Palm Springs City Council
June 13, 2024

Recorded in Official Records
County of Riverside
AND WHEN RECORDED MAIL TO:

Peter Aldana
i[ri:~i~lif ii1TMl11111

CITY OF PALM SPRINGS

OFFICE OF THE CITY CLERK
3200 E. TAHQUITZ CANYON WAY
PALM SPRINGS, CA 92262

SPACE ABOVE FOR RECORDER'S USE ONLY
Pursuant to Government Code Section 6103, recording fees shall not apply

1.2.19 DEVELOPMENT AGREEMENT BY AND BETWEEN

CITY OF PALM SPRINGS
AND

PS COUNTRY CLUB, LLC,

A CALIFORNIA LIMITED LIABILITY COMPANY
FOR

SERENA PARK PROJECT
CASE NO. 5.1327, PDD-366, TTM36691
Title of Document

THIS AREA FOR

RECORDER'S

USE ONLY
Item 2B - Page 85

DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT {this "Agreement" or "Development Agreement") is entered into by and between the City of Palm Springs, a California Charter City and municipal corporation, {"City"), and PS Country Club, LLC, a California Limited Liability Company {"Developer"), pursuant to California Government Code § 65864 et seq.

RECITALS
A. Development Agreement Statute. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the Legislature of the State of California has enacted California Government Code § 65864 et seq. {the "Development Agreement Statute"), which authorizes City to enter into an agreement with any person having a legal or equitable interest in real property regarding the development of such property. This Development Agreement has been processed, considered, and executed in accordance with the procedures and requirements as set forth in the Development Agreement Statute.

B. City Ordinance. Pursuant to Government Code section 65865{c), City has adopted Ord. 1829 § 31 2013; Ord. 1294, 1988 [PSMC § 94.08.00] 1 that set forth rules and regulations establishing procedures and requirements for consideration of development agreements. The parties acknowledge:
a. This Agreement will assure adequate public facilities at the time of development. b. This Agreement will assure development in accordance with City's land use policies and goals
c. This Agreement will provide for orderly growth consistent with the City's General Plan, and other public policies.
d. This Agreement is intended to provide certainty in the development approval process by vesting the permitted uses, densities and intensity of use with respect to the subject property.
e. The execution of this Agreement furthers the public health, safety and general welfare of the community.
f. This Agreement will remove a nuisance situation and potential liability due to the blight at no cost to City.
g. This Agreement will protect residents and the City from the issues that typically accompany blighted areas.
h. This Agreement will allow development of a blighted area with appropriate housing and open space that is compatible with the surrounding neighborhoods. i. This Agreement will reduce potential trespasses and nuisances affecting adjacent neighborhoods.
j. This Agreement will reduce air pollution by reason of a significant reduction in wind borne dust and sand to adjacent neighborhoods.

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k. This Agreement will increase parkland in an underserved area of the City.

I. This Agreement will allow legal commitments by Developer over and above those allowed by state law and the Palm Springs Municipal Code requirements.

C. Description of the Project and Project Site. Developer represents and warrants that it has a legal interest in certain real property as legally described in Exhibit A attached hereto (the "Project Site"). The residential project on the Project Site, along with all related public and private improvements and obligations, is the "Project." D. Conversion of Open Space - Parks/Recreation Land. The Developer acknowledges the Project Site is currently designated as "Open Space - Parks/Recreation" in the City's adopted General Plan and is zoned as "Open Space" and is therefore subject to the City's Land Use Policy LU2.2 for the conversion of open space to developable areas. The Parties acknowledge the Developer shall cooperate with the City to secure the replacement of converted open space areas on the Project Site through the use of density transfer of property designated for residential development within the City.

E. Entitlements. Concurrent with the approval of this Agreement, City approved the following land use entitlements for the Project Site, which entitlements are also the subject of this Agreement:
a. General Plan Amendment: From "Open Space - Parks/Recreation" (OS-P/R) to Very Low Density Residential (VLDR) for the residential portions of the project. b. Planned Development District in lieu of Change of Zone: From "Open Space" (0, 0- 5) to Planned Development District (PDD).
c. Tentative Tract Map: To subdivide the property into residential lots, privately owned common areas and a public park.
d. Major Architectural Approval: Conceptual architectural and landscape plans will be part of the preliminary PDD.
e. Transfer of Density Agreement: To cooperate in the transfer of residential density from the other areas in the City including the Chino Cone Specific Plan to the Project Site consistent with the provisions of the City's General Plan and the Chino Cone Specific Plan at the ratio of 1.2 units for each unit removed from the Chino Cone.

The above Entitlements have been approved subject to various conditions and requirements with which Developer will be required to comply in order to develop the Project Site ("Conditions of Approval"). The approvals described above, including without limitation the Conditions of Approval as referenced in this Recital and this Agreement, are referred to herein as the "Entitlements" and have been reviewed and approved in accordance with the Municipal Code, California Environmental Quality Act, California Public Resources Code Section 21000 et seq. ("CEQA"), and all other applicable local, state, and federal laws and regulations. The Entitlements, Conditions of Approval, and this Agreement shall be collectively referred to as "the Project

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Approvals."
F. Substantial Costs to Developer. Developer will incur substantial costs in order to comply with the Project Approvals and to construct the additional infrastructure improvements requested by the City to assure development of the Project Site in accordance with the terms of this Agreement.

G. Vesting of Rights. In exchange for the benefits to City described in the preceding Recitals, together with the other public benefits that will result from the development of the Project, Developer will receive by this Agreement assurance that it may proceed with the Project in accordance with the "Applicable Law" (defined below) and therefore desires to enter into this Agreement.

H. Planning Commission - Council Findings. The approval of this Agreement is made pursuant to findings by the Planning Commission and the Council that this Development Agreement:
a. Is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan;
b. Is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located; c. Is in conformity with public convenience, general welfare and good land use practice;
d. Will not be detrimental to the health, safety and general welfare; e. Will not adversely affect the orderly development of property or the preservation of property values.

I. City Council Actions. City Council, after public hearings and extensive environmental analysis, approved the following entitlements:
a. By Resolution No. 24083, dated September 7, 2016, amended City's General Plan Land Use Designation for the subject property from "Open Space - Parks/Recreation" (OS-P/R) to Very Low Density Residential (LOR) for the residential portions of the project.
b. By Ordinance No. 1898, effective October 21, 2016, conditionally adopted the Planned Development District in lieu of Change of Zone, changing the zoning from "Open Space" (0, 0-5) to the Planned Development District (PDD-366). c. By Resolution No. 24085, dated September 7, 2016, conditionally approving Tentative Tract Map 36691, to subdivide the property into residential lots, privately owned common areas, and a public park.
d. By Resolution No. 24083, dated September 7, 2016, conditionally approving Major Architectural Approval: Conceptual architectural and landscape plans.

J. Ordinance. On July 26, 2017, Council adopted Ordinance No. 1931 approving this Agreement and authorizing the City Manager to execute the Agreement and its

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concomitant Transfer of Density Agreement. The Ordinance was effective on August 25, 2017; a copy of the Ordinance is attached hereto as Exhibit B.

AGREEMENT
NOW, THEREFORE, in consideration of the promises, covenants, and provisions set forth herein, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows:

ARTICLE 1. DEFINITIONS
o "Agreement" shall mean this Development Agreement by and between Developer and City, dated November 1, 2018.
o "Applicable Law" shall have that meaning set forth in Section 7 .03 of this Agreement. o "Changes in the Law" shall have that meaning set forth in Section 7.08 of this Agreement.
o "City" is the City of Palm Springs, a California Charter City and municipal corporation.
o "Conditions of Approval" shall have that meaning set forth in Section 4.04 of this Agreement.
o "Default" shall have that meaning set forth in Section 11.01 of this Agreement. o "Default Notice" shall have that meaning set forth in Section 11.01 of this Agreement. o "Deficiencies" shall have that meaning set forth in Section 10.02 of this Agreement. "Development Agreement Statute" shall have that meaning set forth in Recital A of this Agreement.
o "Developer" is PS Country Club, LLC, a California Limited Liability Company. o "EIR" shall mean the Final Environmental Impact Report certified by City Council on September 7, 2016.
o "Entitlements" shall have that meaning set forth in Recital E of this Agreement. o "Effective Date" shall have that meaning set forth in Section 3.01 of this Agreement. o "Excusable Delay" shall have that meaning set forth in Section 11.05 of this Agreement.

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o "Force Majeure" shall have that meaning set forth in Section 11.05 of this Agreement.
o "Judgment" shall have that meaning set forth in Section 10.02 of this Agreement. o "Projecr is defined above.
o "Project Approvals" shall have that meaning set forth in Recital E of this Agreement. o "Prompt Review" means review of all plans, specifications, and applications by Developer in accordance with Section 7 .11 , below.
o "Reasonable Progress" shall mean commercially reasonable efforts by Developer to achieve full build-out and completion of all executory obligations herein within ten years in accordance with Section 7 .10, below.
o "Term" shall have that meaning set forth in Section 3.02 of this Agreement.

ARTICLE 2. INCORPORATION OF RECITALS.

Section 2.01. Recitals. The Recitals set forth above, the introductory paragraph preceding the Recitals, and all defined terms set forth in both, are hereby incorporated into this Agreement as if set forth herein in full.

ARTICLE 3. EFFECTIVE DATE AND TERM
Section 3.01. Effective Date. This Agreement became effective as of the date the City Council of City approved this Agreement, October 17, 2018 (the "Effective Date").

Section 3.02. Term. The term of this Agreement (the "Term") shall commence upon the Effective Date and continue for a period of twenty (20) years, unless the Term is terminated or modified as set forth in this Agreement or by mutual consent of the parties hereto.

ARTICLE 4. OBLIGATIONS OF DEVELOPER
Section 4.01. Obligations of Developer Generally. In consideration of City entering into this Agreement, Developer agrees that it will comply with this Agreement and with all Project Approvals. The parties acknowledge and agree that City's agreement to perform and abide by the covenants and obligations of City set forth in this Agreement is a material consideration for Developer's agreement to perform and abide by its long term covenants and obligations, as set forth herein. The Developer may discharge all of its obligation under the Agreement by agreeing to have all the property returned to an Open Space designation.

Section 4.02. Fees Paid by Developer. As a material consideration for the long term assurances and vested rights provided by this Agreement, Developer shall pay fees,

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exactions, and charges to City as set forth in the Project Approvals not to exceed the amounts specified in City Council adopted ordinances and resolutions as of the Effective Date ("City Fees't per dwelling unit, structure, or improvement, for all fees and charges imposed by the City and payable no earlier than City's issuance of a building permit.

The amount of the City Fees will be adjusted on the fifth, tenth, and fifteenth annual anniversary of the Effective Date to reflect and equal the City's fees then in effect on each such anniversary. The term "City Fees" as used in this Section 4.02 for the purpose of limiting the ability of the City to increase certain fees, exactions, and charges does not include fees or charges required or otherwise assessed by any public agency other than the City or a fee or charge levied by the City to fund an enterprise account, including without limitation the City's Sewer Fund or Engineering plan check fees. The City Fees shall be adjusted to include credits against any and all park fees, including but not limited to, Quimby Fees pursuant to California Government Code §66477, included in the City Fees, for the costs of both land and improvements provided by the Developer to build the public park.

Section 4.03. Public benefits provided by Developer.
a. All conditions of approval of the Project adopted and accepted by the Developer. b. Reservation of lands for public use, owned and maintained by Developer or any successor HOA, in accordance with Exhibit C attached hereto. c. Construction of a portion of an alternate for the CV Link Trail from Verona Road and Whitewater Club Drive to Sunrise Way across development. d. Indemnification over and above the indemnification allowed under the Map Act. e. Payment of Development Agreement Fee over and above the fees referred to in paragraph 4.02, above, to be used by the City for acquisition of open space for the purposes of Developer's compliance with the City's General Plan Land Use Policy

2.2 in generating land use density for the subject property. The Development Agreement Fee shall be Three Million Dollars ($3,000,000.00) paid to City no later than November 1, 2021. The Development Agreement Fee shall be paid such that as construction of the Project occurs, and either (i) developed lots are sold to third­ party builders, or (ii) building permits are issued for construction of residential dwelling units, the Developer shall pay to City a pro-rata portion of the principle at the time vacant lots are sold to third-party merchant builders or building permits are issued for construction of residential dwelling units. Each payment to the City shall take place within ten (10) business days of any sale of developed lots to a third-party builder, or concurrent with City issuance of a building permit. The pro-rata portion of the Development Agreement Fee shall be calculated as the total Development Agreement Fee divided by the total number of residential dwelling units ($3,000,000 / 386), for a per lot fee of $7,772.02. By the third anniversary date of the Effective Date, the entire unpaid principle on the Development Agreement Fee shall immediately become due and payable to the City. Failure to pay the entire Development Agreement Fee by November 1, 2021, shall constitute a default pursuant to Section 11.01 of this Agreement, whereupon, in addition to such other remedies otherwise available to the City, the City may, in its sole discretion, withhold

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issuance of building permits or other ministerial approvals related to the Project Site, until such default is adequately cured to the City's satisfaction. f. Conversion of a portion of Golden Sands Drive from a private to a public street to match the current and projected use patterns and more fairly apportion the burden of maintenance and liability from the Four Seasons HOA.
g. Developer will build and maintain a public park in the approximate location shown on Exhibit C. Prior to City acceptance of the Park improvements or final acceptance of any subdivision improvements for the Project, Developer shall assign all of its rights and obligations to the Homeowners' Association with responsibility over the Project to maintain the Park and to preserve public access to the Park in perpetuity.

Construction of the public park shall occur as part of Phase 1. h. Developer will provide 67 acres of open space within the development over and above City requirements and the Public Park.
i. Fixed development standards and enforceable commitments to the adjacent HOA's:
1) The maximum height of any buildings in the development shall be no higher than 19 feet;
2) Planting of landscape trees adjacent to existing homes shall be of species and spacing that minimize blocking of existing views;
3) New walls adjacent to any phase of the Whitewater Condominiums shall be built per the landscape exhibits in the Planned Development Permit prior to the commencement of grading on any areas adjacent to that phase; 4) Property lines adjacent to Phases 1, 2, 3 and 5 of the Whitewater Condominiums shall be changed with lot line adjustments in accordance with the tentative map exhibits or as requested by the HOA of the adjoining phase prior to the recordation of any final map;
5) The connection of Francis Drive to the Property shall be for emergency access, only. A Knox-Box type gated entry control for police and fire services shall be provided;
6) Four pedestrian gates shall be provided connecting the Whitewater Condominiums to the Property, one in Phase 1, one in Phase 3 and one on either side of Whitewater Club Drive near the entrance gates to the Whitewater Condominiums;
7) A Knox-Box style gated entry for police and fire services shall be installed at the end of each of the cul de sacs adjacent to the entry road at Whitewater Club Drive;
8) Landscaping and Irrigation incorporating existing mature trees shall be provided in an eight foot wide landscape area on both sides of Whitewater Club Drive within the Property;

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9) A six foot high slumpstone wall shall be built eight feet behind the existing paved road on both sides of Whitewater Club Drive, except where pedestrian and emergency access gates are provided.
j. Securities submitted in conjunction with a Subdivision Improvement Agreement required with the City's approval of any final map shall include a contingency to assure that if the Developer fails to timely complete public improvements as provided under any subdivision agreement or allows any portion of the property to remain in a disturbed condition or in violation of any ordinance of the City regarding property maintenance for more than thirty (30) days after the expiration or termination of any permit applicable to the affected property, the City may find the Developer to be in default in which case the default provisions of this Agreement, including notice provisions shall apply. In addition to whatever other remedies the City may have, the City may demand the Developer restore such property to a natural and safe condition and remove any fencing along or adjacent to such property. The City may use self-help upon refusal or non-compliance by Developer.

This obligation may be secured through such other security as the Developer and City Manager may agree.

Section 4.04. Compliance with Project Conditions. In addition to any and all obligations contained in this Agreement, Developer shall comply with and fulfill any and all Conditions of Approval. The Development of the Project and Project Site shall be governed by the terms of the Conditions of Approval and this Agreement. The Conditions of Approval and this Agreement shall, to the fullest extent possible, be read and considered as fully integrated documents, and shall be interpreted so as to avoid inconsistencies, comply with all applicable federal and state laws and City Law, and ensure that the objectives of the parties will be fully realized.

Nothing in this Agreement is intended to supersede, terminate, modify or otherwise affect any provision of the Conditions of Approval, except to the extent that a provision of this Agreement is in direct conflict with a provision of such Condition of Approval. Then, and only in that event, the provisions of this Agreement shall prevail over the contradictory provisions of any such Condition of Approval. The execution of this Agreement by the parties hereto shall in no way otherwise affect the validity of any or all of the provisions of the Conditions of Approval.

ARTICLE 5. OBLIGATIONS OF CITY
In consideration of Developer entering into this Agreement, City agrees that it will comply with the terms and conditions of this Agreement. The parties acknowledge and agree that Developer's agreement to perform and abide by its covenants and obligations set forth in this Agreement is a material consideration for the City's agreement to perform and abide by the long term covenants and obligations of the City, as set forth herein.

ARTICLE 6. COOPERATION - IMPLEMENTATION

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The parties agree to cooperate in good faith to implement this Agreement.

ARTICLE 7. STANDARDS, LAWS AND PROCEDURES GOVERNING THE PROJECT Section 7.01. Vested Right to Develop. Developer shall have a vested right to build out the Project through the Term on the Project Site in accordance with the terms and conditions of the Project Approvals.

Section 7.02. Permitted Uses Vested by This Agreement. The permitted residential use of the Project Site, the density and intensity of use of the Project Site, the maximum height, bulk and size of proposed buildings, provisions for reservation or dedication of land for public purposes and the location of public improvements, the general location of public utilities, and other terms and conditions of development applicable to the Project, are set forth in the Project Approvals.

