OF PALM SPRINGS, a municipal corporation and charter city ("City"), and CALIENTE TROPICS RESORT, LLC, a California Limited Company ("Owner" or “Participant”).

R E C I T A L S:

A. The City of Palm Springs adopted Chapter 5.26 of its Municipal Code in December, 2007 to provide a Hotel Operations Incentive Program ("Program") for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, maximize the use of the City's Convention Center, provide attractive and de sirable visitor serving facilities and experiences, and a ssist the City in achieving its t ourism goals. (Chapter 5.26 of the Municipal code is incorporated herein by reference and defined terms therein shall, unless otherwise indicated, have the same meanings herein.)
B. On February 6, 2019, the City of Palm Springs amended Chapter 5.26 of its Municipal Code (“PSMC”) to re-establish the Program for Renovation Hotels as defined in Chapter

5.26 of the PSMC for the operation and maintenance of Hotel facilities that enhance the tourist and travel experience for visitors to the City, that assist the City in achieving its tourism goals.

C. On September 14, 2023, the City of Palm Springs amended Chapter 5.26 of its Municipal Code (“PSMC”) to extend the Program until December 31, 2028.

D. On February 8, 2023, Owner applied for th e Program and has provided satisfactory documentation certifying its renovation project as a qualified renovation program under the Program.

CALIENTE TROPICS RESORT ("Owner's Hotel" or "P roject"), generally loca ted at 411 S. Palm Canyon Drive, Palm Springs, California, consists of ninety-two (92) total hotel rooms on that certain real property located in the City of Palm Springs, County of Rivers ide, State of Ca lifornia, legally described on the Legal Description attached here to as Exhibit "A" and incorporated herein by reference (the "Site").

E. City and Owner now desire to place restrictions upon the use and operation of the Project, in order to ensure that the Project shall be operated continuously as a hotel available for short-term rental for the term of this Agreement.

F. City and Owner also agree that in return for participation in the Program, Owner shall Item 2B - Page 16
2 agree to operate the Project as a hotel; participate in the Pa lm Springs Convention Center's Committable Rooms Program; and provide City with a minimum of two (2) room-nights per month for official City use; and, City agrees to share a percentage of Transient Occupancy Tax Increment with Owner pursuant to the Program guidelines.

G. The City finds that the approval of this Covenant is Categorically Exempt from CEQA under Section 15301 of the Californi a Administrative Code as the Hotel Operations Incentive Program applicable to Owner's Hotel applies to the operation, repair, maintenance, or minor alteration of existing structures, facilities , mechanical equipment involvi ng no material expansion of use beyond that previously existing.

NOW, THEREFORE, for good and valuable consid eration, the receipt and sufficiency of which are hereby acknowledged, the Participant hereby conveys to the City the Operating Covenants described herein and City hereby agrees to provide Owner with funds as provided under the Program and as set forth hereinafter.

ARTICLE 1

STATEMENT OF OPERATING COVENANTS

1.1. OPERATION AND USE COVENANT. Upon occupancy, Owner covenants to operate, maintain, and use the CALIENTE TROPICS RESORT in accordance with this Agreement.

All uses conducted on the Site, including, without limitation, all activities undertaken by the Owner pursuant to this Agreement shall, in all material respects, conform to requirements of this Agreement and Palm Springs Municipal Code (PSMC).

1.2. HOTEL USE. The Owner hereby agrees that the Project is to be owned, managed, and operated as a hotel (as defined by 5.36.020 of the PSMC) in a first-class manner, and the Project's participation in the Program shall continue in ac cordance with the terms of the Program, for a term equal to ten (10) years, commencing upon the date Owner first receives from the City the Owner's share of transient occupancy ta x revenues pursuant to the Pr ogram unless and until Owner's participation in the Program is terminated prior thereto in accord ance with this Agreement (the "Term").

1. Housing Uses Prohibited. None of the rooms in the Project will at any time be utilized as a non-transient reside ntial property including dormitory, fraternity or sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park without the City's prior consent which consent may be gi ven or withheld in its sole and absolute discretion.

2. Conversion of Project. No part of the Project will at any time be owned by a cooperative housing corporation, no r shall the Owner take any st eps in connection with the conversion to such ownership or uses to condo miniums, or to any other form of ownership, without the prior written appr oval of the City Council whic h approval may be given or withheld in its sole and absolute discretion.

Item 2B - Page 17
3 ARTICLE 2

WARRANTIES AND COVENANTS

2.1. WARRANTIES AND COVENANTS. For the Term of this Agreement, the Owner hereby represents, covenants, warrants and agrees as follows:

1. Owner has completed the City's application for the Hotel Operations Incentive Program. The City has determined the Transient Occupancy Tax Base to be used to calculate the Transient Occupancy Tax Increment sh all be $270,043.97, and the Owner accepts such Transient Occupancy Tax Base.

2. Owner hereby agrees to subscribe to the Palm Springs Convention Center's Committable Rooms Program or any similar su ccessor program as identified by the City Manager without being obligated to incur any additional costs or expenses.

3. Upon City's prior request, Owner shall provide the City at no cost two (2) rooms for one (1) night (or 1 room for 2 nights ) other than Friday or Saturday nights each month for use for City purposes as approved or designated by the City Manager, provided that such use by the City shall be subject to the rooms being available at the time of the City's request. Such accommodations shall include all services and amenities for which the Owner would normally collect transient occupancy taxes but will not include services and amenities that are optional to the transient and for which the transient is not required to pay a transient occupancy taxes. City shall be responsible for any transient occupancy taxes for any occupancy provided to City under the provisions of this paragraph. Notwithstanding anything in this Agreement to the contrary, if the City does not use rooms during any month, then its right to use rooms with respect to that month sh all expire at the end of that month and shall not accrue; provided, however, if the City was unable to use rooms solely because Owner's Hotel had no rooms available when the City requested a room in accordance with this Section

2.1.3, then, the City's right to use rooms shall not expire and may be used by the City in the next subsequent month.

