Agenda packet — Palm Springs City Council, April 11, 2024 (part 2 of 2)

ATTACHMENT B
Letter of Support for City Recommendation from DVBA

(Click above to access Letter of Support)

Item 1E - Page 72
Item 1E - Page 73
2024
BOARD

0.F

DIRECTORS
PRESIDENT Pa
ul
Maho
ney,
PMA
Advertising
Immediate
Past
President
Todd
Hooks
Agua
Ca
liente
Ba
nd of
Cahuilla
Indians
Jst
VICE

PRESIDENT
Tom
Dubose
Dubose
Design
Group,
Inc.

SECRETARY/TREASURER Pedro
Rincon
Osborne
Rincon
CPAs
VICE

PRESIDENT
OF

ASSOCIATES
Allan
Lev
in
Allan
Levin
&
Associates
CHIEF

EXECUTIVE

OFFICER
Gretchen
Gutierrez
DIRECTORS Fred
BelV
2024
PAC
Chairman
Nobell
Energy
Solutions
Brian
Benedetti
Brian
Benedetti
Construction
Mark
Bened
etti
Mario
Gonzales
-
Presidents
Counci
l
GHA
Companies
·.roe
Hayes
-
Presidents
Council
Jeremy
Roos
Agua
Caliente
Band
of
Cahuilla
Indians
Dave
Lippert
Lippert
Construction,
Inc
Bruce
Maize
Orr
Builders
Russ
Martin
Mission
Springs
Water
District
Deborah
McGarrey
Southern
California
Gas
Company
Da
n Olivier
Nethery
Mueller
Olivier
Alan
Pace
Petra
GeoSciences
Kevin
Pillow
PS
Air Museum
John
Powell,
Jr.

Coachella
Valley
Water
District
Phil
Smith
-
Presidents
Council
Sunrise
Company
Alis
sa V
atter
Fidelity
National
Title
Jeff
Wattenbarger
-
Presidents
Counci
l
Wattenbarger
Construct
ion
Michelle
Witherspoon
MSA
Consulting
desert
valleys
builders
association
March
26,
2024
City
of
Palm
Springs
Kristopher
Mooney
.

Director
of
Finance
and
Treasurer
320
E. Tahquitz
Canyon
Way
P.O.

Box
2743
Palm
Springs,
CA
92263-2743
Dear
Mr.

Mooney,
Thank
you
for
reaching
out
to
the
Desert
Valleys
Builders
Association
with
news
that
the
City
of
Palm
Springs
is
contracting
with
Willdan
Financial
for
a new
comprehensive
fee
study
. The
DVBA
is
specifically
interested
in
those
fees
that
will
be
imposed
on
new
construction
: Development
Impact
Fees;
Land
Use
and
Regulatory
Fees;
And,
Connection
and
Capacity
Fees.

We
appreciate
your
courtesy
in
advising
Willdan
Financial
that
you
wish
for
them
to
professionally
engage
with
the
DVBA
in
responding
to
queries
of
material
and
concept.

The
recommendation
of
City
Administration
to
defer
an
annualized
inflationary
increase
for
2024
while
the
City
contracts
for
the
"nexus"
study
of
the
City's
schedule
of
fees
is
quite
common.

It
creates
some
stability
for
the
study
process.

DVBA
supports
this
proposal.

The
Desert
Valleys
Builders
Association
looks
forward
to
working
with
the
City
of
Palm
Springs
administration
and
its
consultant, Willdan
Financial
to
produce
a fee
study
and
schedule
that
is
reasonable,
appropriate,
meeting
the
legislated
requirements
of
the
Mitigation
Fee
Act
, for
adoption
with
industry
support.
34360
Gateway
Dr
ive
•
Pa
lm
Desert
•
CA
92211
(7
60)
776
-700
1 office
•
(7
60)
77 6-7002
fax
www.TheDVBA.org

CITY COUNCIL STAFF REPORT

DATE: APRIL 11, 2024 CONSENT CALENDAR

SUBJECT: APPROVE TASK ORDER NO. 3 TO CAROLLO ENGINEERS, INC.

AGREEMENT A8563 IN THE AMOUNT OF $73,907 FOR THE

WASTEWATER TREATMENT PLANT (WWTP) ODOR CONTROL
IMPROVEMENTS, CITY PROJECT 23-16

FROM: Scott C. Stiles, City Manager

BY: Engineering Services Department

SUMMARY:

Approve Task Order No. 3 with Carollo Engineers, Inc., for additional design services of the odor control improvements at the Wastewater Treatment Plant.

RECOMMENDATION:

1) A pprove Task Order No. 3 in the amount of $73,907 with Carollo Engineers, Inc., an ‘on-call’ firm for wastewater services during design.

2) Appropriate $73,907 from the Wastewater Capital Improvement Fund balance.

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

BUSINESS PRINCIPAL DISCLOSURE:

The Public Integrity Disclosure Form from Carollo Engineers, Inc. is included as Attachment A.

BACKGROUND:

The City of Palm Springs maintains a wastewater treatment plant (WWTP) at 4375 E.

Mesquite Avenue, which is adjacent to Demuth Park. Over the years, park visitors, residents and pickleball players have periodically complained about the odor from the WWTP.

On September 26, 2023, the City Council approved the issuance of a purchase order to Carollo Engineers, Inc. for design services of odor control improvements.

Item 1F - Page 1
City Council Staff Report
April 11, 2024 -- Page 2
Approve Task Order 3 for CP 23-16

STAFF ANALYSIS:

On January 25, 2023, Carollo Engineers, Inc. submitted a proposal for additional services at the WWTP Odor Control Improvements Project for a total of $ 73,907. This task order is intended to provide additional odor control measures to reduce odor from WWTP through additional air sampling and testing analysis in the vicinity of the plant . Staff is recommending approval of Task Order No. 3. A copy of Carollo Engineers ’ proposal is included as Attachment B.