Section 7.03. Applicable Law. The rules, regulations, official policies, standards and specifications applicable to the Project (the "Applicable Law") shall be those set forth in the Project Approvals, and, with respect to matters not addressed by the Project Approvals, those rules, regulations, official policies, standards and specifications (including City ordinances and resolutions) governing permitted uses, building locations, timing of construction, densities, design, heights, fees, exactions, and taxes in force and effect on the Effective Date of this Agreement.

Section 7.04. Uniform Codes. City may apply to the Project Site, at any time during the Term, the then current Uniform building construction, fire or other codes, as the same may be adopted or amended from time to time by City, and City's then current design and construction standards for public improvements, as the same may be adopted or amended from time to time, provided any such uniform code or standard has been adopted and uniformly applied by City on a citywide basis, and provided that no such code or standard is adopted for the purpose of preventing or otherwise limiting construction of all or any part of the Project.

Section 7 .05. No Conflicting Enactments. City shall not impose on the Project (whether by action of the City Council or by initiative, referendum or other means) any ordinance, resolution, rule, regulation, standard, directive, condition or other measure (each individually, a "City Law") that is in conflict with Applicable Law, or the Project Approvals, or that reduces the development rights or assurances provided by this Agreement with respect to the Project. Without limiting the generality of the foregoing, such City Law may be allowed to address a significant public health or safety issue.

Without limiting the generality of the foregoing, any City Law shall be deemed to conflict with Applicable Law, or the Project Approvals, or reduce the development rights provided hereby if it would accomplish any of the following results, either by specific reference to the Project or as part of a general enactment which applies to or affects the Project.

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Approvals:
a. Change any land use designation or permitted use of the Project Site existing as of the Effective Date of this Agreement;
b. Limit or control the availability of public utilities, services or facilities or any privileges or rights to public utilities, services, or facilities (for example, water rights, water connections or sewage capacity rights, sewer connections, etc.) for the Project, unless such limitation is necessary to address significant health and safety issues; c. Limit or control the location of buildings, structures, grading, or other improvements of the Project in a manner that is inconsistent with or more restrictive than the limitations included in the Project Approvals;
d. Limit or control the rate, timing, phasing or sequencing of the approval, development or construction of all or any part of the Project in any manner inconsistent with the Project Approvals;
e. Apply to the Project any City Law otherwise allowed by this Agreement that is not uniformly applied on a the citywide basis to all substantially similar types of development projects and project sites;
f. Result in Developer having to substantially delay construction of the Project or require the issuance of additional permits or approvals by the City other than those required by the Project Approvals or Applicable Law;
g. Substantially increase the cost of constructing or developing the Project or any portion thereof;
h. Establish, enact, increase, or impose against the Project or Project Site any fees, taxes (including without limitation general, special and excise taxes), assessments, liens or other monetary obligations other than those specifically permitted by this Agreement;
i. Impose against the Project any condition, dedication or other exaction not specifically authorized by the Project Approvals or Applicable Law; j. Grant any development right, entitlement or approval for any portion of the Property that will reduce, limit or encumber Developer's rights hereunder, or k. Unreasonably limit the timing, processing or procuring of applications and approvals.

If City attempts to apply to the Project a City Law that Developer believes to conflict with Applicable Law or the Project Approvals, Developer shall provide to City in writing a notice describing the legal and factual basis for Developer's position. The

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parties shall meet and confer within thirty (30) days after the date of such written notice with the objective of attempting to arrive at a mutually acceptable solution to this disagreement. If no mutually acceptable solution can be reached, either party may take such action as may be permitted under Section 11.08, below.

Section 7.06. Initiatives and Referenda.
a. To the maximum extent permitted by law, if any City Law is enacted or imposed by initiative or referendum, or by the City Council directly or indirectly in connection with any proposed initiative or referendum, which City Law would conflict with Applicable Law, or the Project Approvals or reduce the development rights provided by this Agreement, such City Law shall not apply to the Project. b. Without limiting the generality of any of the foregoing and to the maximum extent permitted by law, no moratorium or other limitation (whether relating to the rate, timing, phasing or sequencing of development) affecting building permits or other entitlements to which Developer is entitled pursuant to the Project Approvals shall apply to the Project.
c. To the maximum extent permitted by law, City shall take reasonable actions to prevent any City Law from invalidating or prevailing over all or any part of this Agreement, and City shall cooperate with Developer and shall undertake such reasonable actions as may be necessary to ensure this Agreement remains in full force and effect.
d. City shall not support, adopt or enact any City Law, or take any other action which would violate the express provisions or spirit and intent of this Agreement or the Project Approvals.
e. Developer reserves the right to challenge in court any City Law that is enacted after the Effective Date of this Agreement that would conflict with Applicable Law or this Agreement or reduce the development rights provided by this Agreement.

Section 7.07. Environmental Mitigation. The parties understand that the EIR was intended to be used in connection with all of the Project Approvals needed for the Project.

Section 7 .08. State and Federal Law. As provided in California Government Code § 65869.5, this Agreement shall not preclude the application to the Project of changes in laws, regulations, plans or policies, to the extent that such changes are specifically mandated and required by changes in state or federal laws or regulations, or by any regional governmental agency that, due to the operation of state law, has binding legal authority on City ("Changes in the Law"). In the event Changes in the Law prevent or preclude compliance with one or more provisions of this Agreement, such provisions of the Agreement shall be modified or suspended, or performance thereof delayed, as may be necessary to comply with Changes in the Law, and City and Developer shall take such action as may be required pursuant to this Agreement including, without limitation,

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Article 1 0 (Cooperation-Implementation) and Section 11.05 (Force Majeure and Excusable Delays; Extension of Time of Performance). Not in limitation of the foregoing, nothing in this Agreement shall preclude City from imposing on Developer any fee specifically mandated and required by state or federal laws and regulations, provided that nothing shall limit Developer's ability to challenge such laws and the imposition of such fees.

Section 7.09. Timing of Project Construction and Completion. a. Project Timing. The parties acknowledge that Developer cannot predict the timing, rate, order or actual timing with certainty. The timing, order and rate of development shall be in Developer's sole discretion, except as otherwise provided in the Project Approvals.
b. In light of the foregoing, the parties agree that Developer shall be able to develop in accordance with Developer's own time schedule as such schedule may exist from time to time. In particular, and not in limitation of any of the foregoing, since the California Supreme Court held in Pardee Construction Co. v. the City of Camarillo, 37 Cal.3d 465 (1984), that the failure of the parties therein to consider and expressly provide for the timing of development resulted in a later-adopted initiative restricting the timing of development to prevail over such parties' agreement, it is the parties' desire to avoid that result by acknowledging that Developer shall have the right to develop the Project at such rate and at such times as Developer deems appropriate within the exercise of its subjective business judgment, provided that such schedule is consistent with this Agreement.
c. The Developer shall use its best efforts to meet the Agreed Proposed Schedule attached hereto as Exhibit "D".

Section 7 .10. Annual Review. City shall, at least every twelve (12) months during the term of this Agreement, review the extent of good faith substantial compliance by Developer and Landowner with the terms of this Agreement. The review may specifically include a review of whether Developer is making Reasonable Progress. To assess such progress, the City Planning Director may require at any time subsequent to the execution of this Agreement, and as frequently as annually thereafter, a development planned schedule showing a ten-year (or less) completion schedule. Reasonable Progress shall take into account market conditions, commercial realities, the sensitivities of adjacent residents and prudent construction practices. Reasonable Progress is expressly subject to City's obligation of Prompt Review specified in Section 7 .11, below.

City may charge fees as necessary to cover the costs of conducting the annual review.

Such periodic review shall be limited in scope to compliance with the terms of this Agreement pursuant to California Government Code Section 65865.1. Said review shall be diligently completed. Notice of such annual review shall include the statement that any review may result in amendment or termination of this Agreement. A finding by City of good faith compliance by Developer and Landowner with the terms of the Agreement

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shall conclusively determine said issue up to and including the date of said review. City shall deposit in the mail or fax to Developer and/or Landowner a copy of all staff reports and, to the extent practical, related exhibits concerning contract performance at least seven (7) calendar days prior to such periodic review. Developer or Landowner shall be permitted an opportunity to be heard orally or in writing regarding its performance under this Agreement before the City Council and, if the matter is referred to a City Planning Commission, before said Commission
Section 7.11 Prompt Review by the City. City and Developer shall cooperate and use commercially reasonable efforts to timely review and approve the development design review process, building plan review process, improvement plan review process, and if necessary, the entitlement review process for the residential and other developments to be located within the Project. Review of any application provided by this subparagraph shall not be deemed to waive any of the Applicable Law pertaining to review or approval of such application, including, but not limited to, a public hearing, if any, required therefore. In the event the Parties agree to use an expedited process to perform any review pursuant to this subparagraph, Developer authorizes the imposition of City Fees paid to the City sufficient to cover City's estimated costs of utilizing City staff, retaining an outside consultant or any combination thereof in order to expedite the review process. Any such process shall terminate upon the expiration or termination of this Agreement or the issuance of the final certificate of occupancy for development within the Project, whichever occurs first.

Section 7 .12. Exempting Fees Imposed by Outside Agencies. Except as specified in 7.08, above, City agrees to exclude Developer from any and all collection agreements regarding fees, including, but not limited to, development impact fees which other public agencies or responsible agencies request City to impose at City's discretion on the Project or the Project Site after the Effective Date through the Term of this Agreement, provided, however, that Developer will not be exempted from fees included in the Project Approvals.

ARTICLE 8. AMENDMENT
This Agreement may be amended from time to time, in whole or in part, by mutual written consent of the parties hereto or their successors in interest, in accordance with the Development Agreement Statute.

ARTICLE 9. ASSIGNMENT, TRANSFER AND NOTICE
Section 9.01. Assignment of Interests, Rights and Obligations. Developer may only transfer or assign all or any portion of its interests, rights or obligations under the Project Approvals to another person or entity acquiring an interest or estate in the Project or any portion thereof including, without limitation, purchasers or ground lessees of lots, parcels or facilities that accepts all of the then-applicable responsibilities of the Developer.

Section 9.02. Limits of Liability. To the extent the Developer's responsibilities are transferred in good faith to another person or entity, Developer shall be free from any

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and all liabilities accruing on or after the date of any assignment or transfer with respect to those obligations assumed by a transferee pursuant to a Transfer Agreement. No breach or default hereunder by any person succeeding to any portion of Developer's obligations under this Agreement shall be attributed to Developer, nor may Developer's rights hereunder be canceled or diminished in any way by any breach or default by any such person.

ARTICLE 10. COOPERATION IN THE EVENT OF LEGAL CHALLENGE Section 10.01. Cooperation.
a. In the event of any administrative, legal or equitable action or other proceeding instituted by any person not a party to this Agreement challenging the validity of any provision of the Agreement or any Project Approval, the parties shall cooperate in defending such action or proceeding. The parties shall use best efforts to select mutually agreeable legal counsel to defend such action, and Developer shall pay compensation for such legal counsel; provided, however, that such compensation shall include only compensation paid to counsel not otherwise employed as City staff and shall exclude, without limitation, City Attorney time and overhead costs and other City staff overhead costs and normal day-to-day business expenses incurred by City. In the event City and Developer are unable to select mutually agreeable legal counsel to defend such action or proceeding, each party may select its own legal counsel.
b. The parties agree that this Section 10.01 shall constitute a separate agreement entered into concurrently, and that if any other provision of this Agreement, or the Agreement as a whole, is invalidated, rendered null, or set aside by a court of competent jurisdiction, the parties agree to be bound by the terms of this section, which shall survive such invalidation, nullification or setting aside.

Section 10.02. Waiver of Challenges to Project Approvals. a. As a condition precedent to receiving the benefits of this Agreement, Developer, its successors in interest, transferees, assignees, etc., expressly waive any legal or equitable right to challenge any Project Approvals or other act, entitlement, fee, or approval expressly set forth in this Agreement, including without limitation, all acts of protest pursuant to California Government Code Sections 66008 and 66009 as to any fee against which Developer has vested in accordance with this Agreement. b. The parties agree that this Section 10.03(b) shall constitute a separate agreement entered into concurrently, and that if any other provision of this Agreement, or the Agreement as a whole, is invalidated, rendered null, or set aside by a court of competent jurisdiction, the parties agree to be bound by the terms of this section, which shall survive such invalidation, nullification or setting aside.

ARTICLE 11. DEFAULT; REMEDIES; TERMINATION

1.2.19 14
Item 2B - Page 99
Section 11.01. Defaults. Any failure by either party to perform any term or provision of this Agreement, which failure continues uncured for a period of thirty (30) days following written notice of such failure from the other party (unless such period is extended by mutual written consent), shall constitute a default under this Agreement ("Default"). Any notice given pursuant to the preceding sentence ("Default Notice") shall specify the nature of the alleged failure and, where appropriate, the manner in which said failure satisfactorily may be cured. If the nature of the alleged failure is such that it cannot reasonably be cured within such 30-day period, then the commencement of the cure within such time period, and the diligent prosecution to completion of the cure thereafter, shall be deemed to be a cure within such 30- day period. Upon the occurrence of a Default under this Agreement, the non-defaulting party may institute legal proceedings to enforce the terms of this Agreement or, in the event of a material Default, terminate this Agreement. If the Default is cured, then no Default shall exist and the noticing party shall take no further action.

Section 11.02. Enumerated City Rights and Remedies for Developer Default. City and Developer agree that notwithstanding any provision of this Agreement, in the event of any Default by Developer, the City, in addition and cumulative to all rights and remedies provided in this Agreement, shall have two (2) enumerated rights and remedies, each in an exercise of City's absolute discretion, enumerated in this Section

11.02. First, City may initiate and approve the Project Site's reversion to acreage in conformance with California Government Code, Title 7, Division 2, Chapter 6, Reversions and Exclusions (Sections 66499.11 through 66499.29) and Municipal Code, Title 9, Chapter 9.66 Reversions (Sections 9.66.010 through 9.66.110), unless City waives said Municipal Code provisions. Second, the City may take unilateral action to summarily abate any condition representing a nuisance at the Project Site or any portion thereof. City abatement pursuant to this Section 11.02 shall conform to to the "summary abatement" process reflected in Municipal Code Section 11.72.245, as that provision may be amended from time to time. The scope and nature of any City abatement hereunder shall be restoration of the Project Site, and any part thereof, to a natural and safe condition as determined, in an exercise of absolute discretion, by the City. The costs of the City's abatement shall be recoverable by the City pursuant to Municipal Code Chapter 11. 72.

Section 11.03. Termination. If City elects to consider terminating this Agreement due to a material Default of Developer, then City shall give a notice of intent to terminate this Agreement. City shall give written notice of termination of this Agreement to Developer by certified mail and this Agreement shall thereby be terminated sixty (60) days thereafter.

Section 11.04. Default by City or Developer. In the event that City or Developer defaults under the terms of this Agreement, the City or Developer shall have all rights and remedies provided herein or under law.

Section 11.05. Force Majeure and Excusable Delay: Extension of Time of

1.2.19 15
Item 2B - Page 100
Performance. In addition to specific provisions of this Agreement, neither party shall be deemed to be in Default where delays in performance or failures to perform are due to, and a necessary outcome of, war, insurrection, strikes or other labor disturbances, walk­ outs, riots, floods, earthquakes, fires, casualties, acts of God, restrictions imposed or mandated by other governmental entities (including new or supplemental environmental regulations), enactment of conflicting state or federal laws or regulations, judicial decisions, or similar basis for excusable performance which is not within the reasonable control of the party to be excused (collectively "Force Majeure"). Litigation attacking the validity of this Agreement or any of the Project Approvals, or any permit, ordinance, entitlement or other action of a governmental agency other than City necessary for the development of the Project pursuant to this Agreement, shall also be deemed to create an excusable delay as to Developer (collectively "Excusable Delay"). The party whose performance is prevented or delayed by such event of Force Majeure or Excusable Delay shall give prompt written notice thereof to the other party and both parties shall have agreed that performance is appropriately excused or delayed pursuant to this Section 11.05 In the event of Force Majeure or Excusable Delay, the parties shall memorialize in writing the extension of time for the performance of any obligation whose performance has been so prevented or delayed. The term of any such extension shall be equal to the period of the Excusable Delay or Force Majeure or such other period as may be mutually agreed upon by both parties.

Section 11.06. Legal Action. Either party may, in addition to any other rights or remedies, institute legal action to cure, correct, or remedy any default, enforce any covenant or agreement herein, enjoin any threatened or attempted violation thereof, recover damages for any default, enforce by specific performance the obligations and rights of the parties hereto, or to obtain any remedies consistent with the purpose of this Agreement.

Section 11.07. California Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Venue for any action shall be in Riverside County, California.

Section 11.08. Resolution of Disputes. With regard to any dispute involving development of the Project, the resolution of which is not provided for by this Agreement or Applicable Law, Developer and City shall, at the request of the party, meet and shall attempt in good faith to resolve any such disputes. Nothing in this Section 11.08 shall in any way be interpreted as requiring that Developer and City and/or City's designee reach an agreement with regard to those matters being addressed, nor shall the outcome of these meetings be binding in any way on City or Developer unless expressly agreed to by the parties to such meetings.

Section 11.09. Attorneys' Fees. In any legal action or other proceeding brought by either party to enforce or interpret a provision of this Agreement, each party shall bear its own costs and expenses, including attorneys' fees.

Section 11.10. Hold Harmless. Developer shall, at its sole expense, defend and hold City and its elected and appointed officers, agents, employees, and representatives

1.2.19 16
Item 2B - Page 101
harmless from all claims, costs, and liabilities for any personal injury, death, or property damage which arises directly or indirectly as a result of the construction of the Project, the Project Site, or of operations performed under this Agreement by Developer or by Developer's contractors, subcontractors, agents or employees, whether such operations were performed by Developer or any of Developer's contractors, subcontractors, agents, or by any one or more persons directly or indirectly employed by or acting as agent for Developer or any of Developer's contractors or subcontractors. Nothing in this section shall be construed to mean that Developer shall hold City harmless from any claims of personal injury, death or property damage arising from, or alleged to arise solely from, any negligent or intentional act, or failure to act, on the part of City, its elected and appointed representatives, officers, agents and employees.