ARTICLE 3

MAINTENANCE

3.1. MAINTENANCE.

1. Maintenance Obligation. Owner, for itse lf and its successors and assigns, hereby covenants and agrees to maintain and repa ir or cause to be maintained and repaired the Site and all related on-si te improvements and landscaping thereon, including, without limitation, buildings, amenities, parking areas, lighting, signs and walls in a first class condition and repair, free of rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdic tion, at Owner's sole cost and expense. Such maintenance and repair shall include, but not be limited to, the following:
(i) sweeping and trash removal; (ii) the care and replacement of a ll irrigation, shrubbery, plantings, and other landscaping to maintain it in a healthy condition; and (iii) the repair, Item 2B - Page 18
4 replacement and restriping of as phalt or concrete paving using the same type of material originally installed, to the end that such paving at all times be kept clearly marked and in a level and smooth condition. In addition, Owner shall be required to maintain the Property in such a manner as to avoid the reasonable dete rmination of a duly author ized official of the City that a public nuisance has been created by the absence of adequate maintenance such as to be detrimental to the public health, safety or general welfare or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within one thousand (1,000) feet of such portion of the Site.

2. Parking and Driveways. The driveways a nd traffic aisles on the Site shall be kept clear and unobstructed at all times.

3. Right of Entry. In the event Owner fail s to maintain the Site in the above- mentioned condition, and satisfactory progress is not made in correcting the condition within thirty (30) days from the date of written notice from City (which notice shall reasonably identify the required maintenance), City may, at City's option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter, either City or its employees, contractors, or agents, may cure Owner's default by entering upon the Site and performing the necessary land scaping and/or maintenance in accordance with Section 3.1.1 above. The City shall give Own er, its representative , or the residential manager reasonable notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out this Agreement. Owner shall pay such costs as are reasonably incurred by City for such maintenance, including attorneys' fees and costs.

4. Lien. If any costs incurred by City unde r Section 3 above are not reimbursed within thirty (30) days after Owner's receipt of City's written request for reimbursement, the same shall be deemed delinquent, and the amount thereof shall bear inte rest thereafter at a rate of the lower of ten percent (10%) per annum or the legal maximum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be an obligation of Owner as well as a lien and charge, with power of sale, upon the property interests of Owner, and the rents, issues and profits of such property. City may bring an action at law against Owner obligated to pay any such sums or foreclose the lien against Owner's property interests. Any such lien may be enfor ced by sale by the City following recordation of a Notice of Default of Sale given in the manner and time required by law as in the case of a deed of trust; such sale to be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law.

Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust coveri ng an ownership interest or leasehol d or subleasehold estate in and to any Site approved by City pursuant to the Agre ement, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assign ment in lieu of forecl osure or trustee's sale) under any such mortgage or deed of trust sha ll take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided fo r herein to the extent they relate to the expenses incurred subsequent to such foreclosure, Item 2B - Page 19
5 assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject Site after the date of such foreclosure sale, shall b ecome a lien upon such Site upon recordation of a Notice of Assessment or Notice of Claim of Lien as herein provided.

ARTICLE 4

COMPLIANCE WITH LAWS

4.1. COMPLIANCE WITH LAWS. Owner shall comply with all ordinances, regulations, and standards of the City applicable to the Site. Owner shall comply with all rules and regulations of any assessment district of the City with jurisdiction over the Site.

4.2. PREV AILING WAGE. In accordance with California Labor Code section 1781(a)(2), the Participant acknowledges that the City has expr essly indicated to the Participant and persons associated with the Participant that laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their la bor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq. and Palm Springs Municipal Code Section

7.06.030(1). The Participant agrees with the City that the Participant shall a ssume the responsibility and be solely responsible for payment of the prevailing per diem wage rate for their labor classification.

The Participant, on behalf of itself, its successors, and assigns, waives and releases the City from any right of action that may be available to it pursuant to California Labor Code Sections 1726 and 1781.

The Participant acknowledges the protections of Civ il Code Section 1542 relative to the waiver and releases contained in this section 4.2, which reads as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR

OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR

HER FA VOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN

BY HIM OR HER, WOULD HA VE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED THE PARTY .”

BY INITIALING BELOW, THE PARTICIPANT KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS SECTION 4.2.

____________
Participant’s Initials

Additionally, in accordance with this section 4.2, the Participant shall indemnify, defend with counsel acceptable to the City, and hold the City harmless against any claims pursuant to California Labor Code Sections 1726 and 1781 arising from this Covenant or the construction or operation of the Project.

Item 2B - Page 20
6 ARTICLE 5

NONDISCRIMINATION

5.1. NONDISCRIMINATION. There shall be no discriminati on against or segregation of any person, or group of persons, on account of race, color, creed, religion, gender, sexual orientation, gender identity, gender expression, marital status, nationa l origin, ancestry, physical or mental disability, or medical condition in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, or any part thereof, nor shall Owner, or any person claiming under or through it, establish or permit any such practice or practi ces of discrimination or segregation with reference to the selection, location, number, use or occupancy of guests or vendees of the Site, or any part thereof.