ENVIRONMENTAL ASSESSMENT
:

In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15301 “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of existing or former use. Therefore, Staff has determined that the WWTP Odor Control Improvements, City Project No. 23-16, is considered categorically exempt from CEQA.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with City Council Priority “Community Infrastructure”, specifically 2A, Improve City Facilities.

FISCAL IMPACT:

Sufficient Wastewater Capital Improvement Funds are available for this task order with Carollo Engineers, Inc. for on-call wastewater services.

REVIEWED BY:

City Engineer: Francisco Jaime, P.E. (Acting City Engineer) Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles

ATTACHMENTS:

A. Public Integrity Disclosure Form
B. Carollo Engineers, Inc. Proposal dated January 25, 2024

Item 1F - Page 2

Attachment A
Item 1F - Page 3
B:\Pursuits\Client20(OCO)\PalmSprings\On-CallWWEng2020\Qual0520\Indd\Required.Forms.indd City of Palm Springs | On-Call Wastewater Engineering Design Services

REQUIRED FORMS

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

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

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

5. Type of Entity
F Corporation F Limited Liability Company F Partnership F Trust F 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 _ __________________ F Officer F Director F Member F Manager [name]
F General Partner F Limited Partner
F Other _______________________________
_______________________________________________ F Officer F Director F Member F Manager [name]
F General Partner F Limited Partner
F Other _________________________________
[name]
F General Partner F Limited Partner
&DUROOR(QJLQHHUV,QF
%ULVWRO6WUHHW6XLWH&RVWD0HVD&$

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%DODNULVKQDQ1DUD\DQDQ&(23UHVLGHQW ;
0LFKDHO%DUQHV6HFUHWDU\ ;
_____________$VK:DVRQ7UHDVXUHU________________________________ F Officer F Director F Member F Manager ;
;
; ;
Item 1F - Page 4
I 7
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-
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B:\Pursuits\Client20(OCO)\PalmSprings\On-CallWWEng2020\Qual0520\Indd\Required.Forms.indd City of Palm Springs | On-Call Wastewater Engineering Design Services

REQUIRED FORMS
F Other _______________________________

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

EXAMPLE

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

I 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 'RXJODV/DQQLQJ3(6HQLRU9LFH3UHVLGHQW
%DODNULVKQDQ1DUD\DQDQ &DUROOR(QJLQHHUV,QF
9 'LUHFWRU/RXLV&DUHOOD5XVVHOO:DFKWHUDQG9LQFHQW+DUW Item 1F - Page 5
Attachment B
Item 1F - Page 6
PROPOSAL FOR AMENDMENT 1 - ODOR SAMPLING AND ANALYSIS
CAPITAL PROJECT 23-16 WWTP ODOR CONTROL IMPROVEMENTS
Submitted by:

Carollo Engineers, Inc. (Carollo)
January 25, 2024

Project Description
The purpose of the project is to provide odor control sampling and analysis services at the City of Palm Springs Wastewater Treatment Plant (PSWWTP) to estimate the plant odor reduction that may be achieved by covering the primary clarifiers and treating the clarifier foul air. Carollo will complete the following tasks:
• Development of Project Goals and Execution
• Air Sampling, Testing and Analysis at the PSWWTP
• Prepare odor Emission Rates Inventory memorandum.
• Up to three days trip to Palm Springs to conduct sampling and analysis as described herein.
• Participate in a virtual meeting with Veolia and the City Engineer/staff to discuss the findings.

Subtask 1 – Project Management
Carollo will modify monthly progress reporting to maintain and monitor Carollo’s project scope, budget, and schedule for the Amendment 1 scope of work.

Subtask 2 – Meetings
Carollo will lead a kickoff meeting and an evaluation meeting for the Amendment 1 scope of work, including preparation of agendas, presentation slides, and meeting minutes. The following will be provided:

1. Virtual Kickoff Meeting: Carollo will use an initial 1 -hour Kickoff Meeting to meet with the City and plant staff to gather information related to the odor study, to describe the scope of work, and coordinate odor sampling of the treatment processes.

2. Virtual Draft Technical Memorandum Review Meeting: At t he 1.5-hour draft Technical Memorandum review meeting, Carollo will present data results, analysis results, and conclusions of the study to obtain comments from the City and plant staff for incorporation in the final Technical Memorandum.

Subtask 3 – Air Sampling and Testing Analysis

Option 1
– Plantwide Sampling of Major Odor Sources
Carollo will conduct an odor sampling and testing program which will include the following analyses:
• Collection of up to 14 air samples for overnight delivery to St. Croix Sensory Laboratory for odor panel analyses of odor units (Dilution to Threshold (DT) • Instantaneous measurements of hydrogen sulfide (H2S) concentrations will be collected Item 1F - Page 7
along with each odor sample or location. Draeger tubes will be used to measure H2S concentrations at specific locations in the plant.

The scope of work for this option is based on the following assumptions and locations:

1. 2 air samples for operating primary clarifier

2. 1 air sample for trickling filter splitter box

3. 2 air samples for trickling filters (1 from 2 different tricking filters)

4. 1 air sample for trickling filter effluent channels

5. 2 air sample for secondary clarifiers (1 sample from 2 different clarifiers)

6. 2 air samples for gravity thickeners (1 from each)

7. 2 air samples for sludge drying beds

8. 1 air sample for Belt Filter Press

9. 1 air sample for Belt Filter Press dried sludge cake

Air sampling will be conducted in accordance with industry standard air sampling techniques. Carollo will be on site for up to three (3) days for the preliminary survey and the sampling program. Carollo will evaluate and summarize the test results and calculate the Odor Emission Rates (cfm*DT) for each treatment plant source and rank the sources from highest to lowest.

Option 2 – Primary Clarifier Sampling Only
• Collection of up to 4 air samples for overnight delivery to St. Croix Sensory Laboratory for odor panel analyses of odor units (Dilution to Threshold (DT) • Instantaneous measurements of hydrogen sulfide (H2S) concentrations will be collected along with each odor location or sample. Draeger tubes will also be used to measure H2S concentrations at specific locations in the plant.

