Palm Springs City Council
January 23, 2025

FAA – 03 Breach of Contract
APPLICABILITY – required for all contracts that exceed the simplified acquisition threshold as stated in 2 CFR Part 200, Appendix II (A). This threshold is occasionally adjusted for inflation and is $250,000.

REQUIREMENT -
See Section 4.5 of the Agreement.

Reference: 2 CFR § 200 Appendix II(A)
Item 1T - Page 31

FAA – 04 Buy American Preferences
APPLICABILITY – required for contracts defined as follows:
• Construction Projects involving the replacement, rehabilitation, reconstruction of airfield surfaces such as on runways, taxiways, taxilanes, aprons, roadways, parking lots, etc. – Insert the Certificate of compliance to FAA Buy American Preference based on Construction Projects.
• Equipment and Buildings Projects involving and including the acquisition of equipment such as snow removal equipment, navigational aids, wind cones, and the construction of buildings such as hangars, terminal development, lighting vaults, aircraft rescue & firefighting buildings, etc. - Insert the Certificate of Compliance with FAA Buy American Preference Based on Equipment/Building Projects.

REQUIREMENT -
The Contractor certifies that all constructions materials, defined to mean an article, material, or supply other than an item of primarily iron or steel; a manufactured product; cement and cementitious materials; aggregates such as stone, sand, or gravel; or aggregate binding agents or additives that are or consist primarily of: non- ferrous metals; plastic and polymer -based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables); glass (including optic glass); lumber; or drywall used in the project are manufactured in the U.S.

Reference: Title 49 USC § 50101
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FAA – 05 Civil Rights General
APPLICABILITY – required for all contracts regardless of funding source.

REQUIREMENT -
In all its activities within the scope of its airport program, the Contractor agrees to comply with pertinent statutes, Executive Orders, and such rules as identified in Title VI List of Pertinent Nondiscrimination Acts and Authorities to ensure that no person shall, on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance. The above provision binds the Contractor and subcontractors from the bid solicitation period through the completion of the contract.

This provision is in addition to that required by Title VI of the Civil Rights Act of 1964.

Reference: 49 USC § 47123
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FAA – 06 Civil Rights – Title VI Assurances
APPLICABILITY – required for all contracts.

REQUIREMENT -
Title VI List of Pertinent Nondiscrimination Acts and Authorities During the performance of this contract, the Contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “Contractor”) agrees to comply with the following non- discrimination statutes and authorities; including but not limited to:
• Title VI of the Civil Rights Act of 1964 (42 USC § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin); • 49 CFR part 21 (Non -discrimination in Federally -Assisted programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964); • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 USC § 4601) (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.), as amended (prohibits discrimination on the basis of disability); and 49 CFR part 27 (Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance); • The Age Discrimination Act of 1975, as amended (42 USC § 6101 et seq.) (prohibits discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982 (49 USC § 47123), as amended (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987 (PL 100- 259) (broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act of 1990 (42 USC § 12101, et seq) (prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities) as implemented by U.S. Department of Transportation regulations at 49 CFR parts 37 and 38; • The Federal Aviation Administration’s Nondiscrimination statute (49 USC § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low- Income Populations (ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations); • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take Item 1T - Page 34

reasonable steps to ensure that LEP persons have meaningful access to your programs [70 Fed.

Reg. 74087 (2005)];
• Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 USC § 1681, et seq).

Compliance with Nondiscrimination Requirements:

During the performance of this contract, the Contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “Contractor”), agrees as follows:

1. Compliance with Regulations: The Contractor (hereinafter includes consultants) will comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract.

2. Nondiscrimination: The Contractor, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Contractor will not participate directly or indirectly in the discrimination prohibited by the Nondiscrimination Acts and Authorities, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR part 21.

3. Solicitations for Subcontracts, including Procurements of Materials and Equipment:

In all solicitations, either by competitive bidding or negotiation made by the Contractor for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the Contractor of the Contractor’s obligations under this contract and the Nondiscrimination Acts and Authorities on the grounds of race, color, or national origin.

4. Information and Reports: The Contractor will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the City or the Federal Aviation Administration to be pertinent to ascertain compliance with such Nondiscrimination Acts and Authorities and instructions. Where any information required of a Contractor is in the exclusive possession of another who fails or refuses to furnish the information, the Contractor will so certify to the City or the Federal Aviation Administration, as appropriate, and will set forth what efforts it has made to obtain the information.

5. Sanctions for Noncompliance: In the event of a Contractor’s noncompliance with the non- discrimination provisions of this contract, the City will impose such contract sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to:
a. Withholding payments to the Contractor under the contract until the Contractor complies; and/or
b. Cancelling, terminating, or suspending a contract, in whole or in part.

6. Incorporation of Provisions: The Contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of Item 1T - Page 35

equipment, unless exempt by the Acts, the Regulations, and directives issued pursuant thereto. The Contractor will take action with respect to any subcontract or procurement as the City or the Federal Aviation Administration may direct as a means of enfor cing such provisions including sanctions for noncompliance. Provided, that if the Contractor becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the Contractor may request the City to enter into any litigation to protect the interests of the City. In addition, the Contractor may request the United States to enter into the litigation to protect the interests of the United States.

Reference: 49 USC § 47123, FAA Order 1400.11
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FAA – 07 Clean Air/Water Pollution Control
APPLICABILITY – This provision is required for all contracts and lower tier contracts that exceed $150,000.

REQUIREMENT -
If the Agreement exceeds $150,000, Contractor agrees to comply with all applicable standards, orders, and regulations issued pursuant to the Clean Air Act (42 USC § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 USC § 1251-1387). The Contractor agrees to report any violation to the City immediately upon discovery. The City assumes responsibility for notifying the Environmental Protection Agency (EPA) and the Federal Aviation Administration.

Contractor must include this requirement in all subcontracts that exceeds $150,000.

Reference: 2 CFR § 200, Appendix II(G); 42 USC § 7401; 33 USC § 1251

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FAA – 08 Contract Work Hours and Safety Standards
APPLICABILITY – This provision is required for contracts as follows:

Contract Work Hours and Safety Standards Act Requirements (CWHSSA) (40 USC §§ 3702 & 3704) requires contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts not less than one and one- half times their basic rate of pay for all hours worked over 40 in a workweek. CWHSSA prohibits unsanitary, hazardous, or dangerous working conditions on federally-assisted projects. The Wage and Hour Division (WHD) within the U.S. Department of Labor (DOL) enforces the compensation requirements of this Act, while DOL’s Occupational Safety and Health Administration (OSHA) enforces the safety and health requirements.

Contract Types –
Construction – This provision applies to all contracts and lower tier contracts that exceed $100,000, and employ laborers, mechanics, watchmen, and guards.

Equipment – This provision applies to any equipment project exceeding $100,000 that involves installation of equipment onsite (e.g., electrical vault equipment). This provision does not apply to equipment acquisition projects where the manufacture of the equipment takes place offsite at the vendor plant (e.g., ARFF and SRE vehicles).

Professional Services – This provision applies to professional service agreements that exceed $100,000 and employs laborers, mechanics, watchmen, and guards. This includes members of survey crews and exploratory drilling operations.

Property – While most land transactions do not involve employment of laborers, mechanics, watchmen, and guards, under certain circumstances, a property acquisition project could require such employment. Examples include the installation of property fencing or testing for environmental contamination

CONTRACT WORKHOURS AND SAFETY STANDARDS ACT REQUIREMENTS

1. Overtime Requirements.

No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic, including watchmen and guards, in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.

2. Violation; Liability for Unpaid Wages; Liquidated Damages.

In the event of any violation of the clause set forth in paragraph (1) of this clause, the Contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (1) of this clause, in the sum of $29 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (1) of this clause.

3. Withholding for Unpaid Wages and Liquidated Damages.

The Federal Aviation Administration (FAA) or the City shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or Item 1T - Page 38

cause to be withheld, from any moneys payable on account of work performed by the Contractor or subcontractor under any such contract or any other Federal contract with the same prime Contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime Contractor, such sums as may be determined to be necessary to satisfy any liabilities of such Contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (2) of this clause.

4. Subcontractors.

The Contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraphs (1) through (4) and also a clause requiring the subcontractor to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (1) through (4) of this clause.

Reference: 2 CFR Part 200, Appendix II(E); 2 CFR § 5.5(b); 40 USC § 3702; 40 USC § 3704
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FAA – 09 Copeland Anti-Kickback

APPLICABILITY -
The Copeland (Anti-Kickback) Act (18 USC § 874 and 40 USC § 3145) makes it unlawful to induce by force, intimidation, threat of dismissal from employment, or by any other manner, any person employed in the construction or repair of public buildings or publ ic works, financed in whole or in part by the United States, to give up any part of the compensation to which that person is entitled under a contract of employment. The Copeland Act also requires each contractor and subcontractor to furnish weekly a statement of compliance with respect to the wages paid each employee during the preceding week.

Contract Types –
Construction – This provision applies to all construction contracts and subcontracts financed under the AIP that exceed $2,000.

Equipment – This provision applies to all equipment installation projects (e.g., electrical vault improvements) financed under the AIP that exceed $2,000. This provision does not apply to equipment acquisitions where the equipment is manufactured at the vendor’s plant (e.g., SRE and ARFF vehicles).

Professional Services –The emergence of different project delivery methods has created situations where Professional Service Agreements (PSAs) include tasks that meet the definition of construction, alteration, or repair as defined in 29 CFR Part 5. If such tasks result in work that qualifies as construction, alteration, or repair and it exceeds $2,000, the PSA must incorporate the Copeland Anti-kickback provision.

Property –Ordinarily, land acquisition projects would not involve employment of laborers or mechanics and thus the Copeland Anti-Kickback provision would not apply. However, land projects that involve installation of boundary fencing and demolition of structures would involve laborers and mechanics. The City must include this provision if the land acquisition project involves employment of laborers or mechanics for a contract exceeding $2,000.

REQUIREMENT -
Contractor must comply with the requirements of the Copeland “Anti-Kickback” Act (18 USC 874 and 40 USC 3145), as supplemented by Department of Labor regulation 29 CFR part

3. Contractor and subcontractors are prohibited from inducing, by any means, any person employed on the project to give up any part of the compensation to which the employee is entitled. The Contractor and each Subcontractor must submit to the City, a weekly statement on the wages paid to each employee performing on covered work during the prior week. City must report any violations of the Act to the Federal Aviation Administration.

Reference: 2 CFR Part 200, Appendix II(D); 29 CFR Parts 3 and 5 Item 1T - Page 40

FAA – 10 Davis Bacon Requirements

APPLICABILITY -
The Davis -Bacon Act (40 USC §§ 3141- 3144, 3146, and 3147) ensures that laborers and mechanics employed under the contract receive pay no less than the locally prevailing wages and fringe benefits as determined by the Department of Labor.

Contract Types –
Construction – all construction contracts and subcontracts that exceed $2,000 and include funding from the AIP.

Equipment – This provision applies to all equipment installation projects (e.g., electrical vault improvements) financed under the AIP that exceed $ 2,000. This provision does not apply to equipment acquisitions where the equipment is manufactured at the vendor’s plant (e.g., SRE and ARFF vehicles)
Professional Services – The emergence of different project delivery methods has created situations where Professional Service Agreements (PSAs) includes tasks that meet the definition of construction, alteration, or repair as defined in 29 CFR Part 5. If such tasks result in work that qualifies as construction, alteration, or repair and it exceeds $2,000, the PSA must incorporate this clause.

Property – Ordinarily, land acquisition projects would not involve employment of laborers or mechanics and thus the provision would not apply. However, land projects that involve installation of boundary fencing and demolition of structures would involve laborers and mechanics. The City must include this provision if the land acquisition project involves employment of laborers or mechanics for a contract exceeding $2,000.

Fencing Projects – Fencing projects that exceed $2,000 must include this provision.

DAVIS-BACON REQUIREMENTS

1. Minimum Wages.
(i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalent thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the Contractor and such laborers and mechanics.

Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be Item 1T - Page 41

compensated at the rate specified for each classification for the time actually worked therein:

Provided, that the employer’s payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under (1)(ii) of this section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the Contractor and its subcontractors at the site of the work in a prominent and accessible place where it can easily be seen by the workers. (ii)(A) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the wage determination;
(2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (B) If the Contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.
(C) In the event the Contractor, the laborers, or mechanics to be employed in the classification, or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30- day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(ii) (B) or (C) of this paragraph, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.
(iv) If the Contractor does not make payments to a trustee or other third person, the Contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, that the Secretary of Labor has found, upon the written request of the Contractor, that the applicable Item 1T - Page 42

standards of the Davis -Bacon Act have been met. The Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.

2. Withholding. The Federal Aviation Administration or the CIty shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the Contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the Contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the Federal Aviation Administration may, after written notice to the Contractor, City, Applicant, or Owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased.

3. Payrolls and Basic Records.
(i) Payrolls and basic records relating thereto shall be maintained by the Contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker; his or her correct classification; hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 1(b)(2)(B) of the Davis-Bacon Act); daily and weekly number of hours worked; deductions made; and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the Contractor shall maintain records that show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual costs incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The Contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the Federal Aviation Administration if the agency is a party to the contract, but if the agency is not such a party, the Contractor will submit the payrolls to the applicant, the City, or Owner, as the case may be, for transmission to the Federal Aviation Administration. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR § 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digi ts of the employee’s social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour https://www.dol.gov/agencies/whd/government-
contracts/construction/payroll-certification or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and Item 1T - Page 43

subcontractors shall maintain the full social security number and current address of each covered worker and shall provide them upon request to the Federal Aviation Administration if the agency is a party to the contract, but if the agency is not such a party, the Contractor will submit them to the applicant, the City, or Owner, as the case may be, for transmission to the Federal Aviation Administration, the Contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the sponsoring government agency (or the applicant, City, or Owner). (B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the Contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under 29 CFR § 5.5(a)(3)(ii), the appropriate information is being maintained under 29 CFR § 5.5 (a)(3)(i), and that such information is correct and complete; (2) That each laborer and mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR Part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH -347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph (3)(ii)(B) of this section. (D) The falsification of any of the above certifications may subject the Contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code.
(iii) The Contractor or subcontractor shall make the records required under paragraph (3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the City, the Federal Aviation Administration, or the Department of Labor and shall permit such representatives to interview employees during working hours on the job. If the Contractor or subcontractor fails to submit the required records or to make them available, the Federal agency may, after written notice to the Contractor, the City, applicant, or Owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds.

Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR § 5.12.

4. Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her Item 1T - Page 44

first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman’s hourly rate) specified in the Contractor’s or subcontractor’s registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice’s level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the Contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(ii) Trainees. Except as provided in 29 CFR § 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee’s level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination.

Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination that provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate that is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the Contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

Item 1T - Page 45

(iii) Equal Employment Opportunity. The utilization of apprentices, trainees, and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30.

5. Compliance with Copeland Act Requirements.

The Contractor shall comply with the requirements of 29 CFR Part 3, which are incorporated by reference in this contract.

6. Subcontracts.

The Contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR §§ 5.5(a)(1) through (10) and such other clauses as the Federal Aviation Administration may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR § 5.5.

7. Contract Termination: Debarment.

A breach of the contract clauses in paragraph 1 through 10 of this section may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR § 5.12.

8. Compliance with Davis-Bacon and Related Act Requirements.

All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this contract.

9. Disputes Concerning Labor Standards.

Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the Contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives.

10. Certification of Eligibility.
(i) By entering into this contract, the Contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the Contractor’s firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR §

5.12(a)(1).
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR § 5.12(a)(1). (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 USC § 1001.

Reference: 2 CFR Part 200, Appendix II(D); 29 CFR Part 5; 49 USC § 47112(b); 40 USC §§ 3141- 3144, 3146, and 3147
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FAA – 11 Debarment and Suspension
APPLICABILITY - This requirement applies to covered transactions, which are defined in 2 CFR part 180 (Subpart B). AIP funded contracts are non- procurement transactions, as defined by 2 CFR § 180.970. Covered transactions include any AIP-funded contract, regardless of tier, that is awarded by a contractor, subcontractor, supplier, consultant, or its agent or representative in any transaction, if the amount of the contract is expected to equal or exceed $25,000. This includes contracts associated with land acquisition projects.

REQUIREMENT -
A11.3.1 Bidder or Offeror Certification
By submitting a bid/proposal under the solicitation for this contract, the Contractor must have certified that neither it nor its principals are presently debarred or suspended by any Federal department or agency from participation in this transaction.

A11.3.2 Lower Tier Contract Certification

CERTIFICATION OF LOWER TIER CONTRACTORS REGARDING DEBARMENT The Contractor, by administering each lower tier subcontract that exceeds $25,000 as a “covered transaction”, must verify each lower tier participant of a “covered transaction” under the project is not presently debarred or otherwise disqualified from participation in this federally assisted project. The Contractor will accomplish this by:

1. Checking the System for Award Management at website: http://www.sam.gov.

2. Collecting a certification statement similar to the Certification of Offerer /Bidder Regarding Debarment, above.

3. Inserting a clause or condition in the covered transaction with the lower tier contract.

If the Federal Aviation Administration later determines that a lower tier participant failed to disclose to a higher tier participant that it was excluded or disqualified at the time it entered the covered transaction, the FAA may pursue any available remedies, including suspension and debarment of the non-compliant participant.

Reference: 2 CFR part 180 (Subpart B), 2 CFR part 200 Appendix II(H), 2 CFR Part 1200, DOT Order 4200.5; Executive Orders 12549 and 12689
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FAA – 12 Disadvantaged Business Enterprise
APPLICABILITY – all contracts with Airports that have a DBE program on file with the FAA.

Contract Assurance (§ 26.13) –
The Contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The Contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of Department of Transportation- assisted contracts. Failure by the Contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the City deems appropriate, which may include, but is not limited to:
1) Withholding monthly progress payments;
2) Assessing sanctions;
3) Liquidated damages; and/or
4) Disqualifying the Contractor from future bidding as non-responsible.

Prompt Payment (§26.29) – The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than [10 days] days from the receipt of each payment the prime contractor receives from [the City]. The prime contractor agrees further to return retainage payments to each subcontractor within [30 days] days after the subcontractor’s work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the [City]. This clause applies to both DBE and non-DBE subcontractors.

Termination of DBE Subcontracts (49 CFR § 26.53(f)) –
The prime Contractor must not terminate a DBE subcontractor listed in response to the solicitation (or an approved substitute DBE firm) without prior written consent of the City. This includes, but is not limited to, instances in which the prime contractor seeks to perform work originally designated for a DBE subcontractor with its own forces or those of an affiliate, a non- DBE firm, or with another DBE firm.

The prime Contractor shall utilize the specific DBEs listed to perform the work and supply the materials for which each is listed unless the Contractor obtains written consent of the City. Unless City consent is provided, the prime Contractor shall not be entitled to any payment for work or material unless it is performed or supplied by the listed DBE.

The City may provide such written consent only if the City agrees, for reasons stated in the concurrence document, that the prime Contractor has good cause to terminate the DBE firm. For purposes of this paragraph, good cause includes the circumstances listed in 49 CFR §26.53.

Before transmitting to the City its request to terminate and/or substitute a DBE subcontractor, the prime Contractor must give notice in writing to the DBE subcontractor, with a copy to the City, of its intent to request to terminate and/or substitute, and the reason for the request.

The prime contractor must give the DBE five days to respond to the prime contractor's notice and advise the City and the Contractor of the reasons, if any, why it objects to the proposed termination of its subcontract and why the City should not approve the prime Contractor's action. If required in a particular case as a matter of public necessity (e.g., safety), the City may provide a response period shorter than five days.

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In addition to post-award terminations, the provisions of this section apply to preaward deletions of or substitutions for DBE firms put forward by offerors in negotiated procurements.

Reference: 49 CFR part 26
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FAA – 13 Distracted Driving
APPLICABILITY - contracts that exceed the micro-purchase threshold of 2 CFR § 200.320 (currently set at $10,000).

REQUIREMENT -

TEXTING WHEN DRIVING
In accordance with Executive Order 13513, “Federal Leadership on Reducing Text Messaging While Driving”, (10/1/2009) and DOT Order 3902.10, “Text Messaging While Driving”, (12/30/2009), the Federal Aviation Administration encourages recipients of Federal grant funds to adopt and enforce safety policies that decrease crashes by distracted drivers, including policies to ban text messaging while driving when performing work related to a grant or subgrant.

In support of this initiative, the City encourages the Contractor to promote policies and initiatives for its employees and other work personnel that decrease crashes by distracted drivers, including policies that ban text messaging while driving motor vehicles while performing work activities associated with the project. The Contractor must include the substance of this clause in all sub- tier contracts exceeding $10,000 that involve driving a motor vehicle in performance of work activities associated with the project.

Reference: Executive Order 13513, DOT Order 3902.10
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FAA – 14 Prohibition on Certain Telecommunications and Video Surveillance Services and Equipment
APPLICABILITY - all AIP funded contracts and lower-tier contracts.

REQUIREMENT -
Contractor and Subcontractor agree to comply with mandatory standards and policies relating to use and procurement of certain telecommunications and video surveillance services or equipment in compliance with the National Defense Authorization Act [Public Law 115-232 § 889(f)(1)].

Reference: 2 CFR § 200, Appendix II(K); 2 CFR § 200.216 Item 1T - Page 51

FAA – 15 Drug Free Workplace Requirements
APPLICABILITY - This provision applies to all AIP funded projects, but not to the contracts between the City and a contractor, subcontractors, suppliers, or subgrantees.

The Drug -Free Workplace Act of 1988 requires some Federal contractors and all Federal grantees to agree that they will provide drug-free workplaces as a condition of receiving a contract or grant from a Federal agency. The Act does not apply to contractors, subcontractors, or subgrantees, although the Federal grantees workplace may be where the contractors, subcontractors, or subgrantees are working.

Reference: 49 CFR part 32, Drug-Free Workplace Act of 1988 (41 U.S.C. 701 et seq., as amended)

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FAA – 16 Equal Employment Opportunity
APPLICABILITY – The purpose of this provision is to provide equal opportunity for all persons, without regard to race, color, religion, sex, or national origin who are employed or seeking employment with contractors performing under a federally-assisted construction contract. There are two provisions ― a construction clause and a specification clause.

The equal opportunity contract clause applies to any contract or subcontract when the amount exceeds $10,000. Once the equal opportunity clause is determined to be applicable, the contract or subcontract must include the clause for the remainder of the year, regardless of the amount or the contract.

Contract Types –
Construction – all construction contracts and subcontracts as required above.

Equipment – all equipment contracts as required above that involves installation of equipment onsite (e.g., electrical vault equipment). This provision does not apply to equipment acquisition projects where the manufacture of the equipment takes place offsite at the vendor plant (e.g., ARFF and SRE vehicles).

Professional Services – all professional service agreements as required above.

Property – all land acquisition projects that include work that qualifies as construction work as defined by 41 CFR part 60 as required above. An example is installation of boundary fencing.

REQUIREMENT -
A16.3.1 EEO Contract Clause
During the performance of this contract, the Contractor agrees as follows:
(1) The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, sexual orientation, gender identify, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff, or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. (2) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.
(3) The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such Item 1T - Page 53

disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information. (4) The Contractor will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or wor kers’ representative of the Contractor’s commitments under this section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
(5) The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (6) The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
(7) In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this contract or with any such rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (8) The Contractor will include the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions, including sanctions for noncompliance:

Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

A16.3.2 EEO Specification

STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY

CONSTRUCTION CONTRACT SPECIFICATIONS
a. “Covered area” means the geographical area described in the solicitation from which this contract resulted;
b. “Director” means Director, Office of Federal Contract Compliance Programs (OFCCP), U.S.

Department of Labor, or any person to whom the Director delegates authority; c. “Employer identification number” means the Federal social security number used on the Employer’s Quarterly Federal Tax Return, U.S. Treasury Department Form 941; d. “Minority” includes:

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(1) Black (all persons having origins in any of the Black African racial groups not of Hispanic origin);
(2) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race);
(3) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); and (4) American Indian or Alaskan native (all persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification).

2. Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the work involving any construction trade, it shall physically include in each subcontract in excess of $10,000 the provisions of these specifications and the Notice which contains the applicable goals for minority and female participation and which is set forth in the solicitations from which this contract resulted.

3. If the Contractor is participating (pursuant to 41 CFR part 60 -4.5) in a Hometown Plan approved by the U.S. Department of Labor in the covered area either individually or through an association, its affirmative action obligations on all work in the Plan area (including goals and timetables) shall be in accordance with that Plan for those trades which have unions participating in the Plan. Contractors must be able to demonstrate their participation in and compliance with the provisions of any such Hometown Plan. Each contractor or subcontractor participating in an approved plan is individually required to comply with its obligations under the EEO clause and to make a good faith effort to achieve each goal under the Plan in each trade in which it has employees. The overall good faith performance by other contractors or subcontractors toward a goal in an approved Plan does not excuse any covered contractor’s or subcontractor’s failure to take good faith efforts to achieve the Plan goals and timetables.

4. The Contractor shall implement the specific affirmative action standards provided in paragraphs 7a through 7p of these specifications. The goals set forth in the solicitation from which this contract resulted are expressed as percentages of the total hours of employment and training of minority and female utilization the Contractor should reasonably be able to achieve in each construction trade in which it has employees in the covered area. Covered construction contractors performing construction work in a geographical areas where they do not have a Federal or federally assisted construction contract shall apply the minority and female goals established for the geographical area where the work is being performed. Goals are published periodically in the Federal Register in notice form, and such notices may be obtained from any Office of Federal Contract Compliance Programs office or from Federal procurement contracting officers. The Contractor is expected to make substantially uniform progress in meeting its goals in each craft during the period specified.

5. Neither the provisions of any collective bargaining agreement, nor the failure by a union with whom the Contractor has a collective bargaining agreement, to refer either minorities or women shall excuse the Contractor’s obligations under these specifications, Executive Order 11246, or the regulations promulgated pursuant thereto.

6. In order for the nonworking training hours of apprentices and trainees to be counted in meeting the goals, such apprentices and trainees must be employed by the Contractor during Item 1T - Page 55

the training period, and the Contractor must have made a commitment to employ the apprentices and trainees at the completion of their training, subject to the availability of employment opportunities. Trainees must be trained pursuant to training programs approved by the U.S. Department of Labor.