This hold harmless agreement applies to all damages or claims for damages suffered or alleged to have been suffered by reason of the operations referred to in this section regardless of whether or not City prepared, supplied or approved plans or specifications, or both, for the Project and/or Project Site.

The parties agree that this Section 11.1 O shall constitute a separate agreement entered into concurrently, and that if any other provision of this Agreement, or the Agreement as a whole, is invalidated, rendered null, or set aside by a court of competent jurisdiction, the parties agree to be bound by the terms of this section, which shall survive such invalidation, nullification or setting aside.

ARTICLE 12. NO AGENCY, JOINT VENTURE OR PARTNERSHIP
It is specifically understood and agreed to by and between the parties hereto that: (i) the subject development is a private development; (ii) City has no interest or responsibilities for, or duty to, third parties concerning any improvements until such time, and only until such time, that City accepts the same pursuant to the provisions of this Agreement or in connection with the various Project Approvals; (iii) Developer shall have full power over and exclusive control of the Project herein described, subject only to the limitations and obligations of Developer under this Agreement, the Project Approvals and Applicable Law; and (iv) City and Developer hereby renounce the existence of any form of agency relationship, joint venture or partnership between City and Developer and agree that nothing contained herein or in any document executed in connection herewith shall be construed as creating any such relationship between City and Developer.

ARTICLE 13. MISCELLANEOUS
Section 13.01. Enforceability. City and Developer agree that unless this Agreement is amended or terminated pursuant to the provisions of this Agreement, this Agreement shall be enforceable by any party hereto, notwithstanding any change hereafter enacted or adopted (whether by ordinance, resolution, initiative, or any other means) in any applicable general plan, specific plan, zoning ordinance, subdivision ordinance, or any

1.2.19 17
Item 2B - Page 102
other land use ordinance or building ordinance, resolution or other rule, regulation or policy adopted by City that changes, alters or amends the rules, regulations and policies applicable to the development of the Project Site at the time of the approval of this Agreement as provided by California Government Code Section 65866.

Section 13.02. Severability. If any term or provision of this Agreement, or the application of any term or provision of this Agreement to a particular situation, is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining terms and provisions of this Agreement, or the application of this Agreement to other situations, shall continue in full force and effect unless amended or modified by mutual consent of the parties. Notwithstanding the foregoing, if any material provision of this Agreement, or the application of such provision to a particular situation, is held to be invalid, void or unenforceable, either City or Developer may (in their sole and absolute discretion) terminate this Agreement by providing written notice of such termination to the other party.

Section 13.03. Other Necessary Acts. Each party shall execute and deliver to the other all such other further instruments and documents as may be reasonably necessary to carry out the Project Approvals and to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder.

Section 13.04. Construction. Each reference in this Agreement to this Agreement or any of the Project Approvals shall be deemed to refer to the Agreement or the Project Approvals as they may be amended from time to time, whether or not the particular reference refers to such possible amendment. This Agreement has been reviewed and revised by legal counsel for both City and Developer, and no presumption or rule that ambiguities shall be construed against the drafting party shall apply to the interpretation or enforcement of this Agreement.

Section 13.05. Other Miscellaneous Terms. The singular shall include the plural; the masculine gender shall include the feminine; "shall" is mandatory; "may" is permissive. If there is more than one signer of this Agreement, the signer obligations are joint and several.

Section 13.06. Covenants Running with the Land. All of the provisions contained in this Agreement shall constitute covenants or servitudes which shall run with the land comprising the Project Site and the burdens and benefits hereof shall be binding upon and inure to the benefit of the parties and their respective heirs, successors in interest, transferees and assignees, representatives, lessees, and all other persons acquiring all or a portion of the Project or the Project Site, or any interest therein, whether by operation of law or in any manner whatsoever. All of the provisions contained in this Agreement shall be enforceable as equitable servitudes and shall constitute covenants running with the land pursuant to California law including, without limitation, Civil Code Section 1468.

Section 13.07. Notices. Any notice or communication required hereunder between City or Developer must be in writing, and may be given either personally, by facsimile

1.2.19 18
Item 2B - Page 103
(with original forwarded by regular U.S. Mail) by registered or certified mail (return receipt requested), or by Federal Express or other similar courier promising overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the party to whom it is addressed. If given by facsimile transmission, a notice or communication shall be deemed to have been given and received upon actual physical receipt of the entire document by the receiving party's facsimile machine.

Notices transmitted by facsimile after 5:00 p.m. on a normal business day or on a Saturday, Sunday or holiday shall be deemed to have been given and received on the next normal business day. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier. Any party hereto may at any time, by giving ten (10) days written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth below:

If to the City, to:

David H. Ready, Esq., Ph.D.

City Manager
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Fax: (760) 322-8362
David. [email protected]
With Copies to:

Edward Z. Kotkin
City Attorney
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Fax: (760) 323-8299
[email protected]
If to Developer, to:

Eric Taylor
Semis Investments
300 E. Esplanade, Suite 1785
Oxnard, CA 93036
Tel: 805-633-1037
Fax: 805-633-4523
[email protected]
With Copies to:

Mark C. Allen, Ill
The Claremont Land Group Attorneys
5861 Pine Avenue, Suite A-1
. Chino Hills, CA 91709-6540
Tel: (909) 398-4404;
Fax: (909) 398-1883 .
(909) 333-5254 - Direct'
[email protected]
Section 13.08. Entire Agreement, Counterparts and Exhibits. This Agreement is executed in duplicate, each of which is deemed to be an original. This Agreement consists of 21 pages and four exhibits which constitute in full, the final and exclusive understanding and agreement of the parties and supersedes all negotiations or previous

1.2.19 19
Item 2B - Page 104
agreements of the parties with respect to all or any part of the subject matter hereof.

Section 13.09. Waiver. Any waivers of the provisions of this Agreement or any breach of covenants or conditions contained in this Agreement shall be effective only if in writing and signed by the appropriate authorities of City and Developer. A waiver of one provision or breach shall not be considered as a continuing waiver, shall not constitute a waiver of any other conditions or covenants and shall not operate to bar or prevent the other party from declaring a forfeiture or exercising its rights for any succeeding breach of either the same or other condition or covenant.

Section 13.10. Recordation of Development Agreement. No later than ten (10) days after City enters into this Agreement, the City Clerk shall record an executed copy of this Agreement in the Official Records of the County of Riverside.

Section 13.11. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than City and Developer, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

Section 13.12. Titles of Parts and Sections. Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of this Agreement's provisions.

Section 13.13. Discretion of City. City's execution of this Agreement in no way limits the discretion of.City~iri tbe -pecmit .9,r1 "P,Rroval process in connection with any site plan approvals, subsequent entitlements, land use decisions, construction or improvements which are within- Gity'-s,--jur-isdictio,i ..... except to the extent expressly and unequivocally stated herein.

Section 13.14. Representations of Authority. As to each person signing this Agreement on behalf of an entity, all necessary legal prerequisites to that party's execution of this Agreement have been satisfied and he or she has been authorized to sign this Agreement and bind the party on whose behalf he or she signs.

1.2.19 . ; :~ ~ . r •
J ..J ... '-J6 , •. • ~ , •
• • J •
20 Item 2B - Page 105
IN WITNESS WHEREOF, the City of Palm Springs California, a California Charter City and municipal corporation, has authorized the execution of this Development Agreement in duplicate by its City Manager and attestation by its City Clerk, and approved by the Council of the City on the 1 ?1h day of October, 2018, and Developer has caused this Agreement to be executed by its authorized representative. "CITY"
City of Palm Springs
Date: _____ 3--+---\1 ......... ll':l ___ ~~~
r.- David H. Ready, PhD, Esq. ""f-, 1./
Mt- City Manager C--?-"'f'--
APPROVED AS TO FORM:
1 .;;;r~
By:----------
Edward Z. Kotkin
City Attorney
ATTEST
APPROV~D ~y CITY COUNCIL: ~- PROVED BY CITY COUNCIL
1/14/111 JkM d.c. l~ AP l ,.\,, \,11 or~. \q31 Ilil€1
~•1
5E1-t- i.\lM M- 10l11 Ii ei1~s,
Date: ~ Agreement No. r.

Corporations require two notarized signatures. One signature must be from Chairman of Board, President, or any Vice President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer.
"DEVELOPER"
Palm Springs Country Club, LLC,
a California limited liability company

1.2.19 21
Item 2B - Page 106
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Cal\rnia )
County of Je01\lm )
onfA-rui_crn:i54Sd)\jbeforeme, fr£~ \tm~ \ f\Jo-\--ocLA ?JoLc Da ere Insert Name an Title of the Officer \
personally appeared t:?e,,bcao::7 }:\Q.,\.Je ,,c,'N\ 0~ ".'."") CZ:, . __.-: Name(s) of Signer(s)
\L. · \\ C:., l fu/ \ IS} ,
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 PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

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

Description of Attached Document
Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: ___ Signer(s) Other Than Named Above: ____________ _ Capacity(ies) Claimed by Signer(s)
Signer's Name: ___________ _ Signer's Name: ___________ _  Corporate Officer - Title(s): ______ _  Corporate Officer - Title(s): ______ _ r-1 Partner -  Limited  General 17 Partner -  Limited  General  Individual [J Attorney in Fact  Individual  Attorney in Fact  Trustee [7 Guardian or Conservator n Trustee  Guardian or Conservator  Other: _____________ _  Other: _____________ _
Signer Is Representing: ________ _ Signer Is Representing: ________ _ ©2014 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 Item 2B - Page 107

ACKNOWLEDGMENT OF INSTRUMENT
(Cal. Civil Code Section 1181)
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, orvalidity of that document.

State of California
County of Riverside
City of Palm Springs
)
)
)
ss.

On March 7, 2019, before me, ANTHONY J. MEJIA, CITY CLERK, CITY OF PALM SPRINGS, CALIFORNIA, personally appeared DAVID H. READY, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his official and authorized capacity, and that by his signature on the instrument the person or entity upon behalf of which the person acted, executed the agreement.

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

Witness my hand and the official seal of the City of Palm Springs, California, this 7th day of March, 2019.

Signature: Cl 69
ANTH~ MEJIA, MMC

CITY CLERK, CITY OF PALM SPRINGS
Title or Type of Document
Development Agreement By and Between City of Palm Springs and PS Country Club, LLC, A California Limited Liability Company, for Serena Park Project, Case No. 5.1327, PDD-366, TTM36691
Item 2B - Page 108

EXHIBIT A

REAL PROPERTY DESCRIPTION
All that certain real property conveyed from Palm Springs Country Club Investors, LLC, a California limited liability company and Jeffrey G. Gomberg, a single man, to PS Country Club, LLC, a California limited liability company, by Grant Deed recorded March 6, 2013, as Document No. 2013-0111566, as further described herein:

All that certain real property situated In the County of Riverside, State of California, described as follows:

Parcel 1: (501-190-002, and a portion of 501-190-011)
The Northeast quarter of Section 1, Township 4 South, Range 4 East, San Bernardino Meridian, in the City of Palm Springs, County of Riverside, State of California, according to the official plat thereof.

Except any portion lying within the following subdivisions:

A. Desert Park Estates No. 10, as per map recorded in Book 33 Page 20 of Maps, in the office of the County Recorder of said County.

B. Ranch Country Club Estates No. 1, as per map recorded In Book 36, Page 64 of Maps, in the office of the County Recorder of said County.

C. Tract No. 4362, as per Map recorded in Book 70, Pages 89 and 90 of Maps, in the office of the County Recorder of said County.

D. Tract No. 4362-1, as per Map recorded in Book 81, Pages 29 and 30 of Maps, in the office of the County Recorder of said County.

E. Tract 9317, as per Map recorded in Book 91, Pages 44 and 45 of Maps, in the office of the County Recorder of said County.

F. Tract 14029, as per Map recorded In Book 112, Pages 61and 62 of Maps, in the office of the County Recorder of said County.

Parcel 2: (a portion of 501-190-011)
Lot 1 of Ranch Country Estates No.1, in the City of Palm Springs, County of Riverside, State of California, as per map recorded in Book 36, Page 64, of Maps, in the office of the County Recorder of said County.

Exhibit "A
11 Item 2B - Page 109
Parcel 3: (669-480-027)
Parcel 1 of that Lot Line Adjustment No. 02-12 recorded February 26, 2004 as Instrument No.2004-134481 of Official Records, described as follows:

A parcel of land, situated in the City of Palm Springs, County of Riverside, State of California, lying over a portion of the Southwest Quarter of Section 36, Township 3 South, Range 4 East, San Bernardino Base and Meridian, being more particularly described as follows:

Beginning at the South Quarter corner of said Section 36; Thence, along the North-South centerline of said Section 36, North 0°12'43" East 420 .46 feet;
Thence, leaving said North-South centerline North 89°59'13" West 88.65 feet; Thence North 38°24'39" West 4 76.26 feet;
Thence North 47°46'07" West 450.07 feet;
Thence North 61 °23'04" West 329.68 feet;
Thence North 28°04'13" West 200.02 feet;
Thence South 80°57'45" West 440.06 feet;
Thence South 75°05'43" West 318.05 feet;
Thence South 58°00'55" West 386.18 feet;
Thence South 5°14'30" East 769.65 feet to the Intersection of a line parallel to, and 554.00 feet Easterly, when measured at right angles, to the West line of said Section 36, with a line parallel to, and 300.00 feet Northerly, when measured at right angles, to the South line of said Section 36;
Thence, along said line parallel to the West line of said Section 36, South 00°15'30" West 300.00 feet, to the South line of said Section 36; Thence, along said South line of Section 36, South 89°45'52" East 2100.33 feet to the point of beginning.

Excepting therefrom that portion of said parcel of land being more particularly described as follows:

Commencing at the Southwest corner of said Section 36;
Thence, along the South line of said Section 36, South 89°45'52" East 814.00 feet; Thence, leaving said South line, parallel to the West line of said Section 36, North 0°15'30" East 300.00 feet to a line parallel to, and 300.00 feet Northerly of, said South line of Section 36 and the True Point of Beginning;
Thence, along said line parallel to the South line of Section 36, South 89°45'52" East 718.85 feet;
Thence, leaving said parallel line, South 89°35'48" East 417 .44 feet; Thence South 88°10'53" East 316.61 feet;
Thence North 49°27'44" East 107.85 feet;
Thence North 45°27'43" West 330.33 feet;
Thence North 82°49°28" West 18.54 feet;
Thence North 53°11 '47" West 872.71 feet;
Thence South 74°57'13" West 528.72 feet;
Exhibit "A"
Item 2B - Page 110
Thence South 0°08'38" West 30. 73 feet;
Thence South 72°41'33" West 113.63 feet;
Thence South 3°29'01" East 610.32 feet to the True Point of Beginning.

Parcel 4: (669-590-066)
That portion of the South half of the Southeast quarter of Section 36, Township 3 South, Range 4 East, San Bernardino Meridian, in the City of Palm Springs, County of Riverside, State of California, according to the official plat thereof, described as follows:

Beginning at the Southwest corner of said South half of the Southeast quarter; Thence South 89°52'00" East, along the South line of said South half of the Southeast quarter, a distance of 240.00 feet;
Thence North 70°00'00" West, 105.00 feet;
Thence South 75°12'28" West, 59.03 feet;
Thence North 31 °00'00" West, a distance of 163.00 feet, to a point on the West line of said South half of the Southeast quarter;
Thence South 0°06'30" West, along said West line, a distance of 160.00 feet to the Point of Beginning.

Exhibit "A"
Item 2B - Page 111

EXHIBIT B
ORDINANCE NO.1931 FOLLOWS THIS PAGE
Exhibit "B"
Item 2B - Page 112
ORDINANCE NO. 1931

AN ORDINANCE OF THE CITY OF PALM SPRINGS,

CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT

WITH PS COUNTRY CLUB LLC, RELATED TO CONVERSION OF

THE PALM SPRINGS COUNTRY CLUB GOLF COURSE INTO A
RESIDENTIAL SUBDIVISION OF UP TO 386 RESIDENTIAL

UNITS IDENTIFIED AS THE SERENA PARK PROJECT,

LOCATED NORTH OF VERONA ROAD, EAST OF SUNRISE

WAY AND SOUTHWEST OF THE WHITEWATER RIVER WASH
(CASE NOS. 5.1327, PDD-366, ZC, GPA, DA, MAJ AND TTM
36691 ).

City Attorney's Summary
This Ordinance approves a Development Agreement for a term of 20 years vesting the discretionary entitlements associated with the Serena Park Project, identified by Case No. 's 5.1327, PD-366, ZC, DA, MAJ, and TTM 36691. Pursuant to the terms of the Development Agreement, payment to the City of an in-lieu fee for acquisition of open space is required to ensure compliance with General Plan Land Use Policy 2. 2 in exchange for transfer of density onto the underlying property.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS:

A. Palm Springs Country Club, LLC, a California limited liability company, ("Applicant" or "Developer") filed an application pursuant to Palm Springs Zoning Code Section 94.07.00 (Zone Map Change I Change of Zone) and Section 94.03.00 (Planned Development District) seeking approval of a Planned Development District in lieu of a Change of Zone (Case 5.1327 PD-366) to construct 386 residential dwellings, private streets and open space, including a public park, on 126-acres of previously disturbed land (defunct golf course) generally located north of Verona Road, east of Sunrise Way, and southwest of the Whitewater River channel (APN 501-190-002, 501-190-011, 669-480-027) C'Project").

B. The Applicant submitted related Project applications, including a General Plan Amendment (Case 5.1327 PD-366/GPA) to change the land use designation from "Open Space - Parks/Recreation" to "Very Low Density Residential;'' a Tentative Tract Map application (Case TTM 36691) to subdivide the subject property into 386 residential lots and common area parcels for public and private streets and open space pursuant to Title 9 of the Palm Springs Municipal Code; a Major Architectural application to review proposed architecture pursuant to Section 94.04.00 of the Zoning Code; and a Development Agreement (Case 5.1327 DA) to establish conditions, terms and obligations for the development of the Project.