The scope of work for this option is based on the following assumptions and locations:

1. 2 air samples for operating primary clarifier

Air sampling will be conducted in accordance with industry standard air sampling techniques. Carollo will be on site for one day for the preliminary survey and the sampling program. Carollo will evaluate and summarize the test results and calculate the Odor Emission Rates (cfm*DT) for each treatment plant source and rank the sources from highest to lowest. Odor emission rates from processes not sampled will be taken from the WWTP odor study conducted in 2013 by Webster Environmental, Inc.

Subtask 4 – Technical Memorandum
Carollo will prepare a Technical Memorandum (TM) that includes the following:

• Introduction
• Presentation of sampling and testing results
• Conclusions

Item 1F - Page 8
Following review, discussion, and comments from City and plant staff, Carollo will finalize the TM and submit an electronic PDF of the TM to the City.

Schedule
• Complete subtask 3 within 8 weeks of the kickoff meeting. • Complete subtask 4 draft TM within 12 weeks of the kickoff meeting. • Complete sub task 4 final TM within 2 weeks of receiving City comments to the draft TM.

Project Fee
Complete the project scope of work in accordance with the attached fee table, Exhibit A.

Item 1F - Page 9
Subtask
No. Description
Project
Manager
Odor Control
Specialist Techs
Support
Staff
Total
Hours
Labor
Cost Expense Subs Total Cost
Hourly Rate $318 $318 $171 $152
1 Project Management 8 1 9 $2,695 $2,695
2 Meetings 14 24 2 40 $12,421 $12,421

3.1 Air Sampling and Testing Analysis - Option 1 4 40 44 $13,988 $20,700 $34,688

3.2 Air Sampling and Testing Analysis - Option 2 2 16 18 $5,722 $4,800 $10,522

4.1 Technical Memorandum - Option 1 6 56 8 70 $20,924 $20,924

4.2 Technical Memorandum - Option 2 4 40 6 50 $14,898 $14,898 Quality Assurance/Quality Control 2 8 10 $3,179 $3,179
TOTAL - Option 1 - Plantwide Sampling 34 128 2 9 173 $53,207 $20,700 $0 $73,907 TOTAL - Option 2 - Primary Clarifier Only Sampling 30 88 2 7 127 $38,916 $4,800 $0 $43,716 Notes:

1. Expenses include laboratory costs for odor analyses.

Hours Budget
Exhibit A
Estimated Work Effort
Capital Project 23-16 WWTP Odor Control Improvements
City of Palm Springs
AMENDMENT 1 - ODOR SAMPLING AND ANALYSIS
Item 1F - Page 10

CITY COUNCIL STAFF REPORT

DATE: APRIL 11, 2024 CONSENT CALENDAR

SUBJECT: APPROVAL OF A REQUEST FOR AN EARLY CONSTRUCTION START TIME BETWEEN APRIL 15 , 2024, AND MAY 31 , 2024, FOR THE

WASTEWATER T REATMENT P LANT SLUDGE DRYING BEDS , CITY
PROJECT NO. 21-05

FROM: Scott C. Stiles, City Manager

BY: Engineering Services Department

SUMMARY:

The City of Palm Springs has received a request from Unified Field Services Corporation (“Contractor”) responsible for the Wastewater Treatment Plant ( WWTP) Sludge Drying Beds, City Project No. 21-05, for an early construction start time for the dates between April 15, 2024 and May 31, 2024, regarding concrete pouring of the sludge drying beds.

The construction work is proposed to begin at 5 :00 a.m. and end at 2 p.m. each day of the concrete pour. Chapter 8.04.220 of the Palm Springs Municipal Code limits the hours of construction from 7:00 a.m. to 7:00 p.m. Monday thr ough Friday, unless the construction work complies with the terms of a written early work permit issued by the Building Official upon showing sufficient need due to circumstances of an unusual or compelling nature. The early construction authorization will be subject to continuous monitoring of noise complaints and impacts to any adjacent residential properties and businesses.

RECOMMENDATION:

1) Approve the requested early construction time of 5:00 a.m. for the dates between April 15, 2024 and May 31, 2024, for the WWTP Sludge Drying Beds Project, City Project 21-05, subject to continuous monitoring of noise complaints and impacts to adjacent properties and businesses.

BACKGROUND:

On March 21, 2024, the City received a request from the Contractor to do a portion of the Project during early morning due to issues in carrying out the construction work during the day. The work details are provided in their request letter included as Attachment A.

Item 1G - Page 1
City Council Staff Report
April 11, 2024 -- Page 2
Approval of Modified Work Hours for WWTP Sludge Drying Beds

STAFF ANALYSIS:

The work taking place during the requested modified hours is fully within the perimeter of the Wastewater Treatment Plant. The primary reason is to allow concrete pouring and curing under ideal temperatures of 50 to 60 degrees Fahrenheit. Outside this range, there are more issues associated with concrete finish work and a higher risk of cracking. The permitted construction hours per the Palm Springs Municipal Code 8.04.220 are listed in the table below:

Permitted Hours of Construction
Weekdays Saturdays Sundays & Holidays*
7 a.m. to 7 p.m. 8 a.m. to 5 p.m. Not permitted
*Thanksgiving Day, Christmas Day, New Years Day, July 4th, Labor Day and Memorial Day

Certain exceptions to these construction hours are allowed in the Municipal Code, including exception (2):

2) Construction work complying with the terms of a written early work permit which may be issued by the building official upon a showing of sufficient need due to circumstances of an unusual or compelling nature.

To mitigate the noise associated with the concrete pour , Unified Field Services has agreed to implement noise reduction measures and eliminate the use of loud power tools.

Early work will also require temporary outdoor lighting, which may impact adjacent properties. Furthermore, approval of an early start time would be contingent upon the Contractor cooperating with City Staff and the community in responding to any issues.

However, with the use of noise reduction methods , impacts to residential properties should be minimized.