ARTICLE 6

COVENANTS TO RUN WITH THE LAND

6.1. COVENANTS TO RUN WITH THE LAND. Owner hereby subjects the Site to the covenants, reservations, and restrictions set forth in this Agreement. City and Owner hereby declare their express intent that all such covenants, reservations, and restrictions shall be deemed covenants running with the land and shall pass to and be bi nding upon the Owner's succe ssors in title to the Site; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire. All cove nants without regard to technical classification or designation shall be binding for the benefit of the City, and such covenants shall run in favor of the City for the entire term of this Agreement, without regard to whether the City is or remains an owner of any land or interest therein to which such covenants relate. E ach and every contract, deed or other instrument hereafter executed covering or conveying the Site or any portion thereof shall conclusively be held to have been executed, delivered and accepted s ubject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed or other instrument.

City and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Own er's legal interest in the Site is rendered less valuable thereby. City and Owner hereby furthe r declare their understandi ng and intent that the benefit of such covenants touch and concern th e land by enhancing and includes the enjoyment and use of the Project by the intended beneficiaries of such covenants, reservations, and restrictions, and by furthering the public purposes for which the City was formed.

Owner, in exchange for the City entering into the Agreement, hereby agrees to hold, sell, and convey the Site subject to the term s of this Agreement. Owner also grants to the City the right and power to enforce the terms of this Agreement against the Owner and all persons having any right, title or interest in the Site or any part thereof while such party owns the Site. No party shall have any liability or obligation in connection with any breach occurring while such party is not the owner of the Site.

Within fifteen (15) business days after request of Owner, City shall execute and provide to Owner an estoppel certificate, in the form approve d by the City Attorney of the City, confirming whether or not Owner is in bre ach of any obligations under this Agreement and identifying any required cure.

Item 2B - Page 21
7 ARTICLE 7

INDEMNIFICATION

7.1. GENERAL INDEMNIFICATION. Participant agrees, for itself and for its successors and assigns, to indemnify, defend with counsel acceptable to the City, and hold the C ity, together with its officers, members, officials, employees, agents, volunteers, and representatives, harmless from and against any loss, liability, claim or judgment arising from or related to Part icipant’s participation in the Hotel Operations Incentive Program pursuant to Palm Springs Municipal Code Chapter 5.26.

7.2. ATTORNEYS' FEES. In the event that a party to this Agreement brings an action against the other party hereto by reason of the breach of any conditi on, covenant, representation or warranty in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recove r from the other reasonable expert witness fees, and its reasonable attorney's fees and costs. Attorney's fees shall in clude attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery.

7.3. AMENDMENTS. This Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside.

7.4. NOTICE. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto:

City: City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Manager
Copy to: Office of the City Attorney
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Attorney

Owner: CALIENTE TROPICS RESORT, LLC
411 E. Palm Canyon Drive
Palm Springs, CA 92264
Attn: Nooshin Rafiee

The notice shall be deemed give n three (3) business days after the date of mailing, or, if personally delivered, when received.

Item 2B - Page 22
8 7.5. SEVERABILITY/WAIVER/INTEGRATION

1. Severability. If any provision of this Agreement or portion thereof, or the application to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of the provisions, or the app lication of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby; provided, that if any material terms or provisions of these Operating Covenants are rendered invalid, void and/or unenforceable, or due to changes in the law such terms or provisions would materially alter the terms of the transactions contemplated herein, the parties agree to meet and negotiate in good faith to attempt to reform these Operating Covenants to accomplish the intent of the parties.

2. Waiver. A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel ag ainst, the later exercise of such remedy or right.

3. Integration. This Agreement contains the entire Agreement between the parties and neither part y relies on any warranty or repres entation not contained in this Agreement.

4. Third Parties. No third-party benefici aries are intended, and the only parties who are entitled to enforce the provisions of these Operating Covenants are the City, Mortgagees, Participant and their respective successors and assigns.

7.6. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California and is subject to the provisions of Government Code Section 53083.

7.7. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall constitute one original and all of which shall be one and the same instrument.

7.8. TERMINATION. This Agreement may be terminated only (i) by and upon expiration of the Term, (ii) by mutual written agreement of the parties, and (iii) by and pursuant to the provisions of Section 7.9 or 7.10 below. In the event of any termination of this Covenant, Owner (or its successor, as applicable) shall not be obligated to return any amounts previously paid to it by the City pursuant to the Program.

7.9. DEFAULT BY OWNER. If at any time during the Term, City contends that Owner has committed a material default with respect this Agreement, e.g., by failing to operate the Hotel as a Hotel, City shall deliver to Owner written notice of default which specifies in detail all facts alleged by City to constitute such default. For a period of thirty days thereafter, Owner will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty days to cure, and the Parties so agree, Owner will have such addition time as is reasonably necessa ry to complete such cure. Subject to Section

7.11 below, if Owner fails to timely cure such default, City shall then have the right to terminate this Agreement. (To the extent of any inconsistency between the provisions of this Section 7.9 and the provisions of Section 3.1 above, the provisions of this Section 7.9 shall prevail.) Item 2B - Page 23
9 7.10 DEFAULT BY CITY . If at any time during the Term, Owner contends that City has committed a material default with respect this Agreement, Owner may deliver to City written notice of default that specifies in detail all facts alleged by Owner to constitute such default. For a period of thirty days thereafter, City will have the ri ght to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty days to cure, and the Parties so agree, City will have such addition time as is reasonably necessary to complete such cure. Subject to Section 7.11 below, if City fails to timely cure such default, Owner shall then have the right to termin ate this Agreement or exercise any and all other rights and remedies available at law and in equity , and each of such rights and remedies shall be cumulative and not exclusive.