Exhibit "B"
Item 2B - Page 113
Ordinance No. 1931
Page2
C. In accordance with Section 15063 of the California Environmental Quality Act (CEQA) Guidelines, the City of Palm Springs as the Lead Agency conducted an Initial Study and determined that the Project raised potentially significant concerns. An Environmental Impact Report (EIR) was prepared to assure adequate review and analysis of potentially significant impacts associated with the Project.

D. A notice of a public hearing of the Planning Commission of the City of Palm Springs, California to consider the above-mentioned applications was given in accordance with applicable law, and on April 13, 2016, the Planning Commission carefully reviewed and considered all of the evidence presented in connection with the hearing on the Project, including but not limited to the staff report, and all written and oral testimony presented, and voted 5-1 to recommend approval to the City Council of the Project.

E. On April 27, 2016, the Planning Commission carefully reviewed and considered all of the evidence presented in connection with the proposed Development Agreement, and voted 6-0 to recommend approval to the City Council.

F. A notice of public hearing of the City Council of the City of Palm Springs, California to consider the above-mentioned applications was given in accordance with applicable law and on September 7, 2016, the City Council held a public hearing in accordance with applicable law, and carefully reviewed and considered all of the evidence presented in connection with the hearing on the Project, including but not limited to the staff report, and all written and oral testimony presented. The City Council reviewed and certified the Final EIR for the Project by adopting its Resolution No. 24082, identified as (Case No. 5.1327, PD-366, and TTM 36691), and voted 5-0 to conditionally approve the Project.

G. As part of the conditional approval of the Project, the City Council included Administrative Condition (ADM 13) which states: "Approval of these land use entitlement applications is contingent upon the approval of a development agreement.

The development agreement shall address the conversion of open space for development purposes, through in-kind replacement of open space, payment of in-lieu fees for the acquisition of open space, or replacement of open space through a density transfer, pursuant to Policy LU2. 2 of the City of Palm Springs General Plan." H. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the Legislature of the State of California has enacted California Government Code§ 65864 et seq. (the "Development Agreement Statute"), which authorizes City to enter into an agreement with any person having a legal or equitable interest in real property regarding the development of such property. This Development Agreement has been processed, considered, and approved in accordance with the procedures and requirements as set forth in the Development Agreement Statute., and
Exhibit "B"
Item 2B - Page 114
Ordinance No. 1931

I. Pursuant to Government Code section 65865(c), the City of Palm Springs previously adopted Ord. 1829 § 31 2013; Ord. 1294, 1988 [PSMC § 94.08.00], that set forth rules and regulations establishing procedures and requirements for consideration of development agreements. This Development Agreement has been processed, considered, and approved in accordance with the procedures and requirements as set forth in the City's Ordinances and Municipal Codes.

J. Notice of a public hearing of the City Council of the City of Palm Springs, California, to consider the Development Agreement was given in accordance with applicable law for the meeting of July 19, 2017. The City Council held a public hearing in accordance with applicable law, considered the Staff Report and all evidence and testimony presented.

K. The City Council finds that no further environmental documentation beyond the documentation prepared in conjunction with the EIR for the Project is required because:
(i) there are no substantial changes in the project that will require major revisions to the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (ii) there are no substantial changes with respect to the circumstances under which the project is being undertaken which will require major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and (iii) there is no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified showing that: (a) the project will have one or more significant effects not discussed in the EIR; (b) significant effects previously examined will be substantially more severe than shown in the EIR; (c) mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but those mitigation measures or alternatives have not been adopted; or (d) mitigation measures or alternatives considerably different from those analyzed in the EIR would substantially reduce one or more significant effects on the environment, but the mitigation measures or alternatives have not been adopted. (Public Resources Code section 21166; CEQA Guidelines section 15162.)

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The foregoing findings are all true and correct.

SECTION 2. The Final EIR for the Project is the controlling environmental document for the Council's consideration of the Development Agreement.

SECTION 3. The Development Agreement complies with the provisions of the Palm Springs Municipal Code PSMC § 94.08.00, as follows:

Exhibit
11 8
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Ordinance No. 1931
Page4
a. The Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan.

The Development Agreement is consistent with the City of Palm Springs General Plan in that the Development Agreement directly reflects the land uses approved through General Plan Amendment Case No. 5.1327, Planned Development District- 366, and Tentative Tract Map 36691 by the City Council, and these land uses are either permitted or conditionally permitted in the General Plan Land Use Element. b. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

Tentative Tract Map 36691 is consistent with the General Plan Land Use Element, because the General Plan designation for the site is Very Low Density Residential (up to 4 du/ac). Tentative Tract Map 36691 was approved with a maximum of 386 residential units with a maximum density of 3.1 dwelling units per acre (du/ac) and is thus consistent with the General Plan in terms of density. c. The Development Agreement is in conformity with public convenience, general welfare and good land use practice.

The Development Agreement is in conformance with established City goals, objectives, and regulations outlined in the City's General Plan and the City's Zoning Ordinance.
d. The Development Agreement will not be detrimental to the health! safety and general welfare.

The Development Agreement is not detrimental to the health, safety, and welfare of the community in that all established zoning and development standards continue to be applicable.
e. The Development Agreement will not adversely affect the orderly development of property or the prese1Vation of property values.

The Development Agreement reflects the approved conditions of approval of the Project which serve to insure the preservation of property values in the vicinity.

SECTION 4. The Development Agreement is hereby approved in exchange for the following mutual benefits:
a. The Development Agreement will assure adequate public facilities at the time of development.
b. The Development Agreement will assure development in accordance with City's land use policies and goals
c. The Development Agreement will provide for orderly growth consistent with the Exhibit
11 8
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Ordinance No. 1931
Page5
City's General Plan, and other public policies.
d. The Development Agreement is intended to provide certainty in the development approval process by vesting the permitted uses, densities and intensity of use with respect to the subject property.
e. The execution of this Agreement furthers the public health, safety and general welfare of the community.
f. The Development Agreement will remove a nuisance situation and potential liability due to the blight at no cost to City.
g. The Development Agreement will protect residents and the City from the issues that typically accompany blighted areas.
h. The Development Agreement will allow development of a blighted area with appropriate housing and open space that is compatible with the surrounding neighborhoods.
i. The Development Agreement will reduce potential trespasses and nuisances affecting adjacent neighborhoods.
j. The Development Agreement will reduce air pollution by reason of a significant reduction in wind borne dust and sand to adjacent neighborhoods. k. The Development Agreement will increase parkland in an underserved area of the City.

I. The Development Agreement will allow legal commitments by Developer over and above those allowed by state law and the Palm Springs Municipal Code requirements.

SECTION 5. Approval of the Serena Park Project Development Agreement. The City Council hereby approves the Serena Park Project Development Agreement, the text of which is set forth in the document entitled "Development Agreement by and between City of Palm Springs and PS Country Club, LLC, a California limited liability company, for Serena Park Project, Case No. 5.1327, PDD-366, TTM36691," and authorizes execution thereof by the City Manager. The provisions of this section shall apply to all property described on Exhibit "A".

SECTION 6. The Palm Springs Zoning Code § 94.08 is hereby amended by adding Section 94.08.09 to read as follows:
"Section 94.08.09 Serena Park Project Development Agreement A. Serena Park Project Development Agreement

1. Purpose. The purpose of this section is to establish a development agreement to guide the orderly development and improvement of that portion of the city previously developed as the Palm Springs Country Club golf course, which is located north of Verona Road, east of Sunrise Way, and southwest of the Whitewater River Wash, in Section 36, Township 3 South, Range 4 East, and in Section 1, Township 4 South, Exhibit
11 8
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Ordinance No. 1931
Page6
Range 4 East, San Bernardino Base and Meridian, in the City of Palm Springs as legally described on Exhibit "A" of the Development Agreement, attached to the Ordinance codified in this section and incorporated herein by reference. The property is designated Very Low Density Residential (VLDR) land use designation in the general plan, as applicable. Hereafter, the property shall also be designated "Development Agreement No. 5" or "DA5" which shall be an overlay designation incorporating the restrictions of the "Serena Park Project Development Agreement". The Serena Park Project Development Agreement replaces within said property the usual development standards otherwise applicable to the property. The Serena Park Project Development Agreement provides for ultimate development of a residential project consisting of 92 attached single-family units on minimum 5,000 square foot lots, 214 detached single­ family units on minimum 5,000 square foot lots, and 60 detached single family units on minimum 8,000 square foot lots, and is consistent with the general plan objectives, policies, and programs of the City.

2. Adoption of Serena Park Project Development Agreement. There is adopted the Serena Park Project Development Agreement, the text of which is set forth in the document entitled "Development Agreement by and between City of Palm Springs and PS Country Club, LLC, a California limited liability company, for Serena Park Project, Case No. 5.1327, PDD-366, TTM36691," included with the ordinance which codified this section, which agreement is incorporated in this section by reference. The provisions of this section shall apply to all property described on Exhibit "A" attached to the Development Agreement and incorporated herein by reference.

3. Property Development and Other Standards. All property which is subject to the Serena Park Project Development Agreement shall be maintained in accordance with all policies, requirements, regulations, and provisions set forth in the Serena Park Project Development Agreement. The developer's performance of its obligations under the Serena Park Project Development Agreement shall be subject to annual review as provided therein.

SECTION 7. The Official Zoning Map of the City of Palm Springs is hereby amended by reclassifying from PD-366 to being subject to the Serena Park Project Development Agreement "Development Agreement No. 5" or "DA5," all of that real property described in Exhibit "A".

SECTION 8. EFFECTIVE DATE. This Ordinance shall be in futl force and effect thirty (30) days after passage.

SECTION 9. PUBLICATION. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance, and to cause the same or a summary thereof or a display advertisement, duly prepared according to law, to be published in accordance with law.

Exhibit
11 8
11 Item 2B - Page 118
Ordinance No. 1931
Page7
PASSED, APPROVED, AND AOOPTE~
COUNCIL THIS26THDAYOFJULY,2017. \ (
ATTEST:

KATHLEEN D. HART, MMC

INTERIM CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, do hereby certify that Ordinance No. 1931 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council held on July 19, 2017. and adopted at an adjourned regular and special meeting held on July 26, 2017, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

Councilmembers Kors, Mills, Roberts, and Mayor Moon
None
None
None
Mayor Pro Tern Foat noting conflict of interest
KATHLEEN D. HART. MMC

INTERIM CITY CLERK
Exhibit "B"
Item 2B - Page 119

EXHIBIT C

PUBLIC PARK
The Developer is obligated to provide a park, accessible to the public, and maintained by the Homeowners' Association with responsibility over the Project. The specific Conditions of Approvals relative to the public park are listed below:

PLN 20. Park. A park shall be provided in accordance with the approved site plan, and shall be properly maintained by the HOA and accessible to the general public. The development agreement shall set forth the m,mmum maintenance obligations, the recreational amenities and improvements provided by the applicant, and the construction/completion schedule for the park.

PLN 24. Public Benefit. In accordance with adopted City Council policy, the following items shall be considered as public benefits:
e. Provision of a park, maintained by the HOA, and accessible to the general public; The public park has two areas "West" and "East" separated by the public "Spine Road".

The West area will include the following recreational amenities and improvements:
• Two (2) tennis courts;
• Shade grove of trees;
• Bicycle rack;
• 10 parking spaces;
• Meandering trail and landscaping extending to Verona Road.

The East area will include the following recreational amenities and improvements:
• Turf play area with tree shade, two play structures, 3' wrought iron fencing, shade canopies, poured in place rubber surfacing, drinking fountain, bench seating, trash cans, and associated amenities;
• A restroom building providing two unisex ADA accessible restrooms; • Bicycle parking;
• Eight parking spaces;
• A separate fenced dog park for large dogs with turf, shade structure, bench seating, trash cans, drinking fountain, dog wash/sprinkler, and associated amenities; • A practice golf range with simulated turf;
• A separate fenced dog park for small dogs with turf, shade structure, bench seating, trash cans, drinking fountain, dog wash/sprinkler, and associated amenities; • A large open play area with turf and shade trees;
• A decomposed granite pedestrian walking/hiking trail; • A demonstration garden.

The conceptual plan for the public park is shown on the next page. The full scope and requirements for the public park will be further identified in the Final Development Plans for Planned Development District 366 (PDD-366) approved by the City and shall be constructed as part of the first phase of development.

Exhibit "C"
Item 2B - Page 120
The conceptual plan for the public park is on file in the Planning Department 1 City of Palm Springs
Serena Park
Tract No. 36691
Exhibit"C
11 Item 2B - Page 121
DATE
July 19, 2017
Sept2017
November
2018
March 2019
April 2019
October 2019
April 2020
June 2020
September
2020
March 2021
April 2021
August2021
October 2021
December
2021
January 2022
April 2022
January 2023

EXHIBIT D

PERFORMANCE SCHEDULE

ACTIVITY
DA First Hearing
DA Second Hearing
Final Execution DA Effective Date
Financing Phase 1
Start Engineering
Improvement Plan Approval/ Record
Phase 1 Map
Record Phase 2 Map
Infrastructure Construction Phase I
Infrastructure Construction Phase 2 -
Close Phase 1 First House
Infrastructure Construction Phase 3
Close Phase 2 First House
Record Phase 3 Map
Record Phase 4 Map
Close Phase 3 First House
Infrastructure Construction Phase 4
Close First House Phase 4
Exhibit "D"
NOTE
Park will be built during this
phase
ATTACHMENT #9
Item 2B - Page 122
Report Regarding Maintenance for Serena Park
October 27, 2021

Background
Serena Park has experienced issues since the 2007 abandonment of the old golf course regrading vandalism, adjacent graffiti, littering, unwanted trespass by off road vehicles, dumping and general unsightliness. In addition, many of the Tamarisk trees onsite have developed root systems that invade adjacent residential properties seeking water and then cause breakage of concrete and fences.

On October 1, 2021, at the Palm Springs City Council hearing regarding the status of the Serena Park Development Agreement, the City Council requested the developer to provide a maintenance schedule for the project going forward.

Currently, Serena Park is also in escrow to Williams Homes, as the future homebuilder for the project.

Upon commencement of homebuilding construction, maintenance practices at the property will change as daily construction activity will impede trespass, dumping and vandalism and the property will be transitioned from its current state to a residential development. Homebuilding is expected to commence in mid-2022.

Current Maintenance Plans
Tamarisk Removals - The current ownership, PS Country Club LLC, started a more ambitious tamarisk tree removal project in September, 2021. Approximately 1,500 lineal feet of tamarisks are being removed, including their roots, from the area adjacent to Four Seasons. This will significantly disturb the soil under these trees and blow sand mitigation using polymer coatings are being applied. PS Country Club is coordinating these efforts with Four Seasons and the Four Seasons HOA.

In late spring, 2022, Williams Homes will begin several thousand more feet of Tamarisk removals in the southeast portion of the property as a first step in the grading of the phase 1 homebuilding operation at Serena Park.

The combined efforts of PS Country Club LLC and Williams Homes will set up standards and procedures for removing the remainder of the tamarisks on Serena Park as the development progresses.

Security – Previous security measures have been reliant on communication between the ownership and adjacent neighbors. PS Country Club LLC has maintained dialog and cooperation with the Palm Springs Police Department. Unfortunately, vandalism, breaking down fences, graffiti and trash dumping have not appreciably changed.

The commencement of construction activities on site will include a daily ownership presence which should lessen trespass. In the interim between now and the start of construction in six to eight months, the current ownership is committed to adding security patrols on the property several times per week.

This is not expected to be as effective as the daily ongoing presence of construction activities, but it will alert the ownership to dumping, graffiti and fence breakage.

Item 2B - Page 123
Graffiti – The large majority of the graffiti is on property owned and controlled by the mobile home park and is not the responsibility of Serena Park. The ownership of Serena Park is glad to maintain communication with the City’s code enforcement personnel, as has been done, in the past, so appropriate actions can be made to mitigate graffiti next to the property.

Item 2B - Page 124
Conditions imposed by City Council on December 9, 2021

1. Daily patrols by a property representative shall be required.

2. Surveillance cameras shall be installed in strategic locations to minimize trespassing.

3. Developer shall post “No Trespassing” signs at commonly known fence breaks.

4. A temporary fence may be required along the northeasterly border of the property to prevent off-road vehicle trespassing from the open desert/wash areas, if it is determined by staff that, after three months of implementing other security measures and recommendations, said vehicles continue to traverse the project site.

5. A monthly meeting with code enforcement staff to review on-site trash and debris removal, shall be required until on-site construction starts.

6. Developer shall apply sealant to disturbed areas of project that reduce dust and blowing sand.

Item 2B - Page 125
ATTACHMENT #10
Item 2B - Page 126
-----Original Message-----
From: Sandy and Dan Kiser <[email protected]>
Sent: Tuesday, May 14, 2024 10:01 AM
To: Planning <[email protected]>
Subject: Serena Park Project

Dear Palm Springs Planning Commission

We are opposed to the Serena Park Project and request that no further concessions be made to the developer. We have lived in the Palm Springs County Club Phase 1 since 2008. At first, we were told that the PSCC golf course would be rebuilt following probate from the prior owner.

Since then, development at varying densities have been proposed. Over the years the area has slowly reverted to open land with native vegetation returning. We would like to see the area remain undeveloped. If development goes ahead we would like to see the current approved plan stay in place. Thank you for your consideration.

Respectfully
Dan & Sandy Kiser
(858) 922-0592
Sent from my iPhone
Item 2B - Page 127
Re: Public hearing
Ryan Marquart <[email protected]>
Tue 5/14/2024 11:37 PM
To: David Newell <[email protected]>
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open aachments unless you are sure the content is safe.

Mr. David Newell,
I inadvertently sent my email before it was finished! So I will finish it here quickly...