ENVIRONMENTAL ASSESSMENT
:

In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15302 “Replacement or Reconstruction”, Class 2 projects consist of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Therefore, Staff has determined that the City of Palm Springs Wastewater Treatment Plant Sludge Drying Beds Project, City Project No. 21-05, is considered categorically exempt from CEQA.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with City Council Priority 2A – Improve City Facilities.

Item 1G - Page 2
City Council Staff Report
April 11, 2024 -- Page 3
Approval of Modified Work Hours for WWTP Sludge Drying Beds

FISCAL IMPACT:

None.

REVIEWED BY:

City Engineer: Francisco Jaime, P.E. (Acting City Engineer) Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles

ATTACHMENT:

A. Unified Field Services Corporation Request Letter
Item 1G - Page 3
Attachment A
Item 1G - Page 4

Unified Field Services Corporation
6906 Downing Avenue
Bakersfield CA. 93308
Office 661-858-8223

Class “A”, “B”, “C-33” & “C-10” Licensed Contractor
CA License # 1009928 CA DIR # 1000042614 NV License # 90710 AZ License # 318827

March 21, 2024

Andrew Crider – Joel Montalvo

Request for early concrete pours.

For quality work and Safety.

An early morning concrete pour helps manage temperature, facilitates the finishing process, and promotes effective curing. It’s a strategic choice for achieving high-quality concrete work.

The ideal temperature for pouring concrete is between 50°F to 60°F. Let me explain why this range is crucial:

1. Curing Process: Concrete gains its strength and durability through a process called hydration. Extreme heat or cold can impact this process. Pouring concrete in hot weather can lead to water loss due to evaporation, resulting in weaker concrete prone to flaking, chipping, and cracking. Conversely, if poured when it’s too cold takes much longer, risking structural damage over time12.

2. Temperature Thresholds:
o Below 50°F: Slows curing process.
o Below 40°F: Risk of water freezing in the cement.
o Above 60°F: Water evaporation during curing, affecting structural integrity (though regular watering can mitigate this effect)1.

Therefore, aim for that sweet spot between 50°F and 60°F for optimal concrete quality!

Safety and Quality is UFSC most concern.

For our safety UFSC does not recommend pouring concrete in high temperature.

Please approve a 4am start time on concrete pour day.

These days will start in April and end in May. 2024

Item 1G - Page 5
UNIFleiJ

FIELD SERVICES CORPORATION
UNIFleO

FIELD SERVICES CORPORATION

CITY COUNCIL STAFF REPORT

DATE: APRIL 11, 2024 CONSENT CALENDAR

SUBJECT: INTRODUCE AN ORDINANCE AMENDING SECTION 16.37.005 OF THE

PALM SPRINGS MUNICIPAL CODE RELATING TO THE SIGNAGE

REGARDING REGULATORY MEASURES APPLICABLE TO

TRANSPORTATION NETWORK COMPANIES

FROM: Scott C. Stiles, City Manager

BY: Department of Aviation

SUMMARY:

The Palm Springs International Airport (Airport) recommends the City Council amend Palm Springs Municipal Code Section 16.37.005 Regulatory Measures to remove a signage requirement outlining regulations of Transportation Network Companies (TNC) such as Lyft and Uber at the Airport.

RECOMMENDATION:

Waive the reading of the ordinance text in its entirety, read by title only, and introduce an Ordinance entitled, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 16.37.005 OF THE PALM SPRINGS MUNICIPAL CODE

RELATING TO SIGNAGE REGARDING REGULATORY MEASURES APPLICABLE TO TRANSPORTATION NETWORK COMPANIES.”

BACKGROUND:

On November 16, 2016, the City Council adopted Ordinance 1906 that added Chapter

16.37 to the Palm Springs Municipal Code (PSMC) relating to permitting TNC’s to operate at the Airport and included Section 16.37.005(c) that required that “Each TNC Driver shall be subject to alcohol and drug testing on a similar basis as drivers of other car services, including taxis, are subjected.”

On February 7, 2018, the City Council adopted Ordinance 195 0 to amend the PSMC relating to regulation, permitting requirements, operational rules, passenger loading and unloading, and penalties for TNC’s operating at the Airport which included amending Section 16.37.005(c) in its entirety to the following:

Item 1H - Page 1
City Council Staff Report
April 11, 2024 -- Page 2
TNC Regulatory Measures Ordinance

“The City Manager or his/her designee shall have the authority to issue such administrative Rules and Regulations as may prove necessary and appropriate to implement the purpose of this Chapter, i.e., provision for the safe and efficient operation of transportation network companies at the Airport.”

Section 16.37.005(d) was also added to state the following:

“The City Manager or his/her designee shall post signage at the Airport indicating as follows:

ADVISORY: Transportation Network Companies like Uber and Lyft are regulated by the California Public Utilities Commission but their Drivers are not Subject to Random Drug and Alcohol Testing.”

On March 2 0, 2024, the Airport Commission voted unanimously (11- 0) in favor to recommend to the City Council the adoption of an ordinance to amend PSMC Section

16.37.005 Regulatory Measures to remove Section 16.37.005(d).

STAFF ANALYSIS:

Airport staff have received complaints from TNC drivers with regard to the PSMC Section

16.37.005(d) and the signage posted at the Airport TNC loading area, stating it creates a negative perception of TNC drivers among passengers. The Airport Commission has also received complaints from the public regarding the appropriateness of the TNC signage requirement.

The California Public Utilities Commission (CPUC) regulates Transportation Network Companies (TNCs) like Uber and Lyft and requires the TNCs to have a zero- tolerance intoxicating substance policy with respect to the drivers. According to the CPUC, the TNC is required to include on its website, mobile application and riders’ receipts, a notice of information on the TNC’s Zero Tolerance Policy and the methods to report a driver whom the rider reasonably suspects was under the influence of drugs or alcohol dur ing the course of the ride.

Two TNCs – Uber and Lyft – are authorized to operate at the Airport and both uphold a Zero Tolerance Policy regarding alcohol or drug use by their drivers.