7.11 MORTGAGE PROVISONS. Anything in this Agreement to the contrary notwithstanding, with respect to any recorded mortgage or deed of trust given in good faith and for value and encumbering the Hotel (“Mortgage”), any holder thereof that has delivered to City a copy of such recorded Mortgage and current contact information (“Mortgagee”) will be entitled rights and benefits in accordance with the following:

1. City acknowledges and agrees that the rights and obligations of Owner under this Agreement may, with or wi thout approval by City, be cond itionally assigned by Owner to any Mortgagee as security for performance of Mortgage obligations.

2. While any Mortgage remains in effect, City will not amend or modify this Agreement in any material respect without receiving prior written approval from Mortgagee, which approval may not be unreasonably w ithheld, delayed or conditioned; provided, however, failure by Mortgagee to provide written approval or disapproval (and if disapproval the reasons therefor) within thirty days of delivery of request therefor shall be deemed to constitute approval by Mortgagee.

3. While any Mortgage remains in effect, in the event City delivers to Owner of any notice of default as referenced in either Section 3.1 or 7.9 above, City shall concurrently deliver a copy thereof to Mortgagee.

4. Delivery of any such notice of default notwithstanding, City will not terminate or initiate or pursue any action to terminate this Agreement as long as Mortgagee diligently (i) declares a default by Owner under the Mortgage, (ii) pursues foreclosure and/or other appropriate actions under the Mortgage, (iii) pays to City al l amounts that would otherw ise have been payable by Owner to City, and (iv) cures non-monetary defaults.

7.12 Operator Provisions. City acknowledges and ag rees that operati onal obligations of Owner may, with or without consent of City, be assigned by Owner to any entity owned or wholly controlled by Owner or its Members or Hotel Operator of Owner’s choice, and, in connection therewith, such Hotel Operator may assume all or part of Owner’s Hotel operation obligations under this Agreement; provided, however, Owner shall retain ultimate responsibility for such Hotel operation obligations. City agrees that while any Hotel Operator agreement is in effect, and provided that City has been put on notic e of such agreement and receive d contact information for such Operator, in the event City delivers to Owner of any notice of default as referenced in either Section

3.1 or 7.9 above, City shall concurrently deliver a copy thereof to the Operator.

Item 2B - Page 24
10 7.13 RESERVED.

7.14 Cooperation. Each party agrees to and sha ll do and perform such other and further acts and properly execute and deliv er such other and further doc uments as may be reasonably necessary, expedient or convenient to implement and/or effectuate the intents and purposes hereof.

City and Owner agree to cooperate with each other and/or with any Mortgagee or proposed Mortgagee, in a manner consistent with concepts and principles of good faith, fair dealing and commercial reasonableness, with respect to cons ideration, implementati on and execution of any modification(s) to this Agreement reasonably requested by the City, Owner, Mortgagee or proposed Mortgagee.

7.15 Reasonable Approvals. Whenever this Agreem ent requires or cal ls for the approval or consent of any party hereto , such approval shall not be unr easonably withheld, delayed or conditioned.

7.16 Binding Arbitration. In the ev ent of any dispute or cont roversy arising out of or relating to this Agreement, or the breach or performance of it, the parties shall reasonably attempt to resolve such dispute or controvers y without resort to th ird party review or re solution. The parties shall first meet and confer on any such dispute or controversy. Such mee ting(s) shall include any principal of the Owner and, at the discretion of the City, may include the C ity Manager and/or the City Council, either as a whole or through an ad hoc subcommittee designated by the City Council.

Upon a determination by the parties that they are or will be unable to resolve the dispute or controversy on their own, then the parties shall s ubmit the dispute, controversy or any remaining unresolved matter to binding arbi tration, to be held in the Coachella Valley, and be conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association.

7.17 Incorporation of Recitals and Exhibits. Each of the re citals set forth above and each of the exhibits attached hereto are agreed to and made part of this Agreement.

7.18 Authority. Each party represents and warrant s to the other that such party has full right, power and authority to sign, execute and enter into this Agreement.

[END -- SIGNATURES ON NEXT PAGE]
Item 2B - Page 25
11 IN WITNESS WHEREOF, the City and Owner have executed this Operations Covenant by duly authorized representatives on the date first written hereinabove. "CITY"

THE CITY OF PALM SPRINGS,
a municipal corporation and charter city
By:

ATTEST:

Scott C. Stiles, ICMA-CM
City Manager

Brenda Pree, MMC, CERA
City Clerk

APPROVED AS TO FORM:

BEST, BEST & KRIEGER

By:

Jeffrey Ballinger, Esq.

City Attorney

"OWNER"

By:

Name: Harry Litke
Title: General Partner

By:

Name: Nooshin Rafiee
Title: Financial Controller

[END OF SIGNATURES]
Item 2B - Page 26
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of _____________________________ )
On _______________________ before me, ________________________________________________________ Date Here Insert Name and Title of the Officer
Personally appeared ___________________________________________________________________________ Name(s) of Signer(s)
____________________________________________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature ________________________________________
Signature of Notary Public

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

Description of Attached Document
Title or Type of Document ________________________________ Document Date ________________________ Number of Pages __________________ Signer(s) Other Than Named Above ______________________________ Capacity(ies) Claimed by Signer(s)
Signer's Name _______________________________ Signer's Name __________________________________ Corporate Officer —Title(s) ___________________ Corporate Officer —Title(s) _____________________ _ Partner Limited General Partner Limited General Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other ___________________________________ Other _____________________________________ _ Signer Is Representing _________________________ Signer Is Representing __________________________ _ _____________________________________________ _____________________________________________ _