7. The Contractor shall take specific affirmative actions to ensure equal employment opportunity. The evaluation of the Contractor’s compliance with these specifications shall be based upon its effort to achieve maximum results from its actions. The Contractor shall document these efforts fully, and shall implement affirmative action steps at least as extensive as the following:
a. Ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites, and in all facilities at which the Contractor’s employees are assigned to work. The Contractor, where possible, will assign two or more women to eac h construction project. The Contractor shall specifically ensure that all foremen, superintendents, and other onsite supervisory personnel are aware of and carry out the Contractor’s obligation to maintain such a working environment, with specific attention to minority or female individuals working at such sites or in such facilities. b. Establish and maintain a current list of minority and female recruitment sources, provide written notification to minority and female recruitment sources and to community organizations when the Contractor or its unions have employment opportunities available, and maintain a record of the organizations’ responses. c. Maintain a current file of the names, addresses, and telephone numbers of each minority and female off -the-street applicant and minority or female referral from a union, a recruitment source, or community organization and of what action was taken with respect to each such individual. If such individual was sent to the union hiring hall for referral and was not referred back to the Contractor by the union or, if referred, not employed by the Contractor, this shall be documented in the file with the reason therefor, along with whatever additional actions the Contractor may have taken. d. Provide immediate written notification to the Director when the union or unions with which the Contractor has a collective bargaining agreement has not referred to the Contractor a minority person or woman sent by the Contractor, or when the Contractor has other information that the union referral process has impeded the Contractor’s efforts to meet its obligations.
e. Develop on-the-job training opportunities and/or participate in training programs for the area which expressly include minorities and women, including upgrading programs and apprenticeship and trainee programs relevant to the Contractor’s employment needs, especially those programs funded or approved by the Department of Labor. The Contractor shall provide notice of these programs to the sources compiled under 7b above.
f. Disseminate the Contractor’s EEO policy by providing notice of the policy to unions and training programs and requesting their cooperation in assisting the Contractor in meeting its EEO obligations; by including it in any policy manual and collective bargaining agreement; by publicizing it in the company newspaper, annual report, etc.; by specific review of the policy with all management personnel and with all minority and female employees at least once a year; and by posting the company EEO policy on bulletin Item 1T - Page 56

boards accessible to all employees at each location where construction work is performed.
g. Review, at least annually, the company’s EEO policy and affirmative action obligations under these specifications with all employees having any responsibility for hiring, assignment, layoff, termination, or other employment decisions including specific review of these items with onsite supervisory personnel such superintendents, general foremen, etc., prior to the initiation of construction work at any job site. A written record shall be made and maintained identifying the time and place of these meetings, persons attending, subject matter discussed, and disposition of the subject matter. h. Disseminate the Contractor’s EEO policy externally by including it in any advertising in the news media, specifically including minority and female news media, and providing written notification to and discussing the Contractor’s EEO policy with other contractors and subcontractors with whom the Contractor does or anticipates doing business. i. Direct its recruitment efforts, both oral and written, to minority, female, and community organizations, to schools with minority and female students and to minority and female recruitment and training organizations serving the Contractor’s recruitment area and employment needs. Not later than one month prior to the date for the acceptance of applications for apprenticeship or other training by any recruitment source, the Contractor shall send written notification to organizations such as the above, describing the openings, screening procedures, and tests to be used in the selection process. j. Encourage present minority and female employees to recruit other minority persons and women and, where reasonable, provide after school, summer, and vacation employment to minority and female youth both on the site and in other areas of a contractor’s work force.
k. Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR part 60-3.
l. Conduct, at least annually, an inventory and evaluation at least of all minority and female personnel, for promotional opportunities and encourage these employees to seek or to prepare for, through appropriate training, etc., such opportunities. m. Ensure that seniority practices, job classifications, work assignments, and other personnel practices do not have a discriminatory effect by continually monitoring all personnel and employment related activities to ensure that the EEO policy and the Contractor’s obligations under these specifications are being carried out. n. Ensure that all facilities and company activities are nonsegregated except that separate or single-user toilet and necessary changing facilities shall be provided to assure privacy between the sexes.
o. Document and maintain a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations.
p. Conduct a review, at least annually, of all supervisor’s adherence to and performance under the Contractor’s EEO policies and affirmative action obligations.

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8. Contractors are encouraged to participate in voluntary associations, which assist in fulfilling one or more of their affirmative action obligations (7a through 7p). The efforts of a contractor association, joint contractor-union, contractor-community, or other similar group of which the Contractor is a member and participant may be asserted as fulfilling any one or more of its obligations under 7a through 7p of these specifications provided that the Contractor actively participates in the group, makes every effort to assure that the group has a positive impact on the employment of minorities and women in the industry, ensures that the concrete benefits of the program are reflected in the Contractor’s minority and female workforce participation, makes a good faith effort to meet its individual goals and timetables, and can provide access to documentation which demonstrates the effectiveness of actions taken on behalf of the Contractor. The obligation to comply, however, is the Contractor’s and failure of such a group to fulfill an obligation shall not be a defense for the Contractor’s noncompliance.

9. A single goal for minorities and a separate single goal for women have been established. The Contractor, however, is required to provide equal employment opportunity and to take affirmative action for all minority groups, both male and female, and all women, both minority and non-minority. Consequently, the Contractor may be in violation of the Executive Order if a particular group is employed in a substantially disparate manner (for example, even though the Contractor has achieved its goals for women generally, the Contractor may be in violation of the Executive Order if a specific minority group of women is underutilized).

10. The Contractor shall not use the goals and timetables or affirmative action standards to discriminate against any person because of race, color, religion, sex, sexual orientation, gender identity, or national origin.

11. The Contractor shall not enter into any subcontract with any person or firm debarred from Government contracts pursuant to Executive Order 11246.

12. The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the Equal Opportunity Clause, including suspension, termination, and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing regulations, by the Office of Federal Contract Compliance Programs. Any contractor who fails to carry out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246, as amended.

13. The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative action steps, at least as extensive as those standards prescribed in paragraph 7 of these specifications, so as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor fails to comply with the requirements of the Executive Order, the implementing regulations, or these specifications, the Director shall proceed in accordance with 41 CFR part 60-4.8.

14. The Contractor shall designate a responsible official to monitor all employment related activity to ensure that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may be required by the Government, and to keep records. Records shall at least include for each employee, the name, address, telephone numbers, construction trade, union affiliation if any, employee identification number when assigned, social security number, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations at which the work was performed. Records shall be maintained in an Item 1T - Page 58

easily understandable and retrievable form; however, to the degree that existing records satisfy this requirement, contractors shall not be required to maintain separate records.

15. Nothing herein provided shall be construed as a limitation upon the application of other laws which establish different standards of compliance or upon the application of requirements for the hiring of local or other area residents (e.g. those under the Public Works Employment Act of 1977 and the Community Development Block Grant Program).

Reference: 2 CFR 200, Appendix II(C), 41 CFR § 60-1.4, 41 CFR § 60-4.3, Executive Order 11246

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FAA – 17 Federal Fair Labor Standards Act
APPLICABILITY – Contract Types – Per the Department of Labor, all employees of certain enterprises having workers engaged in interstate commerce; producing goods for interstate commerce; or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person are covered by the FLSA.

All consultants, sub-consultants, contractors, and subcontractors employed under this federally assisted project must comply with the FLSA.

Professional Services – 29 CFR § 213 exempts employees in a bona fide executive, administrative or professional capacity. Because professional firms employ individuals that are not covered by this exemption, the agreement with a professional services firm must include the FLSA provision.

REQUIREMENT -
The provisions of 29 CFR part 201, the Federal Fair Labor Standards Act (FLSA), are incorporated by reference with the same force and effect as if given in full text. The FLSA sets minimum wage, overtime pay, recordkeeping, and child labor standards for full and part-time workers.

The Contractor has full responsibility to monitor compliance to the referenced statute or regulation. The Contractor must address any claims or disputes that arise from this requirement directly with the U.S. Department of Labor – Wage and Hour Division.

Reference: 29 USC § 201, et seq; 2 CFR § 200.430
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FAA – 18 Lobbying and Influencing Federal Employees
APPLICABILITY- all contracts exceeding $100,000.

REQUIREMENT -
Consultants and contractors that apply or bid for an award of $100,000 or more must have certified that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or another award covered by 31 USC §1352. Each tier must also disclose any lobbying with non -Federal funds that takes place in connection with obtaining any Federal award.

For an award over $100,00, the bidder or offeror certifies by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
• No Federal appropriated funds have been paid or will be paid, by or on behalf of the bidder or offeror, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. • If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
• The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

Reference: 31 USC § 1352 – Byrd Anti-Lobbying Amendment, 2 CFR part 200, Appendix II(I), 49 CFR part 20, Appendix A
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FAA – 19 Prohibition of Segregated Facilities
APPLICABILITY - The Contractor must comply with the requirements of the EEO clause by ensuring that facilities they provide for employees are free of segregation on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. This clause must be included in all contracts that include the equal opportunity clause, regardless of the amount of the contract.

Contract Types – any contract containing the Equal Employment Opportunity clause of 41 CFR § 60-1.4. This obligation flows down to subcontract and sub-tier purchase orders containing the Equal Employment Opportunity clause.

Construction – Construction work means construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings, highways, or other changes or improvements to real property, including facilities providing utility services. The term also includes the supervision, inspection, and other onsite functions incidental to the actual construction.

Equipment – On site installation of equipment such as airfield lighting control equipment meets the definition of construction and thus this provision would apply. This provision does not apply to equipment projects involving manufacture of the item at a vendor’s manufacturing plant. An example would be the manufacture of a SRE or ARFF vehicle.

Professional Services – Professional services that include tasks that qualify as construction work as defined by 41 CFR part 60 -1. Examples include the installation of noise monitoring equipment.

Property/Land – Land acquisition contracts that include tasks that qualify as construction work as defined by 41 CFR part 60- 1. Examples include demolition of structures or installation of boundary fencing.

REQUIREMENT -
(a) The Contractor agrees that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location under its control where segregated facilities are maintained. The Contractor agrees that a breach of this clause is a violation of the Equal Employment Opportunity clause in this contract. (b) “Segregated facilities,” as used in this clause, means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin because of written or oral policies or employee custom. The term does not include separate or single-user rest rooms or necessary dressing or sleeping areas provided to assure privacy between the sexes. (c) The Contractor shall include this clause in every subcontract and purchase order that is subject to the Equal Employment Opportunity clause of this contract.

Reference: 2 CFR Part 200, Appendix II (C); 41 CFR Part 60-1 Item 1T - Page 62

FAA – 20 Occupational Safety and Health Act
APPLICABILITY – Contract Types – All contracts and subcontracts must comply with the Occupational Safety and Health Act of 1970 (OSH). The U.S. Department of Labor Occupational Safety and Health Administration (OSHA) oversees the workplace health and safety standards wage provisions from OSH.

REQUIREMENT -
All contracts and subcontracts that result from this solicitation incorporate by reference the requirements of 29 CFR Part 1910 with the same force and effect as if given in full text. The employer must provide a work environment that is free from recognized hazards that may cause death or serious physical harm to the employee. The employer retains full responsibility to monitor its compliance and their subcontractor’s compliance with the applicable requirements of the Occupational Safety and Health Act of 1970 (29 CFR Part 1910). The employer must address any claims or disputes that pertain to a referenced requirement directly with the U.S. Department of Labor – Occupational Safety and Health Administration.

Reference: 29 CFR part 1910
Item 1T - Page 63

FAA – 21 Procurement of Recovered Materials
APPLICABILITY – Contract Types – This provision applies to any contracts that include procurement of products designated in subpart B of 40 CFR part 247 where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000.

Construction and Equipment – all construction and equipment projects.

Professional Services and Property – if the agreement includes procurement of a product that exceeds $10,000.

REQUIREMENT -
Contractor and subcontractor agree to comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, and the regulatory provisions of 40 CFR Part 247. In the performance of this contract and to the extent practicable, the Contractor and subcontractors are to use products containing the highest percentage of recovered materials for items designated by the Environmental Protection Agency (EPA) under 40 CFR Part 247 whenever:
1) The contract requires procurement of $10,000 or more of a designated item during the fiscal year; or
2) The contractor has procured $10,000 or more of a designated item using Federal funding during the previous fiscal year.

The list of EPA-designated items is available at www.epa.gov/smm/comprehensive-procurement- guidelines-construction-products.

Section 6002(c) establishes exceptions to the preference for recovery of EPA -designated products if the contractor can demonstrate the item is:
a) Not reasonably available within a timeframe providing for compliance with the contract performance schedule;
b) Fails to meet reasonable contract performance requirements; or c) Is only available at an unreasonable price.

Reference: 2 CFR § 200.323, 2 CFR Part 200, Appendix II (J); 40 CFR part 247, 42 USC § 6901, et seq (Resource Conservation and Recovery Act)
Item 1T - Page 64

FAA – 22 Rights to Inventions
APPLICABILITY – Contract Types – This provision applies to all contracts and subcontracts with small business firms or nonprofit organizations that include performance of experimental, developmental, or research work. This clause is not applicable to construction, equipment, or professional service contracts unless the contract includes experimental, developmental, or research work.

REQUIREMENT -
Contracts or agreements that include the performance of experimental, developmental, or research work must provide for the rights of the Federal Government and the City in any resulting invention as established by 37 CFR part 401, Rights to Inventions Made by Non- profit Organizations and Small Business Firms under Government Grants, Contracts, and Cooperative Agreements. This contract incorporates by reference the patent and inventions rights as specified within 37 CFR §401.14. Contractor must include this requirement in all sub-tier contracts involving experimental, developmental, or research work.

Reference: 2 CFR § 200, Appendix II(F), 37 CFR 401

Item 1T - Page 65

FAA - 23 Seismic Safety
APPLICABILITY – Contract Types – This provision applies to construction of new buildings and additions to existing buildings financed in whole or in part through the Airport Improvement Program.

Professional Services– any contract involved in the construction of new buildings or structural addition to existing buildings.

Construction – any contract involved in the construction of new buildings or structural addition to existing buildings.

Equipment – if the project involves construction or structural addition to a building such as an electrical vault project to accommodate or install equipment.

Land – This provision will not typically apply to a property/land project.

REQUIREMENT -
A23.3.1 Professional Service Agreements for Design

SEISMIC SAFETY
In the performance of design services, the Consultant agrees to furnish a building design and associated construction specification that conform to a building code standard that provides a level of seismic safety substantially equivalent to standards as established by the National Earthquake Hazards Reduction Program (NEHRP). Local building codes that model their building code after the current version of the International Building Code (IBC) meet the NEHRP equivalency level for seismic safety. At the conclusion of the design services, the Consultant agrees to furnish the Owner a “certification of compliance” that attests conformance of the building design and the construction specifications with the seismic standards of NEHRP or an equivalent building code.

A23.3.2 Construction Contracts

SEISMIC SAFETY
The Contractor agrees to ensure that all work performed under this contract, including work performed by subcontractors, conforms to a building code standard that provides a level of seismic safety substantially equivalent to standards established by the National Earthquake Hazards Reduction Program (NEHRP). Local building codes that model their code after the current version of the International Building Code (IBC) meet the NEHRP equivalency level for seismic safety.

Reference: 49 CFR Part 41
Item 1T - Page 66

FAA – 24 Tax Delinquency and Felony Conviction
APPLICABILITY – This provision applies to all contracts funded in whole or part with AIP.

REQUIREMENT -
The Contractor must have certified under the procurement process that resulted in the award of this contract that:
• Contractor has not been convicted of a Federal felony within the last 24 months; or • Contractor does not have any outstanding tax liability for which all judicial and administrative remedies have lapsed or been exhausted.

Reference: Sections 8113 of the Consolidated Appropriations Act, 2022 (Public Law 117-103), and similar provisions in subsequent appropriations acts.

DOT Order 4200.6 – Appropriations Act Requirements for Procurement and Non-Procurement Regarding Tax Delinquency and Felony Convictions

Item 1T - Page 67

FAA – 25 Termination of Contract
APPLICABILITY – All contracts and subcontracts in excess of $10,000.

REQUIREMENT -
See Section 4.5 of the Agreement.

Reference: 2 CFR § 200 Appendix II(B), FAA Advisory Circular 150/5370-10, Section 80-09 Item 1T - Page 68

FAA – 26 Foreign Trade Restriction
APPLICABILITY – all AIP funded projects.

REQUIREMENT -

TRADE RESTRICTION CERTIFICATION
By accepting this contract the Contractor certifies the following statements are true – 1) is not owned or controlled by one or more citizens of a foreign country included in the list of countries that discriminate against U.S. firms as published by the Office of the United States Trade Representative (USTR);
2) has not knowingly entered into any contract or subcontract for this project with a person that is a citizen or national of a foreign country included on the list of countries that discriminate against U.S. firms as published by the USTR; and
3) has not entered into any subcontract for any product to be used on the Federal project that is produced in a foreign country included on the list of countries that discriminate against U.S. firms published by the USTR.

This certification concerns a matter within the jurisdiction of an agency of the United States of America and the making of a false, fictitious, or fraudulent certification may render the maker subject to prosecution under Title 18 USC Section 1001.

The Contractor must provide immediate written notice to the City if the Contractor learns that its certification or that of a subcontractor was erroneous when submitted or has become erroneous by reason of changed circumstances. The Contractor must requir e subcontractors provide immediate written notice to the Contractor if at any time it learns that its certification was erroneous by reason of changed circumstances.

Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance with 49 CFR 30.17, no contract shall be awarded to an Offeror or subcontractor:
1) who is owned or controlled by one or more citizens or nationals of a foreign country included on the list of countries that discriminate against U.S. firms published by the USTR or 2) whose subcontractors are owned or controlled by one or more citizens or nationals of a foreign country on such USTR list or
3) who incorporates in the public works project any product of a foreign country on such USTR list.

Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render, in good faith, the certification required by this provision. The knowledge and information of a contractor is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

The Contractor agrees it will incorporate this provision for certification without modification in all lower tier subcontracts. The Contractor may rely on the certification of a prospective subcontractor that it is not a firm from a foreign country included on the list of countries that discriminate against U.S. firms as published by USTR, unless the Contractor has knowledge that the certification is erroneous.

Item 1T - Page 69

This certification is a material representation of fact upon which reliance was placed when making an award. If it is later determined that the Contractor or subcontractor knowingly rendered an erroneous certification, the Federal Aviation Administration (FAA) may direct through the City cancellation of the contract or subcontract for default at no cost to the City or the FAA.

Reference: 49 USC § 50104, 49 CFR part 30

Item 1T - Page 70

FAA – 27 Veteran’s Preference
APPLICABILITY – This provision applies to all AIP funded projects that involve labor to carry out the project. This preference, which excludes executive, administrative, and supervisory positions, applies to covered veterans [as defined under § 47112(c)] only when they are readily available and qualified to accomplish the work required by the project.

REQUIREMENT -
In the employment of labor (excluding executive, administrative, and supervisory positions), the Contractor and all sub-tier contractors must give preference to covered veterans as defined within Title 49 United States Code Section 47112. Covered veterans include Vietnam-era veterans, Persian Gulf veterans, Afghanistan- Iraq war veterans, disabled veterans, and small business concerns (as defined by 15 USC 632) owned and controlled by disabled veterans. This preference only applies when there are covered veterans readily available and qualified to perform the work to which the employment relates.

Reference: 49 USC § 47112(c)
Item 1T - Page 71

FAA – 28 Domestic Preferences for Procurements
APPLICABILITY – all contracts and Purchase orders for work or products under the grant.

REQUIREMENT -
The Contractor certifies by signing and submitting its bid or proposal that, to the greatest extent practicable, the Contractor has provided a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including, but not limited to, iron, aluminum, steel, cement, and other manufactured products) in compliance with 2 CFR § 200.322.

Reference: 2 CFR § 200.322; 2 CFR Part 200, Appendix II(L)

Item 1T - Page 72

ATTACHMENT B

PUBLIC INTEGRITY BUSINESS DISCLOSURE
Item 1T - Page 73

1. 2.

3. 4.

5. Name of Entity
PSM Squared, Inc.

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM
Address of Entity (Principal Place of Business)
2121 South 48th Street, Suite 105, Tempe, Arizona, 85282 Local or California Address (if different than #2)
417 Virginia Street, #4, El Segundo, CA 90245
State where Entity is Registered with Secretary of State If other than California, is the Entity also registered in California? D Yes No Type of Entity
!;21 Corporation D Limited Liability Company D Partnership D Trust D Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
Alicia Robertson 0 Officer D Director D Member D
Manager
[name] D General Partner D Limited Partner
□Other
D Officer D Director D Member D Manager
[name] D General Partner D Limited Partner
□ Other
D Officer D Director D Member D Manager
x
Arizona
Item 1T - Page 74
I
J
-
'
'
- -
-
-
I
~
1 -
Item 1T - Page 75
[name] D General Partner D Limited Partner
 Other

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

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

Alicia Robertson 1 QO%, PSM Sgua[~Q. In~.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
unature'of Disc'"g Party, POnted Name, Title Date
-I ~ -' . ' ,<D
Alicia Robertson, President/CEO 11/20/2024

CITY COUNCIL STAFF REPORT

DATE: JANUARY 23, 2025 CONSENT CALENDAR

SUBJECT: APPROPRIATE $1,000,000 IN HOUSING SET ASIDE FUNDS FOR

TENANT BASED RENTAL ASSISTANCE PROGRAM

FROM: Scott C. Stiles, City Manager

BY: Housing & Community Development

SUMMARY:

In Fiscal Year 202 4, the City established a Tenant Based Rental Assistance Program providing limited rental assistance to low -income residents using the Transient Occupancy Tax Housing Set -aside funds . As those funds have been exhausted, it is being recommended that the City Council appropriate $1,000,000 to continue the TBRA Program.

RECOMMENDATION:

1. A ppropriate $1,000,000 (one million dollars) in Housing Set Aside funds for the Tenant Based Rental Assistance Program.

BACKGROUND:

On September 26, 2023, City Council approved the
Tenant Based Rental Assistance
(TBRA) Program. This program came about due to housing needs of residents identified in the City’s Housing Element . The TBRA Program was an available option in the affordable housing toolkit. The TBRA Program is based on the premise that decent, safe, sanitary, habitable and affordable housing can be obtained on the private market for very low to low-income families. In addition to obtaining housing with lower barriers to entry, residents are also able to stay housed, which can lead to less people being housing insecure and in need of assistance in the future.

The first allocation of funding made available in July 2023 in the amount of $1,000,000 was exhausted by the end of January 2024. On February 8, 2024, City Council approved a second round of funding in the amount of $1,000,000 to continue to assist qualifi ed residents in Palm Springs. As of July 23, 2024, all $2,000,000 has been expended.

Item 1U - Page 1
City Council Staff Report
January 23, 2025 -- Page 2
Rental Assistance Program

STAFF ANALYSIS:

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

• Must be a City of Palm Springs resident with proof of residency and residing in the property as the primary address.
• Be obligated to pay rent on a residential dwelling or manufactured home lot in the City of Palm Springs.
• Qualify as a low-income household per the California Department of Housing and Community Development for Riverside County household income definition of being at or below 80% of the area median income (AMI).
• One or more individuals within the household has qualified for unemployment benefits or experienced a reduction in household income, incurred significant costs, or experienced other financial or health hardship; • One or more individuals within the household can demonstrate a risk of experiencing homelessness or housing instability.

Eligible forms of assistance include:

• Rental arrears up to four months, up to a maximum of $12,000 of assistance. • Prospective rent up to a maximum of three (3) months per application or Additional Funds Request (AFR) based on any application by or behalf of the household. This amount is calculated in the maximum term of assistance (four months). • Outstanding utility and home energy costs (arrears) up to the maximum term of utility assistance.
• Costs associated with turning on utilities due to poor credit or outstanding fees from a previous residence in Palm Springs.

Minor changes to the TBRA Program are being recommended to enable the TBRA Program to serve more residents and so that the TBRA Program funds can last longer.

These are summarized below and included in the Redline Version of the Rental Assistance Program Policies and Procedures (Attachment A).

• The maximum amount of funds an applicant may receive will be limited to $12,000. • Tenants residing in existing affordable housing projects will not be eligible for TBRA assistance.
• Security deposit assistance will be limited to one month as required by Assembly Bill 12, effective July 1, 2024.
• Landlords will be required to register with the City’s Rental Registry System. • Landlords will be required to provide the City with the tenants status 90 days after receiving the final month of TBRA assistance.

Item 1U - Page 2
City Council Staff Report
January 23, 2025 -- Page 3
Rental Assistance Program

It is also proposed that the amount of TBRA Funds be limited to the following quarterly allocation limits:

• Quarter 1 Allocation - $250,000 from January 1, 2025, through March 31, 2025 • Quarter 2 Allocation - $250,000 from April 1, 2025, through June 30, 2025 • Quarter 3 & 4 Allocation - $500,000 from July 1, 2025, until funds are exhausted

Any remaining funds at the end of a quarter will automatically be carried forward to the next quarter. The quarterly allocations are intended to preserve funding for the summer months when residents may be impacted by cutbacks in seasonal employment and when households incur higher utility expenses.

While this program has been in effect for over a year, there have been a number of successes. The City has assisted 45 0 households with rent, deposit, utility, and legal assistance to either stay in housing or get into housing. This includes assisting 98 households with getting into permanent housing from being unhoused, saved 93 households from eviction from nonpayment of rent and has worked with 97 landlords/ property managers/ and property managers.

Out of all of the residents who applied for assistance, 197 households work in the hospitality industry, a key industry in Palm Springs and the Coachella Valley. The hospitality industry reduces hours in the summer, due to it being “off season”. During the off season, hospitality workers are forced to file for partial unemployment and may get behind on their bills. During the fall when this program started, the hospitality workers were challenged with paying their current rent and utility bills while they attempted to catch up on past due bills. In addition to catching up on rent, the majority of residents who requested assistance needed it for the high cost of electricity during the summer. The average SCE payment was over $1,000 for 3 months of assistance, with many folks having bills over $600 a month for small apartments.

The high cost of utilities has been a challenge for this program. The high electricity bills have shed light on larger issues in residents’ homes, as discussed below:

1) Old air conditioners and/or HVAC units. Without proper maintenance, repair or replacement, the units will continue to run inefficiently and cost the residents, who are already struggling with the lack of work hours, hundreds of dollars. 2) Inefficient buildings. While there is a large focus on building energy efficient buildings, many older buildings have not had to make these transitions to be more energy efficient. With the rising temperatures and energy bills, this will continue to be a problem.

Staff from Housing and Community Development and Sustainability are collaborating with Southern California Edison (SCE) to work on a solution to these problems. This includes taking advantage of SCE’s program to update appliances to be more efficient.

Item 1U - Page 3
City Council Staff Report
January 23, 2025 -- Page 4
Rental Assistance Program

It should also be noted that some residents have requested TBRA Program assistance more than once. Landlord follow-up on the status of the tenants assisted with the TBRA Program will help gauge the need for future modifications to the TBRA Program.

Some residents in need of more intensive assistance, such as those in need of drug rehabilitation, also received TBRA Program assistance as staff worked with local sober houses to assist people in their journey with sobriety and ensuring they have a safe place to land post rehabilitation, when they can be most vulnerable to go back into old habits.

The City has paid for 24 individuals who were previously unhoused to get into sober houses, remain sober and work towards permanent housing. Staff has explored the use of the Opioid Settlement funds in the future to also fund this aspect of the TBRA Program.

The TBRA Program has assisted residents from all backgrounds, gender identities, sexualities, and household types. The TBRA Program is just one tool in the tool kit to assist the City of Palm Springs residents in removing barriers to getting affordable housing. While still a relatively new program, it has already benefited hundreds of Palm Springs residents.

ENVIRONMENTAL ASSESSMENT
:

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

ALIGNMENT WITH STRATEGIC PLANNING:

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

FISCAL IMPACT:

City staff is requesting $1 ,000,000 from Housing set -aside funds be used for the Tenant Based Rental Assistance (TBRA) Program. This funding would come from the Transient Occupancy Tax Housing Set Aside funds in Project 23-56 Account # 1001060 40105.

REVIEWED BY:

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

Item 1U - Page 4
City Council Staff Report
January 23, 2025 -- Page 5
Rental Assistance Program

ATTACHMENTS:

A. Redline Version of Rental Assistance Program Policies and Procedures Item 1U - Page 5
1 City of Palm Springs Rental Assistance 2025
Rental Assistance Program
Policies and Procedures
City of Palm Sp
rings | Community and Economic Development Department
3200 E Tahquitz Canyon Way | PO Box 2743 | Palm Springs, CA 92263-2743

ATTACHMENT A
Item 1U - Page 6
Like no place elser
CALIFORNIA p
Q

EQUAL HOUSING

OPPORTUNITY
•
2 City of Palm Springs Rental Assistance 2025

INTRODUCTION

PURPOSE AND USE

The attached program guidelines have been developed to facilitate the efficient and effective operation of the Tenant Based Rental Assistance (TBRA) Program for the City of Palm Springs.