The revisions to Palm Springs Municipal Code Section 16.37.005 Regulatory Measures are depicted in the draft ordinance (Attachment A).

ENVIRONMENTAL ASSESSMENT
:

This Ordinance is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with Item 1H - Page 2
City Council Staff Report
April 11, 2024 -- Page 3
TNC Regulatory Measures Ordinance

certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

ALIGNMENT WITH STRATEGIC PLANNING:

N/A.

FISCAL IMPACT:

There is no fiscal impact.

REVIEWED BY:

Department Director: Harry Barrett Jr.

City Attorney: Geremy Holm
City Manager: Scott Stiles

ATTACHMENTS:

A. Draft Ordinance
B. Redline Draft Ordinance
Item 1H - Page 3

ATTACHMENT A

DRAFT ORDINANCE
Item 1H - Page 4
55575.18160\42011404.1

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF PALM SPRINGS ,
CALIFORNIA, AMENDING SECTION 16.37.005 OF THE

PALM SPRINGS MUNICIPAL C ODE RELATING TO

SIGNAGE REGARDING REGULATORY MEASURES

APPLICABLE TO TRANSPORTATION NETWORK

COMPANIES

City Attorney’s Summary
This Ordinance revises Section 16.37.005 of the Palm
Springs Municipal Code to remove a signage requirement
outlining regulations of Transportation Network Companies such as Lyft and Uber.

WHEREAS, the City of Palm Springs is a charter city , organized purs uant to Article XI of the California Constitution and pursuant to the authority so granted, the City has the power to make and enforce within its limits all ordinances and regulations with respect to municipal affairs not in conflict with its own charter; and such police powers include, without limitation , the ability to adopt regulations pertaining generally to the protection and promotion of the public health, safety, and welfare; and

WHEREAS, Chapter 16.37 of the Palm Springs Municipal Code (“PSMC”) outlines rules and regulations regarding the operation of Transportation Network Companies at the Palm Springs International Airport (“Airport”); and

WHEREAS, Section 16.37.005(d) of the PSMC requires certain signage to be posted on the Airport related to the operation of Transportation Network Companies; and

WHEREAS, Airport staff desires to remove this signage from the Airport; and

WHEREAS, the PSMC is required to be amended to allow this signage to be removed from the Airport; and

WHEREAS, the purpose of this Ordinance is to remove this signage requirement from the PSMC; and

WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

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

SECTION 1
. Incorporation of Recitals. The City Council finds that all the facts, findings, and conclusions set forth above in this Ordinance are true and correct.

Item 1H - Page 5
55575.18160\42011404.1

Ordinance No. _____

Page 2 ends

SECTION 2. Amendment of PSMC Section 16.37.005. Section 16.37.005 is hereby amended to read as follows:

“16.37.005 Regulatory Measures.
(a) Each Transportation Network Company and its TNC Drivers operating on the Airport shall comply fully with all applicable state laws, this Title, and instructions issued by the Director of Aviation.
(b) Enforcement of traffic laws shall be the responsibility of the Agency having jurisdiction.
(c) The City Manager or his/her designee shall have the authority to issue such administrative Rules and Regulations as may prove necessary and appropriate to implement the purpose of this Chapter, i.e., provision for the safe and efficient operation of transportation network companies at the Airport.”

SECTION 3
. C EQA. The City Council determines that the adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to the following provisions of the CEQA Guidelines, 14 California Code of Regulations, Chapter 3: the Ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a “project” under CEQA, and is an organization or administrative activity of the City that will not result in direct or indirect physical changes in the environment.

SECTION 4. Adoption, Certification, and Publication. The City Clerk of the City of Palm Springs shall certify the passage and adoption of this Ordinance and shall cause the same, or a summary thereof, to be published and/or posted in the manner required by law. This Ordinance shall take effect 30 days after its adoption.

SECTION 5. Severability. If any provision of this Ordinance is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity will not aff ect the remaining provisions of this Ordinance, which can be implemented without the invalid provisions, and to this end, the provisions of this Ordinance are declared to be severable.

Item 1H - Page 6
55575.18160\42011404.1

Ordinance No. _____

Page 3 ends

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

JEFFREY BERNSTEIN
MAYOR

ATTEST:

BRENDA PREE

CITY CLERK

Item 1H - Page 7
55575.18160\42011404.1

Ordinance No. _____

Page 4 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

BRENDA PREE

CITY CLERK
Item 1H - Page 8

ATTACHMENT B

REDLINE DRAFT ORDINANCE
Item 1H - Page 9
55575.18160\42011404.1

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF PALM SPRINGS ,
CALIFORNIA, AMENDING SECTION 16.37.005 OF THE

PALM SPRINGS MUNICIPAL CODE RELATING TO

SIGNAGE REGARDING REGULATORY MEASURES

APPLICABLE TO TRANSPORTATION NETWORK

COMPANIES

WHEREAS, the City of Palm Springs is a charter city , organized pursuant to Article XI of the California Constitution and pursuant to the authority so granted, the City has the power to make and enforce within its limits all ordinances and regulations with respect to municipal affairs not in conflict with it s own charter; and such police powers include, without limitation , the ability to adopt regulations pertaining generally to the protection and promotion of the public health, safety, and welfare; and

WHEREAS, Section 16.37.005(d) of the PSMC requires certain signage to be posted on the Airport related to the operation of Transportation Network Companies; and

WHEREAS, Airport staff desires to remove this signage from the Airport; and

WHEREAS, the PSMC is required to be amended to allow this signage to be removed from the Airport; and

WHEREAS, the purpose of this Ordinance is to remove this signage requirement from the PSMC; and

WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

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

SECTION 1. Incorporation of Recitals. The City Council finds that all the facts, findings, and conclusions set forth above in this Ordinance are true and correct.