©2014 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 Item 2B - Page 27
:n:rzsr ?11!F17171 71 :2121mn: 221
:nrrzrr ?11!F17171 71 22121mm 221

OPERATIONS COVENANT

FOR HOTEL INCENTIVE PROGRAM

1 Item 2B - Page 28

LEGAL DESCRIPTION
EXHIBIT "A"
Premises Under Lease No. PSL-68
The land referred to in this Assignment of Interest in Business Lease is situated in the Ciiy of Palm Springs, Couniy of Rivers ide, State of California, and is described as follows :

That portion of the Northeast quarter of the Northwest quarter of the Northwest quarter, Section 26, Township 4 South, Range 4 East, San Bernardino Meridian, according to the offic ial plat thereof , described as follows :

Commencing at the Northwest comer of said sectio n, thence North 89°37'30" East, along the North line of said section, 656.10 feet to the point of beginning; Thence North 89°37'30" East, along the North line of said section, 300.00 feet; Thence South oo• 15 • 56" East, 4 31.16 feet;
Thence South 89°35'28" West, 300.00 feet to a point on the West line of the Northeast quarter of the Northwes t qWlrter of the Northwes t quarter of said sectio n; Thence North 00°15'56" West, along said West line, 431.35 feet to the point of . beginning.

CITY COUNCIL STAFF REPORT

DATE: MARCH 28, 2024 BUSINESS & LEGISLATIVE

SUBJECT: REGULATION OF AUTOMATED LICENSE PLATE READER (ALPR)

CAMERAS ON PUBLIC AND PRIVATE PROPERTY

FROM: Scott C. Stiles, City Manager

BY: Police Department

SUMMARY:

This agenda item provides the City Council with the opportunity to discuss and provide direction regarding the possible regulation of automated license plate reader (ALPR) cameras, both on public (right of way) property as well as private property.

RECOMMENDATION:

City staff recommends that the City Council provide direction to City staff, and the City’s Police Department in particular, to develop a program whereby private entities, such as HOAs and recognized Neighborhoods , may pay for the installation, operation and maintenance of ALPRs on City property, including City rights of way, so long as such private entities share the ALPR data with the City. Such ALPR data would be used by the City in compliance with SB 34, and the City’s ALPR policy. The program would als o include a review by the City Engineering Department, in order to ensure the safe placement of such encroachments in the City’s rights of way.

BACKGROUND:

The operation and control of automated license plate readers (ALPRs) have become increasingly relevant in our community, with growing concerns for public safety and the need for enhanced security measures.

On January 23, 2019, the City of Palm Springs accepted an award of $21,158 from the U.S. Department of Justice grant funds for the planned purchase of a new mobile, multi - camera ALPR system. Shortly thereafter, on March 6, 2019, the City Council approved the purchase of three (3) mobile automated license plate readers (ALPR), using a $25,000 grant from the Agua Caliente Band of Cahuilla Indians.

Item 3A - Page 1
On May 25, 2023, the City received a letter from the Electronic Frontier Foundation and ALCUs of Southern and Northern California, reminding the City of its obligations to comply with California law with regard to the City’s sharing of ALPR data with other public agencies. In response, the City updated its ALPR policy to specify that the City will not share with federal or out of state agencies. The policy was posted on the City’s website.

On October 12, 2023, the City Council approved a two (2) year cooperative agreement with Insight Public Safety, Inc. (aka Flock) for the deployment of fifteen (15) ALPR cameras at various locations within the City.

The City Council considered the regulation of ALPR cameras at the January 25, 2024 Council meeting. At that time, the City Council discussed the matter and directed that the matter be brought back when all Councilmembers are present. The Council was advised that the City has broad authority to regulate the placement and use of APLRs on public property. However, the Council was advised that the question of regulation of ALPRs on private property was a closer question and would require further investigation. Therefore, the Council further directed staff to research and provide further information regarding the regulation of ALPRs on both public and private property. Finally, the Council directed that there be interaction with the City’s Neighborhoods.

STAFF ANALYSIS:

California Senate Bill (SB) 34, passed in 2015, codified the use of ALPR systems by local government agencies. SB 34 put in place requirements limiting access to ALPR systems and imposing privacy protections. SB 34 also added California Civil Code Sections 1798.90.5 through 1798.90.55, which call for a usage and privacy policy that covers “the collection, use, maintenance, sharing, and dissemination of ALPR information is consistent with respect for individuals' privacy and civil liberties.” 1 Regulation of ALPR on Public Property

Within the past year, private entities, including an organized Neighborhood, have sought permission from the City to place ALPR within the City’s rights of way. As discussed at the January 25, 2024 Council meeting, the City’s ability to regulate the placement and use of ALPR s on public property (including public rights of way and other City -owned property) is quite broad. Private parties, such as homeowners’ associations, recognized Neighborhoods, and ALPR companies themselves do not have the legal right to be in the City’s public right of way, absent City permission. So, their occupation of that right of way is contingent on the grant of authority by the City. A private party’s installation of ALPR cameras within the right of way constitutes an encroachment. 2 Therefore, the City has
1 Civ. Code, § 1798.90.51
2 See PSMC Section 14.16.040 (Acts of private parties that would “make or cause to be made any alteration of … [the] right-of-way, or construct, put upon, maintain or leave thereon” cannot be made without an encroachment permit) (emphasis added).