I just wanted to urge you and others not to let this project languish, or sit unfinished for decades, as so many projects in PS have . If PS Country Club  LLC wants more time, say NO. The property has had many issues with security and vandalism and illegal activity, so it's time to just build something already.

Thank you and very kind regards,
Ryan Marquart
[email protected]
626-319-08656
On Tue, May 14, 2024 at 11:12 PM Ryan Marquart <[email protected]> wrote:

Mr. David Newell,
I am writing to request a copy of the proposed application and related documents submitted by PS Country Club, LLC for the Serena Park Project.

I received a notice of public hearing, and while it did contain some vaguely relevant information, it said only that PS Country Club LLC and Serena Park Project want to  amend "certain terms" of the agreement. They also wish to "modify the phasing schedule, timeframe for a fee payment, and "other items."
IIf PSCC and Serena Park seek to delay the project even further, I do hope that someone in the city government will say NO, and demand that the project get underway.

I live in what will be an adjacent lot, and although I am aware of the setbacks caused by Covid, this project seems j
Item 2B - Page 128
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Item 2B - Page 131
Serena386
Diana Grace <[email protected]>
Mon 5/20/2024 11:53 AM
To: David Newell <[email protected]>
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open aachments unless you are sure the content is safe.

Mr. Newell,
By way of introduction, my name is Dana Grace; and I am a resident of the Four Seasons, which is adjacent to the Serena Park project.

During the period of time that Eric Taylor was the developer of the project, I was the president of our HOA and served as the Chairperson of the Serena Park Ad Hoc Committee.  On February 14, 2017, our Association entered into a Memorandum of Understanding with Mr. Taylor.  Pursuant to the MOU, It is binding on any future developers of the project.

I do not know if the City is aware of this MOU, and I am sure that the new buyers are not.

I will deliver copies of the MOU to you on Monday morning for distribution to the Planning Commission.  I will also bring copies to the Planning Commission meeting Meeting on Wednesday evening for representatives of the new buyer.

Diana Grace

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Item 2B - Page 140
From: Anis Khalil
To: Planning; Anis Khalil
Subject: Serena Park Comments for Meeting on April 22nd 2024 Date: Tuesday, May 21, 2024 1:19:13 PM
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.

Hello
I am the

owner of a condominium unit at Palm Springs Country Club Phase III that directly abuts the proposed Serena Park project.

The entire parcel was zoned as Open Space previously so I truly believe that it should be preserved

as Open Space
The park proposed by the developer is ridiculously small and inadequate, and does not fulfill the needs of true Open Space in this part of town where there are NO parks at all and no managed Open Space.

I strongly encourage the city and the planning commission to ask that the entitlements do not get transferred and the project starts from the beginning because the owner is in default of the original agreement .

The $3.5 million that the previous developer was supposed to pay, which is how he got the general plan amendment, needs to be earmarked for an open space project as it was supposed to be originally.

I understand the need for housing in Palm Springs but this

needs to be thought out and proper
Open Space needs to be preserved, especially in this part of town, especially in this area that connects to the CV Link.

Also keep in mind that the Miralon Project next door has been open for years now, and has been built out to barely a quarter of the entire development. Who will buy all the homes in Serena Park if Miralon has hundreds and hundreds of homes still planned and not yet sold or built? This cannot be another massive vacant lot with homes waiting years and maybe decades to be built and sold. My neighbors and I do not want vacant lots, empty streets, and a deserted "neighborhood" languishing and waiting for potential buyers who will never materialize. We would much rather have a beautiful, low-maintenance, low-impact, passive park, nature preserve, open space, and trails for everyone to enjoy.

Sincerely,
Anis Khalil
2604A N Whitewater Club Drive
PS CA 92262
Item 2B - Page 141
Re: Serena Park Development Agreement Amendment Request Teri McCoppin <[email protected]>
Tue 5/21/2024 2:28 PM
To: David Newell <[email protected]>
Cc: Planning <[email protected]>
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open aachments unless you are sure the content is safe.

To Planning
I am a resident in PSCC (the neighborhood most impacted and in closest proximity to the Serena Park Project).

I do not believe that the proposal to amend the DA should be approved.

The amended DA would allow developer to pay the DA fee to the city over a 2 1/2 year period, with the first payment (of less than 21%) not due til June of 2025. Meaning developer could start with construction 12 months before first payment due. Since the length of the original agreement has not changed, my neighborhood could be in a construction zone from now through 2038. We have seen several different projects languishing for years in our city, so this not to be dismissed out of hand.

Payment (or at least partial payment) of the DA fees, as in the original DA,  has been a safeguard for my community to not be in the middle of a construction site, for the 20 year period as agreed to.

It also concerns me that the EIR for this project dates from 2014. We have had numerous “only once in every 100 years” events as far as rainfall and storms since then that seem to be happening on an ever more frequent basis, meaning the area’s streets are flooded much more frequently and with deeper impact than anyone could have foreseen in 2014. The impact of this development, displacing land that has been used to mitigate these flooding effects, might have much more drastic consequences for my neighborhood than the report had projected.

The EIR report also concluded that the 3300 daily trips per day in and out of the 386 unit  Serena development would not impact the community enough to warrant any additional traffic signs or signals. It is hard to imagine that this additional traffic would not impact PSCC residents ability to get in and out of our neighborhood in a timely manner.

I am glad the Staff took the initiative to add the Maintenance and Dust Control Plan to the proposed change in DA, along with its section referring to the Default of Property Maintenance Obligation. I know this has been an ongoing battle with the current owner, but I don’t see the monetary penalties written into the Default.

Lastly, I wanted to address the third vehicular entrance to the development being proposed as part of this amended agreement. What locations are being discussed, will it be for emergency vehicles only, for use by construction trucks through the infrastructure timing, for use by construction throughout the (possibly 14 more) years of construction, or now a third entrance to be used forevermore? In closing, I am against moving forward with this amended DA for the Serena Park Project Item 2B - Page 142
Thank you for your consideration
Teri McCoppin
2545 N Whitewater Club Dr #C , PSCC
Sent from my iPad
On May 20, 2024, at 5:45 PM, David Newell <[email protected]> wrote:

Teri—
As requested, I'm providing links to the Wednesday night Planning Commission agenda and staff report for the Serena Park Development Agreement Amendment:
5/22 Planning Commission Agenda:
htps://des tnyhosted.com/agenda_publish.cfm?
id=72567&mt=PLAN&vl=true&get_month=5&get_year=2024&dsp=ag&seq=1507 Serena Park Staff Report:
htps://des tnyhosted.com/palmsdocs/2024/PLAN/20240522_1508/4937%5FITEM%5F%232A %5F%2D%5FPC%5FCombined%5FPacket%5F5%2D22%2D24%5FDA%2D2024%2D0002.pdf Feel free to contact me if you have quesons.

Best,
David
DAVID A. NEWELL, AICP | ASSISTANT DIRECTOR OF PLANNING
City of Palm Springs | Department of Planning Services
3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262
t: 760.323.8245 | f: 760.322.8360 |
[email protected]
Item 2B - Page 143
From: Robert Hunt <[email protected]>
Sent: Wednesday, May 22, 2024 12:06 PM
To: Scott Stiles <[email protected]>
Cc: Flinn Fagg <[email protected]>
Subject: Re: Serena Park & PSCC Phase 1

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

Dear Flinn,
One of the major concerns of the PSCC1 community is the original agreement stated they must build the 6 ft wall around all PSCC Phases since we are a gated community. My understanding is this was part of the original plan when JR Roberts was on the city council at that time and stated this was important since PSCC is a gated community and without the wall first being constructed there would be no security to the community.

A few years ago Eric Taylor, with Serena Park Project, told me they were only going to build a partial wall like 200ft on either side of the old abandoned internal gate at the end of PSCC Phase 1. He shared the blue prints with me which I have a copy of them. Once they open the original main gate on Verona and Whitewater Club Dr. to start construction, this will leave the entire PSCC community open if a full wall is not first installed as originally planned.

Thank you for allowing me to share this information.

Robert

Item 2B - Page 144

OswitLandTrust.org | 760.385.8255
Oswit Land Trust, PO Box 4020, Palm Springs, CA 92263

May 22, 2024
To the City of Palm Springs:

The Planning Department and Planning Commission

ATTN: [email protected]
Christopher Hadwin, Director of Planning at [email protected] David Newell, Planner at [email protected]

RE: PNG 1, LLC ON BEHALF OF PS COUNTRY CLUB, LLC FOR AN AMENDMENT OF THE DEVELOPMENT AGREEMENT FOR SERENA PARK – A RESIDENTIAL DEVELOPMENT CONSISTING OF 386 ATTACHED AND DETACHED RESIDENTIAL UNITS, STREETS, PRIVATE OPEN SPACE AND PUBLIC PARK ON 126 ACRES OF LAND LOCATED EAST OF SUNRISE WAY , NORTH OF VERONA ROAD AND SOUTHWEST OF THE WHITEWATER RIVER FLOODPLAIN WITHIN SECTION 1 AND 36 (CASE DA-2024-0002).

To Whom It May Concern:

SUPPLEMENTAL COMMENT LETTER

OSWIT LAND TRUST

Oswit Land Trust is a 501C3 non-profit land conservancy dedicated to preserving criCcal habitat for wildlife corridors and sensiCve species. We achieve our goals through the acquisiCon of land and advocacy. We are a proud member of the Land Trust Alliance an d have over 3,000 acCve members who are residents within the Coachella Valley and beyond.

Oswit Land Trust is asking the City of Palm Springs to deny the applicant’s request for an extension of Cme to pay the extensive fee arrangements under the Development Agreement. The applicant has had at least eight years to comply with the terms of the Agreement. A Development Agreement is a bargain between developer and a city to “freeze its planning progress in Cme” and hold a landowner outside of the very progress and changes all other developers must comply with. The considerable advantage granted to the developer is in exchange for payment of fees, which were to be paid “in lieu” and create other open space opportuniCes. None of that has ever occurred. The Developer received the advantages over Cme and remained insulated from progress the City has made in open space planning. There are no equiCes that Item 2B - Page 145

OswitLandTrust.org | 760.385.8255
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give the Applicant the right to stand higher than other developers at this point. Because of these consideraCons and because so much has changed in the thinking and planning of the City, we ask the Developer request be denied because the equiCes are simply not with the landowner in this instance.

Oswit Land Trust would like to emphasize several points that were not specifically targeted in its original comment leVer of yesterday, May 21, 2024, as follows:

(1) The First Amended and Restated Development Agreement (AVachment #7 to the Staff Report herein) reflects that it was approved by the Palm Springs City Council on September 30, 2021. The signatories to the Agreement notarized and signed their names on May 1, 2024, and the First Amended and Restated Development Agreement was recorded in the County of Riverside on May 6, 2024; two years and eight months acer its approval.

Please note the delay in recordaCon is a violaCon of the following terms of the Palm Springs Municipal Ordinance as follows. The PSMO does not indicate the consequences of violaCng the ordinance terms, but this is one more addiConal item of noncompliance:

94.08.00 (15) RecordaJon of Development Agreement, Amendment or CancellaJon.

(a) Within 10 days acer the city council enters into the development agreement, the city clerk shall have the agreement recorded with the county recorder.

(2) The First Amended and Restated Development Agreement appears by its terms to transfer density from Chino Canyon to Serena Park into an area that was iniCally designated under the land use of Open Space / RecreaCon and Parks. The purpose of the Transfer of Density Rights is a mechanism in the general plan and the zoning ordinance that is intended to transfer density rights to areas that are appropriate for higher densiCes, which is not true of Serena Park. This Agreement occurred in 2016 and 2017 when the City of Palm Springs made prolific use of the Planned Development District (PDD) permit to bypass General Plan requirements and zoning requirements. The City felt free to do so because it was a Charter City. Since that Cme period, the State Courts have now clarified that Charter CiCes must adhere to General Plan policies in the same manner as general law ciCes.

(3) A conCnuing theme in the concerns of Oswit Land Trust is how this project fails to conform to current open space requirements by general plan and ordinance, including the Golf Course Conversion Ordinance. One aspect the Golf Course Conversion Ordinance opened was the need for major aVenCon to community meeCngs, neighborhood chareVes, and scoping sessions. We Item 2B - Page 146

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do not feel these requirements should be bypassed. The Developer was protected from changes in policies and regulaCons from the Development Agreement only insofar as it complied with the terms. There has been a failure to do so.

(4) The California Environmental Quality Act (CEQA) should be assessed for significant changes since date of cerCficaCon of the EIR from the change in the Development Agreement because of the profound changes in law, policy, and environmental thresholds from the Golf Course Conversion Ordinance.

We thank you once again for your kind aVenCon to these issues.

With regard,

Jane Garrison,
ExecuMve Director Oswit Land Trust

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May 21, 2024
To the City of Palm Springs:

The Planning Department and Planning Commission

ATTN: [email protected]
Christopher Hadwin, Director of Planning at [email protected] David Newell, Planner at [email protected]

RE: PNG 1, LLC ON BEHALF OF PS COUNTRY CLUB, LLC FOR AN AMENDMENT OF THE DEVELOPMENT AGREEMENT FOR SERENA PARK – A RESIDENTIAL DEVELOPMENT CONSISTING OF 386 ATTACHED AND DETACHED RESIDENTIAL UNITS, STREETS, PRIVATE OPEN SPACE AND PUBLIC PARK ON 126 ACRES OF LAND LOCATED EAST OF SUNRISE WAY , NORTH OF VERONA ROAD AND SOUTHWEST OF THE WHITEWATER RIVER FLOODPLAIN WITHIN SECTION 1 AND 36 (CASE DA-2024-0002).

To Whom It May Concern:

Oswit Land Trust is a 501C3 non-profit land conservancy dedicated to preserving criPcal habitat for wildlife corridors and sensiPve species. We achieve our goals through the acquisiPon of land and advocacy. We are a proud member of the Land Trust Alliance and have over 3,000 acPve members who are residents within the Coachella Valley and beyond.

As always, we thank the City of Palm Springs for your dedicaPon to making the City of Palm Springs a beauPful balance between development and respect for maintaining access to the beauty and diversity of our natural lands and precious wildlife.

DEFECTIVE NOTICE OF HEARING: The Staff Report submi\ed on last week’s agenda for the Planning Commission states on its face that the public hearing on this ma\er is May 23, 2024.

This date is inaccurate. Oswit Land Trust relied upon the staff report when noPfying members and other organizaPons of the hearing date. We finally caught that the NoPce of Public Hearing (NOPH) submi\ed by the City of Palm Springs states that the public hearing is one day earlier, or May 22, 2024. This has created pressure on geang a Pmely response on file and may mislead members on whether or when to a\end and give comments.

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THE LEGAL EFFECT OF A DEVELOPMENT AGREEMENT (GC 65864):

“A development agreement provides certainty to the developer that his or her project will be isolated from changes in the jurisdicPon’s zoning laws over the course of development, but it also contracts the developer to provide benefits to the city, such as infrastructure

improvements, public open space, or monetary payment into funds, such as “in lieu” fees, in exchange for that certainty.” [emphasis added] (PlanePzen Website 2024).

The comments from Oswit Land Trust to amending the (First Amended) Development Agreement for Serena Park come with a recogniPon that the Developer has “purchased” the right to “freeze” the general plan policies and zoning laws that apply to the property. This is the “benefit of the bargain” achieved by entering a Development Agreement with the City – exactly this – that Serena Park because of the Agreement, is insulated from changes in law, including the City’s approval of a “Golf Course Conversion Ordinance” that was not in effect in 2016. So, the requirement of 50% open space on site cannot be imposed, together with other changes.

However, the Developer denied the City its side of the bargain. The Developer never paid the City those fees and now claims its side of the bargain in full – insulaPon from the increasingly protecPve provisions of open space policy, law, and regulaPons in the City of Palm Springs.

No one is proposing to currently pay this mulP-million-dollar balance in full. It is only another promise, and not even from the owner of the property; and the City cannot enter a Development Agreement with a non-owner of the property under its Code! There is a prospecPve buyer waiPng on the side, but with what assurances? There is yet another promise to increase the (already unpaid) indebtedness by an addiPonal $700,000. A payment of $700,000 does not equal the price of one residenPal home out of 386 planned homes, squeezed onto this land. What has been lost to the public is the protecPon of the current Golf Course Conversion Ordinance, and there is li\le benefit in that bargain.

PROTECTIVE LANGUAGE IN THE 2021 DEVELOPMENT AGREEMENT (WILL IT BE CARRIED FORWARD?): Language taken from the September 30, 2021, Development Agreement has been inserted, below. This protecPve language does not appear in the unsigned agreement (First Amendment to the First Amended DA) currently being reviewed by Planning Commission on May 22nd. There appears to be no “incorporaPng clause” that assures these protecPons will be carried forward between the September 2021 Agreement and the current proposed Agreement.

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The greatest concern is to assure the obligaPon carries forward from SecPon 4.03 (e) that specifies the Development Agreement Fee ($3.2 million) will be used by the City for acquisi+on of open space under General Plan Policy LU 2.2. The second concern is a clarificaPon that a

Transfer of Density Rights (TDR) from Chino Canyon to the project area (to increase Serena Park’s residenPal density) has been implemented or will be implemented, and through what mechanism. This TDR is not menPoned in the First Amendment to the First Amended DA, and there is no clause that incorporates the language.

FIRST AMENDED AND RESTATED DEVELOPMENT AGREEMENT
(Approved by City Council September 30, 2021 / Recorded May 1, 2024) D. Conversion of Open Space - Parks/Recreation Land. The Developer acknowledges the Project Site is currently designated as "Open Space - Parks/Recreation" in the City's adopted General Plan and is zoned as "Open Space" and is therefore subject to the City's Land Use Policy LU2.2 for the conversion of open space to developable areas. The Parties acknowledge the Developer shall cooperate with the City to secure the replacement of converted open space areas on the Project Site through the use of density transfer of property designated for residential development within the City.