SECTION 2. Amendment of PSMC Section 16.37.005. Section 16.37.005 is hereby amended to read as follows:

Item 1H - Page 10
55575.18160\42011404.1
Ordinance No. _____

Page 2 ends

ADVISORY:

Transportation Network Companies like Uber
and Lyft are regulated by the California Public
Utilities Commission but their Drivers are not
Subject to Random Drug and Alcohol Testing
SECTION 3. CEQA. The City Council determines that the adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to the following provisions of the CEQA Guidelines, 14 California Code of Regulations, Chapter 3: the Ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a “project” under CEQA, and is an organization or administrative activity of the City that will not result in direct or indirect physical changes in the environment.

SECTION 5. Severability. If any provision of this Ordinance is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity will not affect the remaining provisions of this Ordinance, which can be implemented without the i nvalid provisions, and to this end, the provisions of this Ordinance are declared to be severable.

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

JEFFREY BERNSTEIN
Item 1H - Page 11
55575.18160\42011404.1

Ordinance No. _____

Page 3 ends

MAYOR

ATTEST:

BRENDA PREE

CITY CLERK

Item 1H - Page 12
55575.18160\42011404.1

Ordinance No. _____

Page 4 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

BRENDA PREE

CITY CLERK
Item 1H - Page 13

CITY COUNCIL STAFF REPORT

DATE: APRIL 11, 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 PS PROPCO , 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 PS Propco, LLC, (Operator) for the LifeHouse Palm Springs (Project), located at 1700 S Palm Canyon Drive, Palm Springs.

RECOMMENDATION:

1) Open the public hearing and receive public testimony. 2) Approve a Hotel Operations Covenant Agreement with PS Propco , LLC for the LifeHouse Palm Springs located at 1700 S Palm Canyon Drive, Palm Springs. 3) Authorize the City Manager to execute all necessary documents.

Item 2A - Page 1
City Council Staff Report
April 11, 2024 -- Page 2
LifeHouse Palm Springs Hotel Operations Covenant

BUSINESS PRINCIPAL DISCLOSURE:

The property is owned by PS Propco, LLC; Emmet Austin is the Principal of the LLC.

Public Integrity Disclosure forms are 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 ), PS Propco , LLC will provide satisfactory documentation certifying its recent renovation and completion of the project as a qualified renovation under the Program.

The LifeHouse Palm Springs is located at 1700 S. Palm Canyon Drive and consists of 66 total hotel rooms. The renovation project included upgraded amenities to improve the guest experience. The project consists of a full-scale renovation, including guestrooms, bathrooms, the pool-side bar, full-service interior food and beverage restaurant, an extra kitchen for the restaurant, expanded pool area to accommodate groups.

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 hotel operator also agrees to participate in the Palm Springs Convention Center's Committable Rooms Program and secondly, is required to provide designated room- Item 2A - Page 2
City Council Staff Report
April 11, 2024 -- Page 3
LifeHouse Palm Springs Hotel Operations Covenant

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 LifeHouse Palm Springs, 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 1700 S Palm Canyon Drive, Palm Springs, CA 92264. The Agent for service of process to Operator is PS PROPCO, LLC, doing business at 1700 S 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 $3,685,657 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 $ 3,685,657, whichever comes first. For purposes of the Covenant, an existing Hotel is defined as a property improvement project constructed by an existing hotel that 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 Item 2A - Page 3
City Council Staff Report
April 11, 2024 -- Page 4
LifeHouse Palm Springs Hotel Operations Covenant

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 or until the rebate to the Operator totals $ 3,685,657, whichever comes first.

After ten (10) years the City will receive 100% of the TOT revenue (Adjusted Item 2A - Page 4
City Council Staff Report
April 11, 2024 -- Page 5
LifeHouse Palm Springs Hotel Operations Covenant

TOT plus Unadjusted TOT). Sales tax projections are estimated to be $160,500 annually (off site).

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 thirty-nine ( 39) full-time positions and five (5) part- time positions, for a total of 44 FTEs. The estimated annual payroll for employees and contracted maintenance services is estimated to be $1,550,000.

Project Description

The LifeHouse Palm Springs is located at 1700 S. Palm Canyon Drive and consists of 66 total hotel rooms. The project location is shown below in Figure 1.

Figure 1

No square footage additions were added to the existing LifeHouse Palm Springs buildings. All improvements occurred within the current footprint of the site and were completed on all guest rooms and common areas as part of the Project. Additionally, LifeHouse Palm Springs 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 before and after are provided on the following pages.

Item 2A - Page 5
City Council Staff Report
April 11, 2024 -- Page 6
LifeHouse Palm Springs Hotel Operations Covenant

BEFORE IMAGES

Guest Room
Item 2A - Page 6
City Council Staff Report
April 11, 2024 -- Page 7
LifeHouse Palm Springs Hotel Operations Covenant

Guestroom Bathroom
Item 2A - Page 7
City Council Staff Report
April 11, 2024 -- Page 8
LifeHouse Palm Springs Hotel Operations Covenant

Pool
Item 2A - Page 8
City Council Staff Report
April 11, 2024 -- Page 9
LifeHouse Palm Springs Hotel Operations Covenant

Restaurant

Item 2A - Page 9
City Council Staff Report
April 11, 2024 -- Page 10
LifeHouse Palm Springs Hotel Operations Covenant

AFTER IMAGES

Guest Room
Item 2A - Page 10
City Council Staff Report
April 11, 2024 -- Page 11
LifeHouse Palm Springs Hotel Operations Covenant

Guest Bathroom
Item 2A - Page 11
City Council Staff Report
April 11, 2024 -- Page 12
LifeHouse Palm Springs Hotel Operations Covenant

Restaurant
Item 2A - Page 12
City Council Staff Report
April 11, 2024 -- Page 13
LifeHouse Palm Springs Hotel Operations Covenant

Pool Area
Item 2A - Page 13
City Council Staff Report
April 11, 2024 -- Page 14
LifeHouse Palm Springs 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 LifeHouse Palm Springs, over the annual base amount, will be paid to the Operator for a ten- year period or up to $3,685,657, whichever comes first.

REVIEWED BY:

Department Director: Wayne Olson
City Manager: Scott Stiles

ATTACHMENTS:

A. Public Integrity Disclosure Form
B. Hotel Operations Covenant Agreement – LifeHouse Palm Springs

Item 2A - Page 14

ATTACHMENT A

Item 2A - Page 15
Item 2A - Page 16
Who Must File?

CITY OF PALM SPRINGS

PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTIONS FOR APPLICANTS)
Applicants that are NOT a natural person or group of natural people that will be identified on the application, and seek a City approval determined by a vote of City officials. 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 financial 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 fdty 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 of 2 ends

Item 2A - Page 17
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.).
!JSll!: (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 0913 18)

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

Page 2 ends

Item 2A - Page 18

1. Name of Entity

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
PS PropCo, LLC

2. Address of Entity (Principle Place of Business)
33 Irving Pl, 3rd Floor New York, NY 10003

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 registered in California? n Yes n No

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

CITY OF PALM SPRINGS -PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

7. Owners/Investors with a 5% beneficial interest in the Aoolicant 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.

Auerbach 111 - Suncroft PS, LLC 100% PS PropCo LLC
[name of owner/investor] [percentage of beneficial interest in entity
and name of entityl
B.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
C.
[name of owner/Investor] [percentage of beneficial interest in entity
and name of entitvl

0. [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 entltYl

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

Slg
if �
Printed Name, Tltle Date
r/lr) d-/
(Revised 09 13 18)

CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

EMMET AUSTIN, manager
MICHAEL SULLIVAN, manager
Item 2A - Page 19

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

(Revised 05/16/19)

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

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

4. State where Entity is Registered with Secretary of State

If other than California, is the Entity also registered in California?  Yes  No

5. Type of Entity

 Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

Item 2A - Page 20
CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

(Revised 05/16/19)

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

EXAMPLE

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

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

Item 2A - Page 21

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

(Revised 05/16/19)

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

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

4. State where Entity is Registered with Secretary of State

If other than California, is the Entity also registered in California?  Yes  No

5. Type of Entity

 Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

Item 2A - Page 22
CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

(Revised 05/16/19)

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

EXAMPLE

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

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

Item 2A - Page 23IL ___ _

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

(Revised 05/16/19)

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

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

4. State where Entity is Registered with Secretary of State

If other than California, is the Entity also registered in California?  Yes  No

5. Type of Entity

 Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________

Item 2A - Page 24
CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 2 of 2 ends

(Revised 05/16/19)

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

EXAMPLE

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

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

Item 2A - Page 25

ATTACHMENT B
Item 2A - Page 26
1 FREE RECORDING REQUESTED BY
AND 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 PS PROPCO, 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 desirable visitor serving facilities and experiences, and assist the City in achieving its tourism 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 June 16, 2023, Owner applied for the Program and has provided satisfactory documentation certifying its renovation project as a qualified renovation program under the Program.

LIFEHOUSE PALM SPRINGS ("Owner's Hotel" or "Project"), generally located at 1700 S. Palm Canyon Drive, Palm Springs, California, consists of sixty-six (66) total hotel rooms on that certain real property located in the City of Palm Springs, County of Riverside, State of California, legally described on the Legal Description attached hereto 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 2A - Page 27
2 agree to operate the Project as a hotel; participate in the Palm Springs Convention Center's Committable Rooms Program; and additionally 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 California 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 involving no material expansion of use beyond that previously existing.

NOW, THEREFORE, for good and valuable consideration, 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 LIFEHOUSE PALM SPRINGS 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 accordance 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 tax revenues pursuant to the Program unless and until Owner's participation in the Program is terminated prior thereto in accordance 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 residential 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 given 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, nor shall the Owner take any steps in connection with the conversion to such ownership or uses to condominiums, or to any other form of ownership, without the prior written approval of the City Council which approval may be given or withheld in its sole and absolute discretion.

Item 2A - Page 28
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 shall be $ 49,872.07, 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 successor 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 shall 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 itself and its successors and assigns, hereby covenants and agrees to maintain and repair or cause to be maintained and repaired the Site and all related on -site improvements and landscaping thereon, including, without limitation, buildings, ame nities, 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, sta te, and local bodies and agencies having jurisdiction, 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 all irrigation, shrubbery, plantings, and other landscaping to maintain it in a healthy condition; and (iii) the repair, Item 2A - Page 29
4 replacement and restriping of asphalt 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 determination of a duly authorized 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 g eneral 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 and traffic aisles on the Site shall be kept clear and unobstructed at all times.

3. Right of Entry . In the event Owner fails 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 landscaping and/or maintenance in accordance with Section 3.1.1 above. The City shall give Owner, 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 under 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 interest 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 enforced 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 covering an ownership interest or leasehold or subleasehold estate in and to any Site approved by City pursuant to the Agreement, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall 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 for herein to the extent they relate to the expenses incurred subsequent to such foreclosure, Item 2A - Page 30
5 assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject Site after the date of such foreclosure sale, shall become 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 expressly 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 labor 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 assume 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 Civil 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.

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6 ARTICLE 5

NONDISCRIMINATION

5.1. NONDISCRIMINATION. There shall be no discrimination 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, national 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 practices 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 binding upon the Owner's successors in title to the Site; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire. All covenants 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. Each 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 subject 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 Owner's legal interest in the Site is rendered less valuable thereby. City and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the 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 terms 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 approved by the City Attorney of the City, confirming whether or not Owner is in breach of any obligations under this Agreement and identifying any required cure.

Item 2A - Page 32
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 City, 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 Participant’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 condition, covenant, representation or warranty in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable expert witness fees, and its reasonable attorney's fees and costs. Attorney's fees shall include 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: LIFEHOUSE PALM SPRINGS
1700 E. Palm Canyon Drive
Palm Springs, CA 92264
Attn: Emmet Austin

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

Item 2A - Page 33
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 application 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 against, the later exercise of such remedy or right.

3. Integration. This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement.

4. Third Parties. No third-party beneficiaries 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 necessary 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 2A - Page 34
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 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, 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 terminate this Agreement or exercise any and all other rights and remedies available at law and in equity, and each of such rights and remedies sha ll 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 without approval by City, be conditionally 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 withheld, 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 all amounts that would otherwise have been payable by Owner to City, and (iv) cures non-monetary defaults.

7.12 Operator Provisions
. City acknowledges and agrees that operational 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 notice of such agreement and received 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 2A - Page 35
10 7.13 RESERVED.

7.14 Cooperation. Each party agrees to and shall do and perform such other and further acts and properly execute and deliver such other and further documents as may be reasonably necessary, expedient or convenient to implement and/or effectuate the intents and purposes here of.

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 consideration, implementat ion 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 Agreement requires or calls for the approval or consent of any party hereto, such approval shall not be unreasonably withheld, delayed or conditioned.

7.16 Binding Arbitration. In the event of any dispute or controversy 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 controversy without resort to third party review or resolution. The parties shall first meet and confer on any such dispute or controversy. Such meeting(s) shall include any principal of the Owner and, at the discretion of the City, may include the City 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 submit the dispute, controversy or any remaining unresolved matter to binding arbitration, 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 recitals 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 warrants 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 2A - Page 36
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:

Confirming

[END OF SIGNATURES]
Item 2A - Page 37
12 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189

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:

Corporate Officer — Title(s):

Signer’s Name:

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:

Signer Is Representing:

Other:

Signer Is Representing:
©2014 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 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.

Item 2A - Page 38-
. . - - . . - - - - .

Exhibit A

Legal Description

1.26 ACRES M/L IN POR PAR 1 RS 032/003 Acres 001.26 M/L LotType Parcel Parcel 1 RecMapType Record Of Survey MapPlatB 032 MapPlatP 003 PortionLot Portion

OPERA TIONS COVENANT

FOR HOTEL INCENTIVE PROGRAM

1 Item 2A - Page 39

CITY COUNCIL STAFF REPORT

DATE: APRIL 11, 2024 BUSINESS & LEGISLATIVE

SUBJECT: CONSIDERATION OF RENAMING CITY OF PALM SPRINGS

NAVIGATION CENTER

FROM: Scott C. Stiles, City Manager

BY: Office of the City Manager

SUMMARY:

At the request of Mayor Pro Tem deHarte at the February 29, 2024 City Council meeting, Council requested staff bring forward a discussion item to consider renaming the City’s Navigation Center. Staff is seeking Council direction on next steps.

RECOMMENDATION:

Direct staff as appropriate.

BACKGROUND:

At the direction of City Council, City staff began working in 2021 to identify potential locations to build a low -barrier navigation center that could provide transitional housing and wraparound services for unhoused residents. After analyzing a number of sites, the Council gave direction to staff at the November 18, 2021 City Council meeting to pursue the acquisition of the property at 3589 McCarthy Road and to bring back the necessary agreements with the County of Riverside to jointly fund the acquisition.

On January 13, 2022, the Council adopted a resolution authorizing a joint application with the County for Homekey Round 2 program from the California Department of Housing and Community Development (HCD) to provide funding for the construction of a navigation center.

On January 27, 2022, the Council approved a Memorandum of Understanding (MOU) and a Funding and Acquisition Agreement with the County to purchase the McCarthy Road property. In addition, the Council approved a Contract Services Agreement with Martha’s Village and Kitchen to operate the proposed navigation center, following the issuance of a Request for Letters of Interest from social service providers.

Item 3A - Page 1
City Council Staff Report
April 11, 2024 -- Page 2
Renaming Navigation Center

The City held community outreach meetings on March 3, 2022; March 17, 2022; and April 11, 2022 for the purpose of soliciting input from the community on the design and operation of the proposed navigation center. A Resident Advisory Working Group (RAWG) was later formed to provide ongoing feedback and concerns regarding the operation of the navigation center.

John Friedman Alice Kim Architects (JFAK) was awarded a Professional Services Agreement by the City Council on June 16, 2022, to provide architectural and engineering design services for the navigation center.

On August 24, 2022, the State of California awarded the City and the County a total of $19,059,202 in grant funding from the Homekey Round 2 program to be used for the construction and operation of the navigation center. The State finalized and approved its funding agreement with the City in January 2023.

A Construction Manager at Risk (CMAR) agreement was awarded to Tilden- Coil Constructors, Inc., at the October 16, 2022 City Council meeting following the issuance of a request for proposals in August 2022.

On June 29, 2023, the City Council approved design and budget changes to the Navigation Center to revise the use of one of the buildings on the site to accommodate 50 overnight beds as an Early Entry Facility.

Construction on the Navigation Center commenced in July 2023. Site work and foundation work was completed in December 2023, and installation of the 80 modular residential units began in February 2024. The Early Entry Center, located in Building 2 of the Navigation Center, officially opened on March 4, 2024 and began to accept clients.

Building 1, containing the administrative facilities for the Navigation Center as well as dining area and commercial kitchen, in addition to the 80 modular residential units, is scheduled to open in August 2024.

STAFF ANALYSIS:

At the City Council meeting of February 29, 2024, and at the request of Mayor Pro Tem deHarte, Council requested staff bring forward a discussion item for consideration of renaming the Navigation Center. Mayor Pro Tem deHarte suggested the facility ’s name should be welcoming and give hope to the residents that pass through its doors.

Staff is bringing forward this item for City Council discussion and further direction on next steps.

ALIGNMENT WITH STRATEGIC PLANNING:

Quality of Life, and Forward-thinking governance.

Item 3A - Page 2
City Council Staff Report
April 11, 2024 -- Page 3
Renaming Navigation Center

FISCAL IMPACT:

None at this time.

REVIEWED BY:

City Manager: Scott Stiles

ATTACHMENTS:

None.

Item 3A - Page 3

Palm Springs City CouncilApril 11, 2024

Palm Springs City Council
April 11, 2024