Item 3A - Page 2
two methods to authorize such an encroachment. F irst, the City could include a list of conditions of approval in the required encroachment permit. Alternatively, the City could require the private party to enter into a license agreement with the City for the private encroachment.

The City could require that the private party give the City’s Police Department access to the ALPR data. The City Attorney is of the opinion that the City has the legal authority to include, in its list of conditions , the requirement that a private party wishing to place an ALPR in the City right of way provide the City with access to its ALPR camera data. (City of Oakland v. Hogan (1940) 41 Cal.App.2d 333, 347.) Further, we can look to other related franchise statutes, which allow a legislative body to impose conditions that are in furtherance of the public interest.
3 Other cities have explicitly codified such conditions into their application for an encroachment permit. For example, the City of Saratoga requires HOAs seeking an encroachment permit to install ALPRs in the rights of way to follow certain security policies in order to obtain an encroachment permit.
4 The relevant language is as follows:

• The HOA agrees that security images and other data may be shared with the Santa Clara County Sheriff's Office and other state or federal government law enforcement officials when requested in connection with an investigation.
• The HOA must keep a record of who is provided access to security images and other data and what images and date that person was given access to.

The City shall be entitled to inspect such records upon request to the HOA’s Board.

There is a good argument under the general police powers of the City that such conditions are in furtherance of the public interest. The allowance of private cameras can serve an important role in addressing crime and aiding local law enforcement in their investigations.

Moreover, by ensuring the City can see who is accessing the footage from these cameras and what footage he or she is accessing, the City can address other safety and privacy concerns. Therefore, it is likely the City can require private ent ities to provide the City access to the data for ALPR cameras installed in the City’s public right-of-way. 3 Pub. Util. Code, § 6002 (providing that the grantor of a franchise authorized under the Broughton Act may impose other terms and conditions not in conflict with the Act, whether governmental or contractual in character, as, in the judgment of the grantor, are in the public interest); Pub. Util. Code, § 6203 (providing the same for gas and electric franchises granted by municipalities); Pub. Util. Code, § 7556 (authorizing regulations, restrictions, and limitations as municipality may provide in a grant of franchise for an elevated or underground railroad); Pub. Util. Code, § 7804 (providing that the governing body, in granting the right to lay railroad tracks for street railways and for the operation of railway, or at any time after the right is granted, may impose terms, restrictions, and limitations as to the use of streets and the construction and mode of operating the road as it deems to be for public safety or welfare). 4 Standards for Encroachment Permits for Private Security Cameras, City of Saratoga (last accessed March 18, 2024), https://www.saratoga.ca.us/DocumentCenter/View/430/Supplemental -Application-for-Encroachment-Permit- for-Private-Security-Cameras-PDF?bidId=.

Item 3A - Page 3
Regulation of ALPR on Private Property

The regulation of ALPR on private property is a closer question from a legal perspective.

The City’s police power includes the authority to regulate activities on private property.

However, regulation of private conduct on private property must be reasonably related to a proper legislative goal. (Coleman v. Dept. of Personnel Admin., (1991) 52 Cal.3d 1102, 1125.) The regulation of private use of ALPR cameras on private property would require the City to articulate a legitimate governmental interest, in order to survive judicial scrutiny.

One such interest that has been suggested is the privacy interest of drivers. The N inth Circuit has expressly weighed in on whether an individual has a reasonable expectation of privacy for his or her license plate , at least in the context of searches by law enforcement agencies . In U.S. v. Diaz -Castaneda, the court found no reasonable expectation of privacy exists in a person’s license plate on vehicles traveling in the public right of way and that license plate checks do not infringe upon Fourth Amendment rights.

The court’s reasoning was that license plates are eminently visible to the public and passerby, with the specific intention to “convey information about a vehicle to law enforcement authorities, among others.” (U.S. v. Diaz-Castaneda (9th Cir. 2007) 494 F.3d 1146, 1151.)

The City could, of course, expand the rights of individuals driving on City rights of way.

For instance, the City could, theoretically, expand the privacy rights of the traveling public within the City. However, the City would need to address how that might impact law established case-law, which as discussed above, has long held that activities conducted in public are not “searches” for Fourth Amendment purposes.

In addition, the City would need to articulate how the privacy interests of a driver’s license plate data is to be protected against capture by an ALPR versus any number of other cameras, ranging from “ Ring-type” home security cameras, automobile dash- mounted cameras, or mobile phones. For instance, many residents and businesses currently use such Ring-type cameras, for security purposes. Unless the City wishes to regulate those security cameras, the City would need to articulate why the City is regulating ALPR cameras and not other home security cameras.
5 As mentioned during previous Council discussions of ALPR, the City has found no other jurisdiction that regulates the use of ALPR cameras by private parties on private property.

The closest example comes from the City of San Francisco. In September 2022, San Francisco passed an ordinance establishing a pilot program that would allow the San Francisco Police Department (SFPD) access to private security cameras, including those 5 In this regard, it should be noted that Ring cameras include, as part of their terms of service, an agreement by the user to send footage to local law enforcement. (Ring Terms of Service (last accessed March 18, 2024) https://ring.com/terms#:~:text=You%20are%20solely%20re
sponsible%20for,in%20connection%20with%20the%20Services.) Item 3A - Page 4
put up by homeowners on their own property. 6 The policy would allow the SFPD to "temporarily live monitor activity during exigent circumstances, significant events with public safety concerns, and investigations relating to active misdemeanor and felony violations" as well as "gather and review historical video footage for the purposes of conducting a criminal investigation.” The San Francisco Board of Supervisors added language to clarify that the SFPD’s access under the pilot program would only be made with either the private entity managing the security camera, or with a subpoena or search warrant. Although the San Francisco ordinance does not appear to have generated any litigation, it generated a significant amount of controversy and resistance from civil liberties groups and other privacy organizations.