E. Entitlements. Concurrent with the approval of this Agreement, City approved the following land use entitlements for the Project Site, which entitlements are also the subject of this Agreement:

1. General Plan Amendment: From "Open Space - Parks/Recreation" (OS-P/R) to Very Low Density Residential (VLDR) for the residential portions of the project. . . . . . . . . . .

5. Transfer of Density Agreement: To cooperate in the transfer of residential density from the other areas in the City including the Chino Cone Specific Plan to the Project Site consistent with the provisions of the City's General Plan and the Chino Cone Specific Plan at the ratio of 1.2 units for each unit removed from the Chino Cone. [emphasis added] (at page 3)

Section 4.03. Public benefits provided by Developer (including but not limited to:) Item 2B - Page 150

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e. Payment of Development Agreement Fee [emphasis added] over and above the fees referred to in paragraph 4.02, above, to be used by the City for acquisition of open space [emphasis added] for the purposes of Developer's compliance with the City's General Plan Land Use Policy 2.2 [emphasis added] in generating land use density for the subject

property. The Development Agreement Fee shall be Three Million Dollars ($3,000,000.00) paid to City, including Five Hundred Thousand Dollars ($500,000) due no later than November 1, 2021, and the remainder of Two Million, Five Hundred Thousand Dollars ($2,500,000) due no later than November 1, 2022. [Author’s Note: This fee is now modified to an additional $700,000 after default]. (at page 7).

BURDEN OF PROOF ON THE DEVELOPER (NO OBLIGATION TO EXTEND A PROJECT THAT DOES NOT CONFORM TO THE CURRENT GOLF COURSE CONVERSION ORDINANCE): The scope of review is on a proposed Amendment to a Development Agreement, and the underlying project was

approved earlier, which may give the impression of a limited scope of review. Our discussion reflects that the scope of review is complex, and approval is strongly within the discrePon of Planning Commission and City Council. The developer is in serious default on payments that may include “in-lieu fees” that can be used to create other open space opportuniPes, and there has been significant delay. There is no guarantee that a new owner will be more responsible. There are no obligaPons to extend the “risk factor” any further. The burden of proof of “good cause” for delay is on the current owner as signatory to the original Development Agreement. (See:

PSMO 94.08.00 A. (16) (b), below).

IMPLEMENTING ORDINANCES FOR LAND USE POLICY 2.2 (OPEN SPACE ELEMENT): Another primary concern is that the City of Palm Springs has specific and detailed General Plan policies in its Recrea`on, Open Space, and Conserva`on Element that directs the City to preserve open space and recreaPonal opportuniPes. One opPon is to reserve open space on site, and that has not been done. Another is a Transfer of Development Rights for open space into another appropriate area of town. That has not been done. The third is an in-lieu fee, but not only has the developer failed to pay the fee, but if he or a subsequent owner do finally pay the fee, is there anything in the City’s ordinances to direct the fees to open space conservaPon?

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An ordinance has not yet been created to implement general plan policy, in contradicPon to a direcPve in Policy AcPon RC 6-1 at page 5 -21 of the RecreaPon, Open Space, and ConservaPon Element of the General Plan. Policy requires implementaPon to be legal and effecPve.

Ordinances are missing that define, direct, and limit how golf course conversion “in-lieu fees” are applied to compensate for the loss of open space. In the absence of implemenPng ordinances for the general plan, the fees that are collected can and most likely will be used for purposes other than open space conservaPon.

MITIGATION UNDER THE CERTIFIED EIR: Another concern is whether the CerPfied EIR in 2016 miPgated open space loss through the in-lieu fee. If the City Council cerPfied in an EIR that the environmental impact of open space loss was compensated for by an in-lieu fee, then it would falsify the EIR to apply the in-lieu fees in any other manner than to create other open space opportuniPes, such as purchasing parklands or biologically diverse lands for public enjoyment and preservaPon.

PROJECT DOES NOT CONFORM TO CURRENT GENERAL PLAN POLICY: Land Use Policy 2.2 in the Recrea`on, Open Space and Conserva`on Element requires replacement of loss of lands from conversion of lands in open space designaPon. It is not opPonal. Since the approval of the golf course conversion, the City has adopted a comprehensive golf course conversion ordinance (PSMO 93.23.20) that represents an implementaPon of its General Plan policies on ConservaPon, RecreaPon, Parklands, and Open Space. This development, as designed, is seriously out of compliance. There is no enPtlement to proceed because of a default in millions of dollars over a Pme period stretching from 2016 to 2024, almost a decade.

The proposed Amended Development Agreement does not conform to the policies, plans, direcPves, and open space requirements of Palm Springs and its General Plan. The City cannot make the required open space FINDINGS under PSMO 93.23.20. The developer’s delay rendered the development obsolete. Any acPon to exten d pay arrangements in the face of this violates important obligaPons to the public and the City.

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FAILURE TO RESERVE 50% OPEN SPACE / OPEN SPACE PLAN: The ordinance requires not only that 50% of the land area be open space, but the required open space plan is highly regulated in its values and orientaPon to surrounding residenPal use for the space to be of value to the residenPal owners and/or the public. This does not exist under the “old plan.” The plan is outmoded, it has been defaulted upon, and there are no enPtlements to proceed.

APPLICANT MUST BE THE PROPERTY OWNER: Another of our primary concerns in reading the ordinances of Palm Springs (PSMO 93.08.00 A. (4)) is that at the Pme of applicaPon for a golf course conversion and any acPons on its associated Development Agreement, the applicant MUST BE the legal owner of the property. The Planning Department has advised us that the

prospecPve owner of the property (the payor of the fee) has allowed the current owner to act on his behalf. This violates the ordinance. The ordinance is clear that the applicant must be an owner and cannot have a non-owner stand in his shoes. Otherwise, the ordinance requirement could be subverted at will. The Golf Course Conversion Ordinance states outright that “all deviaPons from the Zoning Code 93.23.20 shall be prohibited.” This “subsPtuPon of ownership” is an a\empted ‘deviaPon.’

WHITEWATER CHANNEL CONCERNS: This project is disturbingly close to the Whitewater Channel, which has changed dramaPcally from the silt deposits that accompanied Hurricane Hilary in August 2023. The silt deposits and changes to air quality that accompany recent increased wind storms are a significant concern, and should be re-evaluated in an update to the environmental process that accompanies the Amended Development Agreement and its delay in implementaPon.

OTHER COMMENTS: Oswit Land Trust again thanks the Planning Commission for its conscienPous work. We are concerned about the increasing populaPon pressures on Palm Springs and the Coachella Valley. All residents have all seen a marked deterioraPon in air quality in the last year, and alarming increases in traffic and closure of our major collector routes. Open space planning and preservaPon is criPcal to help balance the enormous pressures of growth.

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Below are the provisions in the General Plan of the City of Palm Springs and its ordinances that obtain in the consideraPon of whether to excuse the failure to meet the reasonable planning condiPons imposed on Serena Park in 2016 and onward. We ask that the Planning Commission recommend denial of the extension of the Amended Development Agreement.

Oswit Land Trust has also included policies and implemenPng acPons out of the RecreaPon, Open Space and ConservaPon Element that demonstrate what is intended in Palm Springs for the reservaPon of open space. Clearly, golf course conversions that destroy o pen space on the site are expected to either re -design for onsite opportunity or transfer open space opportuniPes to other locaPons in order to meet these important objecPves.

The present landowner or subsequent purchasers of the land should be required to develop the property in a manner consistent with the General Plan policies currently in effect for the City of Palm Springs. The owner should be responsible for the delays and the fact that the General Plan of Palm Springs has significantly changed during the Pme of delay. Thank you.

GENERAL PLAN LAND USE POLICIES

PALM SPRINGS MUNICIPAL ORDINANCES

PSMO Golf Course Conversions

93.23.20 D. (1) (b) . . . . deviations from Zoning Code section 93.23.20 shall be prohibited; …..

93.23.20 F. (3) Open space requirements. Minimum Required. At least half (50%) of any conversion project shall remain as open space. The open space shall include desert greenways (as required in paragraph F.4. below), landscape buffers, accessible and naturalized water channels, and waterways, and to the extent feasible artificial ponds, and will be based on the project's gross acreage. For the purposes of this section, open space does not include: [language excluded]

93.23.20 D. (3) (b) Planning Commission: Review and recommendaPon. A|er holding a public hearing and deliberaPng the facts of the conversion applicaPon, the Commission shall make a Item 2B - Page 154

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recommendaPon to the City Council, including conformity recommendaPons related to findings of related project development enPtlements, if applicable. In the event the Commission is unable to make a favorable recommendaPon and denies the conversaPon applicaPon, the applicant may appeal the decision to the City Council in accordance with the procedures of SecPon 2.05 of the Palm Springs Municipal Code.

93.23.20 E. (1) and (9) COMPATIBILITY REVIEW GUIDELINES AND FINDINGS (GOLF COURSE CONVERSIONS):

The staff report shall evaluate, and the Planning Commission and City Council shall make written findings on each of the following:
(1) Whether the applicant has met the requirements established in this section and development standards in the Zoning Code. In particular, that the proposed design and use(s) of the open space and desert greenway, as applicable, meet the standards as described in paragraph (F)(3) and the minimum 50% open space described in paragraph (F)(5) below. (9) “Whether the proposed development adequately provides for the maintenance of the open space and desert greenway, flood zones, and washes.”

[NotaPon: Even though the project has previously been reviewed and the scope of review is default on the Development Agreement payment, including in-lieu fees, these 93.23.20 standards and findings requirements should sPll apply as a consideraPon of whether the default in payment, in conjuncPon with serious deficiencies in open space planning, should require a recommendaPon of denial. A serious consideraPon is that the project no longer conforms to general plan open space policy because of significant changes that have occurred during the Pme of delay.

CERTIFICATION OF EIR (2016)
Was the in-lieu fee for the golf course conversion miPgaPon for the conversion of open space to residenPal use? As such, the uses of the in-lieu fee should be specified and placed in a targeted Item 2B - Page 155

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account to miPgate the loss of open space by creaPng other open space opportuniPes under the General Plan Element for RecreaPon, Open Space, and ConservaPon.

PALM SPRINGS GENERAL PLAN LAND USE ELEMENT:
“LU2.2 Projects that propose to convert open space areas that are designated “Open Space – Parks/RecreaPon” to developable areas (for residenPal, commercial, etc.) must either offer in-

kind replacement of such open space elsewhere in the City, make payment of in-lieu fees, or replace the converted open space through the use of density transfer.”

PALM SPRINGS MUNICIPAL CODE:

PSMO 98.08.00 A. (4) Applicant and Other ParPes. ( a) Applicant. Only a qualified applicant may file an applicaPon to enter into a development agreement. A qualified applicant is a person who has legal or equitable interest in the real property which is the subject of the development

agreement. Applicant includes an authorized agent. The director may require an applicant to submit proof of his interest in the real property of the authority of an agent to act for the applicant.

PSMO 98.08.00 A. (7) Contents of Development Agreement.

A development agreement shall specify the duraPon of the agreement, the proposed uses of the property, the density or intensity of use, the maximum height and size of proposed buildings, and provisions for reservaPon or dedicaPon of land for public purposes.

PSMO 94.08.00 A. (15) (c) Findings Upon Public Hearing.

The planning commission shall determine upon the basis of substanPal evidence whether or not the property owner has, for the period under review, complied in good faith with the terms and condiPons of the development agreement.

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PSMO 94.08.00 A. (16) (b): Public Hearing.
“If the director finds substanPal evidence that the property owner under the development agreement has not complied in good faith with the terms and condiPons of the development agreement, the director shall request that the planning commission conduct a public hearing at which the property owner must demonstrate good faith compliance with the terms of the development agreement. The burden of proof of compliance by the property owner is upon the property owner.”

City of Palm Springs General Plan Recrea`on, Open Space and Conserva`on Element “To ensure that parks fulfill their intended role, the City’s standard is that homes be located within one mile of a neighborhood or community park so that residents are within walking distance of a park. Presently, less than one- half of all residences meet this standard . [emphasis added] Table 5-2 summarizes the City’s present and future park needs and Figure 5 -1, Parks and Recrea+on Resources, illustrates the deficient areas.” (at page 5-9)

GOAL RC-1: “Provide sufficient park, trail and recrea`onal facili`es that meet the diverse needs of residents and visitors. (at page 5-10, et seq.)

Policies

RC1.1 Develop high -quality park, trail, and recreaPonal faciliPes that meet the varied needs of children, adults, seniors, and people with disabiliPes.

RC1.2 Ensure that a minimum of five acres of developed parkland are provided for every 1,000 residents in Palm Springs.

RC1.3 Locate and distribute parks in such a manner to serve residenPal areas in terms of both distance and residenPal density.

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RC1.4 Develop and approve customized standards or design plans for the retrofit and modernizaPon of each park and trailhead.

RC1.5 Analyze park needs for areas of higher concentraPon of residents and uses. For example, the analysis should explore the proximity of exisPng and proposed parks to mulPfamily residenPal uses to determine if the concentraPon of populaPon is properly served, or if addiPonal parklands are needed in these areas.”

GOAL RC-4. Provide a comprehensive trail network that is sensi`ve to the natural environment, wildlife and habitat, culture, and history, and recrea`onal and circula`on needs of residents. (at page 5-17, et seq.)

Policies

RC 4.1 Provide a comprehensive and quality system of hiking, biking, and equestrian trails that are, to the extent feasible, accessible to people of all ages, and connect the City’s park and recreaPonal faciliPes with other commercial centers in Palm Springs.

RC 4.3 Develop and regulate the use of trails in a manner consistent with regional and tribal habitat conservaPon plans so that they do not affect sensiPve habitats and wildlife.

RC 4.5 Recognize the Whitewater River Wash, the Palm Canyon Wash, and the Tahquitz Wash as valuable open spaces and community resources and promote recreaPonal uses and trail and park development in these areas.

RC 4.6 Seek to develop trails and related faciliPes for horseback riding, hiking, bicycling, and jogging in the washes that interconnect with City parks and recreaPonal areas, commercial areas with residenPal areas, and links with open space areas and other desert ciPes and trail systems.

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RC 4.7 Ensure that the locaPon of exisPng and proposed trails and trailheads are evaluated with each proposed subdivision or tract map and that the appropriate easements are established to preserve those trails.

Financing Parks, Trails, and Recrea`onal Facili`es:
“Financing the acquisi+on, construc+on, maintenance, and improvement of park, trails, and recrea+onal facili+es is a key challenge for Palm Springs. The City’s Quimby Ordinance requires

developers to dedicate or pay for the five acres of developed parkland for every new 1,000 residents that will live in proposed residen+al subdivisions. However, the Ordinance cannot by law address the exis+ng shortage of park facili+es for residents today. The City also does not have explicit policies regarding the type and quality of parks, trails, and recrea+onal ameni+es desired in the community.

Even if new parks, trails, and recrea+onal facili+es are built, however, Palm Springs needs a dedicated source of revenue to maintain and rehabilitate facili+es. The City uses part of its transient occupancy taxes to fund improvements and General Funds to maintain parks and recrea+onal facili+es. Both of these revenue sources are limited. A permanent source of funding is necessary to address the present deficit of parks as well as fund the maintenance of new parks, trails, and recrea+onal facili+es.” (at page 5-20)

GOAL RC-6: Provide a stable and adequate source of funding that enables the acquisition, development, maintenance, and modernization of park and recreational facilities.

Policies
RC 6.1 Ensure that adequate public funds are available to pay for the full costs of acquiring land, building facilities, and maintaining new parks, trails, and recreational amenities. (at 5-21)

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Actions
RC 6.1 Update the parkland in-lieu fee ordinance to provide adequate funding sources for parks, trails, open space, and recreational facilities as described in the Parks and Recreation Strategic Plan. (at 5-21)

Oswit Land Trust once again thanks Staff and the Planning Commission for your conscienPous work, knowing full well that you are handling complex and sensiPve issues that will have repercussions for many years to come for the City of Palm Springs.

With regard,

Jane Garrison,
ExecuPve Director Oswit Land Trust

Item 2B - Page 160

CITY COUNCIL STAFF REPORT

DATE: JUNE 13, 2024 BUSINESS & LEGISLATIVE

SUBJECT: INTRODUCTION OF ORDINANCE NO. _____, “AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING SECTIONS 2.24.010 AND 2.24.020 OF THE PALM SPRINGS

MUNICIPAL CODE TO EXPAND THE PUBLIC ARTS COMMISSION
FROM SEVEN TO NINE MEMBERS.”

FROM: Scott C. Stiles, City Manager

BY: Jeffrey S. Ballinger, City Attorney

SUMMARY:

The proposed Ordinance seeks to amend Sections 2.24.010 and 2.24.020 of the Palm Springs Municipal Code to expand the Public Arts Commission from seven to nine members, enhancing its capacity to manage and implement complex public art projects in collaboration with other C ity departments. T his change aims to provide additional support and diverse expertise to better serve the community’s cultural and artistic needs.

RECOMMENDATION:

Introduce and conduct a first reading of, by title only, an Ordinance entitled, “AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 2.24.010 AND 2.24.020 OF THE PALM

SPRINGS MUNICIPAL CODE TO EXPAND THE PUBLIC ARTS COMMISSION FROM SEVEN TO NINE MEMBERS.”

STAFF ANALYSIS:

Introduction and Purpose
The Public Arts Commission of the City of Palm Springs is responsible for enhancing public spaces through artistic and cultural projects. As the complexity and scope of public art initiatives evolve, both the City Council and the Commission recognize t he need for additional Commission members and specialized expertise to effectively manage the increasing workload and sophistication of these projects.

Item 3A - Page 1
City Council Staff Report
June 13, 2024 -- Page 2
Ordinance Expanding Public Arts Commission to Nine Members

Current Structure and Challenges
Presently, the Public Arts Commission comprises seven members who are appointed by the City Council. The rising number of complex art projects requires additional work for the Commission and close collaboration with other City departments, such as the Engineering and Building Departments, and necessitates expertise in areas like solicitations, procurement, and contract management.

Additionally, the City does not have a dedicated staff position for public arts, which means that many commissioners are required to take on substantial additional tasks themselves.