The TBRA Program targets low income renters who are currently in need of housing or at risk of homelessness. Funding will cover rental assistance, utility assistance, and security deposits. The primary objective of the TBRA Program is to assist eligible applicants to secure decent, safe, and sanitary housing in the private rental market in eligible City of Palm Springs areas.

FAIR HOUSING

The following information should be included in marketing and agreements with the landlords/owners.

Non-Discrimination: The Agency or landlord shall not, in the provision of services or in any other manner, discriminate against any person on the grounds of age, race, color, religion, sex, national origin, familial status, or disability.

The regulations applying to discrimination, include, without limitation, the following:
 Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.) and Treasury’s implementing regulations at 31 C.F.R. Part 22, which prohibit di scrimination on the grounds of race, color, or national origin under programs or activities receiving federal financial assistance;  The Fair Housing Act, Title VIII-IX of the Civil Ri ghts Act of 1968 (42 U.S.C. § 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, national origin, sex, familial status, or disability;
 Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination on the basis of handicap under any program or activity receiving or benefitting from federal assistance;
 The Age Discrimination Act of 1975, as amende d (42 U.S.C. §§ 6101 et seq.) and Treasury’s implementing regulations at 31 C.F.R. Part 23, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance; and  The Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101 et seq.), which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or instrumentalities or agencies thereto.

DEFINITIONS

Adults in household: Anyone age 18 or older living in the housing unit.

Item 1U - Page 7
3 City of Palm Springs Rental Assistance 2025
Applicant: The person or people listed on the rent agreement and who is/are completing the application for rent assistance.

Area Median Income (AMI) : T h e A r e a M e d i a n I n c o m e ( A M I ) i s t h e m i d p o i n t o f a r e g i o n ’ s i n c o m e distribution – half of families in a region earn more than the median and half earn less than the median.

For housing policy, income thresholds set relative to the area median income—such as 50% of the area median income—identify households eligible to live in income-restricted housing units and the affordability of housing units to low-income households.

Base monthly rent: The set rental rate paid to the landlord each month, which may include a flat monthly fixed fee for utility costs. The base rent is typically defined in the lease agreement. This amount, listed in the lease agreement, does not fluctuate.

Direct Program Assistance: the costs eligible to be pay through the 90% of funds. This may be stated as “Rent, Utility, or Other Assistance Payments” (RUOAP).

Financial hardship: Defined as when a person with debt needs “substantially all of his/ her / their current and anticipated income and liquid assets to meet current and anticipated ordinary and necessary living expenses during the projected period of collection. Financial hardship will not be found to exist when the debtor merely establishes that the repayment causes a financial burden, i.e., when it is inconvenient to repay the debt.”
Household: All people who live within the same rental unit.

Landlord: A person who or company that rents land, a building, or an apartment to a tenant.

Lease terms: For the purpose of this program, the lease should include, at minimum, but is not limited to:
 The amount of rent and when rent is due;
 Grace periods and penalties, if any, for late payment of rent;  How long the lease is in effect (the “term of possession”);  Who is responsible for utility payments, garbage collection, internet, lawn care, etc;  Who is responsible for minor and major repairs to the rental property, especially to appliances, plumbing, heating and cooling;
 Whether the tenant can sublet and/or assign the lease during the lease term;  Security deposit amount and an explanation of the policies regarding how and when the security deposit will be returned at the end of the lease term.

Maximum term of assistance: The total amount of months that can be funded for any one case.

Program End Date: The date funds run out
Prospective rent: Rent payments made before the rent is due. If the due date for the current month’s rent has passed, then the current month’s rent is considered arrears. Otherwise, the current month’s rent is prospective rent. For the purpose of consistency, th e date of the application approval is the day when the rent is determined to be prospective rent or rent in arrears.

Item 1U - Page 8
4 City of Palm Springs Rental Assistance 2025
Rental/lease agreement: A lease is a contract, or legally binding agreement, between the landlord and tenant, granting the tenant exclusive use of the landlord’s property for a given period of time in exchange for rent. Typically, this is a formal agreement between a landlord and a tenant. It can also be an informal written letter with the name of the tenant(s) and address of the property, and contact information of the landlord, signed by both the landlord and tenant, that indicates the lease terms. See lease terms definition for what should be included in a lease.

Rental arrears: Outstanding rent due for previous months. If the due date for the current month’s rent has past, then current month’s rent is considered part of rental arrears.

Tenant: a person who occupies land or property rented from a landlord.

Unsafe and unhealthy living environment: housing that is considered uninhabitable, unsafe, dangerous, or hazardous according to City or County Building Code, State law, or the International Building Code. The tenant may need to hire a private housing inspector to identify if the living environment is uninhabitable, if the tenant is living in the housing. It can also be housing that meets the U.S. Department of Housing and Urban Development definition of overcrowding, in which there is more than one person per one room in the housing unit. In this definition "rooms" include living rooms, dining rooms, kitchens, bedrooms, finished recreation rooms, enclosed porches suitable for year-round use, and lodger's rooms.

ELIGIBLE ACTIVITIES & COSTS

A. TBRA Program funds may be used to provide financial assistance and housing stability services to eligible households for eligible forms of assistance, dependent on the demonstrated need and funding availability.

1. Eligible Households/Applicant To be eligible, a household must meet the following criteria:
i. Must be a City of Palm Springs resident with proof of residency and residing in the property as the primary address. The only exception is if the Household is moving to a new property within Palm Springs, has signed at least a six-month lease agreement or submitted a completed Letter of Intent with future apartment complex, and is requesting prospective rent, AND after all current City of Palm Springs residents approved for TBRA assistance on wait lists have received TBRA assistance;
ii. Be obligated to pay rent on a residential dwelling or manufactured home lot in the City of Palm Springs;
iii. Qualify as a low-income household per HUD’s household income definition of being at or below 80% of the area median income (AMI);
iv. One or more individuals within the household has qualified for unemployment benefits or experienced a reduction in household income, incurred significant costs, or experienced other Financial Hardship;
v. One or more individuals within the household can demonstrate a risk of experiencing homelessness or housing instability.

Item 1U - Page 9
5 City of Palm Springs Rental Assistance 2025

2. Eligible Forms of Assistance
i. Rental arrears up to the maximum term of assistance. ii. Prospective rent up to a maximum of three (3) months per application or Additional Funds Request (AFR) based on any application by or behalf of the household. This amount is calculated in the maximum term of assistance. iii. Outstanding utility and home energy costs (arrears) up to the maximum term of utility assistance.
iv. Costs associated with turning on utilities due to poor credit.

B. Maximum Amount of Assistance

1. The total amount of assistance an applicant may receive is $12,000 inclusive of all eligible forms of assistance.

B.C. Maximum Term of Assistance

1. The total overall amount of TBRA that any ap plicant to the City of Palm Springs TBRA program can receive is 4 months of assistance from the City, the State, or other Counties combined. This maximum amount includes re nt and utilities paid. We count the months and not the type of TBRA assistance. (e.g. If an Applicant’s landlord is paid three months of rent and the City water department is pa id three months of water payments for the same three months then the total amount of TBRA received is three months. If those rent and utility payments are for separate months, the total amount of TBRA received is six months.)

2. The total months of rental assistance is capped at 4 months and may include rental arrears, prospective rent assistance, securi ty deposit and other expenses related to housing.

3. The total months of utility assistance that is separately stated from the base rent and/or are paid to public utility provider is 4 months. The calculation for the amount of separate utility assistance is made by counting the num ber of months City of Palm Springs TBRA program paid for utilities. If the maximum amount of all utility costs (water, sewer, trash, gas, electric, and internet) is 4 months, no more TBRA can be paid for utility costs.

C.D. Priorities

1. Eligible Applicants shall be prioritized per the following conditions and in this order:
i. Tenant has received a court summons or demand notice for eviction due to non- payment of rent. The court summons or demand for eviction must be uploaded to the case.
ii. One (1) or more individuals within the household are unemployed as of the date of the application for assistance and have not been employed for the 90-day period preceding such date.
iii. The income of the household is at or below 50% AMI, with documentation.

INELIGIBLE COSTS
Item 1U - Page 10
6 City of Palm Springs Rental Assistance 2025

A. TBRA Program funds may not be used for the following activities:

1. To make commitments to specific owners for specific projects. Tenants must be free to use the assistance in any eligible unit;

2. To provide TBRA to homeless persons for overnight or temporary shelter;

3. To provide aid for more than 5 4 months;

4. To duplicate existing rental assistance programs that already reduce the tenant’s rent payment to 30 percent of income (not including vouchers); and

5. To provide assistance outside of the eligible TBRA Program areas

B. The assisted unit cannot be owned by the subrecipient unless an exception is approved in writing by the City of Palm Springs. In order to be considered for an exception, the request must, at a minimum, include the following information:

1. An explanation why the exception is necessary/appropriate;

2. A rent reasonableness analysis to demonstrate cost effectiveness;

3. Documentation of adequate outreach to owners so as not to limit access; and

4. Assurance that occupancy of the unit is not a ‘requirement’ placed on the participating household and that they have a free choice of units.

C. TBRA funds cannot be used for the following costs:

1. Application fees for housing units

2. Applicant background checks

3. Cable deposits

4. Landlord vacancy and/or damage claims

5. Down payment and/or closing costs in conjunction with a lease-purchase program

5.6. Rental assistance for units that have deed restrictions, or covenants for income restrictions.

RENTAL ASSISTANCE STANDARD

The TBRA Program is based on the premise that decent, safe, sanitary, and affordable housing can be obtained on the private market for very low to low-income families. The unit chosen by the family should not exceed HUD published Fair Market Rents (FMRs). HUD FMRs can be found on the following HUD website: https://www.huduser.gov/portal/datasets/fmr.html.

A unit is determined to fall within the FMR of a specific area by adding the contract rent and the applicable utility allowance for the unit. For the purposes of the TBRA Program subsidy, the sum of both numbers cannot exceed the FMR of a unit. The tenant may select a unit that falls over the FMR if the unit meets rent reasonableness standards in the area and if the tenant is willing to pay the excess rent.

No unit assisted by TBRA can be less than 80 percent of the published FMR for the unit.

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7 City of Palm Springs Rental Assistance 2025

SECURITY DEPOSIT

TBRA Program may provide grants to tenants for security deposits, not exceeding one two (12) months’ rent; income determination is provided at the time of assistance.

UTILITY DEPOSIT

Eligible utility expenses are defined as water, sewer, gas, electric, internet and trash collection. Utilities do not include cable, and/or cell phone service.

MARKETING AND OUTREACH

TBRA should be affirmatively marketed to all persons within the target population and/or special needs group. The marketing plan must address:

A. How the program will be announced (i.e., which media and other sources) B. Where applications are available (i.e., at one site or more) C. When applications will be accepted (i.e., daily, during normal working hours or extended hours for a specified period)
D. The method for taking applications (i.e., in person, by mail)

APPLICATION CRITERIA

All applications must be in written form or submitted on the City’s TBRA application portal and must contain, at a minimum, information that enables the subrecipient to determine household composition, income and eligibility.

Each application received must be reviewed for completeness and to determine if the applicant is obviously ineligible. Staff will place all applicants who are apparently eligible on the waiting list pending verification of information provided.

A tenant file must be created for each application. This file will ultimately contain the application, documentation of the household’s eligibility, copies of program forms, correspondence, etc.

Staff can sit with the Applicant as he/she/they are completing the application and verbally walk them through the application pages and questions. Staff shall not complete an application for an Applicant.

However, staff can scan and upload documents for the Applicant. Staff can make changes to an application with written authorization from the applicant (for example, an email to the reviewer or lead working on the case).

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Documentation can be in the form of an electronic document, scanned document, photographed document, or presented in hard copy to the City of Palm Springs, who may scan the documents and upload to the application. The scan or photograph must show the entire document, not just a section or sections from the document. City Staff shall check scans, photographs, and paper documents to make sure they have not been manipulated.

Applicants shall complete information on the tenant and the household members.

1. The application asks for social security numbers for all household members. Social Security Numbers and identification information submitted with an application are/is protected and shall not be shared.

2. The Applicant is required to provide a legal photo ID that has their name and address. If the ID is missing an address (passport), the address is out-of-date, or the address does not match the address on the lease agreement, staff shall collect an official document other than the lease from a government organization or a company with the tenant’s name and address to verify City of Palm Springs residency. Examples include an unemployment benefit letter, utility bill, paystub from a verifiable business, bill from a college/university, bill from credit card company.
a. There shall be a “legal form of identification” for each of the household members age 18 and older. This could be the rent agreement with the other person’s name on it, photo ID with a household member’s current address, a utility bill, paystub, bank account statements, bill from a college/university, bill for credit card, tax form if prepared by a professional firm. This information is used to verify that the household members are people living at the address and not people listed to meet the household AMI criteria for the program. Note: the application requests a photo ID of all household members age 18 or older.

3. People who do not have U.S. residency can apply for the program and/or be a part of a Household that is applying for the program.

4. Documentation must be uploaded to the case file that proves the Household lives in the City of Palm Springs TBRA program area and that the Household is/was obligated to pay rent. a. A rent agreement shall be used to verify the Household lives or lived in the City of Palm Springs during the time the Household is requesting assistance, and that the household is or was obligated to pay rent on a residential dwelling. b. For those who are moving within the City of Palm Springs or resigning a lease agreement, a fully executed lease agreement that is at least six (6) months long is required to prove the household will be living in the program area or a fully signed Letter of Intent.
c. The rent agreement term and the time in which the Household is requesting assistance must align.
d. The rent agreement must show the address and the tenant’s name and must be signed by both the Tenant/Applicant and Landlord.
e. The rent agreement is a required document page on the application.

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f. If the lease is electronically signed, a utility bill or other official document can be used to verify the Applicant or co-Applicant lives at the location.

5. Applicants are requested to show documentation to determine the household income level.

Households must be low-income as defined by the United States Housing Act of 1937 (household income below 80% AMI) to be eligible for the program. The City of Palm Springs uses the definition of annual income from 24 CFR § 5.609. The City of Palm Springs shall request income verifying documentation from all adults age 18 and older living in the household to verify income level and prevent fraud. There are a few ways that a household can income-qualify for the program:
a. Applicants who have one or more household members who are or were unemployed during the time of requested assistance can provide unemployment benefit letter(s) for the adult(s) in the household. Please note that one unemployment benefit letter for one adult does not cover every adult in the household.
b. Households that are low-income can provide the most recent and appropriate income tax forms (the 2022 tax forms as of April 21, 2023 are required for TBRA to cover months in 2022, and a 2021 tax form can be used to pay TBRA for months in 2021), or two recent, consecutive months of paystubs for all adult members of the household, and/or two months of all pension or retirement distributions.

Households that are receiving assistance through federal government programs can submit copies of the benefit letters with the application to qualify, provided the determination of eligibility for these benefits was made recently (in the last six months). See Current Income under the Income Qualification section for the various benefit letters that will be accepted.
c. Applicants who are self-employed or do freelance work can provide other types of documentation to prove income level. See the Income Qualification section for benefit letters that will be accepted.

6. The TBRA Policy requires that at least one person in the Household demonstrate a risk of experiencing homelessness or housing instability. Some examples of documentation that can verify housing instability include:
a. Eviction notice; or
b. 10-day or 30-day notice from landlord; or
c. Ledger from the Landlord of two or more months of past due rent (does not need to be consecutive months). This can include a ledger with partial payments made with some outstanding rent accumulating;
d. Utility bill with two or more months of past due utilities; or e. Ledger from Landlord of three months or more of late rent (does not need to be consecutive);
f. Documentation of recent and unexpected termination of employment; or g. Demonstration of an unsafe or unhealthy living environment:
h. Letter from the City or County Building Officials or documentation from a private housing inspector identifying that the housing is uninhabitable, unsafe, dangerous, Item 1U - Page 14
10 City of Palm Springs Rental Assistance 2025
or hazardous according to City or County Building Code or State law or the International Building Code.
i. Documentation from a Fire Department that the housing is unsafe, dangerous, or hazardous.
j. Documentation signed by caseworker with knowledge of the Applicant’s housing situation that the house is overcrowded or documentation that proves that the amount of people living in the house create an overcrowding situation as defined by the U.S. Department of Housing and Urban Development.
k. Applicants applying for assistance with utility or other housing expenses related to housing shall submit bills or evidence of payment.

RENT ASSISTANCE CRITERIA

General Guidance on Rent

1. A lease agreement signed by the Applicant (tenant) and landlord or sublessor that identifies the unit where the Applicant resides and the elements listed under lease terms in Definitions section is required to serve a person through this program.

2. The amount of rent eligible for the program must be identified in a lease agreement between the tenant and the landlord. This applies to the monthly amount and what the monthly rent includes as well as the length of time in the rental housing. The lease term justifies the number of months the Applicant can live in the housing and thus the number of months eligible for TBRA rent assistance. If using a letter for the lease agreement (that contains all the elements listed under lease terms in the Definitions section), rent payments must be proved through copies of deposited checks, bank statements, or other documentation that reasonably establishes a pattern of paying rent.

3. A new lease agreement must be for at least a six (6) month term for the City of Palm Springs to fund prospective rent and/or security deposit or application fees. There is no requirement regarding the length of time the Applicant household has lived in the current unit.

4. Rent must either fall into the category of rental arrears or the category of prospective rent.

5. The total rental assistance (the “maximum term of assistance”) is capped at 4 months.

6. There is not a maximum monthly amount per unit for rent eligible under the City of Palm Springs TBRA Program.

7. Funds cannot be paid after the Program End Date, which is determined by available funds.

8. The City of Palm Springs may pay multiple landlords on behalf of one household. For example, a tenant might have been displaced and moved before paying rent in arrears to the former landlord and the tenant is not able to pay rent to the new landlord. The City of Palm Springs can pay the previous landlord for the rent in arrears for the time the tenant was living in the unit and pay the current landlord for prospective rent, if the household qualifies for the program and there are two rental agreements submitted to pay both landlords.

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9. Rent expenses can include housing costs bundled into the fixed fee monthly rent amount, as defined in the rent agreement. These may include utilities, home energy costs, general maintenance costs that are covered by the landlord. If the landlord charges utility costs separately from the base monthly rent, then these utility costs fall under the Utility Assistance Criteria.

10. An eligible household that occupies a federally subsidized residential or mixed-use property or receives federal rental assistance may receive TBRA assistance, provide that TBRA funds are not applied to costs that have been or will be reimbursed under any other assistance. a. If an eligible household receives a monthly federal subsidy (e.g., a Housing Choice Voucher, Public Housing, or Project-Based Rental Assistance) and the tenant rent is adjusted according to changes in income, the renter household may receive TBRA assistance for the tenant-owed portion of rent or utilities that is not subsidized. b. The City of Palm Springs must review the household’s income and sources of assistance to confirm that the TBRA assistance does not duplicate any other assistance, including federal, state, or local assistance provided for the same costs.

11. The City of Palm Springs will treat subleases like regular leases. The subleases must meet the same TBRA program criteria as the leases. The original lease must allow for subleasing.

12. Households with a rent-to-own lease can receive assistance for the rent and utilities, provided that a member of the household
a. Is not a signor or co-signor to the mortgage on the property; b. Does not hold the deed or title to the property; and c. Has not exercised the option to purchase.

13. If an Applicant is able to provide a lease agreement, but is unable to present adequate documentation of the amount of the rental obligation (i.e the ledger), then The City of Palm Springs may accept a written attestation signed by both the Applicant and the landlord to support the payment of assistance up to a monthly maximum of 100% of the greater of the Fair Market Rent or the Small Area Fair Market Rent for the area in which the Applicant resides, as most recently determined by HUD and made available at www.huduser.gov/portal/datasets/fmr.html. The assistance described in this paragraph may only be provided for three (3) months. This limited payment is intended to provide Households and Landlords the time to gather the essential documentation (ledger) or to negotiate with landlords to avoid eviction.

Rent in Arrears (Overdue Rent Payments)

1. Rent in arrears can be paid for back rent but may not exceed the maximum term of rental assistance.

2. Rent in arrears can only be paid for the time the Household was living in the unit.

3. If an Applicant has rent in arrears, it should be paid in full up to a maximum term of rental assistance, subject to funding availability.

4. City of Palm Springs must pay the rental arrears first and before the household may receive assistance for prospective rent payments.

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12 City of Palm Springs Rental Assistance 2025

5. TBRA can pay for rental or utility arrears for families who were in a rental agreement previously even if the Household is not currently in a rental obligation.

1. TBRA can pay for rental and utility arrears and prospective rent for tenants who have been in a month-to-month lease that starte d at least six months prior to requesting assistance.

Prospective Rent

1. The City of Palm Springs may pay prospective rent up to and not exceeding three (3) months forward. Prospective rent can only be paid if the prospective rent is necessary for the Applicant’s housing stability.

2. To provide prospective rent, the Landlord must agree not to evict the tenant for the months with prospective rent paid.

3. A fully executed agreement for the time period requesting/receiving TBRA funds is required.

Therefore, if the lease ends before or during the time period that the prospective rent would cover, the City of Palm Springs has some options:
o Provide prospective rent up until the end date of the lease agreement; or o Upload the new lease signed by both the tenant and landlord; or o Use the Letter of Intent signed by the Applicant (tenant) and landlord or sublessor that identifies the property and the unit where the Applicant will reside to allow the City of Palm Springs to obligate the prospective rent and pay it when the signed lease is provided.

4. Prospective rent shall only be paid after all eligible outstanding rent and utility costs have been paid.

5. The monthly amount eligible to be paid as prospective rent is the fixed fee amounts listed in the lease agreement. These fixed fee amounts are set amounts paid monthly, as stated in the lease. Fluctuating amounts, irregular amounts, and quarterly or annual amounts are not eligible to be paid as prospective rent.

6. The Applicant does not have to have outstanding rent to be served.

7. Households can receive prospective benefits if the City of Palm Springs can prove:
o the Household is currently struggling with housing instability; and o the Applicant was previously in a lease agreement. The previous lease does not have to be for housing in the City of Palm Springs, if the Applicant is requesting prospective rent only; and
o the Household has entered into a current lease agreement that has a six (6) month term or longer or has a signed Letter of Intent for leasing an apartment in the City of Palm Springs TBRA eligible area.

8. Applicants who have been unhoused may receive prospective rent paid through the TBRA program if the person/family is in a new lease or starting a new lease and meets all the eligibility requirements of the program.

9. For families who do not have a current rental obligation, which is a requirement for TBRA eligibility, the City of Palm Springs can provide households with the Letter of Intent stating Item 1U - Page 17
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13 City of Palm Springs Rental Assistance 2025
that the Applicant is pre-approved for TBRA funds and specifying the amount and type of funding the landlord will receive if the landlord and the Applicant enter into a lease with at least a six (6) month term. However, funds for security deposits, application fees, and prospective rent cannot be paid until the official rent agreement is signed by both parties, submitted, and attached to the case file. The letter of intent shall have an expiration date of 25 days.

UTILITY ASSISTANCE CRITERIA

Utility expenses that are paid through a utility service provider or a landlord are eligible to be paid through the TBRA program. Utilities and home energy costs eligible for TBRA funding include electricity, gas, water and sewer, trash removal, and energy costs, such as fuel oil and internet.

A. Outstanding utility costs to a utility provider can be paid for, but may not exceed the maximum term of utility assistance of 4 months.

B. The City of Palm Springs TBRA program will pay for utility in arrears but does not provide prospective utility payments (utility bills yet to be calculated).

C. Only those utility costs accrued during the same period the tenant was living in the housing can be paid, and this time period must be as verified through a rent agreement or agreements.

D. Utility expenses that are a part of the monthly fixed fee rent amount (i.e. base rent) and covered by the landlord are considered rent for the purpose of this program.

E. All utility service costs reimbursed with TBRA funds shall have a written “bill, invoice or evidence of payment to the provider of the utility or home energy service,” if the utility cost is not a part of the base rent cost (i.e. monthly fixed fee rent amount) listed in the lease agreement. This separate utility expense is common with mobile home parks, in which water bills are broken out for lots based on the monthly water cost. Therefore, the City of Palm Springs shall not estimate or pay these prospective utility payments.

F. The address listed on the utility bills/statement must match the address on the rental agreement.

G. The payment of rental assistance is not required to provide financial assistance with utility and energy costs. However, if the Applicant has rental arrears, this outstanding amount shall be paid first before utility assistance can be offered.

H. If the Applicant has separate utility bills and has not requested that these be paid, then it is not necessary to “find” outstanding utility costs to pay.

I. Internet Service can be paid with direct program assistance and is considered a utility cost.

1. Current and past due internet service expenses can be paid if the Applicant meets all other program qualifications and there is remaining TBRA funds after the outstanding rent and outstanding utility are paid in full by TBRA or some other source.

2. Internet costs will follow the maximum terms of assistance for utilities.

3. Internet statements of outstanding costs or bills can be sent as a part of the application. All payments for internet in arrears shall be supported by a current and/or past due bill or invoice.

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14 City of Palm Springs Rental Assistance 2025

4. In cases where it is impossible to substantiate the actual cost of the internet because the service is provided in a bundle package, Partner Organizations may pay $65/month for internet and may not exceed 4 months of assistance. The City of Palm Springs TBRA Program does not provide internet payments forward.

OTHER EXPENSES RELATED TO HOUSING

A. Fees paid as direct program assistance

1. Late Fees
a. The City of Palm Springs will pay the greater of $50 in late fees or 5% of the past due rent payment with TBRA funds for rent in arrears.
b. Late fees must be justified through the rent agreement and the landlord’s ledger.

2. Court Fees
a. Court filing fees for the Applicant’s/tenant’s portion of the Household’s Eviction case. b. Costs or fees imposed by a judge regarding the Applicant’s eviction case can be paid as long as the tenant is able to remain and remains in the rental housing.

3. Housing Fees
a. Housing fees allowed to be paid must be “reasonable and necessary”. If associated with rent, the fees must be identified in the lease, documented on a rental ledger, and legally required to be paid to prevent eviction. If associated with utilities, the fees must be documented on the utility bill.
b. These fees are the miscellaneous fees not addressed in other sections of this manual or other categories of this section and are associated with leasing the unit or the lot.

Examples of these fees are pest control, monthly renters’ insurance fees, garage/covered parking fee, Conservice fee for utility bills, etc. c. The maximum monthly amount of these miscellaneous fees that can be reimbursed is $100.
d. Fees rolled into the base rent are considered rent. See Rent Assistance Criteria. e. An application fee for the future rental property. See application fees under Relocation Expenses.

B. Relocation Expenses – can be paid with direct program assistance Item 1U - Page 19
15 City of Palm Springs Rental Assistance 2025

1. Relocation and rental fees may be awarded to households who are moving to a housing situation with a six month or longer lease, a less expensive housing situation, or a healthier environment. Relocation fees may cover the following:
a. Security deposits up to one month’s rent on new housing with a six (6) month or longer lease term.
i. The security deposit is calculated as one month of the maximum term of rent assistance.
ii. The security deposit may be returned to the tenant if the tenant resides in the unit for a of minimum four (4) months. If the tenant vacates the unit before the four (4) month period, the security deposit is must be returned to the City of Palm Springs’ TBRA bank account to be used for another Household. b. An application or screening fee for the new housing location that is a “reasonable” cost.

An application fee of approximately $40 is reasonable for California. The Applicant must have a fully executed lease agreement before this application fee can be reimbursed.

This amount can be provided in addition to the maximum term of rental assistance. c. Moving expenses are limited to $500 maximum. This expense can be provided in addition to the maximum term of rental assistance if a valid bill/invoice is supplied. i. Applicants who qualify for relocation expenses must be staying in the City of Palm Springs program area. Those moving out of the City of Palm Springs to housing in another city are not eligible to receive this assistance.

C. Fees that are not eligible for direct program assistance, in general:
 Landlord attorney fees
 Damage fees
 Unauthorized pet fees (different than a monthly pet fee)  Fees intended to reprimand the tenant, (especially if the Landlord is evicting or if the tenant is leaving to prevent future eviction) such as an early termination fee assessed if the tenant does not give enough notice required in the lease agreement or an unreasonable fee charged to the tenant in the event the resident defaults on the lease agreement by vacating before the end of the lease, either voluntarily or through an eviction

APPLICATION REVIEW PROCESS

A. Once an application is submitted and shows up on th e wait list, a City of Palm Springs staff member will review the application to check if the Applicant resides in the City of Palm Springs TBRA area.

1. If the Applicant resides in the City of Palm Springs, the reviewer will:
a. Check the case file to see if there is a court summons or 30-day/10-day demand letter.

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16 City of Palm Springs Rental Assistance 2025
b. Check the case file for completeness. All aw ards for assistance must meet the minimum program requirements listed under Eligibility Criteria. If something is missing from the file, the staff member will send an Incomplete Application email.

2. If the Applicant does not reside in the City of Palm Springs, the reviewer will:
a. Send a Denial Email to the Applicant. This email could include links to assistance elsewhere in the Coachella valley/Riverside County.

B. City of Palm Springs staff shall confirm the property ownership through Riverside County property records to verify the landlord (for single family homes) on the lease is the property owner. Also, this check can determine if the landlord is in a relation ship with the tenant that presents a conflict of interest to the tenant receiving funding. For example, a landlord renting to his/her sibling or significant other to pay a mortgage.

1. If the property owner is a trust, please ask the trust to provide ownership records.

C. City of Palm Springs staff can check to make sure the housing is not in the foreclosure process through the Foreclosure listings on the County of Riverside Assessor Website. Applications can be denied when the rental housing is in the foreclosure process.

D. City of Palm Springs staff shall process applications with high priority conditions first.

1. Staff will work expediently with cases that required an expedited payment process to prevent eviction. Applicant will need to state and produce evidence of threat of eviction.

INCOME VERIFICATION

Eligible Households must have an income below 80 % AMI based on annually published income limits by the Department of Housing and Community Developmen t Division of Housing Policy Development for Riverside County U.S. Department of Housing and Urban Development (HUD) for the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA)available at:
chrome-
extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.hcd.ca.gov/sites/default/files/docs/grants -and-funding/income-limits-2024.pdf

. The City of Palm Springs is using the 2023 income limits for the TBRA program and will update annually:
# of People
in
Household
1 2 3 4 5 6 7 8
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17 City of Palm Springs Rental Assistance 2025
Maximum
Income
(80% AMI)
$52,200 $59,650 $67,100 $74,550 $80,550 $86,500 $92,450 $98,450

A. City of Palm Springs Staff must determine income eligibility based on sufficient confirmation of the household’s yearly or monthly income through one of the four methods, as outlined below:

1. Tax Returns
a. C i t y o f P a l m S p r i n g s s t a f f c a n r e l y o n t h e Applicant’s Adjusted Gross Income from the Applicant’s filed federal tax return (Form 1040). Federal tax returns should be collected for all adults who filed taxes and live in the home.

2. Current Income
a. City of Palm Springs staff shall review the two (2) months of gross income information for the household (anyone over 18 years old) submitted at the time of application. The two (2) months of income is then extrapolated over a 12-month period to determine whether household income exceeds 80% of AMI. Applicants must submit income documentation for the two (2) most recent months of the income documentation for all adults (18 and over) living in the home, as applicable, for the household. Income documentation includes:
 Paystubs or other wage statements;
 Unemployment benefits;
 Social Security;
 Retirement, survivor, or disability pensions;
 Supplemental Security Income (SSI);
 Public assistance payments;
 Interest, dividends, net rental income, royalty income, or income from estates and trusts. (Report even small amounts credited to an account.);
 Any other sources of income regularly received such as Veterans' (VA) payments, child support, or alimony;
 Bank statements (two months’ worth), especia lly for those whose pay is directly deposited such as Uber or Lyft drivers or employees who receive tips as a source of income;  Small business owners and freelance worker s can provide IRS Form 1099 for business or consultant work;
 Self-employment income - net income after business expenses;  Those who are paid directly to their bank account or those whose primary income comes from tips can submit two months of bank account records that show payments and tips.

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 Signed attestation from the Applicant’s employer: Those who may be paid a stipend or one-time fee for work, such as with an internship, or as needed-work, or project-based work, can provide a letter on company lett erhead from the business owner or manager that states the person works for the company, the dates the person worked, will work, or does work for the company and the pay that the person received or receives.

3. Categorical Eligibility
a. Categorical eligibility is applicable when the applicant is receiving assistance or is qualified for assistance from other programs that align with the TBRA program’s income eligibility requirements. The following determination/benefit letters for assistance from a government agency, provided the benefit letter is dated in the last six months, are allowable to determine income:
 Supplemental Nutrition Assistance Program (SNAP)
 Low Income Energy Assistance Program (LEAP)
 Temporary Aid to Needy Families (TANF)
 Medicaid for Parents & Caretaker Relatives, Adults (ages 19-65), or Pregnant Women  Child Care Assistance program (CCAP)
 Aid to the Needy Disabled / Aid to the Blind
 Old Age Pension
 Qualified Medicare Beneficiary who receives coverage of Part A and Part B premiums  Housing Choice Voucher that has been income verified in 2022 or 2023  Supplemental Security Income (SSI) (not Social Security Disability Insurance)  In appropriate cases, the City of Palm Spri ngs staff may rely on an attestation from a caseworker or other professional with knowledge of a household’s circumstances to certify that an Applicant’s household income qualifies for assistance b. The benefit letter must cover the entire household or multiple income documents for the household may be necessary.

4. Self-Attestation with Fact-Specific Proxy
a. City of Palm Springs staff must have “a reas onable basis” for determining household income and “support its determination with both a written attestation from the applicant as to household income and also documents available to the applicant, such as paystubs, W-2s or other wage statements, tax filings ,” etc. Therefore City of Palm Springs staff must request applicants provide income documentation. If the Applicant can provide any of the other forms of income documentation listed in these Policies and Procedures, then reviewers shall use those documents to verify income.

5. Self-Attestation with No Confirming Documentation
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a. As a last resort and under very limited circumstances, City of Palm Springs Staff may make a request to Adams County to evaluate a writte n attestation from an Applicant on household income without further documentation. This me thod is limited to Applicants who are faced with extenuating circumstances that hinder the Applicant from obtaining income documentation and the Applicant does not live within a QCT. b. Extenuating circumstances may exist when the household’s documents were lost in a fire or flood, when the company the person worked for went out of business, if a person requests an accommodation for a federally recognize d disability and the County Human Services Department or the person’s case worker verifies the person does not have documents, when the person is paid by cash only, or if the household has zero income. c. If an application has suspicious elements in application or documentation, a certification of zero income cannot be used.
d. Under all written attestation requirements, City of Palm Springs staff are responsible for making the determination rega rding the applicant’s household income according to these policies and procedures and documenting that the determination follows these policies and procedures.

WAITING LIST

The City of Palm Springs will process applications in the order they are received. Families with a complete application will be selected in that order, until funds are depleted.

WRITTEN NOTICE OF DENIAL

If an applicant is denied for the TBRA Program, City of Palm Springs staff must provide in writing the reason(s) for denial

DETERMINATION OF UNIT SIZE

The unit size designated shall be assigned in accordance with the following criteria:

A. No more than two persons are required to occupy a bedroom;

DISTRIBUTION OF FINANCIAL ASSISTANCE

A. Assistance payments are to be made directly to the landlord or utility provider on behalf of the eligible household.

1. Landlords and utility providers must provide their name, address, and Social Security number, tax identification number or DUNS number. This information will be on the Landlord application and the W-9.

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1.2. Landlords must register in the City’s Rental Registry system.

1. 3. The City of Palm Springs must provide a record to the Applicant of any payments made by the organization to a landlord or utility provider on behalf of an eligible household.

B. Post Payment Follow-up

1. City of Palm Springs requires landlords to show documentation from the landlord to show the payment has been credited to the tenant. This measure further prevents fraud, waste, and abuse.

1.2. Landlords are required to provide the City with the participating tenant’s tenancy status as of 90 days after the last month for which the tenant received rental assistance. Post program tenancy status updates are to be provided to the City representative within 120 days after the last month for which the tenant received rental assistance.

C. Landlord or Utility Provider Refuses Payment

1. The City of Palm Springs must make reasonable efforts to obtain the cooperation of landlords and utility providers to accept the TB RA payments from the City of Palm Springs TBRA Program.

Outreach must be completed by the City of Palm Springs before determining that the landlord or utility provider will not accept direct payment from the City. Outreach will be considered complete if:
a. At least three (3) attempts by phone, text, or e-mail are made over a five (5) calendar-day period to request the landlord or utility provider’s participation; or b. A landlord confirms in writing that the landlord does not wish to participate.

2. If the landlord or utility provider does not agree to accept such payment from the City of Palm Springs after outreach, the City shall work to get the landlord to reconsider. a. If the landlord still does not accept the payment, the case may proceed to court and the City of Palm Springs may pay rent assistance through a Court bond. The City of Palm Springs can consider paying the rent assistance directly to the eligible household for the purpose of making payments to the landlord or utility provider. However, this decision would require all other payment options to fail, the City staff to speak with the landlord to confirm the Landlord’s stance, and other confirmation that the funds would be used only for rent assistance. That confirmation will be determined by the City of Palm Springs on a case-by- case basis. Only the outstanding rent and utilities included in the rent can be paid directly to the household. Payments made directly to tena nts do not require the tenant to submit a W- 9 and receive a 1099 at the end of the year.

D. Landlords paid directly must complete a W-9 and w ill receive a 1099 at the end of the year. Partner Organizations shall provide 1099s to landlords pa rticipating in the prog ram. Businesses must send Form 1099-MISC to recipients by February 1 and file it with the IRS by March 1. Households and utility companies do not need a 1099. For information visit the IRS website https://www.irs.gov/newsroom/emergency-rental-assistance-frequently-asked- questions#:~:text=No.,to%20members%20of%20the%20household.

Item 1U - Page 25
21 City of Palm Springs Rental Assistance 2025

Item 1U - Page 26

CITY COUNCIL STAFF REPORT

DATE: JANUARY 23, 2025 CONSENT CALENDAR

SUBJECT: A PPROVAL OF AGREEMENTS WITH THE CALIFORNIA DEPARTMENT

OF TAX AND FEE ADMINISTRATION FOR PREPARATION AND

ADMINISTRATION OF THE MEASURE J LOCAL TAX AND A

RESOLUTION AUTHORIZING RELEASE OF SALES TAX DATA FOR

COMPLIANCE PURPOSES

FROM: Scott C. Stiles, City Manager

BY: Department of Finance and Treasury

SUMMARY:

This action requests City Council to consider a proposed resolution that approves two agreements with the California Department of Tax and Fee Administration (“CDTFA”) for preparation (Attachment A) and administration (Attachment B) of the 1% Palm Springs Transactions and Use Tax known as Measure J and authorize the City Manager to execute the agreements on behalf of the City (Attachment D). The City Council is also being asked to consider a proposed resolution authorizing the release and examination of sales and use tax records (Attachment C). These agreements and resolutions have been in place but need to be renewed based upon the passage of the removal of the sunset clause for Measure J.

RECOMMENDATION:

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

CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE CITY MANAGER

TO EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL
TRANSACTIONS AND USE TAX”;

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

CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE RELEASE AND EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS";

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

Item 1V - Page 1
City Council Staff Report
January 23, 2025 -- Page 2
Approval of Agreements and Resolutions Related to the Removal of the Sunset Period for Measure J

STAFF ANALYSIS:

At the Regular Municipal Election on Tuesday, November 5, 2024, the qualified electors of the City of Palm Springs approved the removal of the sunset clause for the local 1% sales and use tax known as Measure J.

The Palm Springs Municipal Code Section 3.22.040, as approved by the voters, requires the City to enter into a contract with the California Department of Tax and Administration to perform all functions related to the administration and the operations of the tax.

The California Department of Tax and Administration requires the City Council approve agreements for the preparation and the State administration of the City's 1% local transactions and use tax, known as Measure J. Staff, together with the guidance of the City Attorney’s office, Best, Best and Krieger LLP (BBK) has prepared a resolution as required by the Department to approve the agreements and authorize the City Manager to execute the Agreements on behalf of the City.

The second resolution renews MuniServices/Avenu Insights & Analytics, LLC (t he City’s contracted outside Sales Tax Consultants) permission to obtain and examine the sales and use tax data, from the City’s local Measure J 1% add- on sales tax, for compliance analysis. The California Department of Tax and Fee Administration requires this permission to be granted through a resolution formally adopted by the City Council.

FISCAL IMPACT:

The approval of the removal of the sunset clause for Measure J has no immediate impact on the financial statements of the City. The collection and remittance of the tax by the CDTFA will continue as normal.

REVIEWED BY:

Department Director: Kristopher J. Mooney
City Attorney: Jeff Ballinger
City Manager: Scott Stiles

ATTACHMENTS:

A. Preparation to Administer and Operate City’s Transactions and Use Tax Ordinance Agreement
B. State Administration of City Transactions and Use Taxes Agreement C. Resolution Authorizing Release and Examination of Records D. Resolution Authorizing City Manager to Execute Agreements

Item 1V - Page 2

ATTACHMENT A

Item 1V - Page 3
(Rev. 07/24) 1

AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE

CITY'S TRANSACTIONS AND USE TAX ORDINANCE

In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Palm Springs, hereinafter called City , and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:

1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.

2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department 's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department 's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.

3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department . The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.

4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.

5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.

6. The amount to be paid by City for the Department 's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)

Item 1V - Page 4
(Rev. 07/24) 2

7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:

California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027

Attention: Administrator
Local Revenue Branch

Communications and notices to be sent to City shall be addressed to:

City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262

Attention: City Manager & City Clerk

8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.

CITY OF PALM SPRINGS CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION

By By
(Signature) Administrator
Local Revenue Branch
Scott S. Stiles
(Typed Name) Date: _______________________________

City Manager
(Title)

Date: _______________________________
Item 1V - Page 5

ATTACHMENT B

Item 1V - Page 6

AGREEMENT FOR STATE ADMINISTRATION

OF CITY TRANSACTIONS AND USE TAXES

The City Council of the City of Palm Springs has adopted, and the voters of the City of Palm Springs (hereafter called “City” or “District”) have approved by the required majority vote, the City of Palm Springs Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration , (hereinafter called the “Department”) and the City do agree as follows:

ARTICLE I

DEFINITIONS

Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:

1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.

2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No.2107, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.

ARTICLE II

ADMINISTRATION AND COLLECTION

OF CITY TAXES

A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.

Item 1V - Page 7
(Rev. 7/24) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance m ay be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.

C. Transmittal of money.

1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.

2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisi ons of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.

3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.

D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.

E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.

Item 1V - Page 8
(Rev. 7/24) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.

G. Records of the Department.

When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Depar tment's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.

H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.

ARTICLE III

ALLOCATION OF TAX

A. Allocation. In the administration of the Department 's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:

1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Item 1V - Page 9
(Rev. 7/24) 4
Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.

2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.

B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.

ARTICLE IV

COMPENSATION

The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.

ARTICLE V

MISCELLANEOUS PROVISIONS

A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate

or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.

Item 1V - Page 10
(Rev. 7/24) 5
Communications and notices to be sent to the Department shall be addressed to:

California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027

Attention: Administrator
Local Revenue Branch

Communications and notices to be sent to the City shall be addressed to:

City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262

Attention: City Manager & City Clerk

Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.

B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on July 1, 2025. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.

C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.

Item 1V - Page 11
(Rev. 7/24) 6

ARTICLE VI

ADMINISTRATION OF TAXES IF THE

ORDINANCE IS CHALLENGED AS BEING INVALID

A. Impoundment of funds.

1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non- appealable judgment that the tax is valid.

2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non- appealable.

B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:

1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.

2. City will pay to Department and allow Department to retain Department 's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.

3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.

4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and Item 1V - Page 12
(Rev. 7/24) 7
developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.

5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.

6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.

7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.

CITY OF PALM SPRINGS CALIFORNIA STATE DEPARTMENT OF

TAX AND FEE ADMINISTRATION

By By
(Signature) Administrator
Local Revenue Branch
Scott S. Stiles
(Typed Name) Date: _______________________________

City Manager
(Title)

(Date)
Item 1V - Page 13

ATTACHMENT C

Item 1V - Page 14
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, AUTHORIZING

EXAMINATION OF SALES OR TRANSACTIONS AND USE

TAX RECORDS

WHEREAS, pursuant to Ordinance Nos. 1802, 1945 and 2107 of the City of Palm Springs (District), and Revenue and Taxation Code section 7270, the District entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and

WHEREAS, the City Council deems it desirable and necessary for authorized officers, employees and representatives of the District to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the District pursuant to that contract; and

WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, a nd Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from the sales or transactions and use tax records of the Department.

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

SECTION 1. T hat the foregoing Recitals are true and correct and are incorporated herein by this reference.

SECTION 2. That the Director of Finance and Treasurer or other officer or employee of the District designated in writing by the City Manager to the Department is hereby appointed to represent the District with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the District by the Department pursuant to the contract between the District and the Department.

SECTION 3. That MuniServices/Avenu Insights & Analyt ics, LLC, is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the District by the Department. The person or entity designated by this section meets all of the following conditions, which a re also included in the contract between the District and MuniServices/Avenu Insights & Analytics, LLC.:

a) h as an existing contract with the District to examine those sales or transactions and use tax records;

b) i s required by that contract to disclose information contained in, or derived Item 1V - Page 15
Resolution No. _____

from, those sales or transactions and use tax records only to the officer or employee authorized under Section 2 or Section 3 of this resolution to examine the information.

c) i s prohibited by that contract from performing consulting services for a retailer during the term of that contract;

d) i s prohibited by that contract from retaining the information contained in, or derived from, those sales or transactions and use tax records after that contract has expired.

SECTION 4. That the information obtained by examination of Department records shall be used only for purposes related to the collection of District s sales or transactions and use taxes by the Department pursuant to the contract between the District and the Department.

SECTION 5 . That this Resolution supersedes all prior resolutions of the City Council adopted P ursuant to Subdivision “B” of Revenue and T axation Code Section 7056.

SECTION 6. That the City Manager is hereby authorized to take such and further actions, and sign such other and future documents, as is necessary and proper to implement this Resolution on behalf of the City.

INTRODUCED, APPROVED AND ADOPTED THIS ___ DAY OF JANUARY, 2025
.

SCOTT C. STILES

CITY MANAGER
ATTEST:

BRENDA PREE

CITY CLERK
Item 1V - Page 16
Resolution No. _____

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, BRENDA PREE , City Clerk of the City of Palm Springs, h ereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on January ____, 2025, 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 January, 2025.

Brenda Pree, City Clerk
City of Palm Springs, California
Item 1V - Page 17

ATTACHMENT D

Item 1V - Page 18
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO EXECUTE AGREEMENTS WITH THE

CALIFORNIA DEPARTMENT OF TAX AND FEE

ADMINISTRATION FOR IMPLE MENTATION OF A LOCAL
TRANSACTIONS AND USE TAX.

WHEREAS, on December 12 , 20 24, the City Council approved Ordinance No. 2107 amending the City Municipal Code and providing for a local transactions and use tax; and
WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the State; and
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “ Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes; and WHEREAS, the Department requires that the City Council authorize the agreements;

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

SECTION 1. T hat the foregoing Recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement.

ADOPTED THIS ___ DAY OF JANUARY, 2025
.

SC OTT C. STILES

CITY MANAGER
ATTEST:

BRENDA PREE

CITY CLERK
Item 1V - Page 19
Resolution No. _____

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, BRENDA PREE , City Clerk of the City of Palm Springs, h ereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on January ____, 2025, 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 January, 2025.

Brenda Pree, City Clerk
City of Palm Springs, California
Item 1V - Page 20
(Rev. 07/24) 1

AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE

CITY'S TRANSACTIONS AND USE TAX ORDINANCE

In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Palm Springs, hereinafter called City , and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:

1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.

2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department 's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department 's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.

3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department . The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.

4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.

5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.

6. The amount to be paid by City for the Department 's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)

Item 1V - Page 21
(Rev. 07/24) 2

7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:

California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027

Attention: Administrator
Local Revenue Branch

Communications and notices to be sent to City shall be addressed to:

City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262

Attention: City Manager & City Clerk

8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.

CITY OF PALM SPRINGS CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION

By By
(Signature) Administrator
Local Revenue Branch
Scott S. Stiles
(Typed Name) Date: _______________________________

City Manager
(Title)

Date: _______________________________
Item 1V - Page 22

AGREEMENT FOR STATE ADMINISTRATION

OF CITY TRANSACTIONS AND USE TAXES

The City Council of the City of Palm Springs has adopted, and the voters of the City of Palm Springs (hereafter called “City” or “District”) have approved by the required majority vote, the City of Palm Springs Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration , (hereinafter called the “Department”) and the City do agree as follows:

ARTICLE I

DEFINITIONS

Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:

1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.

2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No.2107, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.

ARTICLE II

ADMINISTRATION AND COLLECTION

OF CITY TAXES

A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.

Item 1V - Page 23
(Rev. 7/24) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance m ay be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.

C. Transmittal of money.

1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.

2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisi ons of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.

3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.

D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.

E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.

Item 1V - Page 24
(Rev. 7/24) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.

G. Records of the Department.

When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Depar tment's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.

H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.

ARTICLE III

ALLOCATION OF TAX

A. Allocation. In the administration of the Department 's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:

1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Item 1V - Page 25
(Rev. 7/24) 4
Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.

2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.

B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.

ARTICLE IV

COMPENSATION

The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.

ARTICLE V

MISCELLANEOUS PROVISIONS

A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate

or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.

Item 1V - Page 26
(Rev. 7/24) 5
Communications and notices to be sent to the Department shall be addressed to:

California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027

Attention: Administrator
Local Revenue Branch

Communications and notices to be sent to the City shall be addressed to:

City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262

Attention: City Manager & City Clerk

Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.

B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on July 1, 2025. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.

C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.

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(Rev. 7/24) 6

ARTICLE VI

ADMINISTRATION OF TAXES IF THE

ORDINANCE IS CHALLENGED AS BEING INVALID

A. Impoundment of funds.

1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non- appealable judgment that the tax is valid.

2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non- appealable.

B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:

1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.

2. City will pay to Department and allow Department to retain Department 's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.

3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.

4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and Item 1V - Page 28
(Rev. 7/24) 7
developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.

5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.

6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.

7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.

CITY OF PALM SPRINGS CALIFORNIA STATE DEPARTMENT OF

TAX AND FEE ADMINISTRATION

By By
(Signature) Administrator
Local Revenue Branch
Scott S. Stiles
(Typed Name) Date: _______________________________

City Manager
(Title)

(Date)
Item 1V - Page 29

CITY COUNCIL STAFF REPORT
DATE:

JANUARY 23, 2025 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2108 ENTITLED, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING TITLE 7 PROCUREMENT

AND CONTRACTING POLICIES OF THE PALM SPRINGS MUNICIPAL

CODE RE GARDING PROCUREM ENT AND CONTRACTING BY THE
CITY OF PALM SPRINGS”
FROM: Scott C. Stiles, City Manager
BY: P
roc
urement and Contracting Department
SUMMARY:

This
is the second reading of an ordinance to amend Palm Springs Muni cipal Code Title 7, Procurement and Contracting Policies.

This report provides for the City Council to waive further reading and adopt the ordinance.

The ordinance shall be effective 30-days from adoption.

RECOMMENDATION:

1. Waive the full reading of the ordinance text in its entirety , read by title only , and adopt Ordinance No. 2108, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING TITLE 7 PROCUREMENT

AND CONTRACTING POLICIES OF THE PALM SPRINGS MUNICIPAL CODE

REGARDING PROCUREMENT AND CONTRACTING BY THE CITY OF PALM SPRINGS.” (Attachment A)
BACKGROUND:

On Ja
nuary 9, 2025, Ordinance No. 2108 was introduced for first reading. At the reading, City Council directed staff to change the City Manager’s approval of purchase orders and contracts from the current $75,000 threshold to a new authority of $150,000 to be more efficient in the operations of the City and save staff time. Staff has made this change to the ordinance, as instructed.

Item 1W - Page 1
In addition, City Council asked staff to evaluate the effectiveness of the local preference section to see if increasing the percentage from the current five percent to either six or seven percent would make a difference in the number of local companies securing contracts with the City. Staff has completed this analysis and found that increasing the percentage would not change any of the results of local firms being awarded contracts based on contracts awarded in 2024. In fact, based on the analysis the City would have to pay as much as an average of $323 ,000 more per award to make any movements in the percentages we saw over the last year, which would result in a local preference percentage increase and increase in cost that would be challengeable and not recommended.

Although the local preference has not made any real impacts over the past year on the outcome of the awards, local bidders are participating through the outreach efforts of staff and the reach of our electronic bid notification system. The analysis shows that 44% of solicitations issued as Invitations to Bids (price based) were awarded to local companies regardless of the local preference and 11% of Request for Proposals (best value based) were awarded to local companies. Based on the analysis performed, st aff recommends leaving the percentage at the standard five percent with $15,000 cap with continued efforts, outreach, and education to entice local vendors to participate.

A memo was prepared for City Council to provide additional analysis relative to local preference which is included with this staff report as Attachment B.

STAFF ANALYSIS:

Staff has cleaned up and revised the Title 7 Municipal Code concerning Procurement and Contracting Policies to better organize the code into sections that reflect how the process flows. In doing so, this eliminated a lot of duplicated text and will make easier for City staff, the public, and vendors to follow. The code has now been organized in the following sections:

Chapter 7.01 – General Provisions – general cleanup of language and moving of sections in this general provision to more specific chapters of the code. For example, moved definitions and exceptions to their own sections for ease of reference.

Chapter 7.02 – Definition of Terms (formerly Procurement Organization and Administration) – cleaned up terms that were not needed or were not well defined and added some missing terms. Moved the procurement organization information into Section

7.01 General Provisions.

Chapter 7.03 – Procurement Requirements (formerly Purchasing procedures for Supplies and Services) – consolidated all the different sections discussing procurement requirements that were scattered throughout the code and cleaned up the terminology to be consistent. Added two reference policies, the Procurement Card Policy and the newer Environmentally Preferable Purchasing Policies with links to those policies. Also removed Item 1W - Page 2
many repetitive sections based on how this was previously formatted. U pdated local preference provisions slightly to be clearer how the preference is handled in the Request for Proposals process. Added a revised protest policy to this section and updated the CUPCCAA limits for public works projects that were raised this month January 2025.

Chapter 7.04 – Procurement Exceptions (formerly Purchasing Procedures for Public Projects)– consolidated two separate sections that spoke to exceptions into this one newly defined exception and clarified a few of the exceptions that have created issues in the past.

Chapter 7.05 – Contracting (formerly Special Procurement Methods) - moved ethics provisions and nondiscrimination provisions into this section. Added provisions on using the City’s standard contract templates and provided further guidance to staff on contract procedures with the City and the use of electronic signatures. Raised the City Managers authority from $75,000 to $150,000 as directed by City Council at the first reading.

Changed the CUPPCCAA limits also from $200,000 to $220,000.

Chapter 7.06 – Contract Changes (formerly contract provisions ) – moved and updated all the sections of the provisions dealing with contract changes and amendments into this one area to discuss how to amend or change contracts and purchase orders.