Of course, even without an ordinance regulating the use of ALPR cameras on private property by private entities, the City could always voluntarily enter into agreements with such private parties to share access with the City’s Police Department. Under SB 34, the private entity – and the City if it were to access the information of these ALPR cameras – would be considered ALPR End- Users and would have to maintain reasonable protections for privacy and unauthorized access to ALPR data.

One example of such voluntary sharing of private security camera data is the City of Los Angeles. In December 2023, the Los Angeles Police Department announced a program for private entities, such as retail stores and homeowners, to voluntarily share real -time access to camera footage.
7 Therefore, City staff recommends that the City Council provide direction to City staff, and the City’s Police Department in particular, to develop a program whereby private entities, such as HOAs and recognized Neighborhoods may pay for the installation, operation and maintenance of ALPRs on City property, including City rights of way, so long as such private entities share the ALPR data with the City. Such ALPR data would be used by the City in compliance with SB 34, and the City’s adopted ALPR policy. The program would also include a review by the City Engineering Department, in order to ensure the safe placement of such encroachments in the City’s rights of way.

ENVIRONMENTAL ASSESSMENT
:

This staff report and the requested action is not a “project” for purposes of the California Environmental Quality Act (CEQA), because it can be seen with certainty that there will be no impacts to the environment.

6 Ordinance No. 220606, Ordinance approving Surveillance Technology Policy for Police Department use of non-City entity surveillance cameras and establishing a sunset date fifteen months after the effective date of the ordinance, (September 12, 2022) https://sfgov.legistar.com/View.ashx?M=F&ID=11240602&GUID=8E192C3D- 24AF-4851-A25A-DC5DA85E7E77.
7 Los Angeles Public Press, The LAPD wants access to 10,000 cameras across the city , Joey Scott (December 22, 2023) https://lapublicpress.org/2023/12/the-lapd-wants-access-to-10000-cameras-across-the-city/.

Item 3A - Page 5
ALIGNMENT WITH STRATEGIC PLANNING:

Private entities who purchase ALPR cameras for their neighborhoods that encroach on City right of way can align with the City Council’s priority 1B, Crime Reduction in several ways:

• Enhanced Surveillance: ALPR cameras provide an additional layer of surveillance in neighborhoods. They can capture license plate data, which can be valuable for law enforcement in identifying and tracking vehicles associated with criminal activities. This enhanced surveillance can deter criminal behavior, making neighborhoods safer.

• Community Engagement: Allowing private entities, such as Neighborhood groups, to invest in security measures demonstrates a community's active participation in crime prevention. This engagement fosters a sense of ownership and responsibility among residents, promoting a collab orative approach to addressing crime issues.

• Quick Response: ALPR cameras can alert law enforcement to suspicious or wanted vehicles in real -time. This rapid response capability enables law enforcement to intervene promptly, preventing crimes or apprehending suspects before they can evade capture.

• Data Sharing: When private entities provide access to law enforcement agencies, it facilitates data sharing. This collaboration allows law enforcement to use the collected information effectively to analyze patterns, identify potential threats, and allocate resources strategically for crime prevention efforts.

• Cost-Effective Solutions: Allowing private entities to purchase and maintain these cameras that encroach on City right of way can be cost-effective for the City.

It reduces the financial burden on municipal budgets while expanding the coverage of security cameras throughout the City.

• Deterrence Factor: The presence of visible security cameras, such as ALPRs, acts as a deterrent to potential criminals. Knowing that their activities may be recorded and investigated can discourage criminal behavior in the first place.

FISCAL IMPACT:

City staff does not anticipate any such program as recommended by staff to involve significant fiscal impacts to the City. If the City staff notice a marked increase in the number of requests from private entities to participate, the City staff can bring back an application processing charge for the City to consider, in order to cover the City’s administrative costs associated with processing the applications.

Item 3A - Page 6
REVIEWED BY:

Department Director: Andrew G. Mills
City Attorney: Jeffrey S. Ballinger
City Manager: Scott Stiles

ATTACHMENTS:

A. January 23, 2019 Staff Report
B. March 6, 2019 Staff Report
C. October 12, 2023 Staff Report
D. January 25, 2024 Staff Report
E. San Francisco Private Camera Ordinance

Item 3A - Page 7

ATTACHMENT A

Item 3A - Page 8
City Council Staff Report
DATE: January 23, 2019 CONSENT AGENDA
SUBJECT: ACCEPT AN AWARD FROM THE U.S. DEPARTMENT OF JUSTICE IN THE AMOUNT OF $21 ,158 AND APPROVE AN INTERLOCAL

AGREEMENT WITH THE CITY OF RIVERSIDE AND OTHER

PARTICIPATING CITIES AND COUNTY FOR THE ADMINISTRATION

OF THE GRANT
FROM: David H. Ready, City Manager
BY: Police Department

SUMMARY
It is recommended that the City Council accept a grant award to the City in the amount of $21,158 from the U.S. Department of Justice, Justice Assistance (JAG) Program and sign an lnterlocal Agreement with the cities of Banning, Cathedral City, Coachella , Corona, Desert Hot Springs, Hemet, Indio, Jurupa Valley, Moreno Valley, Perris, the County of Riverside and the City of Riverside, authorizing the City of Riverside to administer the grant on behalf of participating agencies.