This situation has led to concerns about the sustainability of this workload and the ability of the current Commission to fully implement and manage all desired programs and projects.

Proposed Ordinance
To address these challenges, the proposed Ordinance seeks to amend Sections 2.24.010 and 2.24.020 of the Palm Springs Municipal Code to expand the Public Arts Commission from seven to nine members. This expansion aims to:

1. Enhance Capacity
. By increasing the number of commissioners, the overall capacity of the Commission to manage and implement public art projects will be improved.

2. Diversify Expertise. Additional members can bring diverse skills and perspectives, particularly in areas like project management, engineering, and contract administration, which are crucial for coordinating with other city departments and managing sophisticated art projects.

3. Improve Participation . A larger Commission would allow for a more equitable distribution of tasks among commissioners, reducing the burden on individual members and fostering greater participation and engagement.

The two proposed Municipal Code amendments are as follows:
• Section 2.24.010 Creation is amended to change the number of Public Arts Commission members from seven to nine.
• Section 2.24.020 Term—Vacancies—Vote is amended to specify that with the addition of two members, five members (rather than four) will constitute a quorum of the Commission.

The proposed Ordinance to expand the Public Arts Commission is a proactive step towards ensuring that the City can continue to effectively manage its growing and increasingly complex public art initiatives. The expansion will provide the necessary support and resources to the Commission, enabling it to better serve the community and enhance the City’s public spaces through the arts.

Item 3A - Page 2
City Council Staff Report
June 13, 2024 -- Page 3
Ordinance Expanding Public Arts Commission to Nine Members

ENVIRONMENTAL ASSESSMENT:

The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, as the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment and does not constitute a project as defined in Section 15378 of the Guidelines. Furthermore, if deemed a project, the Ordinance is exempt pursuant to Section 15061(b)(3) as there is no possibility that it may have a significant effect on the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the City Council major theme/principle of forward-thinking governance.

FISCAL IMPACT
:

This proposed Ordinance is not expected to have significant financial impacts. There may be some additional costs associated with supporting and administer ing a larger commission, including preparation of materials for meetings, additional documentation, and potentially increased staff time for coordination and communication.

REVIEWED BY:

Department Director: Jeffrey S. Ballinger
City Manager: Scott Stiles

ATTACHMENTS:

A. Proposed Ordinance

Item 3A - Page 3

ATTACHMENT A

Item 3A - Page 4
38205.00001\42324335.1

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, AMENDING
SECTIONS 2.24.010 and 2.24.020 OF THE PALM

SPRINGS MUNICIPAL CODE TO EXPAND THE PUBLIC

ARTS COMMISSION FROM SEVEN TO NINE MEMBERS

City Attorney’s Summary
This ordinance expands the City’s Public Arts Commission from seven to nine members.

WHEREAS, the Public Arts Commission of the City of Palm Springs plays a crucial role in facilitating cultural and artistic projects, enhancing the community's quality of life; and

WHEREAS, there is an increasing complexity and volume of public art projects requiring enhanced coordinati on with other city departments and necessitating specialized skills in solicitations, procurement, and contract management; and

WHEREAS, expanding the membership of the Public Arts Commission from seven to nine members will provide the necessary support and resources to effectively manage and implement the growing number of sophisticated art projects and ventures within the City.

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

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

SECTION 2. Code Amendment. Section 2.24.010 of the Palm Springs Municipal Code is hereby amended to read as follows:

“2.24.010 Creation.

There is created within the city of Palm Springs a public arts commission consisting of nine members, appointed by the city council, to serve at the pleasure of the city council.”

Item 3A - Page 5
38205.00001\42324335.1

Ordinance No. _____

SECTION 3. Code Amendment. Section 2.24.020 of the Palm Springs Municipal Code is hereby amended to read as follows:

“2.24.020 Term—Vacancies—Vote.

Members of the commission shall serve for the term provided by Chapter 2.06 of the Palm Springs Municipal Code. A vacancy in the commission shall not impair the right of the remaining members to exercise the powers of the commission pursuant to this chapter. Five members shall constitute a quorum of the commission, and any ruling, decision or other action of the commission may be taken by a majority of those members present, provided a quorum is present.”

SECTION 4
. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Further, if the activity is deemed a project this City Council finds that this Ordinance is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines, as it can be seen with certainty that there is no possibility that this Ordinance may have a significant effect on the environment.

SECTION 5. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council of the City of Palm Springs hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 6
. Effective Date. This Ordinance shall become effective thirty (30) days following its adoption.

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

JEFFREY BERNSTEIN
MAYOR

Item 3A - Page 6
38205.00001\42324335.1

Ordinance No. _____

ATTEST:

BRENDA PREE

CITY CLERK

Item 3A - Page 7
38205.00001\42324335.1

Ordinance No. _____

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 June 13, 2024 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 ______________, 2024.

BRENDA PREE

CITY CLERK

Item 3A - Page 8

CITY COUNCIL STAFF REPORT

DATE: JUNE 13, 2024 BUSINESS & LEGISLATIVE

SUBJECT: DISCUSSION AND APPROVAL OF CONSTRUCTION DOCUMENTS AND

AUTHORIZATION TO BID FOR THE SOUTH PALM CANYON DRIVE

LOW WATER CROSSING BRIDGE REPLACEMENT AT ARENAS
CANYON SOUTH, CITY PROJECT NO. 06-18, FEDERAL AID PROJECT NO. BR-NBIL (502)

FROM: Scott C. Stiles, City Manager

BY: Engineering Services Department

SUMMARY:

As a condition of the settlement agreement with the Committee to Save Oswit Canyon (“Committee”), the City agreed to put a separate item for public comment on a regular City Council agenda prior to proceeding with the bidding of the South Palm Canyon Drive Low Water Crossing Bridge Replacement at Arenas Canyon South, City P roject No. 06- 18, Federal Aid Project No. BR -NBIL(502) (“Project”). This item allows the public to provide comments to the City Council.

In addition, Staff is requesting authorization to proceed with construction of the Project.

The construction documents (Plans, Specifications and Estimate) are completed and, in accordance with Section 7.04.040 of the Procurement and Contracting Code, the City Council shall approve and adopt the plans, specifications and work details, and authorize the bid request for all public projects in excess of $200,000.

RECOMMENDATION:

1. Approve the plans, specifications , and estimate and authorize Staff to advertise and solicit bids for the South Palm Canyon Drive Low Water Crossing Bridge Replacement at Arenas Canyon South, City project No. 06-18, Federal Aid Project No. BR-NBIL(502); and

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

Item 3B - Page 1
City Council Staff Report
June 13, 2024 -- Page 2
CP 06-18 South Palm Canyon Bridge Discussion

BACKGROUND:

South Palm Canyon Drive is subject to flooding from Oswit Canyon and has been subject to closure at times during past heavy storms. As the only access point into the South Palm Springs area, maintaining access is an important public health and safety issue.

The Oswit Canyon alluvial fan extends over an area of 3.2 square miles west of S. Palm Canyon Drive, and during a 100-year storm can generate runoff of up to 3,000 cubic feet per second (cfs), equivalent to over 1.3 million gallons per minute. Oswit Canyon and the alluvial fan is shown in the following view.

Oswit Canyon and Alluvial Fan

Item 3B - Page 2
City Council Staff Report
June 13, 2024 -- Page 3
CP 06-18 South Palm Canyon Bridge Discussion

Some photos showing the flooding that has occurred in the past are provided in this staff report (not all road closures are demonstrated by these photos).

August 1982

January 2005
Item 3B - Page 3
City Council Staff Report
June 13, 2024 -- Page 4
CP 06-18 South Palm Canyon Bridge Discussion

February 2019

In 2005, the City applied for $4,055,000 in funding through the State’s Highway Bridge Program (HBP) for the construction of an elevated roadway and new storm drain culvert system on South Palm Canyon Drive, just north of Bogert Trail. This structure is intended to accept and convey the stormwater runoff from Oswit Canyon under the roadway of South Palm Canyon Drive and into the adjacent golf course, where the flow naturally runs into the Palm Canyon Wash further east.

The HBP provides federal funding for 88.53% of the total project cost , with the City providing the remaining 11.47% as a local match. The City is using Gas Tax, Local Measure A (transportation funds), or Special Development Funds that were collected in that area specifically for drainage improvements.

On October 4, 2006, Caltrans gave the City authorization to proceed with the Project. This included the geological, hydrological, floodplain studies, studies for archaeological cultural resources, protected species studies, and the acquiring of rights -of-way for the Project.

Item 3B - Page 4
City Council Staff Report
June 13, 2024 -- Page 5
CP 06-18 South Palm Canyon Bridge Discussion

On January 18, 2012, the City Council adopted a Mitigated Negative Declaration (MND) pursuant to the California Environmental Quality Act (CEQA) for the Project.

Subsequently, in 2015, the final design commenced and efforts to acquire various parcels for temporary and permanent rights-of-way for the Project were initiated.

On November 2, 2016, the City Council approved an agreement with the owners of the 114 acres of vacant property located west of S. Palm Canyon Drive (the “Oswit Canyon Property”) to acquire approximately 3.5 acres of it as a permanent easement necessary for the Project. The property is shown in Figure 1 below.

Figure 1. Oswit Canyon Property and Area the City needs for the Project

In January 2017, an initiative process was filed with the City by the Committee to Save Oswit Canyon to amend the City’s Zoning Code, Canyon South Specific Plan, and General Plan, to identify the Oswit Canyon area as an Environmentally Sensitive Area, and subject to development standards reducing density to 1 unit for 40 acres (the “Oswit Canyon Initiative”).

As a result of the Oswit Canyon Initiative, in February 2017, the owners of the affected property filed litigation to prevent it from being adopted, or that , if adopted, the land use changes to the property diminished its value and represented a “taking” of the property.

On March 1, 2017, the City Council was presented with the Oswit Canyon Initiative which qualified at that time for a special election. In lieu of calling a special election, the City Oswit Canyon
Property
Area the City needs
for the Project
Item 3B - Page 5
City Council Staff Report
June 13, 2024 -- Page 6
CP 06-18 South Palm Canyon Bridge Discussion

Council adopted it. However, due to the litigation, implementation of the Oswit Canyon Initiative was prevented as the litigation continued.

As a result of the litigation, the Oswit Canyon Property owners rescinded their approval to convey to the City the easements required to build the Project which was approved by the City Council on November 2, 2016.

In May 2019, the Committee, the Oswit Canyon Property owners, and the City participated in efforts to resolve the litigation. It was agreed to allow the Committee to raise the funds to purchase the Oswit Canyon Property from the owners with the express intent of preserving it for conservation.

In March 2020, the efforts to resolve the litigation reached a conclusion with the parties entering into a Settlement Agreement leading to the Committee’s acquisition of the Oswit Canyon Property on October 30, 2020.

The Settlement Agreement provided for the City to acquire the portion of the Oswit Canyon Property needed for the Project, rather than a permanent easement. It also allowed for the Committee or its consultants to comment on the design of the Project, and for the City to put the Project as a separate agenda item for public comment at a regular City Council meeting prior to proceeding with bidding. However, the Settlement Agreement clearly provides that the City Council is the ultimate arbiter of the materials, methods, scope and timing of the Project.

STAFF ANALYSIS:

On December 17, 2019, the Committee to Save Oswit Canyon’s consultant, Haimann Engineering (Haimann), submitted four options for the City to consider, which the consultant expected to be feasible following a more in- depth hydrology study and engineering analysis to size the features, assess impacts, and develop cost estimates.

In May of 2020, the City Council approved an amendment in the amount of $112,500 to Dokken Engineering to review the comments, provide engineering alternates, and prepare renderings of what the site could potentially look like. The findings of each option were not feasible and are summarized in Attachment A.

There are design changes that Dokken was able to incorporate into the P roject as (see Attachment B and images on the following page). The height and extents of the proposed flood control berms were reduced to transition better with the natural topography of the site. The footprint was reduced as much as possible, while still providing drainage for severe storm events. Rock treatments and as much of the concrete structures have been removed as feasible to make the channel portion blend with the surroundings. The following two images show how the channel might look after natural vegetation takes hold.

Item 3B - Page 6
City Council Staff Report
June 13, 2024 -- Page 7
CP 06-18 South Palm Canyon Bridge Discussion

On February 28, 2024, City Staff along with Dokken Engineering Staff met with Ms. Jane Garrison of the Oswit Group to discuss the results of the findings of the four options and to present the redesign of the Project. Ms. Garrison requested a follow-up meeting along with hydrologic design data to review. Staff presented the information requested and met with Ms. Garrison on April 8, 2024, to discuss the Project again and to inform Ms. Garrison that Staff intended to bring the Project for public comment and to request authorization to bid.

Staff is bringing this item forward to receive the public comments as required by the Settlement Agreement, request approval of the final design documents, and receive authorization to go out to bid.

Item 3B - Page 7
City Council Staff Report
June 13, 2024 -- Page 8
CP 06-18 South Palm Canyon Bridge Discussion

ENVIRONMENTAL ASSESSMENT:

On January 18, 2021, the City Council approved Resolution No. 23076, adopting and ordering the filing of a MND for the Project. Subsequently , S taff filed the Notice of Determination with the Riverside County Clerk and State Clearing House.

The Project is funded in part by federal funds, requiring local oversight by Caltrans. As a federally funded project, it is subject to review pursuant to the National Environmental Policy Act (NEPA). On February 6, 2012, Caltrans as the lead agency, made an environmental determination that the Project does not individually or cumulatively have a significant impact on the environment as defined by NEPA and is excluded from the requirements to prepare an Environmental Assessment (EA) or Environmental Impact Statement (EIS); has considered unusual circumstances pursuant to 23 CFR 771.117(b), and that it qualifies for a Categorical Exemption in accordance with 23 CFR 771.117(d).

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with City Council Priority “Community Infrastructure”, specifically 2B, 5- Year Capital Improvement Plan, and identifying high priority facilities.

FISCAL IMPACT
:

This Project began in 2006, and as the years have passed the cost of construction has continuously increased. Staff at every opportunity has submitted requests for additional funding from Caltrans to cover the increased cost of construction. In 2021, the engineer’s estimate was $4.5 million. As the P roject was on pause during l itigation, Staff has only recently revisited the cost estimate. The current estimate of construction costs for the Project is $8.3 million. During the Fiscal Year 2024/2025 budget cycle, S taff allocated $7.69 million in anticipation of the escalating costs. However, the budgeted amount falls short of the estimated construction costs.

Staff will bid the P roject and, depending on the bid results , may request an additional appropriation of Measure A funds. Staff will be submitting another request to Caltrans to increase the funding for the P roject. The appropriation may be as high as $2.6 million depending on the funds provided by Caltrans. The Project funding and estimated costs are shown in the table on the following page.

Item 3B - Page 8
City Council Staff Report
June 13, 2024 -- Page 9
CP 06-18 South Palm Canyon Bridge Discussion

Table of Project Costs Amount
Capital Funds $6,493,606
Local Measure “A” Funds $868,260
Special Gas Tax (SB1) $325,253
Construction Contract ($8,256,000)
Construction Management/Inspection ($825,600)
Project Administration ($412,800)
Contingency (10%) ($825,600)
Appropriation Amount ($2,632,881)

REVIEWED BY:

City Engineer Joel Montalvo
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles

ATTACHMENT:

A. Options and Findings - Haimann Engineering (Oswit)
B. Proposed Project Design – Dokken Engineering (City of Palm Springs)

Item 3B - Page 9

Attachment A
Item 3B - Page 10
Findings of Options Suggested by the Committee to Save Oswit Canyon

On December 17, 2019, the Committee to Save Oswit Canyon’s consultant, Haimann Engineering (Haimann), submitted four options for the City to consider, which the consultant expected to be feasible following a more in depth hydrology study, and engineering analysis to size the features, assess impacts, and develop cost estimates.

The City was open to the Haimann’s suggested options and investigated each of the options.

Suggested Option 1: Construct a debris basin west of South Palm Canyon Drive in the path of natural drainage and connect to an expanded retention basin East of South Palm Canyon Drive. The retention basin would then connect to the pond in the Golf Course with water being balanced between those facilities.

Findings: The City determined that the retention basin on the east side of South Palm Canyon Drive is for a different watershed and cannot be used to mitigate flooding from Oswit Canyon. The tributary area for the Oswit watershed is 2,080 acres, that creates a volume of 1,000 ac-ft that needs to be designed for a 100-year storm event for a 24 hour period.

To handle that volume, a 2,000 ft x 2,000 ft basin, 12 feet deep, is required. The red dashed line shows how large that debris basin would need to be as compared to the debris basin Haimann envisioned in blue to accommodate the 1,000 ac -ft. This option is not feasible and will have a significant impact to the environment.

Item 3B - Page 11
Not to Scale. All Drawn Items ore for
Illustration Purposes and Sha ll Not Be
Used as Designs or Plans for
Cons1ruction. No Sizing Calcula1ions
Have Been Completed.

L=~=~-----------------a
Suggested Option 2:

Construct a retention basin with berm west of South Palm Canyon Drive, lined with HDPE liner for geotechnical stability, where water will be held and “allowed to infiltrate and evaportranspirate”. “This berm would be sized to prevent discharge of the capital storm event. A spillway feature would be installed to allow water to overflow under extreme conditions beyond the capital storm event.”

Findings: The proposed berm as diagrammed below would need to be about 46 feet deep, by 2,500 feet long by 50 feet wide, to accommodate the 1,000 ac-ft of water design requirement. This option is not feasible.

Item 3B - Page 12
Option 2 Figure from 12/17 /19 Memo
Not to Scale. All Drawn Items arc for
Illustration Purposes and Shall Not Be
Used as Designs or Plans for
Construction. No Sizing Calculations
Have Been Completed.
ponded area of ~4_5 acres.

Assum ing this foo tprint, the
depth is infeasible at ~225' i n
order to retain the fu ll 100-year,

Suggested Option 3:

Construct a debris basin to keep all the water on the west side of South Palm Canyon Drive. “A smaller berm would be constructed than in Option 2. Dry wells would be installed to infiltrate accumulated water more rapidly. The debris basin would be designed to minimize silting of the dry wells. The dry wells would be maintained …to maintain infiltration rates…to prevent overflow of the capital storm.”

Findings:

The proposed berm creates an efficient use of space, but this option offers less than Option 2 at ~1.2 acres. Based on 11 dry -wells shown with this footprint, the depths (calc’d to 835’) are infeasible in order to retain the full 100- year, 24-hour storm volume. (Not accounting for the reduction in available volume runoff due to sediment volumes)

Item 3B - Page 13
Option 3 Figure from 12/17 /19 Memo
Not to Scale. All Drawn Items are for
Illustration Purposes and Shall Not Be
Used a.s Designs or Plans for
Construction, No Sizing Calculations
Have Been Completed.

Dry wells are typically no deepe r
than 15' and are better suited
for smaller runoff volumes. To
put it in perspective, a 15' deep
dry well may have a retention
capacity of 120cf compared to
app rox. 43,560,000cf of runoff
experienced at this locat ion.

Suggested Option 4:

Construct a debris basin to keep all water on the west side of South Palm Canyon Drive. “A vegetated infiltration trench with a downstream curb would be installed to hold and infiltrate the capital storm. The debris basin would be designed to minimize silt ing of the vegetated infiltration trench. The vegetated infiltration trench would be maintained as necessary to maintain infiltration rates necessary to prevent overflow of the capital storm.” (see figure on next slides with comments)

Findings:

The sediment basin would provide for additional storage capacity but would still be infeasible. After accounting for the added infiltration trench capacity, the debris basin would need to be approx. 435' deep in order to retain the full 100- year, 24-hour storm volume. (Not accounting for the reduction in available volume runoff due to sediment volumes)

Item 3B - Page 14
Option 4 Figure from 12/17 /19 Memo
Not to Scale. All Drawn Items are for
lltus1radon Purposes and Shall Not Be
US<!<! as Ocilgns 0< P1•ns fo,
Construction. No Sizing C..kulations
Have Be«, C0<npleted.

Infiltration t renches are typically
no deeper than 8' and are
better suited for smaller runoff
volumes or for stormwater
treatment, not retent ion of
large storm volumes. An 8' deep
infil trat ion trench may have a
retention capacity of 240,000cf
compared to approx.
43,560,000cf of runo ff
Figure S:Option 4
Attachment B
Item 3B - Page 15
South Palm Canyon Drive Low Water
Crossing Project History
Current Project Overview Exhibit
Item 3B - Page 16
LEGEND:
-
CLASS IV METHOD B RSP WI TH CLASS 8
t
FABRIC

EX I ST I NG R I GHT OF WAY / PROPERTY BOUNDARY

PROPOSED IMPROVEMENTS
-

CONCRETE SLOPE PROTECT I ON

EX I ST I NG CONDIT IONS

PROPOSED CONDIT IONS CONCRETED CLASS YI I METHOD B OYER CL ASS C] PERMANENT ORA I NAGE EASEMENT PDE 11 METHOD RSP WITH CLASS 8 FABRIC

TEMPORARY CONSTRUCT I ON EASEMENT
-

CUTOFF WALL
ITlJI CLASS I I I METHOD B RSP WI TH CL ASS 8 [fil CLASS V METHOD B RSP OVER CLASS I 11 SHEET I OF I FARR I r. METHOD B RSP WI TH CLASS I O FA BRIC SCAL E : I' 50 ' PDE 93' 82' ROW/PDE
e.-------'1_.2_-,_8 ' ____ _._ ___ 80,_' ____ -,4

SECTION A-A
NTS
STA 23+50
't.
82' I
63' I
.,.
73' '
i,, _ _ _____ _J __
CONC"7'
111'
67'

ROW/PDE
12:1 ! LOPE
;,, +------->h----<t-' - --J
OG

ACCESS ROAD
2: 1 OR FLATTER SLOPES
-0,5%
Typ
M C[P Re inf Cone _j V BOX CULVERT (Mod)

SECTION B-B
NTS
STA 25+53

SECTION C-C
NTS
STA 27+54
14'-0" Typ
~~~~~~~

SOUTH PALM CANYON DRIVE
PROJECT OVERVIEW EXHIBIT iJl1..t1 ..
'"
9/? R/? O
South Palm Canyon Drive Low Water
Crossing Project History
Proposed Easterly View
from Inside Channel
Item 3B - Page 17

CITY COUNCIL STAFF REPORT
DAT
E: JUNE 13, 2024 BUSINESS & LEGISLATIVE
SUBJECT: GENERAL FUND FISCAL YEAR 2024 -25 ADJUSTED CONTINUATION BUDGET
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:

The Ci
ty Council will receive a presentation containing an updated forecast for Fiscal Year 2023-24 (FY24) and an adjusted continuation budget for Fiscal Year 2024-25 (FY25). The adjusted budget will contain the General Fund only, there were no changes to the budgets for Capital and the Airport.

RECOMMENDATION:

Pr
ovide direction to staff on the FY25 Continuation Budget Adjustments.

STAFF ANALYSIS:

At
the June 29, 2023 City Council meeting, the Council approved a biennial budget for FY24 and FY25. City Staff have made adjustments to the FY25 budget. City staff is asking for direction to the proposed changes and will be bringing the FY25 Adjusted Continuation Budget back to the City Council at the June 27, 2024 meeting for a public hearing and an approval by resolution. Additional annual approvals for the Allocated Positions, GANN Limit, and Successor Agency budgets will also be part of the staff recommendations for approval.

Item 3C - Page 1
City Council Staff Report
June 13, 2024 -- Page 2
FY25 Adjusted Continuation Budget

GENERAL FUND FY24 FORECAST

Revenue Highlights

TABLE 1

• Continuing to expect the major tax revenue line items to level off. Transient Occupancy Tax (TOT) and Sales and Use tax expected to decline around 5% for FY24, however, these numbers are still strong historically. • Property tax continues to steadily increase with the revenue projected to be approximately 6% higher in FY24.
• Cannabis tax is projected to decline due to the change in the City’s ordinance which reduced the tax to 5% from 10% in FY24.
• Utility Users Tax (UUT) is forecasted to be flat to a small decline from FY23, but still strong historically.
• Interest revenue continues to outpace previous years. Higher bond yields and strong cash flow allowing for continued investment of excess cash are projected to increase interest income by 60% in FY24.

The TOT chart ( Chart 1) on the following page represents the monthly amount of TOT earned (tax is collected one month after earned) for FY23 and FY24. FY24 is actual tax earned through April. There are two months of TOT to collect in FY24 and the months of May and June are forecasted. City Staff have forecasted $50.4 million for FY24, and the chart indicates the amount needed to earn in May and June to reach the forecasted amount.

Item 3C - Page 2
FY22 FY23 ~ Increa e/
Decrea e
Desc Final Final Foreca t fromPY
Re,,enue
Transient Occupancy Tax 53,900,745 53,002,407 50,359,743 -5.0% Property Taxes 28,83 1,512 32,492,905 34,408,589 5.9%
Sales and Use Taxes 31,818,760 33,170,143 31,353,777 -5.5% Utility Users Tax 15,627,960 14,988,973 14,730,053 -1.7% Motor Vehicle In-Lieu Tax 6,141,974 6,739,528 6,718,385 -0.3% Franchise Tax 4,138,935 4,571,990 4,527,337 -1.0%
Cannabis Tax 4,535,370 3,460,574 1,935,840 -44.1%
Other Taxes 6,736,635 6,896,587 6,659,240 -3.4%
Permits, Fines, and Fees 13,514,189 14,193,562 13,580,042 -4.3% Interest Income 419,295 2,095,940 3,357,710 60.2%
Miscellaneous Income 7,598,160 3,201,124 4,265,252 33.2% Transfers From Other FlDlds 1,000,000
Operating Revenue 173,263,534 175,813,732 171,895,967 -2.2% City Council Staff Report
June 13, 2024 -- Page 3
FY25 Adjusted Continuation Budget

CHART 1

The Sales Tax chart below (Chart 2) represents the monthly amount of Sales Tax earned (tax is collected two months after earned) for FY23 and FY24. FY24 is actual revenue earned through March. There are three months of Sales Tax to collect in F Y24 and the months of April, May and June are forecasted. City Staff have forecasted $31.4 million for FY24 and the chart shows the amount needed to earn in April, May and June to reach the forecasted amount.

CHART 2

2.16 1.98

2.49 2.86

2.53 3.35 2.98

2.34 3.61

3.42 2.62 2.78

2.15 1.91 1.79

3.13 2.33

2.55 3.64

2.34 3.26

3.05 2.50

2.70 1.00

1.50 2.00

2.50 3.00

3.50 4.00

4.50 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Sales Tax Monthly Trend FY23 vs. FY24
(In Millions)
FY 2023 FY 2024
Item 3C - Page 3

9.00 8.00

7.00 6.00

5.00 4.00

3.00 2.00

1.00 July Aug
TOT Monthly Trend FY23 vs. FY24
(In Millions)

4.20 Sept Oct Nov Dec Jan Feb
- FY 2023 - FY 2024

4.00 Mar Apr May Jun
City Council Staff Report
June 13, 2024 -- Page 4
FY25 Adjusted Continuation Budget

Expense Highlights

TABLE 2

• Total operating expenses increased by 8.5%, or $14.2 million from FY23.

Increases driven largely by the following:

o Salary and benefits increased by $5.2 million.
o Transfers to other funds include the $13 million funding to assist the Plaza Theatre Foundation in the restoration of the Plaza Theatre. The Foundation has committed to repay $10 million.
o Grant expenditures have increased by approximately $12 million over FY23. This is largely due to the state Home key grant of $16 million to fund the construction of the Navigation Center.
o Fire Department expenses include Tropical Storm Hilary damage totaling $989,000. This was primarily due to emergency repairs done to Indian Canyon, which will be reimbursed from the State in a future period.

FY22 FY 23 FY24 % Increase/
Decrease
Description Final Final Forecast from PY
Expense
City Admin & Economic Development 4,881,929 5,964,302 7,321,531 22.8% General Government 14,259,147 13,699,158 17,042,911 24.4% Developmental Services 16,273,561 18,054,639 17,230,932 -4.6% Tourism and Community Support 7,572,319 8,515,675 8,085,962 -5.0% Library 2,854,721 2,947,669 2,958,152 0.4% Parks and Recreation 4,968,782 6,182,388 7,014,862 13.5% Police Department 36,106,703 41,250,576 41,957,349 1.7% Fire Department 21,981,456 24,732,998 26,783,832 8.3% Public Works 8,765,090 10,397,257 10,899,719 4.8% CalPERS Annual Reserve 6,000,000 6,000,000 6,000,000 0.0% Affordable Housing Annual Reserve - 3,211,707 3,000,000 -6.6% Transfers to Other Funds 14,510,800 25,332,703 32,230,879 27.2% Miscellaneous Expense 1,641,692 1,662,906 1,641,692 -1.3% Operating Expenses 139,816,200 167,951,977 182,167,822 8.5% Operating Surplus/Deficit 33,447,335 7,861,755 (9,469,199) Grant Revenue 12,102,934 17,913,516 18,321,303 2.3% Grant Expense (1,163,506) (6,463,377) (18,321,303) 183.5% Council Set Aside Expense - (7,029,415) (4,137,002) -41.1% Total Surplus/Deficit 44,386,763 12,282,479 (13,606,200) Item 3C - Page 4

I I I I
City Council Staff Report
June 13, 2024 -- Page 5
FY25 Adjusted Continuation Budget

• The Salary and Benefits graph below (Chart 3) depicts the personnel costs from FY22 through the FY25 Revised Budget for the General Fund. Costs have increased approximately $21 million, or 30%. Allocated positions were 506 in the FY22 budget and have increased to 621.5 in the FY25 Revised Budget for the City, of which 28.5 of that increase is for the Airport. There is no planned increase in the FY25 budget from FY24 at this time.

CHART 3

ADOPTED FY25 BUDGET VS. REVISED FY25 BUDGET

Revenue Adjustments

TABLE 3
FY24 FY25 FY25 $ Variance from
Adopt Budget to
Description Forecast Adopted Budget Revised Budget Rev Budget Revenue
Transient Occupancy Tax 50,359,743 51,122,534 51,122,534 - Property Taxes 34,408,589 31,636,084 34,636,084 3,000,000 Sales and Use Taxes 31,353,777 35,061,718 32,061,718 (3,000,000) Utility Users Tax 14,730,053 24,056,277 15,230,053 (8,826,224) Motor Vehicle In-Lieu Tax 6,718,385 6,695,932 6,695,932 - Franchise Tax 4,527,337 4,769,609 4,769,609 - Cannabis Tax 1,935,840 3,007,149 1,507,149 (1,500,000) Other Taxes 6,659,240 7,801,013 7,801,013 - Permits, Fines, and Fees 13,580,042 14,058,519 14,058,519 - Interest Income 3,357,710 3,623,803 3,623,803 - Miscellaneous Income 4,265,252 4,234,169 4,234,169 - Transfers From Other Funds - - 5,000,000 5,000,000 Operating Revenue 171,895,967 186,066,808 180,740,583 Item 3C - Page 5
Salary and Benefits
(In Mi llions)
100.00 $92

90.00 $86
$8 1

80.00 $71

70.00 60.00

50.00 40.00

30.00 20.00

10.00 2022 2023 2024 2025
City Council Staff Report
June 13, 2024 -- Page 6
FY25 Adjusted Continuation Budget

• Property Tax – Increased by $3 million in FY25 to be in line with historical growth. • Sales Tax – Decreased by $3 million in FY25 to account for the leveling off of revenue. Revenues are still strong historically and the expectations are for growth of 2% in the FY25 Revised Budget vs. FY24 Forecast.
• Utility Users Tax – Decreased by $8.8 million in FY24 to be more in line with recent revenue.
• Cannabis Tax – Decreased $1.5 million due to the reduction in the tax rate to 5% from 10%.
• Transfers From Other Funds – Adjusting Internal Service Fund charges to the General Fund to be more in line with actual spend - $5 million.

Expense Adjustments

TABLE 4

• Most of the budget adjustments that affect the departments are timing differences between FY24 and FY25. The adjustments reduce the FY24 budget and increase the FY25 budget by the same amount, therefore, there is no impact on the biennial budget passed by Council. Those adjustments are as follows:

o City Admin and Econ Development – Moved Economic Development out of Developmental Services and into the City Admin and Economi c Development - $965,077.

FY24 FY25 FY25 $ Variance from
Adopt Budget to
Description Forecast Ado pted Budget Revised Budget Rev Budget Expense
City Admin & Economic Development 7,321,531 7,943,752 8,958,829 1,015,077 General Government 17,042,911 17,535,866 17,940,866 405,000 Developmental Services 17,230,932 16,585,118 16,300,234 (284,884) Tourism and Community Support 8,085,962 8,618,932 8,792,682 173,750 Library 2,958,152 3,608,489 3,608,489 - Parks and Recreation 7,014,862 9,667,726 10,004,026 336,300 Police Department 41,957,349 44,583,932 44,583,932 - Fire Department 26,783,832 28,921,982 29,350,482 428,500 Public Works 10,899,719 13,529,228 14,491,150 961,922 CalPERS Annual Reserve 6,000,000 6,000,000 6,000,000 - Affordable Housing Annual Reserve 3,000,000 3,000,000 3,000,000 - Transfers to Other Funds 32,230,879 19,131,808 15,159,587 (3,972,221) Miscellaneous Expense 1,641,692 1,641,692 1,641,692 - Operating Expenses 182,167,822 180,768,524 179,831,968 Operating Surplus/Deficit (10,271,854) 5,298,284 908,615 Grant Revenue 18,321,303 5,764,478 10,636,688 4,872,210 Grant Expense (18,321,303) (5,764,478) (10,636,688) (4,872,210) Council Set Aside Expense (4,137,002) - (6,613,205) (6,613,205) Total Surplus/Deficit (14,408,855) 5,298,284 (5,704,591) Item 3C - Page 6
+ <
I
City Council Staff Report
June 13, 2024 -- Page 7
FY25 Adjusted Continuation Budget

o General Government – Unused appropriations for the Broadband and IT master plans, Sunrise Park Event, On-Call Marketing Services in FY24 that will be expensed in FY25 - $405,000.
o Developmental Services – Unused appropriations for Zoning Code Update, Housing Element Implementation, General Plan, Urban Design Guidelines, etc. offset by the Economic Development Dept move – ($284,884). o Tourism and Community Support – Unused appropriations for the City’s Grants and Sponsorships program in FY24 carried forward to FY25 - $173,750.
o Parks and Recreation – Unused appropriations in FY24 for the Parks Master Plan, Furniture, etc. carried forward to FY25 - $336,300. o Fire Department – Unused appropriations in FY24 carried forward to FY25 such as hose replacement, extrication equipment, mandatory training, earthquake warning system, etc. - $428,500.
o Public Works – Unused appropriations in FY24 carried forward to FY25 for Street Improvements, City tree trimming, and encampment clean up - $528,922.
o Grant Revenue/Expense – Retail The ft Grant awarded to the Police Department carried forward to FY25 - $4.6 million.

• Reductions or Additional Expense:

o City Admin & Econ Dev – Increase in Elections budget for FY25 - $50,000. o Public Works – Increase in Street Maintenance budget for Encampment Cleanup - $433,000.
o Transfers to other Funds – Eliminated the General Fund transfer to the Capital Fund and eliminated the subsidization of losses from various Special Revenue Funds - $3.9 million reduction in expense. o Set Aside – Moved the remaining set asides for Affordable Housing ($4.6 million) and Sustainability ($2 million) to FY25. Any Affordable Housing reserve left at the end of FY25 will be moved to the Affordable Housing Reserve that is a part of the City’s Fund Balance.

REVIEWED BY:

Department Director: Kristopher J. Mooney
City Manager: Scott Stiles

Item 3C - Page 7