Raised the City Managers authority from $75,000 to $150,000 as directed by City Council at the first reading. Changed the CUPPCCAA limits also from $200,000 to $220,000.

Chapter 7.07 – Contract Administration (formerly Disposition of Surplus Property) - Moved surplus property to its own section 7.08 later in the code. Added this section concerning contract administration to better describe what is required of Contract Administrators when administering City contracts.

Chapter 7.08 – Disposition of Surplus Property (formerly Bid Protest Procedures) – moved bid protest procedures to Chapter 7.03 and made minor updates to those procedures.

Also eliminated former Chapters 7.09 Special Programs, 7.10 Ethics in Public Contracting as these provisions have been moved to their appropriate sections described above.

ENVIRONMENTAL ASSESSMENT
:

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

Item 1W - Page 3
ALIGNMENT WITH STRATEGIC PLANNING:

This action meets the Strategic Plan major theme of forward-thinking governance.

FISCAL IMPACT:

There are no known fiscal impacts by this action.

REVIEWED BY:

Department Director: Kim Baker
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles

ATTACHMENTS:

A. Proposed Ordinance including Revised Municipal Code Title 7 Procurement and Contracting Policies
B. Local Preference Analysis
Item 1W - Page 4

ATTACHMENT A

Item 1W - Page 5

ORDINANCE NO. 2108

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING TITLE 7 “PROCUREMENT AND
CONTRACTING” OF THE PALM SPRINGS MUNICIPAL CODE

REGARDING PROCUREMENT AND CONTRACTING BY THE CITY OF

PALM SPRINGS

City Attorney’s Summary

This Ordinance amends Title 7 of the Palm Springs Municipal Code, relating to procurement and contracting. The Ordinance update, among other things, generally cleans up the existing Ordinance by updating defined terms and fixing consistency issues, consolidating and streamlining the purchase of supplies and services and the procurement of public projects and makes minor revisions to procurement and contracting authority thresholds. The change also reorganizes the chapters to flow in a more orderly manner to reflect how the procurement and contracting process flows.

WHEREAS, The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and pursuant to the authority granted the City Article XI, Section 5 of the California Constitution, the City of Palm Springs may adopt and enforce ordinances and regulations in respect to municipal affairs; and

WHEREAS, The City Council finds that the adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) because the Ordinance is not a “Project” as defined by the California Environmental Quality Act (CEQA).

Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

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

SECTION 1 . Title 7 Procurement and Contracting of the Palm Springs Municipal Code is hereby amended to read in its entirety as set forth in Exhibit “A” to this Ordinance, which is hereby incorporated by reference herein.

Item 1W - Page 6
SECTION 2. The provisions above are adopted based upon the true and correct recited findings reflected above and incorporated by this reference herein.

SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 4. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS DAY OF , 2025.

RON DEHARTE
MAYOR

ATTEST:

BRENDA PREE, MMC, CERA

CITY CLERK
Item 1W - Page 7

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. 2108 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on and adopted at a regular meeting of the City Council held on by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

BRENDA PREE, MMC, CERA

CITY CLERK
Item 1W - Page 8

EXHIBIT “A”

Item 1W - Page 9
TITLE 7 PROCUREMENT AND CONTRACTING
CHAPTER 7.01 – GENERAL PROVISIONS
CHAPTER 7.02 – DEFINITIONS OF TERMS
CHAPTER 7.03 – PROCUREMENT REQUIREMENTS
CHAPTER 7.04 – PROCUREMENT EXCEPTIONS
CHAPTER 7.05 – CONTRACTING
CHAPTER 7.06 – CONTRACT CHANGES
CHAPTER 7.07 - CONTRACT ADMINISTRATION
CHAPTER 7.08 – DISPOSITION OF SURPLUS PROPERTY
Item 1W - Page 10
TITLE 7 PROCUREMENT AND CONTRACTING
CHAPTER 7.01 GENERAL PROVISIONS

7.01.01 Purpose.

The purpose of this Title is to set forth rules and regulations for the procurement, contracting, or disposal of all supplies, and services required by any office or department of the city government as provided in Section 403 of the City Charter which relates to the City Manager’s powers and duties to prepare rules and regulations related to purchasing;

7.01.02 Application of this title.

This Title applies only to purchase orders and contracts solicited or entered into after the effective date of this ordinance.

7.01.03 Public access and record retention for procurement information.

Procurement information shall be a public record to the extent provided in the Public Records Act (Government Code section 6250 et seq.) and shall be available to the public as provided in the Public Records Act. The City may charge a reasonable fee for copying records.

7.01.04 Procurement and Contracting Department authority The City has created a centralized procurement and contracting department which shall have authority over the procurement of s upplies, services and for construction of p ublic projects for the public purposes of the City. The Department is led by the position of Director of P rocurement and C ontracting. Except as otherwise provided herein, the Director, shall serve as the public procurement official for the City, and shall be responsible to:
(1) Manage the procurement process for all s upplies, services, and public projects required by the City and develop policies and procedures related to the procurement and contracting functions;
(2) Ensure compliance with this Title;
(3) Adopt regulations, consistent with this Title, governing the Procurement, management, control and disposal of any and all s upplies, services, and public projects procured by the City;
(4) Approve purchase requisition and issuance of purchase orders in the procurement of supplies, services and public projects;
(5) Sell, trade, or otherwise dispose of surplus supplies belonging to the City; Item 1W - Page 11
(6) Retain records of the solicitation, award, and subsequent Contract or P urchase Order;
(7) Ensure that the City Clerk receives the record copy of all Contracts; (8) Prepare and s ubmit a monthly report to the City Manager of all purchase orders and contracts approved by the City Manager, or such other delegated authority, pursuant to the signature authority.

7.01.05 Delegation of authority by the Director of Procurement and Contracting. (1) The Director may authorize in writing any using department to purchase specified supplies, services, and to construct public projects independently of the Procurement and Contracting department, provided that: 1.) such purchases shall comply with the procedures established by this Title; 2 .) it is deemed necessary for the effective procurement or disposal of those items; 3.) the Using Department shall be required to make periodic reports to the D irector on all purchases made and 4.) the Procurement and Cont racting Department will approve all purchase orders related to any delegated procurement to verify compliance with th e procurement policies.
(2) The Director shall have the power to render interpretations of this Title and to adopt and enforce written rules and supplemental regulations to clarify the application of this Title’s provisions and any resolution(s) adopted pursuant to subdivision (1 ), above. Such interpretations, rules and regulations shall be in conformity with the intent and purpose of this Title and any such resolution(s). Without limiting the nature of the foregoing, such rules and supplemental regulations may include, without limitation, criteria upon which contracts shall be solicited and awarded. In the event of any conflict between such rules and regulations and the provisions of this Title or such resolution(s), this Title and any such resolution(s) shall prevail.

7.01.06 Supplemental regulations.
(1) The City Council may, from time to time, adopt one or more resolutions establishing rules and supplemental regulations to clarify the application of this Title’s provisions. Such rules and regulations shall be in conformity with the intent and purpose of this Title. In the event of any conflict between such rules and regulations and the provisions of this Title, this Title shall prevail. (2) Related polices that are included as part of these policies by reference are:
a. Procurement Card (P-Card) Policy - P-Card Policies and Procedures.pdf

b. Environmentally Preferable Purchasing Policy - EPPP.pdf

Item 1W - Page 12
Chapter 7.02 DEFINITIONS

7.02.01 Definitions of terms used in this title.

As used in this Title the following terms have the meanings indicated which are applicable to both the singular and plural thereof:
“Awarding Authority” means the City Council, the City Manager or the City Manager’s designee who has been given Signature Authority to approve contracts under this Title. “Bid” means an offer submitted by a Bidder setting forth the price for the City’s procurement of s upplies, services, or for construction of p ublic projects, on bid form s issued by the City.
“Bidder” means any person or Business submitting a bid to the City in response to an Invitation for Bid (IFB) issued by the City.
“Business” means a corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity. “Change Order” means any City-issued written document used to amend an existing construction contract authorizing changes within the scope of work, additions or deletions to the work, an adjustment to the price, or changes to any other terms and conditions of the Contract. The term also refers to a change to a p urchase order in the City’s ERP system.
“City” means the City of Palm Springs.
“Coachella Valley” means the area between the Salton Sea on the south, the San Jacinto and Santa Rosa Mountains on the west, and the Little San Bernardino Mountains on the east and north. For the purposes of this definition, “Coachella Valley” includes the nine cities of Cathedral City, Coachella, Desert Hot Springs, La Quinta, Indian Wells, Indio, Palm Desert, Palm Springs, Rancho Mirage along with the cities of Beaumont and Banning and the unincorporated areas between Banning and the City of Palm Springs. “Construction” means the process of building, altering, repairing, improving, or demolishing any public structure or building, or other public improvements of any kind to any public real property, but excluding the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property. “Contract Administrator” means the d epartment director or other C ity employee designated by the City Manager to administer a contract between the City and a contractor and oversee and monitor the contractor’s performance under the terms of the contract.
“Construction Manager at Risk (CMAR)” means a project delivery method in which the City hires a general contractor through a Request for Proposal or Request for Item 1W - Page 13
Qualifications competitive process, who serves as both a construction manager and general contractor to perform construction work on a project. “Design-Build” means a project delivery method in which the C ity enters into a single Contract for both the design and construction of a public project pursuant to a competitive negotiation process. Design-Build includes public projects where in addition to design and construction, other functions may be incorporated, including, but not limited to, financing, operating and/or maintenance.
“Director” means the Director of Procurement and Contracting “Enterprise Resource Planning System (ERP)” a software system that helps business manage their core processes in a centralized way such as accounting, procurement project management, human resource management, etc. The City currently uses Tyler Munis as its ERP system.
“Environmentally Preferable Purchasing Policy” means a procurement policy created and maintained by the Sustainability Department that governs the procurement of goods and services in an Environmentally Sustainable manner.
“Force Account” means services performed by, or p ublic projects constructed by, City employees.
“Invitation for Bids” (IFB) means all documents, whether attached or incorporated by reference, utilized for soliciting bids for supplies or services, including maintenance work, or for construction of public projects.
“Local Business” means a person or business who has a valid physical business address located within the Coachella Valley, at least six months prior to bid or proposal opening date, from which the person or business operates or performs business on a day-to-day basis and holds a valid business license by a jurisdiction located in the Coachella Valley. Post office boxes are not verifiable and shall not be used for the purpose of establishing such physical address.
“Maintenance Work” has the same meaning as contained in Public Contract Code Section 22002, as amended which currently includes routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; minor repainting; resurfacing of streets and highways at less than one inch; landscape maintenance, including mowing, watering, trimming, pruning, replacement of plants, and servicing of irrigation and sprinkler systems; or work performed to keep, operate and maintain publicly owned water, power, or waste disposal systems, including but not limited to dams, reservoirs, power plants and electrical transmission lines of 230,000 volts or higher.
“Procurement” means the purchasing, renting, leasing, or otherwise acquiring of any supplies, services, or construction. It also includes all functions that pertain to the procurement, including description of requirements, selection, and solicitation of sources, preparation, and award of contract. It is also a reference to the combined functions of Item 1W - Page 14
purchasing, inventory control, traffic and transportation, receiving, inspection, storekeeping, salvage and disposal operations.
“Professional Services” means services provided by a person or business engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work. This includes the services of architectural, landscape architectural, engineering, environmental, land surveying, appraisal, construction project management, financial or other professional services, including but not limited to those defined by Government Code sections 4525 and 4526 as professional services, which defines these services as those of a firm permitted by law to practice the profession of architecture, landscape architectur e, engineering, environmental, land surveying, or construction project management.
“Proposal” means: an offer submitted by a p roposer in response to a R equest for Proposals (RFP), where selection for award is based on criteria specified in the R FP documents.
“Proposer” means any person or business submitting a proposal to the City in response to a Request for Proposals (RFP) issued by the City.
“Procurement Cards ” (P-Cards) are credit cards issued by the Procurement and Contracting Department which are used to spot purchase items needed to complete City work. P-Cards are also used for City business travel. A separate policy governs the use of the P-Cards.
“Public Project” has the same meaning as contained in Public Contract Code section 22002, as amended, which defines a “Public Project” as:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly -owned, leased, or operated facility;
(2) Painting or repainting of any publicly owned, leased or operated facility; (3) In the case of a publicly owned utility system, the construction erection, improvement or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher;
(4) Public project does not include Maintenance Work.
“Purchase Order” means a City-issued document with any necessary terms and conditions, which authorizes the procurement of supplies or services, or for construction of public projects, which encumbers City funds for the payment. “Purchase Requisition” means an electronic procurement request submitted via the City’s Enterprise system and submitted by the using Department to the Procurement and Contracting Department for the approval of a purchase order for such procurement.

Item 1W - Page 15
“Quote” means an informal purchasing process that solicits pricing information from several sources.
“Request for Proposals” (RFP) means a document that solicits persons or businesses to submit a p roposal to perform the scope of work associated with a proposed project.

Cost is not the sole basis for selection in the RFP instead other qualifications including experience, staff experience, understanding of the scope of work, reference, turnaround time and approach to work are important factors when evaluating proposals. Also known as best value method of procurement.
“Request for Qualifications” (RFQ) means a document that solicits persons or businesses to submit information about their qualifications and capabilities to perform the type of work associated with a proposed project , often called “Statements of Qualifications” or “SOQs”. The RFQ may be used as a pre-qualification step for receiving a RFP. If a RFQ is issued, only those persons or businesses who successfully respond to the RFQ and meet the qualification criteria stated in the RFQ will be included in the subsequent RFP process or placed on a pre-qualification list for on call work. “Responder” means any person or business submitting a Statement of Qualifications to the City in response to a Request for Qualifications (RFQ) issued by the City. “Responsible Bidder” means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract.
“Responsive Bid” means a Bid or Proposal submitted to the City that conforms in all material respects to the solicitation, without material qualification or exceptions, as determined by the City.
“Signature Authority” means the level of authorization by which the C ity Council has delegated to the City Manager, or such other designee, pursuant to this Title, to approve contracts or purchase orders without the prior approval of the City Council. “Solicitation” shall mean the City’s process to obtain formal bids, p roposals or qualifications as provided in this Title for the purchase of supplies, services, or for construction of public projects.
“Specifications” means any City-issued detailed written description of the physical or functional characteristics or of the nature of the supplies to be furnished, the services to be performed, or the construction to be performed on a public project. Specifications shall promote overall economy for the purposes intended and encourage competition in satisfying the City’s needs.
“Surplus property” means personal property no longer needed by City departments for their operations, obsolete property, property in poor or non-working condition, or property that is a by-product (e.g., scrap metal, used tires, and oil, etc.)

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CHAPTER 7.03 PROCUREMENT REQUIREMENTS

7.03.01 General procurement requirements.
(1) Method Determined by Cost Estimate.

The procedure to be followed in soliciting contracts or purchase o rders is determined initially by the estimated cost to the C ity of the supplies or services over the time the supplies or services are needed.
(2) No Division of Procurements.

The procurement of supplies or services shall not be knowingly staged or separated into smaller units or segments solely for the purpose of evading the competitive bidding requirements of this Title.
(3) Cancellation of Solicitation
A solicitation may be canceled by the Director, when cancellation or rejection is in the best interests of the City. The reasons therefor shall be made part of the contract file.

(4) Use of Electronic Means
(a) Consistent with the stated policy of promoting efficient public contract law, consistent with the best of modern practice and research, and pursuant to the authority granted by Public Contract Code sections 1600 and 1601, the Director shall be authorized to utilize electronic means in the p rocurement of supplies and services, so long as the purpose and intent of applicable state law, this chapter, and any supplemental rules or regulations are met. (b) Without limiting the nature of the foregoing, the City may utilize online bidding and selling methods, electronic signature in accordance with applicable state, local and federal law, and electronic mail for delivery of notices when “mailed” notice is required herein. For purposes of this Title , “supporting materials”, as defined in Public Contract Code section 1601, shall be deemed to also include security bonds, which the City may, in its sole and absolute discretion, allow to be submitted electronically, consistent with any supplemental regulations, adopted in accordance with this Title, implementing the submission of electronic security bonds. Whenever “sealed” bids or proposals are called for, any electronic means may be used so long as such electronic means provide for the secured submission of the required data. Whenever bids are required to be “opened”, such bids shall be deemed “opened” if and when they are made available to both the City and the public simultaneously, in a public setting, including, without limitation, by way of making such bids available in an electronic format that is readable by the public. If provisions of this section are in conflict with any other resolution or ordinance of the City, this section shall prevail.

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(c) The City may use electronic signature platforms to obtain signatures on contracts and other related documents.
(5) Use of Purchase Requisitions and Purchase Orders
(a) The Director shall prepare administrative policies and procedures controlling the implementation of each procurement approved pursuant to this Chapter through the use of a purchase requisition and corresponding purchase order. Each procurement may only be approved after issuance of a purchase r equisition and approval of a purchase order approved by the Director, unless otherwise exempt pursuant to applicable supplemental regulations. Purchase o rders are required for all purchases with the exception of spot purchased items under $5,000 where a P-Card is used or where a claim voucher is allowed under Finance’s claim voucher policy. (b) Purchase Requisitions are required through the City’s ERP system (Currently Tyler Munis) to obtain p urchase orders for the authorization to purchase supplies, services, and p ublic projects for the City. Each department shall have selected staff trained to input required information into the system to obtain the required purchase orders. Preparing detailed notes and adding supporting documents in the system will help facilitate the approval process. The following documents shall be included with the requisition:

1. the required number of quotes and signed contract

2. for supplies, services and public projects, any insurance certificates and endorsements required to demonstrate the vendor has the required levels of insurance

3. for sole source purchases a letter from the vendor explaining the sole source with a current date on it and an explanation from the department on why only that product or vendor can be used will also be required for approval. To avoid any delays in processing purchase orders, sole source items should be submit ted in advance to the Procurement and Contracting Department for review and signoff.

4. for emergency purchases proper authorization from the City Manager shall be included

5. documentation for any exemptions that are being used for the purchase as defined in Section 7.04 of Title 7.

6. p urchase order terms must follow the Contract term and not just align with the fiscal year, or the purchase order and contract terms will become out of sync and cause a shortening or lengthening of the contract term. Budgets follow fiscal year terms, but contract terms may span between fiscal years or remain in effect for multiple fiscal years.

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(c) Release Purchase Orders – on- call contracts can be set up to allow for services to be performed on an as needed basis. If a contract of this nature is utilized, the Departments may use release purchase orders to authorize work under the on-call contract. Departments will contact the Procurement and Contracting Department to set up the contract in the ERP system for use. When a requisition is created the contract number will need to be selected on the line detail screen to tie the p urchase order to the contract.

The purchase order will then enter into a reduced workflow and will only be authorized by the department director allowing for a quicker issuance of the purchase order. The ERP system will then track the value of the commitments on the contract and will not allow ordering that exceeds the contract value. This tool can be very useful for Departments that need to perform quick repairs to maintain facilities or perform lower valued simple projects such a smaller building repair or remodeling projects. Please note release purchase orders can be authorized off estimates using the contract pricing from the Contractor or by the Department’s estimate in the event of an emergency.
(d) Blanket Purchase Orders - may be issued each fiscal year for purchases of supplies and some limited services at lower dollar values that are repetitive in nature and on an “as needed” basis. Examples where a blanket purchase order may be used includes office supplies or other small but repeat edly purchased commodities.
(e) Purchase Order Authorization - The Procurement and Contracting Department issues purchase orders to authorize the purchase of supplies, services, and p ublic projects. Purchase o rders are not issued after a purchase since the purchase has already taken place. The City and the vendor are at risk if items are purchased without proper authorization through a contract or purchase order. Noncompliance with the procurement policies and procedures may cause the transaction in question to be audited and presented to the City Manager and City Attorney for their review before payment can be made. All transactions are monitored and audited on a regular basis for compliance and violations are subject to disciplinary action. (f) Changes to Purchase Orders – should a change to a p urchase order be needed after the purchase order is issued the change will be processed through the City’s ERP system. Information must be provided in the notes section to explain why the change is necessary with supporting documentation attached. For contracts spanning more than one year, the initial purchase order that was issued should be change ordered to add the additional years so that all costs are collected on one purchase order to match the contract. This allows for easier tracking of the contract value and for invoicing to be tied to the same PO.

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(6) Requests for Formal Solicitations - If a department needs a procurement by formal solicitation (IFB, RFP or RFQ), the department shall contact the Procurement and Contracting Department for further assistance. The using department must provide a scope of work, pricing structure and any specific qualifications or minimum requirements the d epartment would like included in the solicitation. The Procurement and Contracting Department will draft the solicitation for review and comment by the department. Once the solicitation is finalized, the solicitation will be advertised to the public and the Procurement and Contracting Department, in conjunction with the department, will conduct any pre submittal meetings, prepare any addenda to make changes to the solicitation, open the bids or proposals, and finalize the evaluation and selection process until a contract is ready for recommendation of award.
(7) Approval of specialized procurements
(a) A ll information technology related procurements shall be approved in advance by the Information Technology Department.
(b) Engineering and construction solicitations should be either procured by or coordinated with the Engineering Department.

7.03.02 Competitive process – supplies and services.

The total estimated cost of s upplies or services over the required period of time determines the procurement process that must be followed, as described below:
(1) Supplies, Services (Not Construction)
(a) $5,000 or less for supplies can be obtained through the use of a City issued Procurement Card (P-Card) or through a single quote and purchase order. (b) $15 ,000 or less: one quote or by negotiated contract. (c) $15 ,000.01 - $75,000: by the Informal Process three quotes. (d) Over $75,000 by the Formal Solicitation Process.
(e) Fleet vehicles may be procured using the three-quote process utilizing local dealerships for any amount . This exception is due to the difficulty in the market of getting vehicles in a timely manner.
(f) See other special procurement methods and exemptions for other methods such as emergency, cooperative, etc.
(g) The City Council may from time to time revise the amounts identified herein setting forth the procurement process for supplies, maintenance work, and general services through adoption of a r esolution identifying the revised amounts therefor.

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(2) Public Works Construction Services - the process applicable for the p rocurement of public projects shall be established in accordance with the following b idding thresholds dependent upon the City Engineer’s estimated cost of the public project:
(a) As established pursuant to the California Uniform Public Construction Cost Accounting Act (CUPCCAA) under Public Contract Code section 22032(a) and as amended, currently $75,000 or less: by Force Account or negotiated Contract,
(b) As established pursuant to Public Contract Code section 22032(b) and as amended, currently $220,000 or less: by Informal p ublic project Bidding Procedures.
(c) As established pursuant to Public Contract Code section 22032(c) and as amended, currently over $220,000: by formal public project bidding procedures utilizing the IFB process for fully designed projects and the RFP process for alternate delivery method projects such as Construction Manager at Risk, Design Build, etc.
(3) Automatic amendment of bidding thresholds.

If, as, and when the amounts set forth in Public Contract Code section 22032 are later amended, this section and the amounts reflected herein shall be deemed to have been amended to reflect such changes, without the need for further action on the part of the City, and such changes reflected in Public Contract Code section 22032 shall be deemed to be incorporated by reference herein.

7.03.03 Informal process.
(1) Soliciting Informal Quotes For Supplies and Services under $75,000 The u sing department shall prepare requirements or s pecifications for each procurement and solicit informal quotes via posted notice, telephone request, mail, email, or any other reasonable solicitation method. All quotes shall be documented in writing. If the department is unable to obtain a minimum of three quotes due to lack of available sources , the department shall document that reasonable efforts were made to obtain the minimum number of required quotes and request assistance from the Procurement and Contracting Department in obtaining additional quotes. The department may also request the Procurement and Contracting Department follow the formal process.
(2) Award – Supplies, Services
Departments may award contracts under this informal process to the supplier/provider that provided the lowest quote. This informal process is not to be used for any subjective type scoring or best value selection process. Award is price based only.

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7.03.04 Formal process – Invitation for Bids (IFB) Supplies, Services and Public Works Construction Services.
(1) The formal process for p rocurement of supplies, services including p ublic works construction services shall comply with all aspects of state and local law governing formal competitive bidding, including, resolutions of the C ity Council as may be adopted from time to time, this Title, and applicable supplemental regulations. IFBs should be used when supplies, services and public works construction services are easily defined as price is the primary factor for award. (2) Bidder List.

The City may maintain a list of qualified b idders in accordance with policies and procedures established by the Director.
(3) Notice.

All qualified bidders on the City’s list or registered in the City’s electronic bidding system for the category of work being bid will be notified by the City’s electronic bidding system. The notice will describe the scope of the supplies or services to be provided in general terms and how to obtain more detailed information about the procurement, and state the time and place for the submission of b ids. All notices to qualified bidders through the City’s electronic bid system registry of bidders shall be completed not less than ten calendar days before bids are due. (4) Bidder’s Security/Failure to Sign Contract.

Bidder’s security may be required by the Director. If required, bidder’s security shall be prescribed in the IFB in an amount equal to ten percent of the bid amount.

Bidder’s security shall be a cash deposit with the City, a cashier’s certified check payable to the City, or a bid bond. The lowest responsible bidder shall forfeit the bid security upon the bidder’s refusal or failure to execute the c ontract within ten calendar days after the date of the award of the Contract, or such other period of time as may be specified by the City. On the refusal or failure of the lowest responsible Bidder to execute the contract, the City may award the contract to the next lowest responsible bidder submitting a responsive Bid.

(5) Bid Opening Procedure.
(a) Sealed bids shall be submitted electronically through the electronic bid system used by the City to the Procurement and Contracting Department or the Engineering Department for certain public works solicitations by the date and time published in the IFB. Bids shall be opened by the City in public at the time and place stated in the IFB. Before bid opening, correction or withdrawal of mistaken bids for supplies, services, and public projects may be permitted in accordance with applicable provisions identified in the IFB issued for the p rocurement. If a mistake is discovered before bid opening, the bid may be withdrawn from the electronic system prior to the date and Item 1W - Page 22
time set for bid opening. Bids may then be resubmitted prior to the date and time set for bid opening.
(b) After bid opening, any request for withdrawal of a bid for a public project, or for supplies or services where bid security is required, shall be made within five working days after bid opening and in accordance with Public Contract Code section 5100 et seq., as amended from time to time. (c) After bid opening for supplies and services where bid security is not required and a bidder withdraws its b id or fails to execute the contract, the bidder shall be prohibited from participating in further bidding on the project unless the bidder demonstrates good cause for withdrawal of its bid. (6) Basis of Award - contracts resulting from the IFB process If a Contract is to be awarded or a purchase order is to be issued, it shall be made with the lowest r esponsible bidder submitting a r esponsive bid. Minor b id irregularities may be waived as outlined in the IFB document. (7) Tie Bids.

If two or more bids received are determined to be the lowest and responsive bids, the City may accept either bid. Should tie bids be received the following priority list will apply to the award:
(a) Business located within City boundaries with a valid business license; (b) Coachella Valley based business;
(c) Riverside County based business; or
(d) State of California based business.
(8) No Bids.

If no Bids are received, the procurement may be performed by City employees by force account or by negotiated contract without further complying with this Title. (9) Rejection of Bids
The Director may reject all bids presented, and shall have the following options:
(a) Cancel the procurement; or
(b) Issue a new IFB in the manner described in this Chapter. (c) For Public Works Construction Projects s ubmitted to the City Council, subject to passage by a four -fifths vote, a recommendation to declare that Item 1W - Page 23
the public project can be constructed more economically by the employees of the City, and have the public project completed by force account.

7.03.05 P ublic Works Construction project bidding procedure for projects up to $75,000 as of January 1, 2025.
(1) The bidding procedures for public projects are generally administered by the City’s Engineering Department and shall comply with all aspects of state and local law governing informal competitive bidding, including, but not limited to the Public Contract Code, Government Code, Labor Code, resolutions of the City Council as may be adopted from time to time, this Title, and applicable supplemental regulations.
(2) Work may be performed by employees of the City by force account or by negotiated contract or through the formal IFB process.
(3) Adoption of Plans and Specifications; Authorization to Bid.

The City Engineer, or designee, is authorized to review and approve engineering plans for purposes of design immunity pursuant to Government Code section 830.6 for all public projects with an estimated cost less than the amount identified by Public Contract Code section 22032(b). This shall include review and approval of the working details, drawings, plans and s pecifications prepared for the p ublic project, including emergency and change order work, which may affect the design or operation of public improvements, and which may bring into question the City’s liability for dangerous conditions of public property.
(4) Bids in Excess of Statutory Amount.

If all Bids received are in excess of the amount identified by Public Contract Code section 22032(b), the C ity Council may award the contract to the lowest responsible bidder submitting a responsive bid in accordance with Public Contract Code section 22034(d).

7.03.06 Public project bidding procedure for projects over $75,000 as of January 1, 2025.
(1) Public works construction projects may be pr ocured through the IFB process for projects over $75,000 but less than $220,000 or when it is considered in the best interest of the City to pre- qualify contractors for public projects, the Director may approve the use of a pre- qualification process. Projects over $220,000 must be formally procured through the IFB process or through an RFP if utilizing an alternate delivery method.
(2) The City has elected to adopt the pre- qualification procedures of Public Contract Code section 20101 for individual public projects, which includes without limitation the following requirements:

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(a) Utilization of a standardized questionnaire and financial statement in a form specified by the City (Section 20101 (a);
(b) Application of a uniform system of rating contractors on objective criteria, and on the basis of the completed questionnaire and financial statement (Section 20101(b);
(c) An appeal procedure by which a contractor that is denied pre- qualification may seek a reversal of that determination (Section 20101(d); (3) The Director shall make a recommendation to C ity Council based on the findings of the evaluation process. Only those contractors successfully completing the pre- qualification process and approved by the City Council shall be allowed to submit bids for that public project.
(4) If a prospective Contractor is denied pre- qualification and the contractor disputes its pre-qualification rating, the following appeal process shall be followed:
(a) Upon written request by the contractor received by the City within two business days after receiving notification of its pre- qualification rating, the contractor will be provided the basis for the contractor’s disqualification and any supporting evidence obtained by the City as a result of its investigation of the Contractor;
(b) The contractor shall, within five business days of receipt of the City’s basis for the c ontractor’s disqualification, provide a written rebuttal to the City’s disqualification determination with all supporting evidence; (c) The Director will consider the contractor’s written rebuttal, and may uphold or reverse the Director’s original disqualification determination based on the evidence submitted, and a written final determination of the c ontractor’s qualification status will be provided to the c ontractor within five business days of the City’s receipt of its written rebuttal;
(d) The Director’s final written determination is conclusive and will be forwarded to the C ity Council as part of its action to approve the list of pre- qualified Contractors.
(e) A Contractor’s appeal rights are limited to the process identified herein, and no other appeal process shall apply.

7.03.07 Formal Process - Request for Proposals (RFP) and Request for Qualifications (RFQ) process.
(1) RFPs should be used when supplies or services are not easily defined and a best value process that combines the firm and teams’ qualifications, solution offering, and price would be in the City’s best interest. RFPs are also used for public works construction projects when alternate delivery methods are utilized. RFQs should Item 1W - Page 25
be used for professional services such as Architects and Engineers where qualifications of the firm and team members should be the predominate factor in selection and where price cannot be considered for the initial evaluation phase. (2) Notice Inviting RFQs or RFPs.

At a minimum, the notice inviting RF Ps or RFQs shall: 1) describe the project; 2) state how to obtain more detailed information about the project; 3) state the date, time and place for the submission of Proposals or Statements of Qualifications ; 4) describe general parameters for evaluation and selection; and 5) price proposals for RFPs 5) include any other information required by state or local law. (3) Published Notice.

City staff shall solicit RFPs or RFQs via published notice in a newspaper of general circulation and on the City’s electronic bid system for at least ten calendar days before the date for receiving p roposals or statements of q ualifications or, unless urgent circumstances call for a shorter time.
(4) Review of Qualifications or Proposals.

The City will receive proposals or statements of qualifications at the date, time and place of submission on the noticing inviting RF Ps/RFQs. Any p roposals or statements of q ualifications or received after the deadline will be rejected by the City’s electronic bid system The City will review and evaluate p roposals or statements of qualifications based on the evaluation and selection criteria in the RFPs/RFQs and will identify qualifications that pass or fail based the minimum requirements and score the remaining categories on factors listed in the RFP or RFQ, or will rank Proposals based on factors listed in the RFP or RFQ. For RFP’s the Procurement and Contracting Department staff will evaluate the cost proposals and develop the scores for the cost portion.
(5) Negotiation.

For the RFQ process once responders are ranked, the City may negotiate a contract with the highest ranked responder first, if negotiations fail to reach a fair and reasonable price, then negotiations would continue with the next highest ranked responder until a contract can be awarded. The City may also dispense with negotiations reissue the RFQ if the negotiations are unsuccessful. (6) Basis of Award – contracts under a RFP or RFQ process. (a) Under the RFP process award s for services and consulting services not otherwise considered professional services shall be to the highest scoring proposer after considering the evaluation criteria in the RFP , which may include a combination of both a qualifications component and a cost component as established by the City in the RFP.

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(b) Under the RFQ process awards for professional services contracts shall be to the most qualified highest ranked responder who will best serve the City’s interests considering the demonstrated competence and professional qualifications for the scope of services to be provided and at fair and reasonable price to the City.
(7) Rejection of Proposals and Statements of Qualifications.

The Director may reject all Proposals and Statements of Qualifications presented, and shall have the following options:
(a) Cancel the procurement; or
(b) Issue a new RFP or RFQ in the manner described in this Chapter.

7.03.08 Local Business Preference Program.
(1) Findings.
(a) The City annually spends significant amounts on purchasing s upplies and services. The dollars used in making these purchases are derived in large measure from taxes and fees derived from l ocal businesses and the C ity Council has determined that funds generated in the community should, to the extent possible, be placed back in the local economy. Therefore, the City Council has determined that it is in the best interest of the City to give a preference to Local Businesses in making such purchases whenever the application of such a preference is reasonable in light of the dollar -value received in relation to such expenditure.
(b) The City Council further finds that the Coachella Valley is in a state of economic depression and many L ocal Businesses have been forced to close their doors due to severe financial losses. Many of these l ocal businesses have been doing business in the Coachella Valley for many years. The C ity Council finds that the City should promote and stimulate local businesses by requiring that purchases of s upplies and services be acquired from local businesses.
(c) The City Council further finds that this action is necessary to grow the local economy and preserve the local businesses that have diligently served the Coachella Valley for many years.
(d) Strategies that encourage people to buy locally are an important component of economic sustainability. Retaining local dollars within a community reduces economic export and increases the financial productivity of taxpayer dollars and increases the consumption of supplies and services while fostering a sustainable community. In working towards a sustainable economy, the City Council recognizes that sustainable procurement policies are an important early step on the Palm Springs p ath to a sustainable Item 1W - Page 27
community. By leveraging the purchasing power of the City to buy local supplies and services, instead of supplies and services from outside the Coachella Valley, it strengthens the local economic activity and employment as well as sets an example that helps foster and maintain a vital economic community for future generations.
(2) Statement of Policy.

It is the policy of the City to promote employment and business opportunities for local residents and Local Businesses on all contracts and give preference to local residents, workers, b usinesses, contractors, and consultants to the extent consistent with the law and interests of the public.
(3) Local Preference in Purchasing.

In the procurement of supplies, as provided in this Title, the C ity Council or the Director may give a preference to l ocal businesses in making such purchase or awarding such c ontract in an amount not to exceed five percent of the Local Business’ total bid price, or $15,000.00, whichever amount is lower. Total bid price shall include only the base bid price but also adjustments to that base bid price resulting from alternates requested in the Solicitation. In order for a local business to be eligible to cla im the preference, the person or business must request the preference in the solicitation response and provide a copy of its current business license from a jurisdiction in the Coachella Valley.
(4) Local Preference in Services.

In awarding contracts for services, including professional services, preference to local business shall be given whenever practicable pursuant to this Title consistent with the Statement of Policy in subsection (2) above. If the RFP method is used is soliciting the services, five percent of the available points used to score the proposals will be used for evaluating the local preference component of the proposal. The person or business will also, to the extent legally possible, solicit applications for employment and proposals from subcontractors for services associated with the proposed contract from local residents and l ocal businesses as opportunities occur and hire qualified local residents and l ocal businesses whenever feasible. In order for a l ocal business to be eligible to claim the preference, the person or business must request the preference in the solicitation response and provide a copy of its current business license from a jurisdiction in the Coachella Valley.
(5) Local Preference in Public Works Contracts (Sub-Contracting).

The contractor shall use good faith efforts to sub- contract supplies to local businesses and to sub- contract services to local businesses whose work force resides within the Coachella Valley. The contractor shall submit evidence of such good faith efforts at the time of submission of b ids. Good faith efforts may be evaluated by placing advertisements inviting proposals in local newspapers, Item 1W - Page 28
sending request for proposals to local sub- contractors, or by demonstrating that no local sub- contractors are qualified to perform the services or provide the supplies. Any notice inviting bids which may require the use of sub- contractors shall include notification of this subsection. The City Council or Director may reject as non-responsive the bid of any contractor proposing to use sub-contractors that fail to comply with the requirements of this subsection. (6) Exceptions to Local Business Preference Policy . The preference set forth in this Section shall not apply to the following purchases or contracts:
(a) Supplies or services provided under a cooperative purchasing agreement. (b) Purchases or c ontracts which are funded in whole or in part by a governmental entity and the laws, regulations, or policies governing such funding prohibit application of a local preference.
(c) Purchases made or contracts let under emergency or noncompetitive situations.
(d) Purchases with an estimated cost of $75,000 or less. (e) Application of the local business preference to a particular purchase, contract, or category of contracts for which the City Council is the awarding authority may be waived at the City Council’s discretion. (7) Quality and Fitness.

The preferences established in this Section shall in no way be construed to inhibit, limit or restrict the right and obligation of the C ity Council and the Director to compare quality and fitness for use of supplies, materials, equipment, and services proposed for purchase and compare the qualifications, character, responsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences established in this Section shall in no way be construed to prohibit the right of the City Council or the Director from giving any other preference permitted by law or this Title.
(8) Application.

This Section shall be implemented in a manner consistent with otherwise applicable provisions of this Title.
(9) Verification of Local Business Preference Eligibility.

Any person or business claiming to be a local business, shall so certify in the bid, in writing to the Director. The Director shall not be required to verify the accuracy or any such certifications and shall have sole discretion to determine if a person or business meets the definition of “ Local Business.” The decision of the Director Item 1W - Page 29
declaring that any person or B usiness is not a l ocal business shall be subject to appeal pursuant to the provisions of Chapter 2.50 of the Municipal Code. (10) Enforcement.
(a) The information furnished by each participant requesting a Local Business Preference shall be under penalty of perjury.
(b) No person or b usiness shall knowingly and with intent to defraud, fraudulently obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or attempting to obtain or retain certification as a local business for the purpose of this Section. (c) No person or business shall willfully and knowingly make a false statement with the intent to defraud, whether by affidavit, report, or other representation, to a City official or employee for the purpose of influencing the certification or denial of certification of any entity as a local business. (d) A business which has obtained City certification as a l ocal business by reason of having furnished incorrect supporting information or by reason of having withheld information, and which knew or should have known, the information furnished was incorrect or the information withheld was relevant to its request for certification, and which by reason of such certification has been awarded a Contract to which it would not otherwise have been entitled, shall:

1. Pay to the City any difference between the contract amount and what the City’s costs would have been if the contract had been properly awarded;

2. In addition to the amount described in sub -section (i) above, be assessed a penalty in an amount of not more than ten percent of the amount of the Contract involved; and

3. Be subject to debarment from future award of contracts from the City. (e) The penalties identified in (d) above shall also apply to any b usiness that has previously obtained proper certification and, as a result of a change in its status would no longer be eligible for certification, fails to notify the Director of this information prior to responding to a solicitation or accepting a contract award.
(11) Promulgation of Administrative Rules.

The Director is authorized to adopt administrative rules supplemental to the provisions of this Title as necessary or appropriate to implement the provisions of this Section. The provisions of this Section and the rules adopted by the Director shall be provided to participants to the widest extent practicable.

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7.03.09 Special Procurement Methods
(1) G eneral.

For procurements under this Title , all decisions to utilize a special purchasing method in the approval of the p rocurement shall be made a part of the public record. T he Director shall provide a written report for the public record that specifies: (1) the reason the special purchasing method was used; (2) the results of the solicitation; (3) the results of the negotiations; and (4) the recommendation for the award. Any award shall be supported by findings identified in the written report.
(2) Sole source procurement
(a) A Contract may be awarded without competition when the p rocurement is made after conducting a good faith review of available sources and the Director has determined that there is only one source for the procurement.

The Director shall conduct negotiations, as appropriate, as to price, delivery, and terms. A written record of sole source procurement shall be maintained as a public record containing a sole source letter from the vendor or Contractor and the documentation from the Department Director of why sole source procurement was required and why only that product or service would meet the requirements of the department.
(b) Sole source purchases may be made when only one specific product or vendor meets a need by the City. Sole s ource procurements must be justified by obtaining a sole source letter with current date from the vendor that provides the necessary information to show how their product or services is a sole source, such as patent or copyright information, and an explanation from the Department why only that vendor or product meets the needs of the Department. Sole source requests should be sent to the Procurement and Contracting Director in advance for approval before proceeding with the requisition process so that the process is not delayed. (3) Special expertise procurement
A contract may be awarded without competition when it is determined by the Director that an unusual or unique situation exists, in that due to experience and expertise demonstrated in prior contracts with the City, or experience or expertise with similarly described contracts with other public agencies, a particular contractor is uniquely qualified for a particular procurement, that makes the application of this Title contrary to the public interest. Any special expertise p rocurement shall be made with such competition as is practicable under the circumstances and any use of this exemption shall be documented with justification from the department as to why it was necessary.

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(4) Emergency procurement
(a) Chapter 2.20 and Public Contract Code section 1102 define an “Emergency” as a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. (b) Departments may experience emergencies that affect the health and safety of the public or the City’s assets. In the event an emergency purchase is needed, the City Manager can authorize these purchases. The City Manager should be contracted right away, a nd an email should be sent to the City Manager explaining the emergency , the proposed resolution and estimated cost. The City Manager will return the email approval which will be used as the support for the contract and/or p urchase order. The emergency purchase is to cover the emergency only and not for extra items or work needed that can be properly procured after the emergency is subsided. Also, poor planning or not procuring things on time shall not be eligible for emergency approval.
(c) During an emergency, the p rocurement as approved by the City Manager may occur without applying the provisions of this Title. All such procurements shall be obtained at the lowest reasonable price available in the best interests of the City, and for public projects in compliance with the applicable provisions of Public Contract Code section 22050. (d) When determined by the City Manager that repair or replacement of a public facility requires immediate procurement, at the recommendation of the City Manager and in accordance with Public Contract Code section 22050, the City Manager may approve emergencies up to the signature authority allowed by Council. For emergencies over the City Manager’s authority the City Council may by a four -fifths vote authorize the Procurement directly related to the repair or replacement of the public facility without applying the provisions of this Title. All such procurement shall be obtained at the lowest reasonable price available in the best interests of the City. In the case of an extreme emergency involving public property, the City Manager may proceed with immediate Procurement pursuant hereto subject to ratification by a four-fifths vote of the City Council at its next regular meeting. (e) In accordance with Public Contract Code section 22050, for emergency Procurement associated with a public project where the provisions of Informal or Formal Bidding would otherwise apply, the Director shall provide a written report to the C ity Council at its next regular meeting, and subsequently at each regular meeting thereafter. During the emergency procurement involving a public project otherwise requiring application of the informal or formal procurement procedures, the City Council shall determine by a four -fifths vote the continuing need for the emergency procurement without the benefit of competitive bidding. The C ity Council shall terminate Item 1W - Page 32
the emergency procurement of a public project at the earliest possible date that conditions warrant, allowing for application of this Title to the remainder of the actions that may be completed with regard to the public project. (5) Cooperative purchasing programs
(a) The City Council may authorize the acquisition of supplies or services through a joint powers or other cooperative purchasing program with a public entity or association of public agencies or officials, provided that the contractor selected has been selected through a competitive process and the Director finds : (a) that the competitive process is similar to that contained in this Title or adequate to protect the public interest; and (b) that due to economies of scale, the nature of the product, or market conditions, the price of the supplies or services is likely to be less through the cooperative purchase than through the C ity’s independent purchasing pursuant to this Title.
(b) Departments may utilize purchasing cooperatives and State contracts to purchase needed items. The City participates in purchases thr ough the State’s California Multiple Award Schedules (CMAS) and through non-State cooperatives such as but not limited to NASPO, OMNIA, HGAC and Sourcewell. Departments needing to utilize a cooperative contract or if a vendor indicates they are part of a cooperative contracting program, shall contact the Procurement and Contracting Department for further assistance. These contracts may fulfill the need to obtain quotes or perform a formal solicitation process as they have already been procured by a qualifying agency. The contract must be open for use and the items needed must be on the contract. The price offered to the City must be at or below the price listed on the cooperative contract.
(6) Federally Funded Projects
Along with the procurement and administrative requirements in this Title , there are additional requirements when spending federal funds. This includes complying with CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which must be followed when spending certain federal funds. Federal funding typically has additional procurement requirements that must be carefully reviewed in order to be in compliance. These requirements vary, but typically require different procurement methods and forms and certain procurement and contract clauses, while some City policies will not apply when using federal funding such as the Local Preference Ordinance.

Additional federal contract administrative requirements will apply during the contract. Departments must work with the Procurement and Contracting Department if procuring federally funding projects to make sure the solicitation and resulting contract are federally compliant.

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(7) Alternate Delivery Procurement Methods
(a) Policy.

The Director is authorized to establish policies and procedures for implementation of alternate delivery procurement methods such as but not limited to Construction Manager at Risk (CMAR), Design-Build (D/B) Procurement, Public Private Partnerships, etc. within the guidelines in this Section.
(b) Procurement.

1. Construction of p ublic projects may be procured through alternate project delivery methods by undertaking an RFP process .

Notwithstanding the foregoing, the City may prequalify proposers through an RFQ process prior to the RFP process. The RFP must contain, at a minimum, the following elements:

2. The procedures to be followed for submitting p roposals, the criteria for evaluation of the proposals and their relative weight, the procedure for selection of a contractor and the timing for making awards.

3. The proposed terms and conditions for the contract.

4. The project requirements, criteria for the intended use of the project, expressed in conceptual documents, basis of design, bridging documents, performance- oriented preliminary drawings, outline specifications and other documents provided to the contractor by the City establishing the project’s basic elements and scale, and their relationship to the work site suitable to allow the contractor to submit a proposal.

5. A description of the project approach, work plan or other submittals to be submitted with the p roposal, with guidance as to the form and level of completeness required.

6. A schedule for planned commencement and completion of the project.

7. Any other information that the City, in its discretion chooses to supply, including without limitation, surveys, soils reports, drawings or models of existing structures, environmental studies, photographs, or references to public records.

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(c) Evaluation and Selection.

Once received, proposals shall be submitted for review by a selection committee. Clarifications may be required to ensure p roposals are responsive to the RFP. Clarifications may require revised cost and/or technical proposals. C riteria for selecting a Contractor for award of a Contract may include but are not limited to the following:

1. An evaluation of references provided with respect to responsiveness, quality of work, timeliness and overall performance.

2. An evaluation of overall quality, capability, resource availability and financial stability of the contractor.

3. An evaluation of the contractor’s experience, training and qualifications.

4. Consideration of items such as proposed design approach, initial and/or life cycle costs, project features, quality, capacity, schedule, and operational and functional performance of the facility.

5. The extent to which the contractor’s proposal meets the requirements set forth in the RFP.

6. Analysis of the cost relative to the contractor’s ability to meet the requirements set forth in the RFP.

7. Depending on the number of proposals received, the selection committee may develop a “short list” of top ranked proposers . The selection committee may require “short listed” proposers to participate in an interview and/or make a presentation to establish a final ranking. The selection committee will then either recommend the top ranked firm where pricing has been provided during the process or begin negotiations with the top ranked proposers where pricing could not be provided as part of the evaluation process. The negotiations may include but not be limited to project costs, scope, and schedule. If negotiations are unsuccessful, negotiations will cease with the top ranked proposers and may begin with the next highest ranked proposer. The City reserves the right to reject all proposals, select by proposal review only or interview as needed.

The City’s selection committee shall select and recommend to the City Council for contract award a contract providing the best value to the City.

7.03.10 Protest Policy.
(1) This section sets forth the protest remedies available with respect to the procurement process. Each participant by submitting its response to the Item 1W - Page 35
solicitation, expressly recognizes the limitation on its rights to protest contained herein, and expressly waives all other rights and remedies. Each participant agrees that the decisions on any protest, as provided herein, will be final and binding on the protestant.
(2) All protests and related statements described in this section shall be submitted for filing to the following addresses:
(a) Submittal via hand delivery or U.S. Mail:

City of Palm Springs
Procurement and Contracting Department
3200 Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: Director of Procurement and Contracting

(b) Submitted via email to the Director of Procurement and Contracting (3) Protests Regarding Solicitation Requirements
(a) If any attempts to resolve participants ’ concerns during the request for clarifications/question and answer period were unsuccessful, protests regarding the solicitation requirements shall be filed only after the question- and-answer period ends, but no later than five calendar days after the final addendum is issued.
(b) Participants may protest the solicitation requirements on the grounds that:

1. A material provision in the solicitation is ambiguous to a point that the participant cannot respond to the solicitation, or

2. The solicitation restricts fair and open competition,

3. Any aspect of the solicitation requirements described herein violates applicable local, state or federal law.
(c) Protests regarding the solicitation requirements shall completely and succinctly state the grounds for protest and shall include all factual and legal documentation in sufficient detail to establish the merits of the protest.

Evidentiary statements, if any, shall be submitted under penalty of perjury.

The protestant shall have the burden of proving its protest by preponderance of the evidence. The outcome of the solicitation requirements protest shall be decided on the basis of the written submissions by th e City’s Procurement and Contracts Department in conjunction with the City’s Legal Department, whose decision shall be final and binding on the protestant. The City will issue a written decision regarding any protests to the protestor or to all participants. (d) Notwithstanding the existence of a protest the City may continue the procurement process. The failure of a participant to file a basis for a protest regarding the solicitation requirements within the applicable period shall preclude consideration of that ground in any future protest related to solicitation requirements.

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(e) This is the only time a prospective participants can file a protest over solicitation requirements.
(f) The City may issue addenda or extend the solicitation due date to address the issues raised in a requirement related protest.
(4) Protests Regarding Selection
(a) The City will only consider protest by participants that respond to the solicitation.
(b) Participants may protest the selection only on the grounds that the City did not comply with solicitation process and procedures.
(c) Any protests regarding the City’s decision of selection shall be filed within seven calendar days after the selection or recommendation of intent to award issuance or bid result posting. The City will not accept protests filed after this time period.
(d) The City will not entertain protests of solicitation requirements during this stage in the process.
(e) The protestant shall file a detailed written statement on the grounds, legal authority and facts, including all documents and evidentiary statements in support of the protest. Evidentiary statements, if any, shall be submitted under penalty of perjury. The protestant shall have the burden of proving its protests by a preponderance of the evidence. Failure to file a protest within the applicable period shall constitute a waiver of the right to protest the selection.
(f) The City shall issue a written decision regarding the protest within 30 calendar days after the filing of the detailed statement of protest. The decision shall be final and binding on the protestant.
(g) The City reserves the right to request information and/or documentation from the other participants to respond to issues raised in a protest. (5) Under no circumstances shall the City be held liable for payment of the protestant’s costs or attorneys’ fees. The City shall not be liable for any damages to the protestant filing the protest or to any participant in the protest, on any basis, express or implied.

7.03.11 Reporting of anti-competitive practices.

When for any reason collusion or other anti -competitive practices are suspected among any participants in the solicitation process, a notice of the relevant facts shall be transmitted to the State Attorney General and the Riverside County District Attorney’s Office.

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CHAPTER 7.04. PROCUREMENT EXEMPTIONS
The provisions of this Title are not applicable to:
(1) Contracts for professional witnesses if the purpose of such contracts are to provide for professional services or testimony relating to an existing or probable judicial proceeding in which the C ity is or may become a party to contracts for special investigative services for law enforcement purposes;
(2) Contracts for special investigative services for law enforcement purposes; (3) Agreements negotiated by the City A ttorney or risk manager in settlement of a dispute, claim or litigation or threatened litigation;
(4) Agreements negotiated by the C ity Attorney regarding worker’s compensation payments for medical and related expenses;
(5) Contracts for the purchase of works of fine art and performing art entertainment; (6) The award of financial participation agreements; owner participation agreements; disposition and development agreements; development agreements; real estate purchase or lease agreements; covenants; easements; encroachment agreements; memoranda of understanding; or other similar agreements. Such Contracts shall be awarded in accordance with applicable legal requirements and/or administrative directives of the City;
(7) Procurement of miscellaneous books, magazines, newspapers, subscriptions, on- line library reference services, film, videos and assorted materials for library customer check-out purposes for which contracts by competitive bid solicitation are not practicable, or which are exempted from competitive bidding pursuant to applicable laws;
(8) Intergovernmental payments, purchases and agreements; (9) Public utility purchases of water, power and related services when no competition is available;
(10) Specialized seminar, training and educational classes off site; (11) Magazine and media advertisement;
(12) Contracts for election services;
(13) Contracts for Legal Services as defined and related to litigation and for the City Attorney’ Services which shall be developed consistent with the Palm Springs City Charter, Section 407; or
(14) Contracts for employment and public employee labor agreements.

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(15) When expenditures are mandated by law or regulation, such as county booking fees, utilities, postage, waste disposal fees or other non-negotiable permit, use or application fees.
(16) Best Interest of City - except where otherwise prohibited by law, when the C ity Council or City Manager authorizes the award and execution of p urchase orders or contracts for supplies and services and for construction of public projects subject to the signature authority consistent with this Title, without following the required procurement methods, provided that the C ity Council or City Manager finds that such award is in the best interest of the City, or of the public health, safety, and welfare.

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CHAPTER 7.05 CONTRACTS

7.05.01 Ethics in Public Contracting
(1) Employee conflict of interest.
(a) It shall be unethical for any city employee or city official to participate directly or indirectly in a procurement when the city employee or official knows that:

1. The city employee or official, or any member of the city employee’s or official’s immediate family has a financial interest pertaining to the procurement Contract; or

2. Any other person, business, or organization with whom the city employee or official, or any member of the city employee’s or official’s immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement contract.
(b) A city employee or city official, or any member of the city e mployee’s or official’s immediate family who holds a financial interest in a disclosed blind trust shall not be deemed to have a conflict of interest with regard to matters pertaining to that financial interest.
(c) No city employee nor official shall purchase any goods, supplies, equipment, etc., from the C ity unless the goods, supplies, equipment and materials are offered to the general public on the same terms and conditions as those applicable to the e mployee or official, or as the result of a competitive bid process open to the public.
(d) City employees or city officials who approve the designation of city property as surplus or recommend an item be deemed surplus are ineligible to purchase said items under any process, including competitive bid. (2) Gratuities and kickbacks.
(a) Gratuities.

It shall be unethical for any person to offer, give, or agree to give any city employee or former city employee, or any city employee or former city employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, or preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or Item 1W - Page 40
other particular matter, pertaining to any program requirement or a contract or subcontract, or to any solicitation or proposal.
(b) Kickbacks.

It shall be unethical for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order. (c) Contract Clause.

The prohibition against gratuities and kickbacks prescribed in this section shall be conspicuously set forth in every contract and solicitation. (3) Prohibition against contingent fees.

It shall be unethical for a person to be retained, or to retain a person, to solicit or secure a City contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies for the purpose of securing business.
(4) Contemporaneous employment prohibited.

It shall be unethical for any City employee who is participating directly or indirectly in the procurement process to become or to be, while such a City employee, the employee of any person contracting with the City by whom the City employee is employed.
(5) Waivers from contemporaneous employment prohibition and other conflicts of interest.

The City Council may grant waiver from the employee conflict of interest provision employee conflict of interest) or the contemporaneous employment provision contemporaneous employment prohibited) upon making a written determination that:
(a) The contemporaneous employment or financial interest of the city employee has been publicly disclosed;
(b) The City employee will be able to perform its procurement functions without actual or apparent bias or favoritism; and
(c) The award will be in the best interests of the City.

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(6) Use of confidential information.

It shall be unethical for any City employee or former City employee knowingly to use confidential information for actual or anticipated personal gain, or for the actual or anticipated personal gain of any other person.

7.05.02 Non-Discrimination in Contracting.
(1) Statement of Policy.
(a) It is the policy of the City to promote the principles of equal opportunity in its contracting activities by assuring that those seeking to do business with the City will treat contractors, subcontractors, and employees equally and will not engage in discrimination against their contractors, subcontractors, or employees because of their actual or perceived race, color, religion, ancestry, national origin, disabilit y, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation or as a member of any other protected class. (b) It is also the policy of the City to ensure that work performed on behalf of the City is done in a cost effective and high- level manner. Employees who are treated fairly are more productive in their jobs and less likely to change jobs, thus helping to ensure that government contracts are both cost effective and completed in a professional manner.
(2) Basic Contract Requirement Prohibiting Non- Discrimination. All c ontracts shall include provisions prohibiting discrimination on the basis of actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation as these terms are defined by California Law, or association with members of classes protected under this Section or in retaliation for opposition to any practices forbidden under this Section, against any person seeking accommodations, advantages, facilities, privileges, services, or membership in all business, social, or other establishments or organizations, operated by that contractor, and shall require such contractor to include a similar provision in all subcontracts.
(3) Requirement Prohibiting Discrimination in the Provision of Benefits. (a) No Contractor of the City with a c ontract in the amount of $10,000.00 or more shall discriminate in the provision of health benefits, bereavement leave, family medical leave, moving expenses, pensions or retirement benefits, travel benefits, or membership or membership discounts between:

1. E mployees on the basis of an employee’s, employee’s spouse’s, employee’s domestic partner’s, or dependent’s actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, Item 1W - Page 42
gender identity, gender expression, or sexual orientation as these terms are defined by California Law;

2. E mployees on the basis of an employee’s or dependent’s actual or perceived gender identity, including, but not limited to, the employee’s or dependent’s identification as transgender; or

3. E mployees with spouses and employees with domestic partners, or discrimination between employees with spouses or domestic partners of a different sex and employees with spouses or domestic partners of the same sex, or discrimination between same- sex and different-sex domestic partners of employees or between same- sex and different-sex spouses of employees.
(b) For purposes of this Section, an employee health plan is discriminatory if the plan is not consistent with California Law including, but not limited to, Section 1365.5 of the Health and Safety Code and Section 10140 of the Insurance Code.
(4) Certification. Every contractor shall submit a nondiscrimination certificate in a form acceptable to the City Manager. No contract shall be awarded until the contractor has submitted to the City such certificate. The certificate shall contain the following:
(a) Contractor certifies and represents that, during the performance of the contract, the contractor and any other parties with whom it may subcontract shall adhere to the City’s non-discrimination and equal benefits as provided in this Section to assure that applicants and employees are treated equally and are not discriminated against because of their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner st atus, sex, gender, gender identity, gender expression, national origin, ancestry, or sexual orientation. Contractor further certifies that it will not maintain any segregated facilities. (b) Contractor shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of the contract, state that it is an “equal opportunity employer ” or that all qualified applicants will receive consideration for employment without regard to their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation.
(c) Contractor shall, if requested to so do by the Contract Administrator, certify that it has not, in the performance of this contract, discriminated against applicants or employees because of their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation.

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(d) If requested to do so by the Contract Administrator, contractor shall provide the City with access to copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. (e) Contractor agrees to recruit Coachella Valley residents initially and to give them preference, if all other factors are equal, for any new positions which result from the performance of a Contract and which are performed within the City. The Contract Administrator may agree to modify this requirement where it is in conflict with federal or state laws or regulations. (f) Nothing contained in the contract shall be construed in any manner so as to require or permit any act which is prohibited by law. (g) The Contractor shall include the provisions set forth in paragraphs (a) —(f) of this Subsection 4 of this Section, inclusive, in each of its subcontracts. (5) Investigation and Monitoring. All contracts shall include appropriate provisions that will allow the Contract Administrator to review, monitor, and investigate compliance with this Section and to require each contractor to allow and provide full access to all applicable records, rules, regulations, documents, and other pertinent data necessary for the qualitative and quantitative evaluation of each contractor’s compliance with the provisions of this Section.
(6) Enforcement and Appeals.
(a) In the event the Contract Administrator determines the contractor is not in substantial compliance with the provisions of this Section, the Contract Administrator may recommend to the City Manager, the initiation of one or more of the following rights and remedies described in this subsection, in addition to any rights and remedies otherwise provided in the applicable Contract or by law or equity:

1. Termination of the contract and bar the contractor from bidding on future contracts with the City for two years from the effective date of the contract termination;

2. Assess liquidated damages in the amounts specified in the c ontract where it is found the contractor willfully violated the requirements of this Section; and

3. Seek recovery of reasonable attorneys’ fees and costs incurred for enforcement of this Section.
(b) The Contract Administrator shall issue written findings and mail a copy of the findings to the contractor by first class mail and by any other means provided in the contract.

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(7) Appeals.
(a) Within five business days of the notice of the Contract Administrator’s findings, the c ontractor may file a written appeal of the Contract Administrator’s determinations to the City Manager.
(b) The City Manager shall set the matter for hearing and shall cause a Notice of Hearing to be given to the contractor and to such other persons as may have identified themselves as interested in the decision and as otherwise required by the California Ralph M. Brown Act.
(c) The hearing shall be conducted as an independent reexamination of the matter. The contractor shall have the burden of proof in all cases, and if the contractor fails to appear either in person or by counsel, or fails to present or offer any evidence, the City Manager may adopt the decision of the Contractor Administrator or may decide the matter upon the record with or without taking any additional evidence. Any oral or documentary evidence may be received, but the City Manager shall exclude irrelevant, imm aterial or unduly repetitious evidence. The City Manager’s decision shall be made upon substantial evidence. In other words, if an essential finding is based upon hearsay or secondary evidence, such evidence must be of the type which would be admissible in a court of law as proof of such finding. (d) Upon the hearing of the appeal the City Manager may refer the matter back to the Contract Administrator with directions for further consideration, or the City Manager may reverse, affirm, or modify the decision as may appear just and reasonable in light of the evidence presented. The decision of the City Manager shall be supported by written findings and shall include the reasons for the ruling. Notice of the City Manager’s decision shall be served on the contractor, the Contract Administrator, and the City Clerk. The decision shall be final unless City Council agrees to review the matter pursuant this Code.
(8) Exceptions and Waivers.
1) The City Manager, with the consent of the City Council, may waive the requirements of this Subsection under the following circumstances:

1. Whenever the City Manager finds that there is only one prospective contractor willing to enter into a real property agreement with the City for use of City property on the terms and conditions established by the City, or that the needed goods, services, construction services for a public work or improvement, or interest in or right to use real property are available only from a sole source, and the prospective contractor is not currently disqualified from doing business with the City, or from doing business with any governmental agency based on any contract compliance requirements;
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2. Where the City Manager certifies in writing to the C ity Council that the contract or real property agreement is necessary to respond to an emergency which endangers the public health or safety and no entity which complies with the requirements of this Section capable of responding to the emergency is immediately available; provided that such certification must be made prior to or within twenty -four hours of execution of the c ontract or r eal property agreement on behalf of the City;

3. Where the City Attorney certifies in writing to the City Council that the contract involves specialized litigation requirements such that it would be in the best interests of the City to waive the requirements of this Section; provided such certification is made prior to execution of the contract on behalf of the City.
2) This Section shall not apply where the prospective c ontractor is a public entity and the City Manager finds that supplies, services, construction for a public project or improvement or interest in or right to use real property of comparable quality or accessibility as are available under the proposed contract or property contract are not available from another source, or that the proposed contract or property contract is necessary to serve a substantial public interest.
3) This Section shall not apply where the City Manager finds that the requirements of this Section will violate or are inconsistent with the terms or conditions of a grant, subvention or agreement with a public agency or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or agreement, provided that the contracting officer has made a good faith attempt to change the terms or conditions of any such grant, subvention or agreement to authorize application of this Section.
4) Upon the request of a potential contractor or upon the C ontracting Administrator’s own initiative, after taking all reasonable measures to find an entity that complies with the law, the City Manager may waive any or all of the requirements of this Section for any c ontract, real property agreement, or bid package advertised and made available to the public, or any competitive or sealed bids received by the City under the following circumstances:

1. Where the City Manager determines that there are no qualified responsive bidders or prospective contractors who could be certified as being in compliance with the requirements of this Section and that the contract or real property agreement is for supplies, a service, or a public project that is essential to the City or City residents; or

2. Where the City Manager determines that transactions entered into pursuant to bulk purchasing arrangements through federal, State, or Item 1W - Page 46
regional entities which actually reduce the City’s purchasing costs would be in the best interests of the City; or

3. Where the City Manager determines that the requirements of this Section would result in the City’s entering into a contract with an entity that was set up, or is being used, for the purpose of evading the intent of this Section, which is to prohibit the City from entering into contracts with entities that discriminate based on the criteria set forth in this Section.
5) The waiver authority granted to City Manager in this Subsection shall be subject to the requirements that:

1. All proposed waivers must set forth the reasons the City Manager is requesting the waiver, what steps were taken to find an entity that complies with this Subsection and why the waiver does not defeat the intent of this Section, which is to prohibit the Ci ty from entering into contracts with entities that discriminate based on the criteria set forth in this Chapter. Such waivers shall be filed in the Office of the City Clerk and a notice of such waiver shall be presented to the City Council on the next available City Council agenda; and

2. For any contract or real property agreement subject to approval by the City Council, the City Manager shall include a statement in the approving resolution and related staff report whether any waiver under this Section is proposed for that contract.
6) Annual Reports. The City Manager shall conduct an annual comprehensive review of the administrative implementation of the provisions of this Section, including without limitation, the use of the waiver authority and the disposition of complaints of contractor non- compliance with any provision of this Section, and shall submit a report to the City Council.

7.05.03 Contract provisions.
1) The Director shall use contracts in standard form prepared by the City Attorney that incorporate all required standard terms and conditions for use in City contracts. Purchase o rder forms shall include standard terms and conditions as may be required by the City Attorney. Any variation of standard terms and conditions shall require review and approval by the City Attorney prior to their use in any procurement. All contracts shall incorporate provisions ensuring the City’s ability to audit and inspect a contractor’s accounting system and records, including at a contractor’s place of business, and extending to any subcontractor records.

Contracts shall be included in all solicitations for review during the procurement process and any requested changes to the contract language shall be resolved during the procurement process and prior to selection of a Contractor for award to maintain a level playing field for all participants.

Item 1W - Page 47
2) Contract templates are available for use in preparing contracts and are preferred over vendor contracts. Staff shall always attempt to use City standard contracts first before accepting to use the vendors form agreement. Once the contract has been completed including scope and pricing, a contract abstract form shall also be completed. Once the contract and abstract are complete, they should be transmitted along with the required insurance certificate, business license and applicable quotes or documentation of the procurement process used to satisfy the procurement requirements to the Procurement and Contracting Department for review and assignment of the contract number. Once the number has been assigned and included on the contract, the contract can be routed for signature using the electronic signature process through DocuSign. DocuSign accounts and instructions are available through the Procurement and Contracting Department.

3) All contracts should contain a term showing how long the contract will last and a dollar value. Even on call contracts should have an estimated not to exceed value for tracking and authorization purposes. Task Orders and Release POs can be issued by the Department Director for any value as long as the cumulative total of the Release POs or Task Orders are within the total value of the contract. On Call contracts that do not have a value will require each Task Order or Release PO to be authorized by the appropriate staff member or Council depending on the signature authority delegation that is issued by the City Manager’s office.

7.05.04 Prevailing wages and benefits.

Except on locally funded public projects of $25,000 or less when the public project is for construction work, or $15,000 or less when the public project is for alteration, demolition, repair or maintenance work, all contractors performing work on City p ublic projects shall be subject to California Prevailing Wage Law, codified at California Labor Code section 1720 et seq., as it may be amended from time to time, or otherwise required by law. The only limitation on the provisions of this subsection shall be in the event federal funding requirements supersede state prevailing wage laws, the higher wage rates shall apply.

Any Invitation for Bids for m aintenance and p ublic projects subject to the California Prevailing Wage Law shall include notification of this subsection.

7.05.05 Multi-year contracts.
(1) Specified Period.

Unless otherwise provided by law and in accordance with this section, a contract for supplies or services may be entered into for any period of time deemed to be in the best interest of the C ity provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal year period at the time of award of contract . Payment and performance obligations for succeeding fiscal year periods shall be subject to the availability and appropriation of funds therefor. Any multi-year Contract exceeding Item 1W - Page 48
a potential term of five years, including any options to renew or extend, shall be approved by the City Council.
(2) Use.

A multi-year Contract is authorized where:
(a) Estimated requirements cover the period of the contract and are reasonably firm and continuing;
(b) The term of the contract and conditions of renewal or extension, if any, are included in the solicitation; and
(c) Such a contract will serve the best interests of the C ity by encouraging effective competition or otherwise promoting economies in C ity procurement.

7.05.06 Authorization to execute documents.

All documents may be executed by the C ity Manager whenever such authorization is granted in a resolution, motion, or minute order adopted by the City Council. All Contracts shall be “ approved as to form ” by the C ity Attorney and attested by the C ity Clerk.

Contracts which do not require C ity Council approval shall only be executed by City Manager, or designee pursuant to the signature authority.

7.05.07 Authorization for the use of electronic transmissions and payments.

Notwithstanding any other provision of law, the use of electronic media, including acceptance of electronic signatures and participation in the state of California “Cal-Card” procurement card program, is authorized consistent with federal and state of California applicable statutory, regulatory or other guidance for such media, so long as such guidance provides (1) appropriate security to prevent unauthorized access to the bidding, approval, and award processes; (2) appropriate protection is provided to protect the City from unauthorized charges; and (3) accurate retrieval or conversion of electronic forms of such information into a medium which permits inspection and copying. Records may be kept in electronic form.

7.05.08 Contracting authority.
(1) The contracting authority applicable for the procurement of supplies and services shall be established as follows:
(a) Signature authority of the City Manager.

1. The City Manager may approve purchase orders or enter into contracts for supplies and s ervices in an amount not to exceed $150,000 for supplies and services and $220,000 for construction.

The City Manager may further delegate signature authority to other Item 1W - Page 49
City employees as the City Manager deems appropriate not to exceed the signature authority set forth by the City Council herein.

2. The City Manager may approve purchase orders or enter into contracts for legal services required by the City Attorney where legal services will be performed under separate c ontract directly with the City outside of and separate from the City’s agreement for Legal Services with its City Attorney, and where the cost for legal services is within the budget previously appropriated by the City Council. The City Attorney shall provide the C ity Council with regular updates on all matters requiring l egal services and the costs associated therewith.

(b) Authority of the City Council.

The City Council shall approve purchase orders and contracts for supplies and services that exceed $150,000, or $220,000 for construction unless such approval is otherwise delegated to the City Manager pursuant to separate action by the C ity Council. The City Council may also, from time to time, change the City Manager’s signature authority.

Item 1W - Page 50
CHAPTER 7.06 CONTRACT CHANGES

7.06.01 Contract or purchase order amendments.
(1) Policy.
(a) Modifications to a contract through a City issued written amendment documenting the changes to the c ontract may be utilized for purposes of:
(1) adding and/or deleting quantity of items being purchased; (2) modifying unit prices; (3) modifying the scope of work or services to be provided; (4) changing the funding sources; (5) changing the performance schedule; or (6) any other change required by the City.
(b) Changes to the p urchase order can also be issued through the City’s Enterprise System to add contract amendment changes or to make needed changes to a previously issued purchase orders.
(2) Specific Authority.
(a) The City staff or the City Manager may approve amendments to c ontracts or changes to purchase order for supplies and services if the amendments or changes are within the signature authority. Contracts and purchase order values are aggregated over the life of the agreement and therefore cannot exceed the signature authority in aggregate. For example, if a contract was signed by the City Manager up to the signature authority limit and an amendment is needed the amendment would need Council approval as the aggregate will be over the City Manager’s signature. If the contract w as originally approved by the City Council , staff or the City Manager could sign amendments up to the signature authority limit and anything over the City Manager’s limit would then go to Council. Once Council approval has been obtained at any stage, the signature authority limit may be reapplied up to the aggregate of the amount that has not be approved by Council. (b) The City Council shall approve contract amendments or purchase order changes for supplies and services where the aggregated amounts exceed the signature authority.
(c) During the approval of a contract or purchase order by the City Council, the City Council may delegate specific signature authority to approve contract or purchase order amendments, specific to that contract or purchase order, based on either a percentage of the original contract or p urchase order amount or a specific dollar amount. If no specific signature authority is given by the City Council, the City Manager may approve contract amendments or purchase order changes for a City Council awarded contract or purchase order up to the signature authority otherwise allowed pursuant to this Chapter.

Item 1W - Page 51
(3) Procedure
Contracts may be amended or changed through the use of formal amendments or change order documents. Departments shall contact the Purchasing and Contracting Department and/or the City Attorney’s Office for any assistance needed in preparing these documents. The City Manager may approve amendments and change orders if the amendments or change orders aggregated with the original contract do not to exceed the signature authority established by the City Council, currently $150,000 for supplies and services (non-public projects) and $220,000 for construction projects. The City Council may delegate specific signature authority to approve amendments or change orders, specific to that contract, based on either a percentage of the original contract amount or a specific dollar amount.

7.06.02 Change orders.
(1) Policy.

Modifications to a contract for a p ublic works construction project through a City issued Change Order documenting the changes to the Contract may be utilized for purposes of: (1) adding and/or deleting quantity of items being constructed; (2) modifying unit prices; (3) modifying the scope of work of the p ublic project; (4) changing the funding sources; (5) changing the performance schedule; or (6) any other change required by the City.
(2) Specific Authority.
(a) The City Manager may approve change orders for p ublic projects if the amount of the change orders aggregated with the original contract does not exceed the amount identified by public contract code section 22032(b), (b) The City Council shall approve change orders for public projects where the amount of the change orders aggregated with the original contract exceeds the amount identified by Public Contract Code section 22032(b) currently $220,000. During the approval of a contract for a public project by the City Council, the C ity Council may delegate specific signature authority to approve change orders, specific to that p ublic project, based on either a percentage of the original contract amount or a specific dollar amount. If no specific signature authority is given by the C ity Council, the City Manager may approve change orders for a City Council awarded contract up to the amount identified by Public Contract Code section 22032(b) currently $220,000, subject to an unencumbered appropriation in the funds against which such expenditure is to be charged.

Item 1W - Page 52
(3) Exception.

Change orders in excess of the City Manager’s signature authority or the amount identified by Public Contract Code section 22032(b) currently $220,000 may be approved by the City Manager and submitted to the C ity Council for ratification at its next available regular meeting under the following circumstances:
(a) The failure to immediately issue a change order may result in significant cost increases or an unacceptable delay due to work stoppage or other inefficiencies;
(b) A regularly scheduled meeting of the City Council is not available within a reasonable period of time to sufficiently remedy the issue presented with the proposed change order; and
(c) Funding for the change order is currently available within the appropriated budget for the public project.

Item 1W - Page 53
CHAPTER 7.07 CONTRACT ADMINISTRATION

7.07.01 General - unless other contract administration is designated by the Director, the following shall apply:
(1) All public projects shall be administered by the City Engineer or designee; (2) All maintenance work shall be administered by the Director of Public Works (facilities and maintenance) or designee, or such other director of the applicable using Department;
(3) All Information Technology projects/contracts shall be administered by the Director of Information Technology.
(4) All contracts for supplies and s ervices, including p rofessional services, for the Department of Aviation shall be administered by the D irector of A viation or designee;
(5) All master contracts for supplies and services which apply to multiple using departments will be administered by the designated Director or designee; (6) All other contracts shall be administered by the director of the applicable using department.

7.07.02 Contract Administrator Responsibilities

(1) Each department should have a contract administrator that is assigned to each contract that monitors the Contractor’s performance to make sure that all supplies and services are received in accordance with the purchase order , contract requirements, contract term and contract pricing.
(2) Contract Administrators shall monitor the progress of the work to make sure deliverables are received and work progresses as required. (3) Contract Administrators shall make sure all certificates of insurance are kept current until the expiration of the contract term.
(4) It is the Contract Administrator’s responsibility to make sure all invoices are reviewed in accordance with the contract before recommending invoices for payment.
(5) Contract Administrators shall also make sure all contracts and corresponding purchase orders get closed out when the supplies or services have been received or completed.
(6) Should any disputes arise on the contract, the Contract Administrator should take immediate action to resolve and if assistance is needed contact the Procurement and Contracting Department.

Item 1W - Page 54
(7) If the project is federal funded Contract Administrators shall make sure all of the federal requirements are met, that any reports that are needed are completed and that solid documentation is kept on the project.
(8) The Contract Administrator shall also make sure the purchase orders and contracts are closed out and that all records are maintained in accordance with the record retention policies.

7.07.03 Contract and Purchase Order Close Out

Once a contract or purchase order is complete, the department shall take the steps to close out the contract or p urchase order and release any unused funds. For blanket purchase orders, this process should occur at the end of each fiscal year. Files should be complete and organized for record retention. For public projects, project closeout should be in accordance with the contract, including, but not limited to, filing project completion notices, obtaining from the c ontractor any warranties, operations and maintenance manuals and attic stock as applicable and releasing retention to the contractor as warranted prior to closing the contract.

7.07.04 Acceptance of public projects; notices of completion

The City Manager, or designee, upon a recommendation of the City Engineer, is authorized to accept the work completed by c ontractors associated with a public project on behalf of the C ity Council and is authorized to execute and cause to be recorded notices of completion where required or authorized by law. Upon acceptance of the work by the City Manager or designee, the C ity Clerk is authorized to release bonds and security instruments filed with the City associated with the public project as otherwise required in the specifications issued by the City for the public project.

Item 1W - Page 55
CHAPTER 7.08 DISPOSITION OF SURPLUS PROPERTY

7.08.01 Surplus property disposition regulations.
(1) The Director shall establish additional regulations governing:
(a) The transfer of surplus property and operation of the surplus property program;
(b) The sale or disposal of surplus, unclaimed and seized property by public auction, competitive formal and informal bid, or other appropriate method designated by regulation including electronic auction;
(c) The trade-in of surplus property for purchase of new equipment. (2) The disposal of surplus real property is not regulated under this Title and is subject to applicable state law.

7.08.02 Disposition of surplus property.
(1) Each using department shall submit reporting to the Director, at such times and in such form as the Director requires, describing all property held by the u sing department, which the u sing department has determined to be surplus property.

At such time that a periodic physical inventory of the property held by any u sing department is required by the Director, the using department shall segregate all of its surplus property and a report thereof shall be furnished to the Director for the transfer of disposition of such surplus property.
(2) The Director, upon notification by using departments of excess City-owned surplus property, is authorized to determine whether any such City -owned property is surplus to the present or future needs of the City and will coordinate the disposition of such property. This Chapter is not applicable to personal property or money, to the extent the disposition of such is governed by other applicable law, including, without limitation, escheat pursuant to Government Code section 50050 et seq., personal property or goods pursuant to Health and Safety Code section 11000 et seq., or unclaimed property pursuant to Code of Civil Procedure section 1500 et seq.
(3) Using departments shall provide information such as description, condition, photographs and estimated values as required by the Director to request a determination as to whether property may be declared surplus by the Director. (4) Each using department shall retain custody of its surplus property in such manner and at such place as the Director shall require, until their transfer or final disposition has been determined. No using department shall, in any event, permit any surplus property held by it to be loaned or donated without prior C ity Council approval, or destroyed or otherwise removed from the City’s custody without the prior written approval of the Director.

Item 1W - Page 56
(5) Before disposing of surplus property, including unclaimed property delivered to the Director by the Police Department, the Director shall canvas all other u sing departments to determine whether the surplus property has beneficial use to another using department. If another using department requests such surplus property it may be transferred in accordance with policies and procedures established by the Director.
(6) The Director is hereby authorized to dispose of surplus property which are not used or needed by any using department or which has become unsuitable for City use.

Such surplus property may be disposed by any of the following procedures:
(a) Exchanged or traded in for new property;
(b) Sold utilizing the competitive procedures similar to those prescribed in this Title;
(c) Sold at public auction conducted by a professional auctioneer which the Director is hereby authorized to retain on the basis of a negotiated flat fee, hourly fee, or percentage of the amount of the sale, whichever is determined by the Director to be in the best interests of the City; (d) Sold utilizing a negotiation process when the Director determines in writing that such a process is in the best interests of the City; (e) Disposed of as scrap material or destroyed if no resale value exists; (f) Disposed of in accordance with state or local law;
(g) Donated to a non- profit organization or other public entity following determination by the City Council that such donation would serve a public purpose.
(7) Unless otherwise provided, all proceeds from sale or auction of surplus property will be deposited into the C ity’s general fund. Proceeds from sale of enterprise, federal, grant or other special designation property will be reimbursed, less prorated selling expenses to the appropriate fund, after completion of each sale.

Item 1W - Page 57

ATTACHM
ENT B
Item 1W - Page 58

MEMO
To: City Council January 15, 2025
From: Kim Baker, Procurement and Contracting Director
Subject: Procurement Policies – Local Preference

This memo is to provide the local preference percentage analysis requested by City Council at the January 9, 2025, Council Meeting. At the meeting City Council asked staff to evaluate the effectiveness of the local preference section to see if increasing the percentage from the current five percent to either six or seven percent would make a difference in the number of local companies securing contracts with the City.

Staff has completed this analysis and found that increasing the percentage would not change any of the results of local firms being awarded contracts based on contracts awarded in 2024.

In fact, based on the analysis the City would have to pay as much as an average of $323,000 more per award to make any movements in the percentages we saw over the last year, which would result in a local preference percentage increase and increase in cost that would be challengeable and not recommended.

Although the local preference has not made any real impacts over the past year on the outcome of the awards, local bidders are participating through the outreach efforts of staff and the reach of our electronic bid notification system. The analysis shows that 44% of solicitations issued as Invitations to Bids (price based) were awarded to local companies regardless of the local preference and 11% of Request for Proposals (best value based) were awarded to local companies. Based on the analysis performed, staff recommends leaving the percentage at the standard five percent with $15,000 cap with continued efforts, outreach, and education to entice local vendors to participate.

Attached are two spreadsheets that were produced to analyze the 2024 bids and proposals received and what staff found for each solicitation. Please let me know if you have any further questions or would like more information.

Attachments: Invitation to Bids Analysis and Request for Proposal Analysis Item 1W - Page 59

Item 1W - Page 60
LOCAL

CONTRACTS COST DIFFERENCE
BIDNO. DESCRIPTION BID NOTES LOCAL PREFERENCE NOTES AWARDED ANALYSIS Switchback Passenger Boarding 2 Bids received; awarded to IFS 24-01 Ramp Timberline GSE, Inc. NO LOCAL BIDS
IFS 24-02 Baggage Handling Parts Supply No Bids CANCELLED LOCAL BIDDER WAS $32,700 MORE THAN LOW;
On-Call Asphalt Repair & 3 bids received; awarded to Onyx PERCENTAGE DIFFERENCE 4.208% (UNDER 5% BUT IFB 24-03 Replacement Svcs Paving Company, Inc. OVER THE 15K LIMIT) $ 32,700.00 On-Call Concrete Repair & 3 bids received; awarded to Hardy LOCAL BIDDER WAS $677,920 MORE THAN LOW; IFB 24-04 Replacement Svcs & Harper, Inc. PERCENTAGE DIFFERENCE 24.427% $ 677,920.00

LOW BIDDER WAS LOCAL AND WAS AWARDED
Landscape & Grounds Maintenance- 3 Bids received ; awarded to CONTRACT - NO CHANGES-NOT DUE TO LOCAL IFB 24-05 Assessment Districts Universal Green LLC PREFERENCE 1 Landscape & Grounds Maintenance- 3 Bids received ; awarded to LOCAL BIDDER WAS $685,723 .94 MORE THAN LOW; IFB 24-06 City Parks Mariposa Landscapes, Inc. PERCENTAGE DIFFERENCE 16.44% $ 685,723.00

LOW BIDDER WAS LOCAL AND WAS AWARDED
Landscape & Grounds Maintenance- 3 Bids received ; awarded to CONTRACT - NO CHANGES-NOT DUE TO LOCAL IFB 24-07 Medians & Parkways Universal Green LLC PREFERENCE 1 On-Call Glass Repair & Maintenance
IFB 24-08 Services-PSP No Bids CANCELLED
IFB 24-09 Roadway Pole Banners Rebid as 24-24 CANCELLED IFB 24-10 Holiday Decorations - PSP NO LOCAL BIDS
3 Bids received awarded to Nata
IFB24-11 Bleachers Construction, Inc. NO LOCAL BIDS
TWO LOW BIDDERS WERE LOCAL; ONE SIGNED
7 bids recei ved; awarded to Sam's AGREEMENT AND THE OTHER FORFEITED AGREEMENT; On-Call Building Repairs & Construction & MPG Construction, THE 2ND AGREEMENT WAS THEN AWARDED TO A NON- IFB 24-12 Reno vations LLC LOCAL BIDDER-NOT DUE TO LOCAL PREFERENCE 1

LOW BIDDER WAS LOCAL AND WAS AWARDED
On-Call Plumbing Maintenance & 1 bid received ; awarded to Kincaid CONTRACT - NO CHANGES-NOT DUE TO LOCAL IFB 24-13 Installation Svcs Industries, Inc. PREFERENCE 1

LOW BIDDER WAS LOCAL AND WAS AWARDED
6 bids received ; awarded to West CONTRACT - NO CHANGES-NOT DUE TO LOCAL IFB 24-14 Vegetati on Management Service Coast Arborists, Inc. PREFERENCE 1

Item 1W - Page 61
IFB 24-15 Baggage Handling Parts - PSP NO LOCAL BIDS
Elevator Equipment Replacement -
IFB 24-16 PSP NO LOCAL BIDS

LOW BIDDER WAS LOCAL AND WAS AWARDED
5 bids received; awarded to CONTRACT - NO CHANGES-NOT DUE TO LOCAL IFB 24-17 On-Call Floor Care Services-PSP Bubbles Carpet Cleaning LLC PREFERENCE 1 1 bid received, awarded to RIDE
IFB 24-18 Electric Transit Buses - PSP Mobility LLC NO LOCAL BIDS 2 bids receved, awarded to Vogel
IFB 24-19 Truck Mounted Stripping Machine Traffic Services NO LOCAL BIDS 5 bids received; awarded to Budget
IFB 24-20 Window Film Installation-PD Holdings Inc. dba Solar Art NO LOCAL BIDS

LOW BIDDER WAS LOCAL AND WAS AWARDED
3 bids received, awarded to CONTRACT - NO CHANGES-NOT DUE TO LOCAL IFB 24-21 Portable Restroom Rental Diamond Environmental PREFERENCE 1 4 bids received, awarded to
IFB 24-22 Restroom Trailer - PSP 8540527 Canada Inc. NO LOCAL BIDS 4 bids received, awarded to TWO LOW BIDDERS WERE LOCAL AND WERE AWARDED CatCity Auto Body (70%), Marvins THE CONTRACTS-NO CHANGES - NOT DUE TO LOCAL IFB 24-23 Auto Body Repair Services Auto Paint (30%) PREFERENCE 2 LOCAL BIDDER WAS $88,067 MORE THAN LOW;
IFB 24-24 Roadway Pole Banners (Re-Bid) PERCENTAGE DIFFERENCE 26.75% $ 88,067.00 1 bid received; awarded to
IFB 24-25 Natural Gas Mansfield Power & Gas, LLC NO LOCAL BIDS Airfield Rubber & Paint Removal & 5 bids received; awarded to WGJ IFB 24-26 Application Services Enterprises Inc. dba PCI NO LOCAL BIDS 5 bids received; awarded to
Veterans Communications
On-Call Low Voltage Cabling Services, Inc. & Datastream IFB 24-27 Services Technology Consulting NO LOCAL BIDS
IFB 24-28 On-Call Pool Services Cancelled by the department CANCELLED 2 bids received, awarded to PB
IFB 24-29 Patch Truck Loader Corporation NO LOCAL BIDS

LOW BIDDER WAS LOCAL AND WAS AWARDED

CONTRACT - NO CHANGES-NOT DUE TO LOCAL
IFB 24-30 Staging for Productions 2 bids received PREFERENCE 1

Item 1W - Page 62

LOW BIDDER WAS LOCAL AND WAS AWARDED

CONTRACT - NO CHANGES-NOT DUE TO LOCAL
IFB 24-31 On-Call Plumbing PREFERENCE 1
On-Call General Contractor Services- 5 bids received; awarded to MPG LOCAL BIDDER WAS $351,218.40 MORE THAN LOW; IFB 24-32 PSP Construction LLC PERCENTAGE DIFFERENCE 21.93% $ 351,218.40 IFB 24-33 Fireworks BIDDING

LOW BIDDER WAS LOCAL AND WAS AWARDED
Fire Suppression Equipment 4 bids received; awarded to Desert CONTRACT - NO CHANGES-NOT DUE TO LOCAL IFB 24-34 Maintenance & Testing-PSP Fire Extinguisher Co., Inc. PREFERENCE 1 TWO CONTRACTS WERE AWARDED; THE LOW/LOCAL
BIDDER WAS AWARDED THE SECONDARY CONTRACT;
Overhead Door and Motorized Gate THE 2ND LOW/LOCAL BIDDER WAS $236,754.40 MORE IFB 24-35 Repair Services THAN LOW; PERCENTAGE DIFFERENCE 27.47% 1 $ 236,754.00 TWO CONTRACTS WERE AWARDED; THE LOW/LOCAL
7 bids received; awarded to Vivid- BIDDER WAS AWARDED THE SECONDARY CONTRACT; On-Call Painting & Wallcovering Accent Paining Co & United Paint THE 2ND LOW/LOCAL BIDDER WAS $242,435.80 MORE IFB 24-36 Services & Coatings Co THAN LOW; PERCENTAGE DIFFERENCE 41.42% 1 $ 242,435.80 Electrical Maintenance and LOCAL BIDDER WAS $265,314.80 MORE THAN LOW; IFB 24-37 Installation Services PERCENTAGE DIFFERENCE 15.85% $ 265,314.80 IFB 24-38 PFAS Cleaning Services IN DEVELOPMENT
Fencing Repair and Installation
IFB 24-39 Services BIDDING
01/08/2025 Procurement
cancelled; Engineering will be
Pedestrian Bridge Walkway & Railing bidding this work alongside a larger IFB 24-40 Board Replacement project CANCELLED
IFB 24-41 On-Call General Contractor Services BIDDING
IFB 24-42 Hazard ous Waste Disposal Services BIDDING
On-Call General Emergency
IFB 24-43 Restoration and Remediation svcs BIDDING
32 14 $ 322,516.63
44%

Item 1W - Page 63
RFP No. Descri ot ion Cost Analvsis Notes Points Notes Local Preference Notes Local Contract Awarded RFP 01-24 Comprehensive Fee Studv n/a n/a No local firms submitted RFP 02-24 Utilitv Users Tax Audit Services n/a n/a No local firms submitted Cancelled Solicitation - Dept changed their
RFQ 03-24 On Call Proiect Manaqement Services minds n/a RFP 04-24 Fire Prevention Inspection Services n/a n/a No local firms submitted RFP 05-24 Fire Radio Backhaul Network Installation Services n/a n/a No local firms submitted Cancelled Solicitation - no proposals
RFP 06-24 Ea~y Childhood Education for JOJ received after several attempts n/a RFP 07-24 Leqal Aid n/a n/a No local firms submitted
Cancelled Soliciation - no proposals
RFP 08-24 Parkinq Access and Revenue Control Svstem /PARCSl received n/a n/a No local peference allowed
RFP 09-24 Economic Development Consultinq Services n/a n/a due to Airport involvement In process but no local
preference allowed to to
RFP 10-24 Airoort Outside Counsel - PSP n/a n/a Airoort One firm submitted and was a
local firm so policy really had
RFP 11-24 Rehabilitation Services n/a n/a no effect on the outcome 1 In process no information yet
RFP 12-24 Un-Armed Uniformed Securitv Guard Services - Otv Facilities on outcome RFP 13-24 PSFD Annual Phvsical Assessments n/a n/a 3 submittals none were local lost by 4 points
overall of which 4 firms one was local and was
were on cost score in second place lost by 4
but 6 on cost over points but cost was $67,970
RFP 14-24 Un-Armed Uniformed Security Guard Services - City Events $67,970 hiqher than awarded firm low hiqher Airport work so no local
RFP 15-24 Aviation Worker's Screeninq Services - PSP n/a n/a peference allowed RFP 16-24 PSPD Annual Phvsical & Wellness Assessments n/a n/a No local firms submitted RFP 17-24 Home Enhancement Proqram (HEP) Inspection Services n/a n/a No local firms submitted Airport work so no local
RFP 18-24 Customer Exoerience Proqram Develooment n/a n/a peference In process but Airport work so
RFP 19-24 Airoort Trainina Services - PSP n/a n/a no local oeference RFP 20-24 Backqround lnvestiqations n/a n/a No local firms submitted RFP 21-24 Police Canine Traininq Services-Apprehension & Detection n/a n/a No local firms submitted Won by 18 overall
points would have
Cost was higher by 40k but this is a best won even without Local firm won but not really a RFP 22-24 Police Canine Traininq Services-Explosives Detection value process local preference pts factor of preference policv 1 In process but includes Airport
work so no local preference
RFP 23-24 Real Estate Brokeraqe Services n/a n/a allowed RFP 24-24 Convention Center Manaaement Services n/a n/a In orocess no submittals RFP 25-24 CAD/RMS for PSPD n/a n/a In process no submittals RFP 26-24 Professional Auditinq Services n/a n/a In orocess no submittals RFP 27-24 Gene Autrv & Mission Drive n/a n/a In proces s no submittals 18 2
11%

CITY COUNCIL STAFF REPORT

DATE: JANUARY 23, 2025 CONSENT CALENDAR

SUBJECT: AUTHORIZE CITY BOARDS AND COMMISSIONS TO MEETING PRIOR TO 5:30 P.M. , PURSUANT TO PALM SPRINGS MUNICIPAL CODE

2.06.050

FROM: Scott C. Stiles, City Manager

BY: City Attorney

SUMMARY:

This agenda item provides the City Council with the opportunity to authorize City Boards and Commissions to conduct their regular meetings at a starting time prior to 5:30 p.m., pursuant to the authority of Palm Springs Municipal Code section 2.06.050.

RECOMMENDATION:

By motion, authorize City of Palm Springs Boards and Commissions to conduct all meetings, including all regular, special, emergency, and adjourned, meetings at a starting time prior to 5:30 p.m.

BACKGROUND:

The Palm Springs Municipal Code provides,

“Each Board and Commission shall set its regular meetings to occur at 5:30 p.m., unless otherwise exempted by the City Council. Boards and Commissions may conduct adjourned regular, special, adjourned special, and emergency meetings at such times as circumstances may require, subject to approval by the City Manager.” (PSMC, § 2.06.050.)
Currently, and since this Code was amended in 2020, all City Boards and Commissions are to have been meeting at or after 5:30p.m. for their regular meetings.

STAFF ANALYSIS:

Since the adoption of the current language in section 2.06.050, some Board and Commission members have expressed a desire to conduct their regular meetings prior to Item 1X - Page 1
5:30 p.m. In addition, conducting all City Council and Board/Commission meetings in the evening occasionally results in space usage conflicts.

Section 2.06.05 provides that the City Council may authorize City Boards and Commissions to meet earlier than 5:30 p.m. The City Attorney is of the opinion that this can be accomplished by motion of the City Council, approved by a majority of the Council.

At the January 9, 2025 City Council meeting, the Council requested that City staff bring back an action item, whereby the City Council can exercise the authority to permit City Boards and Commissions to meet at a time of their choosing, prior to 5:30 p.m.

If adopted, each Board and Commission of the City would be authorize d to start its meeting at a time of its choosing, including prior to 5:30 p.m., done in consultation with City staff in order to coordinate the usage of available space, technology and staffing.

ENVIRONMENTAL ASSESSMENT
:

This action is exempt from further environmental review, as it can be seen with certainty that this action is not likely to have any impact on the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

This action aligns with the City Council’s goal of optimizing basic services and facilities by allowing the City meeting spaces to be optimally utilized by City legislative bodies.

FISCAL IMPACT:

This action is not likely to have any significant financial impact on the City.

REVIEWED BY:

City Clerk: Brenda Pree
City Manager: Scott Stiles

Item 1X - Page 2

CITY COUNCIL STAFF REPORT
D
ATE: JANUARY 23, 2025 PUBLIC HEARING
SU
BJECT: AN APPEAL OF THE PLANNING COMMISSION’S DECEMBER 4, 2024

DECISION TO CERTIFY A FINAL ENVIRONMENTAL IMPACT REPORT (FEIR) INCLUDING THE ADOPTION OF A STATEMENT OF

OVERRIDING CONSIDERATIONS AND THE APPROVAL OF A MAJOR
DEVELOPMENT PERMIT FOR A 739,360-SQUARE FOOT WAREHOUSE

AT THE NORTHWEST CORNER OF NORTH INDIAN CANYON DRIVE
AND 19
TH AVENUE (CASE 3.4361 MAJ)
F
ROM: Scott C. Stiles, City Manager
BY: D
epartment of Planning Services
SUMMARY:

This is a request for the City Council to consider an appeal by Peter Moruzzi to overturn the decision made by the Planning Commission on December 4, 2024 to certify a Final Environmental Impact Report (FEIR) including the adoption of a Statement of Overriding Considerations (SOC) and the approval of a Major Development Permit for the construction of a two-story industrial warehouse building. The warehouse totals 739,360- square feet in area, including approximately 12,000-square feet of office space, and the use is permitted by right in the M-2 (Industrial) zone.

The proposed project complies with the development standards implemented by the City Council in 2022 when the Municipal Code was amended to permit large warehouse and logistic centers in this area of the ci ty. As such, no conditional use permits or variances are required as part of the application.

The Draft EIR can be found here: https://publicportal.palmspringsca.gov/WebLink/ DocView.aspx?id=1417606&dbid=0&repo=CityHall-Primary
Final EIR can be found here: https://publicportal.palmspringsca.gov/WebLink/ DocView.aspx?id=1417604&dbid=0&repo=CityHall-Primary
Statement of Overriding Considerations can be found here:
https://publicportal.palmspringsca.gov/WebLink/DocView.aspx? id=1417603&dbid=0&repo=CityHall-Primary
Item 2A - Page 1
City Council Staff Report
January 23, 2025 -- Page 2
Appeal of Palm Springs Fulfillment Center

RECOMMENDATION:

1) Open the appeal hearing and receive testimony; and

2) Reject the appeal and accept the Planning Commission’s decision by adopting a Resolution entitled, “ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, DENYING THE APPEAL BY PETER MOR UZZI

AND UPHOLDING THE DECISION OF THE PLANNING COMMISSION TO

CERTIFY A FINAL ENVIRONMENTAL IMPACT REPORT (FEIR) INCLUDING

THE ADOPTION OF A STATEMENT OF OVERRIDING CONSIDERATIONS AND THE APPROVAL OF A MAJOR DEVELOPMENT PERMIT FOR A 739,360 -

SQUARE FOOT WAREHOUSE AT THE NORTHWEST CORNER OF NORTH
INDIAN CANYON DRIVE AND 19
TH AVENUE (CASE 3.4361 MAJ)”.

BACKGROUND:

On December 4, 2024, the Planning Commission voted 4-0-2 (Yes: Weremiuk, Miller, Morrill, Murphy; absent Rotman and Baker) to approve the application. The history of the application review is summarized in the table below, and the excerpts of the meeting minutes that are relevant to the project are attached to this Staff Report (Attachment E).

The Planning Commission’s findings and conditions of approval are attached as Resolution No. 6970 (Attachment D).

Related Relevant City Actions by Planning, Fire, Building, etc. 1/27/2022
The City Council , by a vote of 5 -0, adopted Ordinance No. 2056 amending Palm Springs Zoning Code (PSZC) Chapters 92 and 93 relative to the development standards for the M-2 and E-1 zones to allow warehouse/fulfillment centers.
8/7/2023 Initial Study circulated for a 30-day review period ending on 9-6-23 8/22/2023
Scoping Meeting conducted to provide an opportunity for the public to learn about the proposed project and provide comments on the possible environmental effects that should be studied in the EIR process 9/13/2023 Planning Commission conducted a Study Session to discuss proposed project and provide comments
4/30/2024 Draft Environmental Impact Report (DEIR) available for a 45 -day review period ending June 17, 2024
5/22/2024
The Planning Commission held a discussion regarding the DEIR and requested a 4th Alternative be analyzed and requested additional analysis of the projects impact on scenic vistas from Interstate 10 8/26/2024 The Draft Re -Circulated Environmental Impact Report available for 45 - day comment period ending October 9, 2024
Item 2A - Page 2
City Council Staff Report
January 23, 2025 -- Page 3
Appeal of Palm Springs Fulfillment Center

Related Relevant City Actions by Planning, Fire, Building, etc. 12/4/2024 The Planning Commission held a public hearing, received testimony, and voted 4- 0 to certify the Final Environmental Impact Report, adopt the Statement of Overriding Considerations, and approve a Major Development Permit per Resolution No. 6970.

Pursuant to Palm Springs Zoning Code Section 94.04.00(D)(1)(e), the Planning Commission’s decision of a Development Permit application is final unless further appeal is made to the City Council in the manner provided by Chapter 2.05 of the Palm Springs
Municipal Code. On December 9, 202 4, Peter Moruzzi filed an appeal request in accordance with the applicable law. The Appeal Form is attached to this staff report (Attachment C).

PROPOSED PROJECT:

The project proposes the development of a two‐ story, 739,360‐ square‐foot fulfillment center on a vacant lot of approximately 38 acres. The ultimate build -out will include the warehouse and office space and include associated infrastructure (paved driveways and parking, landscaping, gated access points, retention area, and perimeter fencing). The proposed fulfillment center requires a total of 312 spaces for employee parking; 420 total spaces are provided in the front parking area, exceeding the minimum requirement. A total of 306 spaces for truck/t railers are located within the gated area on the north and south sides of the building. The fulfillment center is expected to generate approximately 700 permanent jobs.

Based on the analysis contained in the Final EIR, impacts to greenhouse gas emissions and transportation have been determined to be significant and unavoidable, after all feasible mitigation measures have been considered and adopted. These unavoidable impacts are overridden by the project benefits set forth in the Statement of Overriding Considerations. T he Planning Commission determined that for each of the significant effects, specific economic, legal, social, technological, or other considerations, including the provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or alternatives identified in the Draft/Final EIR. In addition, the Planning Commission determined through the adoption of the Statement of Overriding Considerations that the specific overriding economic, legal, social, technological or other benefits of the project outweigh the significant effects on the environment.

APPELLANT’S GROUNDS FOR APPEAL REQUEST:

In the Appeal Form (Attachment C), the appellant explains the basis for filling the appeal request as follows:

1) “ We presented evidence that the stated benefits do not outweigh the significant impacts and strongly disagree with and challenge the conclusions of the Planning Commission”.

Item 2A - Page 3
City Council Staff Report
January 23, 2025 -- Page 4
Appeal of Palm Springs Fulfillment Center

2) “ Ultimately, we believe that the final approval of the Palm Springs’s first warehouse should be made by the City’s elected representatives and not by the Planning Commission”.

STAFF ANALYSIS:

The City Council on January 27, 2022, adopted Ordinance No. 2 056 for a Zone Text Amendment (Case ZTA 5.1547) amending the PSZC Chapter 92 and Chapter 93 relative to the development standards for the M-2 and E-1 zones to allow warehouse uses by-right.

This revision specifically identified the area of the City north of Interstate 10 and west of North Indian Canyon Drive as an appropriate and desirable location for future development of large-scale warehouse/fulfillment centers and appropriately zoned the area for this type of development. As a matter of land use, the proposed facility is permitted as of right and is consistent with the Council directive, and the project is located in an area that is an appropriate location for this type of development.

On December 4, 2024 the Planning Commission held a public hearing and received information provided in the staff report along with testimony from the City environmental consultant and discussed in detail the analysis contained in the Final Environmental Impact Report. Additional information was provided by the applicant related to the proposed project and e xtensive p ublic comments w ere provided. In addition to the economic benefits generated by additional employment and significant revenue to the City, the applicant also executed agreements with the Sierra Club and union labor groups.

The Planning Commission determined that these agreements further offset the unavoidable impacts by providing additional solar panels, committing to elec trifying the truck fleet when feasible, and providing skilled union labor opportunities for local workers.

The Planning Commission voted 4- 0 to certify the Final Environmental Impact Report , adopt the Statement of Overriding Considerations , and approve a Major Development Permit.

Staff interpreted and analyzed the General Plan policies and zoning ordinance regulations as well as the Final Environmental Impact Report and Statement of Overriding Considerations plus Mitigation Monitoring Program in preparing findings and conditions of approval that supported a recommendation of approval.

ENVIRONMENTAL DETERMINATION:

An Environmental Impact Report (EIR) pursuant to the California Environmental Quality Act (CEQA) was prepared for the proposed project (State Clearinghouse Number 2023080091) and was certified by the Planning Commission on December 4, 2024.

Item 2A - Page 4
City Council Staff Report
January 23, 2025 -- Page 5
Appeal of Palm Springs Fulfillment Center

FISCAL IMPACT:

According to the information provided by the applicant, the project has the potential to provide seven hundred (700) new permanent jobs for skilled local workers, additional skilled union workers hired during the eighteen (18) months of construction, increased property tax, and a potential new source for sales tax revenue.

CONCLUSION:

The City Council previously determined that the area north of Interstate 10 is an appropriate location for uses of this size and scope by amending the Zoning Ordinance in 2022 to allow warehouses as a by-right use in the M-2 Zone. The Planning Commission thoroughly analyzed the project through conducting a Scoping Meeting, a special study session, conducted a public hearing and received testimony from expert environmental consultants and voted 4-0-2 to approve the application. They determined that per Section

94.04.01(D) of the Palm Springs Zoning Code (PSZC) , the eleven (11) facts of findings can be met and that the benefits of the project outweigh any environmental impacts.

Based on the determinations above and outlined in the initial report , Staff recommends that the City Council uphold the decision of the Planning Commission and deny the appeal filed by the Appellant.

REVIEWED BY:

Department Director: Christopher Hadwin
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles

ATTACHMENTS:

A. Vicinity Map
B. City Council Draft Resolution
C. Letter of Appeal filed 12-9-24
D. Planning Commission Resolution No. 6970
E. Planning Commission Minutes of 12-4-2024
F. Planning Commission Staff Report 12-4-2024
G. Business Disclosure Form
H. Site Plan and Building Elevations

Item 2A - Page 5

ATTACHMENT #A

Item 2A - Page 6
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CITY OF PALM SPRINGS
Case 3.4361 MOP -
Palm Springs Fulfillment Center
N
s
Northwest Corner of North Indian Canyon Drive and 19th Avenue ATTACHMENT #B
Item 2A - Page 8
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM

SPRINGS CALIFORNIA DENYING THE APPEAL BY PETER
MORUZZI AND UPHOLDING THE PLANNING COMMISSION’S

DECISION TO CERTIFY A FINAL ENVIRONMENTAL IMPACT

REPORT (FEIR) INCLUDING THE ADOPTION OF A STATEMENT

OF OVERRIDING CONSIDERATIONS AND THE APPROVAL OF
A MAJOR DEVELOPMENT PERMIT FOR A 739,360 -SQUARE

FOOT WAREHOUSE AT THE NORTHWEST CORNER OF
NORTH INDIAN CANYON DRIVE AND 19

TH AVENUE (CASE

3.4361 MAJ).

A. PS Canyon Development, LLC, (“Applicant”) submitted an application with the City pursuant to Section 94.04.01 of the Palm Springs Zoning Code for a Major Development Permit Application for the construction of a 739,360- square foot warehouse fulfillment center on thirty -eight (38) acres. The application includes the certification of a Final Environmental Impact Report; Statement of Overriding Considerations and Facts and Findings; and adoption of a Mitigation Monitoring Program to meet the requirements of the California Environmental Quality Act (CEQA).

B. On January 27, 2022, the City Council adopted Ordinance #2056 amending the Palm Springs Zoning Code Chapters 92 and 93 relative to the development standards for the M-2 and E-1 zones to allow warehouse/fulfillment centers as a by-right use.

C. On December 4, 202 4, a public hearing on the proposed Major Development Permit application and the certification of the final EIR, Statement of Overriding Considerations, and adoption of the Mitigation Monitoring Program was held by the Planning Commission in accordance with applicable law.

D. On December 4, 2024, the Planning Commission reviewed and voted 4- 0 (Weremiuk, Miller, Morrill, Murphy) to certify the Final Environmental Impact Report, adopt the Statement of Overriding Considerations, the Mitigation Monitoring Program, and approve a Major Development Permit as the project is in conformance with the General Plan and Zoning Ordinance.

E. On December 9, 2024 , Peter Moruzzi filed an appeal to the City Council of the December 4, 2024 decision to approve Case 3.4361 MAJ in accordance with applicable law.

F. January 23, 2025, an appeal hearing on Case 3.4361 MAJ was held by the City Council in accordance with applicable law.

G. An Environmental Impact Report (EIR), State Clearing House #2023080091 has been prepared for the proposed “project”. A Statement of Overring Considerations (SOC) has been prepared pursuant to the California Environmental Quality Act Guidelines (“CEQA”). The site is zoned M-2 and is a by-right use for an industrial warehouse and is in conformance with the General Plan and zoning, and no variances or exceptions are required.

Item 2A - Page 9
Resolution No. _____