RECOMMENDATION:

1. Approve the acceptance of a grant award from the United States Department of Justice in the amount of $21 ,158 for the 2018 Justice Assistance Grant (JAG) Program.

2. Approve an lnterlocal Agreement with the City of Riverside, and various cities within Riverside County, for the City of Riverside to administer the grant on behalf of participating agencies.

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

STAFF ANALYSIS :

The United States Department of Justice awards annual grants entitled Justice Assistance (JAG) Programs to law enforcement agencies. In the past the U.S.

Department of Justice awarded grants to individual law enforcement agencies .

However, beginning in 2012 the Department of Justice modified the grant process by ITEM No._l_._(?_._
Item 3A - Page 9
<.

City Council Staff Report
January 23, 2019 Page 2
Accept JAG Grant Funding
awarding the entire amount allocated for the thirteen (13) County of Riverside law enforcement agencies in one disbursement.

The thirteen Riverside County law enforcement agencies agreed that one agency would administer the total distributed amount , and that each of the participating agencies would release ten percent (10%) of their individual awards to the administering agency for program management. The City of Riverside was selected as the administering agency. The amount awarded to the City of Palm Springs for 2018 is $21 ,158. Under the agreement , the City of Palm Springs would release $2,116 to the City of Riverside, leaving an award balance of $19,042.

JAG funds may be used for equipment or a variety of public safety programs . The Police Department plans to use these grant funds to purchase a mobile, multi-camera license plate reader system . This system will replace existing, outdated license plate reader technology and equipment the Department has been using since 2005.

FISCAL IMPACT:

This will have no impact on the General Fund and there are no matching funds required.

Attachments:
1) lnterlocal Agreement
Item 3A - Page 10

INTERLOCAL AGREEMENT

BETWEEN CITIES OF BANNING, CATHEDRAL CITY, COACHELLA, CORONA, DESERT HOT

SPRINGS, HEMET, INDIO, JURUPA VALLEY, MORENO VALLEY, PALM SPRINGS, PERRIS, THE

COUNTY OF RIVERSIDE AND

THE CITY OF RIVERSIDE, CA

CONCERNING DISTRIBUTION OF THE
2018 JUSTICE ASSISTANCE GRANT AWARD
This Agreement is made and entered into this_day of __ , 2018, by and between THE CITY OF RIVERSIDE, acting by and through its governing body, the Ri~erside City Council (hereinafter referred to as "CITY"), and the aforementioned COUNTY (hereinafte~Jreferred to as "COUNTY") and named CITIES (hereinafter referred to as "CITIES"), acting by and through their respective governing bodies, the Board of Supervisors and City Councils, all of whom are situated within the County of Riverside, State of California, as follows:

WHEREAS, each governing body, in performing governmental functions or in paying for the performance of governmental functions hereunder, shall make that performance or those payments from current revenues legally available to that party; and WHEREAS, each governing body finds that the performance of this Agreement is in the best interests of all parties, that the undertaking will benefit the public, and that the division of costs fairly compensates the performing party for the services or functions under this Agreement; and WHEREAS, the CITY agrees to release to COUNTY and CITIES their respective grant allocation from the JAG Award, less ten percent (10%) re-allocated to CITY, as reflected on Appendix 1 here attached and hereby incorporated by reference as part of this agreement, on a reimbursement basis; and CITY agrees to provide the administration of COUNTY's and CITIES' programs during the entire permissible duration of said programs; and additionally the COUNTY and CITIES each agree that it is their responsibility to ensure these funds are expended in accordance with JAG guidelines; and ·
WHEREAS, the COUNTY, CITIES and CITY believe it to be in their best interests to reallocate the JAG funds,
NOW THEREFORE, the CITY and COUNTY and CITIES agree as follows:

Section 1.

CITY agrees to release to COUNTY and CITIES up to their respective grant allocation from the JAG Award, less ten percent (10%) re-allocated to CITY, as reflected in Appendix 1 here attached and hereby incorporated by reference as part of this Agreement, on a reimbursement basis, from the JAG Award within (45) days upon receipt of fully documented reimbursement request, and; CITY agrees to provide the administration of COUNTY's and CITIES' programs during the entire permissible duration of said programs.

Section 2.

COUNTY and CITIES each agree that it is their responsibility to ensure these funds are expended in accordance with JAG guidelines.

MOU - 2018 Justice Assistance Grant Page 11
Item 3A - Page 11
Section 3.

COUNTY and CITIES agree to provide CITY with sufficient timely information as necessary within five business days after receiving written request from CITY to meet JAG requirements for quarterly financial and performance metrics reports and semi-annual programmatic reports.

Section 4.

Nothing arising from this Agreement shall impose any liability for claims or actions against CITY other than what is authorized by law.

Section 5.

Nothing arising from this Agreement shall impose any liability for claims or actions against COUNTY and/or CITIES other than what is authorized by law.

Section 6.

Each party to this Agreement will be responsible for its own actions in providing services under this Agreement and shall not be liable to any other party to this Agreement for any claim or action arising from the services provided under this Agreement.

Section 7.

The parties to this Agreement do not intend for any third party to obtain a right by virtue of this Agreement.

Section 8.

By entering into this Agreement, the parties do not intend to create any obligations, either express or implied, other than those set out herein; further 1 this Agreement shall not create any rights in any party not a signatory hereto.

MOU - 2018 Justice Assistance Grant Page 12
Item 3A - Page 12
WHEREFORE, all parties freely and voluntarily agree to all of the above terms.

CITY OF RIVERSIDE, CA
Lea Deesing
Assistant City Manager
ATTEST: