Agenda packet — Palm Springs City Council, January 14, 2026 (part 1 of 4)

CITY OF PALM SPRINGS
Regular Meeting Agenda
JANUARY 14, 2026
4:00 PM Closed Session
5:30 PM Open Session
Council Chamber
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Palmspringsca.gov

CITY COUNCIL

AND AS SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY
Naomi Soto, Mayor
David Ready, Mayor Pro Tem
Jeffrey Bernstein, Councilmember
Grace Elena Garner, Councilmember
Ron deHarte, Councilmember
Scott Stiles, City Manager
A
Pursuant to Assembly Bill 557 -
• To view/listen/participate in the meeting live, please contact the City Clerk at [email protected] or the following telephone number (760) 323-8204 to register for the Zoom meeting. There will be an email with Zoom credentials sent after registration is complete, in order to access the meeting and offer public comment. Any person who wishes to provide public testimony for an item on the agenda is requested to file a speaker card before the Public Testimony portion of the meeting.
• You may submit your public comment to the City Council electronically.

Materials may be emailed to [email protected]. Transmittal prior to the start of the meeting will help ensure that your correspondence is fully considered. Any correspondence received during or after the meeting will be distributed to the City Council and retained for the official record. View the City Council meeting live at the City’s website www.palmspringsca.gov/psctv, YouTube, or Channel 17 (Spectrum).

Please note any agenda item which has not been initiated by 11:00 p.m. may be continued to a subsequent meeting.

At approximately 10:00 p.m., the City Council will determine the number of speakers who wish to address the City Council during Public Comment for non-Agenda Items and determine which agenda items will be considered before the 11:00 p.m. Adjournment time. 4:00 PM CLOSED SESSION:

CLOSED SESSION AGENDA
CALL TO ORDER:
5:30 PM REGULAR MEETING:

PLEDGE OF ALLEGIANCE:

ROLL CALL:

PRESENTATIONS:

A. FIRE STATION FACILITY DESIGN UPDATE
ACCEPTANCE OF THE AGENDA: The City Council will discuss the order of the agenda, may amend the order, add urgency items, note abstentions or "no" votes on Consent Calendar items, and request Consent Calendar items be removed from the Consent Calendar for discussion. The City Council may also remove items from the Consent Calendar prior to that portion of the Agenda.

REPORT OF CLOSED SESSION:

PUBLIC TESTIMONY: (Non-Public Hearing Agenda Items ONLY) This time has been set aside for members of the public to address the City Council only on agenda items. Two (2) minutes will be assigned to each speaker.

Testimony for Public Hearings will only be taken at the time of the hearing, and General Public Comments, non-agenda items, will be taken later in the meeting.

1. CONSENT CALENDAR:

The following routine matters may be acted upon by one motion. Individual items may be removed by the Council for separate discussion at this time or under Acceptance of the Agenda. The ordinance title is deemed to be read in its entirety and further reading waived on any ordinance listed on the Consent Calendar.

A. APPROVAL OF MINUTES
RECOMMENDATION:

Approve the City Council Meeting Minutes of December 10, 2025.

B. DESTRUCTION OF OBSOLETE RECORDS PURSUANT TO THE

ADOPTED RECORDS RETENTION SCHEDULE AND

DESTRUCTION PROCEDURE
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,

AUTHORIZING THE DESTRUCTION OF RECORDS (AS
IDENTIFIED ON EXHIBIT “A”) AND IN COMPLIANCE WITH THE
RETENTION SCHEDULE ADOPTED PER RESOLUTION NO. 25239.”
C. APPROVE AMENDMENT NO. 1 TO CONTRACT SERVICE
AGREEMENT 25B194 WITH E M D CONSTRUCTION, INC.,

FOR ON-CALL DOORS AND WINDOWS INSTALLATION,

MAINTENANCE AND REPAIR SERVICES
RECOMMENDATION:

1. Approve Amendment No. 1 to Agreement 25B194 with E M D Construction, Inc., to provide on-call doors and
windows installation, maintenance and repair services for the Public Works Department for an additional amount of $595,000 and for a total revised contract amount not to exceed $995,000 through July 21, 2028, with two oneyear extension options at the City’s sole discretion; and

2. Authorize the City Manager or designee to execute all necessary documents
D. APPROVAL OF FIRST AMENDMENT TO CITY OF PALM

SPRINGS WIRELESS COMMUNICATIONS FACILITIES SITE

LEASE WITH LOS ANGELES SMSA LIMITED PARTNERSHIP,

DBA VERIZON WIRELESS, FOR THE PROPERTY LOCATED
AT 1901 EAST BARISTO ROAD
RECOMMENDATION:

1. Approve the proposed First Amendment to City of Palm Springs Wireless Communications Facilities Site Lease with Los
Angeles SMSA Limited Partnership dba Verizon Wireless for the property located at 1901 East Baristo Road to extend the term for three additional renewal periods of five years each, commencing on October 1, 2028, adjust rent and annual
escalation and other updates outlined therein.

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

E. SECOND READING AND ADOPTION OF ORDINANCE NO.
2121 OF THE CITY OF PALM SPRINGS, CALIFORNIA,

AMENDING PALMS SPRINGS MUNICIPAL CODE SECTION

5.55 OF THE PALM SPRINGS MUNICIPAL CODE

REGARDING CANNABIS LOUNGES
RECOMMENDATION:

Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2121, “AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL
CODE, REGARDING CANNABIS LOUNGES”
F. APPROVAL OF AMENDMENT NO. 5 TO PROFESSIONAL
SERVICES AGREEMENT NO. A9141 WITH MWH
CONSTRUCTORS, INC. IN THE AMOUNT OF $18,340 AND
EXTEND AGREEMENT THROUGH MARCH 31, 2026, FOR

THE WASTEWATER TREATMENT PLANT (WWTP)
DIGESTER NO. 2 GAS FLARE AND FILTRATE PUMP
STATION, CITY PROJECTS 20-25 & 21-07 (“THE
PROJECT”)
RECOMMENDATION:

1. Approve Amendment No. 5 in the amount of $18,340 to
Professional Services Agreement No. A9141 with MWH for
a new not-to-exceed amount of $2,071,412.14 and extend
the Agreement to March 31, 2026, for the WWTP Digester
No. 2 Gas Flare and Filtrate Pump Station, City Projects 20-25 & 21-07; and

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

G. APPROVE A TASK ORDER FOR ENGINEERING RESOURCES
OF SOUTHERN CALIFORNIA (AGREEMENT 24P381) IN THE
AMOUNT OF $278,554 FOR PROFESSIONAL ENGINEERING

SERVICES FOR THE EVALUATION AND DESIGN OF THE

TAHQUITZ CANYON WAY SEWER IMPROVEMENTS, CITY
PROJECT CP 25-13
RECOMMENDATION:

1. Approve a task order in the amount of $278,554 to Engineering Resources of Southern California, Inc., an ‘on-call’ firm, for professional engineering services for the Tahquitz Canyon Way Sewer Improvements;

2. Appropriate $278,554 from the Wastewater Capital Improvement Fund balance; and

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

H. APPROVAL OF AN APPROPRIATION OF ADDITIONAL

FUNDS FOR ON-CALL ENGINEERING PLAN CHECK
SERVICES IN AN AMOUNT NOT TO EXCEED $400,000
RECOMMENDATION:

Approve an Appropriation of $400,000 from the General Fund to the Engineering Department's Contractual Services Budget.

I. SECOND READING AND ADOPTION OF ORDINANCE NO.
2122, OF THE CITY OF PALM SPRINGS, CALIFORNIA, TO

AUTHORIZE THE LEVY OF SPECIAL TAXES IN COMMUNITY
FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)
RECOMMENDATION:

Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2122, “AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,

ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2025-1 (SERENA PARK) OF THE CITY OF PALM

SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

AUTHORIZING THE LEVY OF SPECIAL TAXES IN SUCH

COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA
NOS. 1, 2, 3, AND 4 THEREOF"
J. APPROVE PROFESSIONAL SERVICES AGREEMENT NO.
25Q441 WITH GLOBALMELK LLC FOR URBAN DESIGN

SERVICES AND PROFESSIONAL SERVICES AGREEMENT
NO. 25Q442 WITH MULTISTUDIO, INC. FOR BRANDING

AND MARKETING FOR THE CONVENTION CENTER

CONNECTOR PROJECT
RECOMMENDATION:

1. Approve Professional Services Agreement No. 25Q441 with Globalmelk LLC to provide urban design services for the convention center connector project for a term commencing on January 1, 2026, and continuing through December 31, 2028, for an amount not to exceed $1,500,000;

2. Approve Professional Services Agreement No. 25Q442 with Multistudio, Inc. to provide branding and marketing services for the convention center connector project for a term commencing on January 1, 2026, and continuing through December 31, 2028, for an amount not to exceed $572,250;

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

2. PUBLIC HEARINGS:

A. AN APPEAL OF THE PLANNING COMMISSION’S DECISION

APPROVING A MAJOR DEVELOPMENT PERMIT TO
CONSTRUCT EIGHTY-TWO (82) 100% AFFORDABLE
APARTMENT UNITS PER SECTION 93.23.17 OF THE PALM

SPRINGS ZONING CODE FOR A DENSITY BONUS ON A

4.05-ACRE UNDEVELOPED PARCEL LOCATED AT 305 WEST
SAN RAFAEL DRIVE, ZONE R-2 (CASE NO. DP 2025-0011)
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 WILLIAM GORDON PHILIPS, AND

LINDA AND CYROUS SACKET FOR THE APPROVAL OF A
MAJOR DEVELOPMENT PERMIT TO CONSTRUCT EIGHTYTWO (82) 100% AFFORDABLE APARTMENT UNITS PER SECTION 93.23.17 OF THE PALM SPRINGS ZONING CODE
FOR A DENSITY BONUS ON A 4.05-ACRE UNDEVELOPED
PARCEL LOCATED AT 305 WEST SAN RAFAEL DRIVE, ZONE
R-2 (CASE NO. DP 2025-0011)”
B. A REQUEST BY THE CITY OF PALM SPRINGS FOR

ADOPTION OF AND SECOND READING OF A PROPOSED
ORDINANCE ADOPTING AND AMENDING THE 2025
CALIFORNIA BUILDING STANDARDS CODE (TITLE 24 OF
THE CALIFORNIA CODE OF REGULATIONS), THE 2025
CALIFORNIA RESIDENTIAL CODE, THE 2025 CALIFORNIA
MECHANICAL CODE, THE 2025 CALIFORNIA FIRE CODE,
THE 2025 CALIFORNIA PLUMBING CODE, THE 2025
CALIFORNIA EXISTING BUILDING CODE, THE 2025
CALIFORNIA HISTORICAL BUILDING CODE, THE 2025
CALIFORNIA ELECTRICAL CODE, THE 2025 WILDLANDURBAN INTERFACE CODE, THE 2025 CALIFORNIA ENERGY CODE, THE 2025 CALIFORNIA GREEN BUILDING
STANDARDS CODE, 2025 CALIFORNIA MECHANICAL
CODE, THE 2025 CALIFORNIA ELECTRICAL CODE, THE
2025 CALIFORNIA GREEN BUILDING STANDARDS CODE,
AND ADOPTING THE 2024 INTERNATIONAL PROPERTY
MAINTENANCE CODE.

RECOMMENDATION:

1. Open the public hearing and receive public testimony;

2. Waive the second reading of the Ordinance text in its entirety and adopt Ordinance No. 2120, “AN ORDINANCE OF THE CITY

OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING
ARTICLE I OF CHAPTER 8.04 OF THE PALM SPRINGS MUNICIPAL

CODE, ADOPTING BY REFERENCE, TOGETHER WITH CERTAIN
ADDITIONS, AMENDMENTS AND DELETIONS, THE 2025
CALIFORNIA BUILDING CODE, INCLUDING CHAPTER 1,
APPENDICES C, I, AND J; THE 2025 CALIFORNIA RESIDENTIAL CODE, INCLUDING APPENDIX AH; THE 2025 CALIFORNIA
MECHANICAL CODE; THE 2025 CALIFORNIA FIRE CODE,
INCLUDING APPENDIX B; THE 2025 CALIFORNIA PLUMBING
CODE, INCLUDING APPENDICES A, B, D, G, H, I AND K; THE
2025 CALIFORNIA EXISTING BUILDING CODE; THE 2025

CALIFORNIA HISTORICAL BUILDING CODE, INCLUDING
APPENDIX A; THE 2025 CALIFORNIA ELECTRICAL CODE,
INCLUDING ALL APPENDICES; THE 2025 WILDLAND-URBAN
INTERFACE CODE, INCLUDING ALL APPENDICES; THE 2025
CALIFORNIA ENERGY CODE, INCLUDING ALL APPENDICES; THE
2025 CALIFORNIA GREEN BUILDING STANDARDS CODE; AND
THE 2024 INTERNATIONAL PROPERTY MAINTENANCE CODE,

INCLUDING ALL APPENDICES AS MANDATED BY CALIFORNIA
HEALTH AND SAFETY CODE SECTION 18938 AND DETERMINING

THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT.”
C. AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS AMENDING SECTION 93.23.14 OF

THE PALM SPRINGS MUNICIPAL CODE RELATING TO

ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY

DWELLING UNITS TO COMPLY WITH RECENT CHANGES IN

STATE LAW, AND FINDING THE ACTION TO BE

STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC
RESOURCES CODE § 21080.17
RECOMMENDATION:

1. Find that the adoption of the proposed urgency ordinance is statutorily exempt from review under the California Environmental Quality Act (CEQA) under Public Resources Code § 21080.17.

2. Waive full reading and adopt by title only an urgency ordinance entitled: “AN URGENCY ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING
SECTION 93.23.14 OF THE PALM SPRINGS MUNICIPAL CODE

RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR

ACCESSORY DWELLING UNITS TO COMPLY WITH RECENT

CHANGES IN STATE LAW, AND FINDING THE ACTION TO BE

STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC
RESOURCES CODE § 21080.17.”

3. BUSINESS & LEGISLATIVE:

A. APPROVE THE REQUEST FOR FINANCIAL ASSISTANCE
AND LOAN COMMITMENT FOR DEVELOPMENT OF AN 82-
UNIT AFFORDABLE HOUSING PROJECT LOCATED AT 305

WEST SAN RAFAEL
RECOMMENDATION:

1. Approve a funding commitment in the amount of Three Million Eight Hundred Thousand Dollars ($3,800,000) to Red Tail Multifamily Land Development for the construction of an 82-unit affordable rental housing development at 305 W. San Rafael Drive.

2. Authorize the City Manager to execute all loan documents and related agreements, subject to approval by the City Attorney, consistent with the terms described herein.

3. Acknowledge that the project is eligible for fee reductions pursuant to Resolution No. 24654, the Affordable and Multi-Family Housing Incentive Program, which provides a 100 percent reduction of applicable Development Impact Fees and Developer Fees for projects that are 100 percent affordable.

4. Direct staff to schedule, at a future date, a Tax Equity and Financial Responsibility Act (TEFRA) hearing pursuant to Section 147(f) of the Internal Revenue Code, issue public notice, and return to the City Council for consideration of approval of qualified privateactivity bonds to be issued by an outside issuer.

B. APPROVE THE REQUEST FOR FINANCIAL ASSISTANCE

AND LOAN COMMITMENT FOR DEVELOPMENT AND
CONSTRUCTION OF A PROJECT LOCATED AT McCARTHY
ROAD AND SAN RAFAEL, A 110-UNIT AFFORDABLE

HOUSING PROJECT
RECOMMENDATION:

1. Approve a funding commitment in the amount of Two Million Two Hundred Fifty Thousand Dollars ($2,250,000) to Pacific West Communities, Inc. (“Developer”) to assist with acquisition of approximately five acres located at the northwest corner of McCarthy Road and San Rafael Drive for the development of a 100 percent affordable housing community.

2. Authorize the City Manager to structure applicable Development Impact Fees and Developer Fees as a City loan, not to exceed $2,500,000, subject to repayment from residual receipts and documented through separate loan and regulatory agreements, consistent with the Affordable and Multi-Family Housing Incentive Program.

3. Authorize the City Manager to execute all necessary loan documents and related agreements, subject to approval by the City Attorney, consistent with the terms described herein.

C. INTRODUCTION OF AN ORDINANCE ADDING A NEW
CHAPTER 3.29 TO THE PALM SPRINGS MUNICIPAL CODE,

PROVIDING FOR ESTABLISHMENT OF CITY OF PALM

SPRINGS TOURISM IMPROVEMENT DISTRICT LAW
RECOMMENDATION:

Introduce and conduct a first reading, by title only, of an ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING A NEW
CHAPTER 3.29 TO THE PALM SPRINGS MUNICIPAL CODE,

PROVIDING FOR THE CITY OF PALM SPRINGS TOURISM

IMPROVEMENT DISTRICT LAW INCLUDING GENERAL

PROVISIONS AND DEFINITIONS, POWERS AND PROCEDURES

TO ISSUE BONDS FOR THE PURPOSE OF PROVIDING

FINANCING FOR SPECIFIED PURPOSES, AND CERTAIN OTHER
SUPPLEMENTAL PROVISIONS”
D. REVIEW AND DISCUSS THE REMAINING EXTERNAL
COMMITTEES 2026 ROSTER OF CITY COUNCIL

SUBCOMMITTEES, APPOINTEES, LIAISONS, AND

REPRESENTATIVES TO EXTERNAL ORGANIZATIONS
RECOMMENDATION:

Review and provide direction on the four remaining external committees to the roster of City Council subcommittees, appointees, liaisons, and representatives to external organizations.

PUBLIC COMMENT: (Non-Agenda Items) This time has been set aside for members of the public to address the City Council on items of general interest within the subject matter jurisdiction of the City. Although the City Council values your comments, pursuant to the Brown Act, it generally cannot take any action on items not listed on the posted agenda. Two (2) minutes will be assigned to each speaker.

CITY COUNCIL AND CITY MANAGER COMMENTS, REPORTS, & AGENDA DEVELOPMENT: This time is set aside for the City Council and City Manager to provide additional general comments and reports. Additionally, the City Council and City Manager may briefly discuss items of concern and prioritize agenda items for future meeting dates.

A. TENTATIVE UPCOMING MEETING SCHEDULE
ADJOURNMENT:

AFFIDAVIT OF POSTING
State of California )
County of Riverside ) ss.

City of Palm Springs )
I, Brenda Pree, City Clerk of the City of Palm Springs, California, hereby certify this Agenda was delivered to each member of the City Council, provided to all parties who have requested such notice, posted at City Hall before 6:00 PM, on 01/07/2026, and posted on the City’s website as required by established policies and procedures.

Brenda Pree, MMC, CERA
City Clerk

P U B L I C N O T I C E S
Pursuant to G.C. Section 54957.5(b)(2) the designated office for inspection of records in connection with the meeting is the Office of the City Clerk, City Hall, 3200 E. Tahquitz Canyon Way. Complete Agenda Packets are available for public inspection at: City Hall Office of the City Clerk. Agenda and staff reports are available on the City’s website www.palmspringsca.gov. If you would like additional information on any item appearing on this agenda, please contact the Office of the City Clerk at (760) 323-8204
It is the intention of the City of Palm Springs to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 323-8204, at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible.

December 10, 2025
Minutes of the Regular Meeting of the City Council
of the City of Palm Springs
CALL TO ORDER:

A Regular Meeting of the Palm Springs City Council was called to order by Mayor deHarte on December 10, 2025, at 5:32 p.m.

PLEDGE OF ALLEGIANCE:

The Coachella Acapella Group performed the National Anthem.

Mayor deHarte led the City Council in the Pledge of Allegiance.

ROLL CALL:

Present: Councilmembers Jeffrey Bernstein, Grace Elena Garner, and David Ready; Mayor Pro Tem Naomi Soto; and Mayor Ron deHarte.

Absent: None
City Staff

Present:

Scott Stiles, City Manager; Teresa Gallavan, Assistant City Manager; Flinn Fagg, Deputy City Manager; Jeremy Hammond, Deputy City Manager; Jeff Ballinger, City Attorney; Andrew Mills, Chief of Police; and Brenda Pree, City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes.

PRESENTATIONS: None.

PROCLAMATIONS:

Mayor deHarte announced the issuance of the following proclamations:
• November 14, 2025, was proclaimed as Karen & Tony Barone Day. • November 16, 2025, was proclaimed as Donald C. Cavanaugh Day • November 16th – November 22nd was proclaimed as International Fraud Awareness Week.
• On November 20, 2025, Jonathan Bennett was honored with the 483rd Walk of the Stars.
• November 22, 2025, was proclaimed as Coachella Valley Filipino Festival Day. • December 1, 2025, was proclaimed as Cynthia Erivo Day.

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• December 7, 2025, was proclaimed as Bob Mackie Day.

APPOINTMENT OF THE MAYOR AND MAYOR PRO TEM
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Appoint Naomi Soto to the position of Mayor and David Ready to the position of Mayor Pro Tem for a one-year term commencing upon appointment.

AYES: Councilmember Bernstein, Councilmember deHarte, Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
RECESS/RECONVENE:

The City Council recessed at 5:46 p.m. and reconvened at 5:55 p.m. to facilitate the rearrangement of seating.

ACCEPTANCE OF THE AGENDA:

Motion by Mayor Pro Tem Ready, Second by Councilmember Garner, CARRIED 5 – 0, to:

Accept the agenda with the removal of Consent Calendar Item Nos. 1D, 1G, 1K, 1N, 1O, 1P, and 1U for separate discussion; and reordering the following items:
• Public Hearing Item 2A was heard and considered subsequent to the acceptance of the agenda.
• Business and Legislative Item No. 3C was addressed following public testimony.

AYES: Councilmember Bernstein, Councilmember deHarte, Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
Public Hearing Item 2A was considered at this time.

REPORT OF CLOSED SESSION:

SPECIAL CLOSED SESSION:

The Special Closed Session of the City Council of December 10, 2025, was called to order by Mayor deHarte at 3:01 PM (with Mayor Soto and Councilmember Garner absent).

The meeting convened into Closed Session to discuss the following items as listed on the Special Closed Session Meeting Agenda, with no reportable action:

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CONFERENCE WITH LEGAL COUNSEL—INITIATION OF LITIGATION, Pursuant to Government Code Section 54956.9(d)(4):

Under existing facts and circumstances, there was one (1) matter.

REGULAR CLOSED SESSION:

The Closed Session of the City Council of December 10, 2025, was called to order by Mayor deHarte at 4:30 PM.

The meeting convened into Closed Session to discuss the following items as listed on the Closed Session Meeting Agenda, with no reportable action:

CONFERENCE WITH LEGAL COUNSEL—INITIATION OF LITIGATION, Pursuant to Government Code Section 54956.9(d)(4):

Under existing facts and circumstances, there was one (1) matter.

CONFERENCE WITH LEGAL COUNSEL— SIGNIFICANT EXPOSURE TO LITIGATION, Pursuant to Government Code Section 54956.9(d)(2):

Under existing facts and circumstances, there was one (1) matter.

CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION, Pursuant to Government Code Section 54956.9(d)(1):

Under existing facts and circumstances, there was one (1) matter.

Enrique Sanchez v. City of Palm Springs, et al., Riv. Sup. Ct., No. CVPS2303980 PUBLIC TESTIMONY:

Geoff Kors, Katie Barrows, Mark Kendrick, James Williams, (Rosmarino) Bettina Barrows, Robb Mccain, Judy Deertrack, Scott Connelly, Bradley Giles, Nicole Panter Dailey, Kerry Berman, Bruce Hoban, Caroline J Robillard, Francis Melinat, Maggie Hamilton, Estelle Dahl, William Miller, James Carver, Jane Garrison, Phllip Hodges, Joe Rodriguez, Bradley Giles, Michael Koth, Sharlene Ayestran, Michael Joseph Pitkin, and Scott Rusczyk provided oral testimony.

Business and Legislative Item No. 3C was considered at this time.

RECESS/RECONVENE:

The City Council recessed at 8:03 p.m. and reconvened at 8:14 p.m.

1. CONSENT CALENDAR:

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Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Approve the Consent Calendar with the removal of Item Nos. 1D, 1G, 1K, 1N, 1O, 1P, and 1U for separate discussion.

A. APPROVAL OF MINUTES
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Approve the City Council Meeting Minutes of November 12, 2025.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
B. ACCEPTANCE OF RESIGNATION FROM THE AIRPORT

COMMISSION
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Accept the resignation of Dave Banks from the Airport Commission, effective immediately.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
C. ADOPT A RESOLUTION APPROVING PAYROLL & ACCOUNTS

PAYABLE WARRANTS, CLAIMS AND DEMANDS
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Adopt Resolution No. 25363, entitled, “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,

CALIFORNIA, APPROVING PAYMENT OF PAYROLL
WARRANTS/DISBURSEMENTS FOR THE PERIOD ENDING 11-08-25 AND 11-22-25 TOTALING $6,208,524.05 AND ACCOUNTS PAYABLE WARRANTS DATED 10-28-25, 11-06-25, AND 11-20-25 TOTALING $15,066,154.51 IN THE AGGREGATE AMOUNT OF $21,274,678.56 DRAWN ON BANK OF AMERICA”.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready

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NAYS: None
ABSTAIN: None
RECUSED: None
D. GENERAL FUND, AIRPORT, AND CAPITAL FOR FIRST QUARTER FISCAL YEAR 2025-26 BUDGET UPDATE
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Receive and File.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
E. APPROVE CONSTRUCTION CONTRACT NO. 25C445 WITH
INNOVATIVE PLAYGROUNDS COMPANY, INC. FOR THE

PURCHASE AND INSTALLATION OF PLAYGROUND EQUIPMENT,
AND CONSTRUCTION CONTRACT NO. 25C448 WITH
SHADE STRUCTURES, INC., DBA USA SHADE & FABRIC

STRUCTURES FOR THE PURCHASE AND INSTALLATION OF SHADE

STRUCTURES AT DESERT HIGHLAND PARK
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Approve Construction Contract No. 25C445 with Innovative Playgrounds Company, Inc. to purchase and install playground equipment at Desert Highland Park, for an amount of $562,651.20;

2. Approve Construction Contract No. 25C448 with Shade Structures, Inc., dba USA Shade & Fabric Structures to purchase and install shade structure equipment at Desert Highland Park, for an amount of $298,173.33; and

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

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
F. APPROVAL OF PARCEL MAP 38635 FOR THE MEZRAHI FAMILY
TRUST

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Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Adopt a Resolution entitled, “A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PARCEL MAP 38635 FOR THE MEZRAHI FAMILY TRUST, FOR PROPERTY LOCATED AT 211 N SUNRISE WAY, IN SECTION 14, TOWNSHIP 4 SOUTH, RANGE 4 EAST.”

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
G. APPROVAL OF PLANS AND SCOPE OF WORK AND

AUTHORIZATION TO BID VICTORIA PARK RESTROOM
REPLACEMENT, CITY PROJECT 18-06
Motion by Councilmember Bernstein, Second by Councilmember Garner, CARRIED 5 – 0, to: Approve the plans and Scope of Work authorizing staff to advertise and solicit bids for the Victoria Park Restroom Replacement, City Project 18-06 (“the Project”); and
Authorize the City Manager to execute all necessary documents.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
H. A REQUEST BY THE OWNERS OF NINE HISTORIC PROPERTIES FOR

APPROVAL OF MILLS ACT HISTORIC PROPERTY PRESERVATION

AGREEMENTS, INCLUDING THREE UNITS WITHIN THE OCOTILLO
LODGE HISTORIC DISTRICT (HSPB #154 / HD-11) AT 1111 EAST PALM CANYON DRIVE, 1850 SMOKE TREE LANE (HSPB #159), 2821 EAST LIVMOR AVENUE (HSPB #124), ONE UNIT WITHIN THE
SANDCLIFF GARDEN HOMES HISTORIC DISTRICT (HSPB #93 / HD5), TWO UNITS WITHIN THE COUNTRY CLUB ESTATES HISTORIC DISTRICT, (HSPB #145 / HD-9), AND 999 PATENCIO ROAD
(HSPB#169).

Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

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1. Approve a Mills Act Historic Property Preservation Agreement between the City of Palm Springs and the owners of the following list of properties:

A. 1111 E. Palm Canyon, Unit 355 (Ocotillo Lodge), APN: 511-035- 097.

B. 1850 Smoke Tree Lane, (aka: 1800 S. Sunrise Way), APN: 510- 172-001.

C. 2821 E. Livmor Avenue, APN: 502-141-006.

D. 1847 Sandcliff Road, APN: 510-040-009.

E. 1111 E. Palm Canyon, Unit 345 (Ocotillo Lodge), APN: 511-035- 087.

F. 810 E. La Verne Way (Country Club Estates), APN: 511-150-019.

G. 1111 E. Palm Canyon, Unit 341 (Ocotillo Lodge), APN: 511-035- 083.

H. 1973 S. Camino Real (Country Club Estates), APN: 511-150-004.

I. 999 Patencio Road, APN: 505-251-005.

2. Authorize the City Manager to execute the Agreements.

3. Direct the City Clerk to record the Agreements with the County of Riverside.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
I. APPROVE COOPERATIVE PURCHASE AGREEMENT NO. 25C410 WITH MOTOROLA SOLUTIONS, INC. FOR THE PURCHASE OF BODY-WORN

CAMERAS, IN-CAR CAMERAS, DIGITAL EVIDENCE MANAGEMENT

SOFTWARE, AND ASSOCIATED WARRANTIES, SOFTWARE, AND

STORAGE FEES
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Approve Cooperative Purchase Agreement No. 25C410 with Motorola Solutions, Inc., for the purchase of body-worn cameras, in-car cameras, digital evidence management software, including associated warranties, software, and storage fees for an amount not to exceed $875,831.50 for a five-year term commencing on December 11, 2025, and continuing through December 10, 2030;

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

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AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
J. A REQUEST BY PRESA HALL, ON BEHALF OF SPIRIT OF SOFIA, LLC, FOR APPROVAL OF AN ART MURAL TITLED “SPIRIT OF SOFIA” ON

THE EAST ELEVATION OF THE PERIMETER WALL AT AN EXISTING HOTEL LOCATED AT 1491 SOUTH VIA SOLEDAD (CASE MUR-2025- 0002)
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Adopt Resolution No. 25364, entitled, “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AN ART MURAL TITLED “SPIRIT OF SOFIA” ON

THE EAST ELEVATION OF THE PERIMETER WALL AT AN EXISTING HOTEL, SPIRIT OF SOFIA, LOCATED AT 1491 SOUTH VIA SOLEDAD (CASE MUR2025-0002).”

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
K. APPROVE PROFESSIONAL SERVICES AGREEMENT NO. 25Q441

WITH GLOBALMELK LLC FOR URBAN DESIGN SERVICES, AND
PROFESSIONAL SERVICES AGREEMENT NO. 25Q442 WITH
MULTISTUDIO, INC. FOR BRANDING AND MARKETING FOR THE

CONVENTION CENTER CONNECTOR PROJECT
No action was taken. The City Council reached a consensus to continue the item.

L. AWARD OF A CONSTRUCTION CONTRACT TO MATICH
CORPORATION IN THE AMOUNT OF $451,031 FOR AIRPORT
STORMWATER OUTFALL REPAIR PROJECT (“THE PROJECT”),
AIRPORT PROJECT PSP-01
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

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1. Award a construction contract to Matich Corporation in the amount of $451,031 for Airport Stormwater Outfall Repair Project, Airport Project PSP-01.

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

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
M. APPROVE CONTRACT SERVICES AGREEMENT NO. 25B427 WITH
AMERICAN INTEGRATED SERVICES, INC., FOR ON-CALL

HAZARDOUS WASTE DISPOSAL SERVICES
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Approve Contract Services Agreement No. 25B427 with American Integrated Services, Inc., to provide on-call hazardous waste disposal services for the Public Works Department in an amount not to exceed $375,000 for an initial three-year term, beginning December 11, 2025, through December 10, 2028, with two one-year extension options at the City’s sole discretion; and

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

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
N. APPROVAL OF AMENDMENT NO. 3 TO AGREEMENT NO. A9206

WITH SAME DAY EXPRESS, DBA SIGNATURE SCULPTURE, FOR

CLEANING AND MAINTENANCE OF PUBLIC ART
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Approve Amendment No. 3 (Attachment A) to Agreement No. A9206 with Same Day Express, dba Signature Sculpture, for the cleaning and maintenance of additional public art pieces, increasing annual

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compensation by $50,000 for Fiscal Year 2026, not to exceed a total contract amount of $189,799.50.

2. Authorize the City Manager to execute the amendment.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
O. WHISTLEBLOWER HOTLINE REVIEW AND UPDATE
Motion by Councilmember Garner, Second by Mayor Pro Tem Ready, CARRIED 5 – 0, to: Receive and file this report.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
P. APPROVE CONSTRUCTION CONTRACT NO. 25C449 WITH

MIRACLE RECREATION EQUIPMENT COMPANY FOR THE

PURCHASE AND INSTALLATION OF SHADE STRUCTURES AND

RUBBERIZED SURFACING AT RUTH HARDY PARK
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:

1. Approve Construction Contract No. 25C449 with Miracle Recreation Equipment Company, to purchase and install rubberized surfacing at Ruth Hardy Park, for an amount of $336,303.07; and

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

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None

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Q. APPROVAL OF AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT NO. 23P047 WITH HARRIS AND ASSOCIATES, INC.,
IN AN AMOUNT NOT TO EXCEED $2,179,678.18 FOR THE INDIAN CANYON DRIVE WIDENING, FEDERAL AID PROJECT NO. BRLO5282(017), CITY PROJECT NO. 01-11 Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Approve Amendment No. 2 in the amount of $2,179,678.18 to Professional Services Agreement No. 23P047 with Harris and Associates, Inc. for a new notto-exceed amount of $6,777,795.72 for the Indian Canyon Drive Widening, Federal Aid Project No. BRLO-5282(017), City Project No. 01-11(“Project’); and

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

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
R. ACCEPTANCE OF PLAZA THEATRE, CITY PROJECT 18-04
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Accept the Plaza Theatre, City Project No. 18-04, as completed in accordance with the plans and specifications; and

2. Authorize the City Engineer to execute and file a Notice of Completion with the Riverside County Recorder for Plaza Theatre, City Project No. 18-04.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
S. ACCEPTANCE OF STATE HIGHWAY MANHOLE REPAIRS, CITY
PROJECT 24-04
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Accept the public works improvement identified as State Highway Manhole Repairs, City Project 24-04, as completed in accordance with

the plans and specifications; and

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2. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for State Highway Manhole Repairs, City Project 24-04.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
T. APPROVAL OF AMENDMENT NO. 2 TO THE ALLOCATED
POSITIONS AND COMPENSATION PLAN FOR FISCAL YEAR 2025-
26 Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Adopt Resolution No. 25365, entitled, “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO THE ALLOCATED POSITIONS AND
COMPENSATION PLAN FOR FISCAL YEAR 2025-2026, ADOPTED BY RESOLUTION NO. 25325.”

2. Authorize the City Manager to execute all documents necessary to effectuate this action.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
U. STAY OF RESIDENT GOLF RATES AT TAHQUITZ CREEK GOLF
RESORT
Motion by Councilmember Garner, Second by Councilmember deHarte, CARRIED 5 – 0, to:

1. Authorize the City to maintain the current resident golf rates at the City-owned Tahquitz Creek Golf Resort and to stay implementation of the resident golf rate increases retroactive to December 1, 2025.

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

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready

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NAYS: None
ABSTAIN: None
RECUSED: None

2. PUBLIC HEARINGS:

A. CONCLUDE FORMATION PROCEEDINGS FOR COMMUNITY
FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Adopt Resolution No. 25366, establishing Community Facilities District No. 2025-1 (Serena Park);

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

2. Adopt Resolution No. 25367, determining necessity to incur bonded indebtedness;

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
Motion by Councilmember Bernstein, Second by Councilmember deHarte, CARRIED 5 – 0, to:

4. Adopt Resolution No. 25368, calling an election relating to the levy of a Special Tax; and Conduct an election;

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
Motion by Councilmember deHarte, Second by Councilmember Garner, CARRIED 5 – 0, to:

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5. Adopt Resolution No. 25369, declaring the results of said election;

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

6. First Reading of Ordinance No. 2122, relating to the Levy of a Special Tax within Community Facilities District No. 2025-1 (Serena Park);

7. Adopt a Resolution No. 25370, Approving Funding, Construction and Acquisition Agreement.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None

3. BUSINESS & LEGISLATIVE:

A. RESOLUTION SETTING THE REGULAR CITY COUNCIL MEETING
SCHEDULE FOR 2026
Motion by Councilmember Garner, Second by Mayor Soto, CARRIED 5 – 0, to: Review, provide direction on modifications, and adopt Resolution No. 25371, entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, APPROVING THE CITY COUNCIL REGULAR MEETING PLACE, DAYS, AND TIME, AND RESCINDING RESOLUTION NO. 25267.”

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AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
B. REVIEW AND APPROVE THE 2026 ROSTER OF CITY COUNCIL

SUBCOMMITTEES, APPOINTEES, LIAISONS, AND

REPRESENTATIVES TO EXTERNAL ORGANIZATIONS
Motion by Mayor Pro Tem Ready, Second by Councilmember Garner, as amended, CARRIED 4 – 1, to:

1. Review and provide direction on changes to the roster of City Council subcommittees, appointees, liaisons, and representatives to external organizations.

2. Alternatively, approve the roster of City Council subcommittees, appointees, liaisons, and representatives to external organizations, and authorize the City Clerk to prepare and execute FPPC Form 806, Public Official Appointments.

3. Continue the nominations for the following external organizations to the City Council meeting of January 14, 2026:
a) Visit Greater Palm Springs
b) Palm Springs Chamber of Commerce
c) PS Hospitality Association Member Meeting
d) Office of Neighborhood Involvement (One-PS)

AYES: Councilmember deHarte, Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: Councilmember Bernstein
ABSTAIN: None
RECUSED: None
C. ADMINISTRATIVE ANALYSIS AND CONFORMITY REPORT FOR A
PROPOSED WAREHOUSE DEVELOPMENT ON 217 ACRES ON TRIBAL
TRUST LAND TOTALING UP TO 2.85 MILLION SQUARE FEET IN FOUR (4) BUILDINGS LOCATED WEST OF TIPTON ROAD BETWEEN
INTERSTATE 10 TO THE NORTH AND HIGHWAY 111 TO THE SOUTH, SECTIONS 9,10,15 AND 16, ZONE O-5 (OPEN SPACE) (CASE CR 2025-0002)
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Adopt Resolution No. 25372, entitled, “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,

CALIFORNIA, APPROVING A CONFORMITY REPORT FOR A PROPOSED WAREHOUSE DEVELOPMENT ON 217 ACRES ON TRIBAL TRUST LAND TOTALING UP TO 2.85 MILLION SQUARE FEET IN FOUR (4) BUILDINGS LOCATED WEST OF TIPTON ROAD BETWEEN INTERSTATE 10 TO THE

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NORTH AND HIGHWAY 111 TO THE SOUTH; DIRECTING STAFF TO

TRANSMIT THE REPORT TO THE TRIBAL COUNCIL OF THE AGUA CALIENTE BAND OF CAHUILLA INDIANS; AND WAIVING THE JOINT MEETING BETWEEN THE CITY COUNCIL AND TRIBAL COUNCIL (CASE CR-2023- 0002)”.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
D. A REQUEST BY THE CITY OF PALM SPRINGS FOR ADOPTION OF AN URGENCY ORDINANCE (4/5THS VOTE REQUIRED) AND FIRST

READING OF A PROPOSED ORDINANCE ADOPTING AND AMENDING
THE 2025 CALIFORNIA BUILDING STANDARDS CODE (TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS), THE 2025 CALIFORNIA RESIDENTIAL CODE, THE 2025 CALIFORNIA MECHANICAL CODE,
THE 2025 CALIFORNIA FIRE CODE, THE 2025 CALIFORNIA
PLUMBING CODE, THE 2025 CALIFORNIA EXISTING BUILDING
CODE, THE 2025 CALIFORNIA HISTORICAL BUILDING CODE, THE 2025 CALIFORNIA ELECTRICAL CODE, THE 2025 WILDLAND-URBAN INTERFACE CODE, THE 2025 CALIFORNIA ENERGY CODE, THE 2025 CALIFORNIA GREEN BUILDING STANDARDS CODE, 2025
CALIFORNIA MECHANICAL CODE, THE 2025 CALIFORNIA
ELECTRICAL CODE, THE 2025 CALIFORNIA GREEN BUILDING
STANDARDS CODE, AND ADOPTING THE 2024 INTERNATIONAL
PROPERTY MAINTENANCE CODE.

Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Waive the full reading of the Ordinance text in its entirety, read by title only, and adopt urgency Ordinance No. 2119, entitled, “AN URGENCY

ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING ARTICLE I OF CHAPTER 8.04 OF THE PALM SPRINGS

MUNICIPAL CODE, ADOPTING BY REFERENCE, TOGETHER WITH
CERTAIN ADDITIONS, AMENDMENTS AND DELETIONS, THE 2025
CALIFORNIA BUILDING CODE, INCLUDING CHAPTER 1, APPENDICES C, I, AND J; THE 2025 CALIFORNIA RESIDENTIAL CODE, INCLUDING APPENDIX AH; THE 2025 CALIFORNIA MECHANICAL CODE; THE 2025 CALIFORNIA FIRE CODE, INCLUDING APPENDIX B; THE 2025

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APPENDICES; THE 2025 WILDLAND-URBAN INTERFACE CODE,
INCLUDING ALL APPENDICES; THE 2025 CALIFORNIA ENERGY CODE, INCLUDING ALL APPENDICES; THE 2025 CALIFORNIA GREEN BUILDING STANDARDS CODE; AND THE 2024 INTERNATIONAL PROPERTY

MAINTENANCE CODE, INCLUDING ALL APPENDICES AS MANDATED BY CALIFORNIA HEALTH AND SAFETY CODE SECTION 18938 AND

DETERMINING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT;”

2. Introduce by title only and waive further reading of Ordinance No. 2120, entitled, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AND RESTATING ARTICLE I OF CHAPTER 8.04

OF THE PALM SPRINGS MUNICIPAL CODE, ADOPTING BY REFERENCE,

TOGETHER WITH CERTAIN ADDITIONS, AMENDMENTS AND DELETIONS, THE 2025 CALIFORNIA BUILDING CODE, INCLUDING CHAPTER 1, APPENDICES C, I, AND J; THE 2025 CALIFORNIA RESIDENTIAL CODE, INCLUDING APPENDIX AH; THE 2025 CALIFORNIA MECHANICAL CODE; THE 2025 CALIFORNIA FIRE CODE, INCLUDING APPENDIX B; THE 2025

CALIFORNIA PLUMBING CODE, INCLUDING APPENDICES A, B, D, G, H, I AND K; THE 2025 CALIFORNIA EXISTING BUILDING CODE; THE 2025 CALIFORNIA HISTORICAL BUILDING CODE, INCLUDING APPENDIX A; THE 2025 CALIFORNIA ELECTRICAL CODE, INCLUDING ALL
APPENDICES; THE 2025 WILDLAND-URBAN INTERFACE CODE,
INCLUDING ALL APPENDICES; THE 2025 CALIFORNIA ENERGY CODE, INCLUDING ALL APPENDICES; THE 2025 CALIFORNIA GREEN BUILDING STANDARDS CODE; AND THE 2024 INTERNATIONAL PROPERTY

MAINTENANCE CODE, INCLUDING ALL APPENDICES AS MANDATED BY CALIFORNIA HEALTH AND SAFETY CODE SECTION 18938 AND

DETERMINING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT;” and

3. Schedule a public hearing for January 14, 2026, to consider adoption of the regular ordinance at second reading.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: None
E. DISCUSSION AND INTRODUCTION OF AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL

CODE, REGARDING CANNABIS LOUNGES
Motion by Mayor Pro Tem Ready, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Waive the reading of the text in its entirety, read by title only, and introduce for first

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reading Ordinance No. 2121, entitled, “AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, AMENDING
CHAPTER 5.55 OF THE PALM SPRINGS

MUNICIPAL CODE, REGARDING CANNABIS
LOUNGES”.

AYES: Councilmember Bernstein,
Councilmember deHarte,
Councilmember Garner, Mayor Soto,
Mayor Pro Tem Ready
NAYS: None

ABSTAIN
:

None
RECUSE
D:

None
PUBLIC COMMENT:

Michael Joseph Pitkin provided oral testimony.

ADJOURNMENT:

The City Council adjourned the Regular Meeting of December 10, 2025, at 11:18 p.m.

Respectfully submitted,
Brenda Pree, MMC, CERA
City Clerk

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CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: DESTRUCTION OF OBSOLETE RECORDS PURSUANT TO THE

ADOPTED RECORDS RETENTION SCHEDULE AND DESTRUCTION

PROCEDURE
FROM: Scott C. Stiles, City Manager
BY: Office of the City Clerk
RECOMMENDATION:

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

OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE DESTRUCTION OF RECORDS (AS IDENTIFIED ON EXHIBIT “A”) AND IN COMPLIANCE WITH THE RETENTION SCHEDULE ADOPTED PER RESOLUTION NO. 25239.”
BACKGROUND:

On July 25, 2024, the Palm Springs City Council adopted Resolution No. 25239 implementing an updated records retention schedule and destruction process. Resolution No. 25239 superseded the previous record retention Resolutions Nos. 19644 and 21227 adopted on September 15, 1999, and March 16, 2005. The purpose of the records retention schedule is to identify and establish a process to dispose of obsolete records.

The retention schedule was developed in compliance with California Government Code Section 34090 et seq. and will be under periodic review to comply with changes in applicable retention laws.

In accordance with the approved retention and destruction process, attached is “Exhibit A,” the destruction request form. The request forms are drafted under the oversight of the respective department heads, with review by the City Clerk and City Attorney.

STAFF ANALYSIS:

Staff continue to review destruction-eligible records to comply with State law and the City’s approved retention and destruction schedule. In addition, proper records management will mitigate off-site storage costs. Staff are also pursuing the destruction of obsolete physical records to better utilize office and storage space at various City worksites. The destruction of obsolete records is format neutral, including both digital and

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City Council Staff Report
January 14, 2026 -- Page 2
Destruction of Obsolete Records
physical records that have met the approved retention period.

The attached Exhibit “A” is a request by the Palm Springs Fire Department for the destruction of electronic records in accordance with the City’s adopted retention schedule.

The City’s adopted retention of these records is 10 years and exceeds the requirements set forth by the state set forth in the California Fire Code, Title 24, Part 9, Section 104.7.1, which indicates a minimum retention period of 5 years.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports the City Council's Strategic Plan Broad Goal of Financial and Organizational Well-Being.

FISCAL IMPACT:

Destruction of obsolete records will reduce the costs associated with off-site document storage and records management.

REVIEWED BY:

Department Director: Brenda Pree
City Manager: Scott Stiles
ATTACHMENTS:

A. Draft Resolution
B. Exhibit “A” – Records Destruction Request Form (Fire Department)

B – Page 31 of 696
ATTACHMENT “A”

DRAFT RESOLUTION

B – Page 32 of 696
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, AUTHORIZING THE

DESTRUCTION OF RECORDS (AS IDENTIFIED ON
EXHIBIT “A”) AND IN COMPLIANCE WITH THE

RETENTION SCHEDULE ADOPTED PER RESOLUTION
NO. 25239.

WHEREAS, on September 15, 1999, the Palm Springs City Council adopted Resolution No. 19644 establishing general guidelines for records retention and directed departments to establish individual retention schedules complaint with Section 34090 of the California Government Code.

WHEREAS, on March 16, 2005, the City Council adopted Resolution No. 21227, establishing further guidance on retention requirements not previously addressed regarding Resolution No. 19644
WHEREAS, on July 25, 2024, The City Council adopted Resolution No. 25239 implementing a revised records retention schedule and destruction policy WHEREAS, the revised policy complies with all requirements of Government Code Section 34090 et Seq. for the destruction of obsolete records; and WHEREAS, in accordance with the Policy, this Resolution is presented to the City Council and City Attorney for approval to destroy obsolete records in compliance with the approved retention and all applicable State and Federal Laws.

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

SECTION 1. The City Council hereby finds and determines the records identified in “Exhibit A” and Exhibit “B” exceed the applicable retention period set forth by law and the city’s policy and are no longer needed or required to be kept by statue or law.

SECTION 2. The City Council hereby authorizes and directs the destruction of the records described on “Exhibit A”.

SECTION 3. In accordance with the policy and requirements of Government Code Section 34090 et seq., The City Council hereby authorizes the City Clerk to destroy the above-described City records without making a copy thereof.

SECTION 4. This Resolution shall be effective immediately upon its passage and approval.

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Resolution No. _____

Page 3 ends

ADOPTED THIS ___DAY OF ________________, _________.

SCOTT C. STILES

CITY MANAGER
ATTEST:

BRENDA PREE

CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on _______________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Brenda Pree, City Clerk
City of Palm Springs, California

B – Page 34 of 696
ATTACHMENT “B”
Exhibit A – Records Destruction Request Form (Fire Department)

B – Page 35 of 696
Docusign Envelope ID: 19EF0091-E693-4A70-A489-67B4225C345C 12/10/2025
12/10/2025

B – Page 36 of 696

CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 1 TO CONTRACT SERVICE AGREEMENT 25B194 WITH E M D CONSTRUCTION, INC., FOR ON-CALL DOORS

AND WINDOWS INSTALLATION, MAINTENANCE AND REPAIR

SERVICES
FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:

This action will approve Amendment No. 1 to Agreement 25B194 with E M D Construction, Inc., in the amount of $595,000 for a revised contract amount not to exceed $995,000, for on-call doors and windows installation, maintenance and repair services.

RECOMMENDATION:

1. Approve Amendment No. 1 to Agreement 25B194 (Attachment A) with E M D Construction, Inc., to provide on-call doors and windows installation, maintenance and repair services for the Public Works Department for an additional amount of $595,000 and for a total revised contract amount not to exceed $995,000 through July 21, 2028, with two one-year extension options at the City’s sole discretion; and

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

BUSINESS PRINCIPAL DISCLOSURE:

According to the Public Integrity Disclosure forms (Attachment B), E M D Construction Inc., is registered in the state of California.

BACKGROUND:

City staff is requesting approval of an amendment to the existing on-call doors and windows installation, maintenance, and repair services Agreement (25B194) supporting City-owned facilities under the Public Works Department. The contract, originally awarded for a three-year term beginning July 22, 2025, provides essential support in maintaining

C – Page 37 of 696
City Council Staff Report
January 14, 2026 -- Page 2
Amend On-Call Doors and Windows Installation, Maintenance and Repair Services Agreement the safety, accessibility, and overall condition of the City’s diverse portfolio of buildings, including several historic and high-profile civic facilities.

Doors and windows are critical to building security, access control, and energy efficiency.

The on-call nature of the contract allows staff to respond quickly to repair needs, minimize disruptions to City operations, and extend the useful life of key City assets.

Since the award of the agreement, staff has identified a significantly higher volume of required doors and windows related repairs across multiple facilities than originally anticipated.

To ensure adequate Contract space to complete both ongoing and upcoming priority projects, staff is recommending an amendment to increase the contract amount by an additional $595,000. This adjustment will allow the City to continue addressing essential maintenance and repair needs in a timely and efficient manner.

Current Projects:
- Pavilion Door and Window Replacement $279,990.63
- City Hall Annex North Window Replacement $83,352.10
- Miscellaneous window and door repair throughout City facilities $28,667.92 Anticipated Projects:
- Palm Canyon Theater: Exterior Doors and Windows Repair and Replacement $318,801.11
- Leisure Center: Exterior Doors and Windows Replacement $260,499.37 STAFF ANALYSIS:

To date, staff is satisfied with E M D Construction Inc., in terms of quality of response time, work product, services, and professionalism.

Staff recommend approval of Amendment No. 1 to Agreement 25B194 (Attachment A) with E M D Construction, Inc., to provide on-call doors and windows installation, maintenance and repair services for the Public Works Department for an additional amount of $595,000 for a total revised contract amount not to exceed $995,000 through July 21, 2028.

ENVIRONMENTAL ASSESSMENT:

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

C – Page 38 of 696
City Council Staff Report
January 14, 2026 -- Page 3
Amend On-Call Doors and Windows Installation, Maintenance and Repair Services Agreement not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

Approval of this action supports the City Council strategic plan to provide quality, well maintained infrastructure and facilities.

FISCAL IMPACT:

Funds for these services are budgeted and available for Fiscal Years 2025-26 and 2026- 27, and will be budgeted in subsequent fiscal years:

Public Works Account: 5206570 – 40105, 50119
Public Works Measure J Deferred Maintenance Account: 2603205-50119 Measure J: 2603080-80000
REVIEWED BY:

Assistant Director of Public Works: Daniel Martinez
Director of Public Works: David McAbee
Procurement and Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:

A. Amendment No. 1 to Agreement 25B194
B. Public Integrity Disclosure – E M D Construction, Inc.

C – Page 39 of 696
Attachment A
Amendment No. 1 to the Contract Service
Agreement 25B194

C – Page 40 of 696
55575.18100\42913029.1

Page 2 of 4 ends

(BB&K 2024)
AMENDMENT NO. 01 TO THE CONTRACT SERVICE AGREEMENT 25B194 BETWEEN THE CITY PALM SPRINGS AND E M D CONTRUCTION INC.

1. Parties and Date.

This Amendment No. 01 to the Contract Service Agreement is made and entered into as of this 14 day of January 2026, by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and E M D Construction Inc., a California Corporation. City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. City and Contractor entered into an agreement titled “Doors and Windows Installation, Maintenance, and Repair Services” dated July 21, 2025, (25B194) for the purpose of retaining the services of Contractor to provide doors and windows installation, maintenance, and repair services in an amount not to exceed $400,000.00 and an initial term of three (3) years.

2.2 Amendment Purpose. City and Contractor now desire to modify the Agreement to provide additional compensation in the amount of $595,000.00 for a revised contract amount not to exceed $995,000.00.

2.3 Amendment Authority. This Amendment No. 01 is authorized pursuant to Section 2.3 Changes in Scope of the Agreement.

3. Terms.

3.1 Amendment. Section 2.1 of the Agreement is hereby amended in its entirety to read as follows:
"2.1 Maximum Contract Amount. For the Services rendered under this Agreement, Contractor shall be compensated by City in accordance with the Schedule of Compensation, which is attached as Exhibit “B” and incorporated in this Agreement by reference. Compensation shall not exceed the maximum contract amount of Nine Hundred Ninety-Five Thousand Dollars ($995,000.00) ("Maximum Contract Amount"), except as may be provided under Section 2.3. The method of compensation shall be as set forth in Exhibit “B.” The method of compensation shall be as set forth in Exhibit “B.” Compensation for necessary expenditures must be approved in advance by the Contract Officer designated under Section 4.2.”

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 01, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 01. From and after the date of this Amendment No. 01, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 01.

3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 01.

C – Page 41 of 696
55575.18100\42913029.1

Page 3 of 4 ends

(BB&K 2024)

3.4 Severability. If any portion of this Amendment No. 01 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5 Counterparts. This Amendment No. 01 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]

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55575.18100\42913029.1

Page 3 of 4 ends

(BB&K 2024)

C – Page 43 of 696
55575.18100\42913029.1

Page 4 of 4 ends

(BB&K 2024)
SIGNATURE PAGE FOR AMENDMENT NO. 01 TO THE
CONTRACT SERVICE AGREEMENT 25B194
BETWEEN THE CITY PALM SPRINGS AND E M D CONSTRUCTION INC.

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

CONTRACTOR:

By: ____________________________ By: ______________________________ Signature Signature
(2nd signature required for Corporations)
Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: 1/14/2026 Item No.

APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ City Attorney City Clerk
APPROVED:

By: _______________________________ Date:

City Manager – up to $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

C – Page 44 of 696
Attachment B
Public Integrity Disclosure

C – Page 45 of 696

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C – Page 47 of 696

CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF FIRST AMENDMENT TO CITY OF PALM SPRINGS

WIRELESS COMMUNICATIONS FACILITIES SITE LEASE WITH LOS

ANGELES SMSA LIMITED PARTNERSHIP, DBA VERIZON WIRELESS, FOR THE PROPERTY LOCATED AT 1901 EAST BARISTO ROAD
FROM: Scott C. Stiles, City Manager
BY: Housing and Community Development
SUMMARY:

This action is to approve Amendment No. 1 (Attachment A) to the ground lease with Los Angeles SMSA Limited Partnership dba Verizon Wireless dated May 2, 2019, for non-exclusive use of ground space with an existing wireless communication tower at 1901 East Baristo Road (Attachment B). The proposed Amendment will extend the term for three additional renewal periods of five years each, commencing on October 1, 2028, adjusting rent and annual escalation, among other changes.

RECOMMENDATION:

1. Approve the proposed First Amendment to City of Palm Springs Wireless Communications Facilities Site Lease with Los Angeles SMSA Limited Partnership dba Verizon Wireless for the property located at 1901 East Baristo Road to extend the term for three additional renewal periods of five years each, commencing on October 1, 2028, adjust rent and annual escalation and other updates outlined therein.

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

BUSINESS PRINCIPAL DISCLOSURE:

See Attachment C.

BACKGROUND:

On April 3, 2019, the City Council approved the original Wireless Communications Facilities Site Lease with Verizon. The Agreement was subsequently executed on May 2, 2019.

D – Page 48 of 696
City Council Staff Report
January 14, 2026 -- Page 2
Approval of First Amendment to Wireless Communications Facilities Site Lease STAFF ANALYSIS:

The City of Palm Springs entered into the Agreement with Verizon on May 2, 2019, allowing for the operation of a wireless communications facility on a portion of Cityowned property at 1901 East Baristo Road. The initial lease rate was $3,300 monthly and is currently $4,186.26. The current lease is set to expire on September 30, 2028.

Verizon has requested an extension of the lease term, asserting that such extension will ensure long-term operational stability and continued reliable wireless service for residents and visitors in the surrounding area. The proposed Amendment modifies the lease term to extend Verizon’s occupancy of the site beyond its current expiration date, adjusts the rent starting in 2028, and updates Verizon’s notice address.

Key terms of the Amendment include:

1. Term Extension: The lease will be automatically extended for three (3) additional renewal periods of five (5) years each, commencing on October 1, 2028.

2. Rent Adjustment: Commencing October 1, 2028, the monthly base rent will be adjusted to $4,711.86 which reflects a 4.0% annual increase through 2028.

This amount is higher than the projected October 1, 2028, rent based on Consumer Price Index estimated increases of 3.2% for 2026 and continued decline in 2027 and 2028 to just above 2%1.

3. Cost of Living Adjustment Update: The Metropolitan Statistical Area for the Consumer Price Index will be changed from the Los Angeles-AnaheimRiverside Metropolitan Statistical Area to the Riverside-San BernardinoOntario Metropolitan Area which is the current Metropolitan Statistical Area for Palm Springs.

4. Notice Update: Verizon’s notice address will be updated.

All other terms and conditions of the original May 2, 2019 Agreement will remain unchanged and in full force and effect.

ENVIRONMENTAL ASSESSMENT:

The proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 – Existing Facilities). Class 1 consists of the “operation, permitting, leasing, licensing, or minor alteration of existing public or private facilities or mechanical equipment … involving negligible or no expansion 1 UCLA Anderson Forecast, UCLA Anderson Forecast for the Nation and California: December 2025 Report (Los Angeles: UCLA Anderson School of Management, 2025).

D – Page 49 of 696
City Council Staff Report
January 14, 2026 -- Page 3
Approval of First Amendment to Wireless Communications Facilities Site Lease of existing or former use.” The proposed action consists solely of approving Amendment No. 1 to an existing ground lease for a wireless communications facility, extending the lease term, adjusting rent, and revising the applicable Consumer Price Index. No physical modifications to the facility, increase in height, ground disturbance, or change in the intensity or type of use are proposed. As such, the Project qualifies for the Class 1 exemption.

Further, none of the exceptions to the use of a categorical exemptions listed in CEQA Guidelines Section 15300.2 apply: (1) the lease amendment does not involve construction, expansion, or physical change and would not contribute to cumulatively significant environmental impacts; (2) the approval of a lease extension for an existing wireless facility is not an unusual circumstance and does not present a reasonable possibility of a significant environmental effect; (3) the project does not involve physical changes that would affect scenic resources, including those associated with designated scenic highways (4) the site is not included on any list of hazardous waste sites compiled pursuant to Government Code Section 65962.5 and (5) the action does not involve alteration of a historic resource or a structure eligible for listing in the California Register of Historical Resources.

A Notice of Exemption will be filed with the County Clerk and the State Clearinghouse in accordance with CEQA requirements.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the following City Council Strategic Plan Foundation: Infrastructure and Facilities.

FISCAL IMPACT:

The proposed Agreement would generate revenue in the amount of $4,711.86 per month beginning on October 1, 2028 and shall increase each one-year anniversary i) in an amount equal to the increase in the Consumer Price Index published by the United States Department of Labor, Bureau of labor Statistics (1982-1984=100) for “All Items – All Urban Consumers”, for the Riverside-San Bernardino-Ontario Metropolitan Statistical Area, during the preceding twelve (12) month period; or ii) three percent, whichever is greater. This equates to approximately $56,542.32 for the first year of the renewal term.

If the lease is renewed for all three 5-year terms (extending from October 1, 2028 to September 30, 2043), the total base rent revenue the City would receive is approximately $1,051,625 assuming the annual increase is the minimal amount of 3% (which could be higher if CPI exceeds 3%).

D – Page 50 of 696
City Council Staff Report
January 14, 2026 -- Page 3
Approval of First Amendment to Wireless Communications Facilities Site Lease

D – Page 51 of 696
City Council Staff Report
January 14, 2026 -- Page 4
Approval of First Amendment to Wireless Communications Facilities Site Lease REVIEWED BY:

Department Director: Jay Virata
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:

A. First Amendment to City of Palm Springs Wireless Communications Facilities Site Lease.

B. Wireless Communications Facilities Site Lease.

C. Business Principal Disclosure.

D – Page 52 of 696

ATTACHMENT A

FIRST AMENDMENT TO CITY OF PALM SPRNGS

WIRELESS COMMUNICATIONS FACILITIES SITE
LEASE

D – Page 53 of 696
- 1 -
Lessee Site Name: Palm Springs
Lessee MDG Location ID: 5000385007

FIRST AMENDMENT TO CITY OF PALM SPRINGS WIRELESS

COMMUNICATIONS FACILITIES SITE LEASE
This First Amendment to City of Palm Springs Wireless Communications Facilities Site Lease (“First Amendment”) is made, and shall be effective, as of the last date of the signatures below (“Effective Date”), between City of Palm Springs (“LESSOR”), and Los Angeles SMSA Limited Partnership d/b/a Verizon Wireless (“LESSEE”). LESSOR and LESSEE (or their predecessors in interest) entered into that certain City of Palm Springs Wireless Communications Facilities Site Lease dated May 2, 2019, as may have been previously amended and/or assigned, (the “Lease”), pursuant to which LESSEE is leasing or licensing from LESSOR a portion of that certain property located at 1901 East Baristo Road in the City of Palm Springs, California, as more particularly described in the Lease.

LESSOR and LESSEE may be referenced in this First Amendment individually as a “Party” or collectively as the “Parties.”
In consideration of the mutual covenants and promises contained in this First Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties agree to amend the Lease as follows:

1. Term. The Lease is set to expire on September 30, 2028. Commencing on October 1, 2028, the Lease shall automatically extend in three (3) separate five (5) year renewal periods (each a “Renewal Term”), provided LESSEE is not in default under the Agreement at the time of each applicable renewal period, and provided LESSEE has not given LESSOR its written notice of its intent not to renew at least thirty (30) days prior to the expiration of the then-current Renewal Term.

2. Rent. Commencing on October 1, 2028, the monthly rent shall be $4,711.86 to be paid on the first day of the month in advance to LESSOR or such other person as LESSOR may designate in writing at least 30 days in advance of any rental payment date.

Beginning on October 1, 2028, and continuing on each one-year anniversary of October 1, 2029 thereafter, rent shall increase in accordance with Section 4.3 of the Lease. All other rental terms and obligations not amended by this Section 2 of the First Amendment shall remain in full force and effect, including but not limited to, the requirements for LESSEE to pay LESSOR an additional $1,000 per month for each carrier operating wireless communication equipment on the Facilities in addition to LESSEE as per Paragraph 4.1 of the Lease.

3. CPI. Section 4.3 of the original agreement shall be modified as Cost of Living Adjustment: The Base Rental shall be automatically adjusted on each anniversary of the Commencement date in i) an amount equal to the increase in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics (1982- 1984 + 100) (the ‘CPI’) for “All Items- All Urban Consumers”, for the Riverside-San Bernardino-Ontario Metropolitan Statistical Area, during the preceding twelve (12) month period; or ii) three percent (3%), whichever is greater. The base month for increases under this section shall be the most recently measured twelve (12)

D – Page 54 of 696
- 2 -
month period prior to the commencement of each annual anniversary of the Commencement Date.

4. Notice Address. The notice address for LESSEE in the Lease is hereby amended as follows:

If to LESSEE: Verizon Wireless
Attn: Network Real Estate
180 Washington Valley Road
Bedminster, NJ 07921
With a copy to: Basking Ridge Mail Hub
Attn: Legal Intake
One Verizon Way
Basking Ridge, NJ 07920

5. Continued Effect. Except as amended hereby, all of the other terms and conditions of the Lease shall remain in full force and effect. In the event of a conflict between any term and provision of the Lease and this First Amendment, the terms and provisions of this First Amendment shall control. In addition, except as otherwise stated in this First Amendment, all initially capitalized terms shall have the same respective defined meaning stated in the Lease. All captions are for reference purposes only and shall not be used in the construction or interpretation of this First Amendment.

6. Ratification and Reaffirmation. LESSOR and LESSEE do hereby ratify, reaffirm, adopt, contract for and agree to be, or continue to be, bound by all of the terms and conditions of the above-referenced Lease. Except as modified by this First Amendment, all of the terms and conditions of the Lease are incorporated by reference herein as if set forth at length. It is acknowledged and agreed that the execution of this First Amendment by the Parties is not intended to and shall not constitute a release of either Party from any obligation or liability which said Party has to the other pursuant to the Lease.

7. Counterparts. This First Amendment may be executed in counterparts with the same effect as if both parties hereto had executed the same document. Both counterparts shall be construed together and shall constitute a single document. [SIGNATURE PAGE TO FOLLOW]

D – Page 55 of 696
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Lessee Site Name: Palm Springs
Lessee MDG Location ID: 5000385007
IN WITNESS WHEREOF, this First Amendment is effective and entered into as of the date last written below.

LESSOR:

City of Palm Springs
By: _________________________
Name: _______________________
Title: ________________________
Date:

LESSEE:

Los Angeles SMSA Limited Partnership
d/b/a Verizon Wireless
By AirTouch Cellular Inc., Its General Partner
By: _________________________
Name: _______________________
Title: ________________________
Date:

D – Page 56 of 696

ATTACHMENT B

WIRELESS COMMUNICATIONS FACILITIES SITE
LEASE

D – Page 57 of 696
D
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ATTACHMENT C

BUSINESS PRINCIPAL DISCLOSURE

D – Page 80 of 696
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D

CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2121 OF THE

CITY OF PALM SPRINGS, CALIFORNIA, AMENDING PALMS SPRINGS MUNICIPAL CODE SECTION 5.55 OF THE PALM SPRINGS MUNICIPAL

CODE REGARDING CANNABIS LOUNGES
FROM: Scott C. Stiles, City Manager
BY: Special Program Compliance
SUMMARY:

This is the second reading of an ordinance to amend Palm Springs Municipal Code (PSMC) Section 5.55 regarding expanding activities as provided for in Assembly Bill 1775 for cannabis consumption lounges.

RECOMMENDATION:

Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2121, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE, REGARDING CANNABIS LOUNGES”
STAFF ANALYSIS:

On December 10, 2025, Ordinance No. 2121 was introduced for first reading as noted below:

ACTION: Waive reading of the text in its entirety, read by title only and introduce for first reading, Ordinance No. 2121 , “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA AMENDING SECTIONS 5.55 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING CANNABIS LOUNGES”.

AYES: Councilmembers deHarte, Garner, Bernstein, Ready, Mayor Pro Tem Ready, Mayor Soto
NOES: None
ABSENT: None

E – Page 91 of 696
City Council Staff Report
January 14, 2026 -- Page 2
Second Reading and Adoption of Ordinance No. 2121 – Cannabis Lounges This ordinance implements the cannabis lounge activities as provided for in Assembly Bill 1775. Additionally, it provides regulations to ensure the safety of cannabis lounge employees and patrons. There are no changes to the Ordinance text since the first reading on December 10, 2025. The version attached for this meeting is the same as the one presented previously.

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

The ordinance shall be effective 30 days from adoption.

REVIEWED BY:

Department Director: Veronica Goedhart
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:

A. Ordinance No. 2121

E – Page 92 of 696
55575.18195\44450260.1
ATTACHMENT “A”
ORDINANCE NO. 2121 RELATING TO

THE CONSUMPTION OF CANNABIS AND

CANNABIS PRODUCTS

E – Page 93 of 696
55575.18195\44450260.1
Ordinance No. 2121

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ORDINANCE NO. 2121

AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING CHAPTER 5.55 OF THE PALM

SPRINGS MUNICIPAL CODE, RELATING TO THE

CONSUMPTION OF CANNABIS AND CANNABIS

PRODUCTS
City Attorney’s Summary
This ordinance amends the City of Palm Springs’ existing cannabis lounge business ordinance in order to authorize certain activities within cannabis lounges, in accordance with Assembly Bill 1775 (2024).

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 by Section 5 of Article XI, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt comprehensive zoning regulations and regulations upon the use of land and property within the City; and
WHEREAS, the consumer landscape of cannabis is constantly evolving and innovating in the wake of a legalized market; and
WHEREAS, many states and municipalities are now recognizing the onsite consumption of cannabis as a profitable and sensible addition to the regulated cannabis market; and
WHEREAS, the City has established clear rules for the regulation of onsite cannabis consumption, and this has stimulated the growth of various cannabis businesses; and
WHEREAS, existing law authorizes a cannabis business in Palms Springs to operate a dispensary and to obtain a permit in order for cannabis to be consumed on the premises of the dispensary; and
WHEREAS, as authorized by Assembly Bill 1775 (2024), this ordinance would authorize the preparation or sale of non-cannabis food or beverage products by a licensed retailer in those areas where the consumption of cannabis is allowed, and to allow, and to sell tickets for, live musical or other performances on the premises of a licensed retailer in those areas where the consumption of cannabis is allowed, and establish standards for the City’s cannabis consumption lounges; and

E – Page 94 of 696
55575.18195\44450260.1
Ordinance No. 2121

Page 3 ends

WHEREAS, the City Council has carefully reviewed and considered all of the evidence presented in connection with the proposed ordinance, including, but not limited to, the staff report, and all written and oral testimony presented.

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

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference as material findings in support of this Ordinance.

SECTION 2. Chapter 5.55 of the Palm Springs Municipal Code is hereby bifurcated into two (2) Articles, and the Chapter 5.55, as it exists immediately prior to the effective date of this Ordinance, is hereby designated as Chapter 5.55, Article I.

SECTION 3. Section 5.55.050 of Chapter 5.55, Article I, of the Palm Springs Municipal Code (Definitions) is hereby amended as follows:

A. The definition of “cannabis lounge” is hereby amended to read as follows:
“Cannabis lounge” or “cannabis consumption lounge” means a separate parcel or segregated tenant space, other than in a private residence or at an event held pursuant to section 5.55.100, with valid authorization, where cannabis or cannabis products are consumed.

B. A new definition for “cannabis consumption lounge operator” is hereby added to read as follows:
“Cannabis consumption lounge operator” means a cannabis dispensary permittee who is authorized to operate a cannabis consumption lounge in accordance with this chapter.

C. A new definition for “smoking” is hereby added as follows:
“Smoking” or “smoke” (when used as a verb) means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated tobacco or plant product intended for inhalation, whether natural or synthetic, in any manner or in any form. “Smoking” includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking.

D. A new definition for “vaping” is hereby added to read as follows:

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“Vaping” means to inhale vapor from a device that heats up and vaporizes a liquid or solid.

SECTION 4. A new Article II of Chapter 5.55 of the Palm Springs Municipal Code (Cannabis Consumption Lounges) is hereby added to read as follows:
“Chapter 5.55, Article II (Cannabis Lounges)

5.55.480. Provisions not Exclusive.

5.55.490 Prohibition on Consumption of Cannabis.

5.55.500 Authorization Required to Operate Cannabis
Consumption Lounge

5.55.510 Site Management Requirements.

5.55.515 Cannabis Consumption Lounge Premises Restrictions.

5.55.520 Ventilation Requirements.

5.55.530 Authorization To Operate Must Be Displayed.

5.55.535 Worker Protections.

5.55.540 Required Health Warnings.

5.55.545 Waste Containers.

5.55.550 Operating Hours.

5.55.560 Age Restriction.

5.55.570 Personnel Requirements.

5.55.580 Consumption Of Cannabis and Cannabis Products On Site.

5.55.585 Consumption of Prepackaged Food and Beverages.

5.55.590 Customer Conduct.

5.55.480 Provisions not Exclusive.

Except as more specifically provided in this Article II, Article I of Chapter 5.55 shall apply to Cannabis Lounges.

5.55.490 Prohibition on Consumption of Cannabis.

A. No cannabis business, its manager, its employee, or person with an ownership interest, shall allow any person to smoke, ingest, or otherwise consume cannabis products on its site, or within 20 feet of the site, except as described in this chapter.

B. No cannabis business, its manager, its employee, or person with an ownership interest, shall permit, aid, abet, or conceal the smoking, ingesting, or other consumption of cannabis or cannabis products on its site in violation of this code.

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C. Each cannabis dispensary that is not authorized to operate a cannabis lounge must have a sign prominently displayed stating, “Smoking, ingesting, or consuming cannabis or cannabis products on this site or in a public place is prohibited.”

5.55.500 Authorization Required to Operate Cannabis Consumption Lounge
A. No person shall operate a cannabis consumption lounge without first having received from the City a valid cannabis dispensary permit with a condition that expressly authorizes the operation of a lounge in accordance with this article.

B. A cannabis dispensary permit may be authorized to allow the operation of a cannabis consumption lounge with one of the following types of conditions:

1. Type 1 (Less than 600 sq. ft.). A type 1 condition on a valid cannabis dispensary permittee authorizes a cannabis
dispensary permittee to allow the preparation and sale of food and host non-ticketed events, subject to the provisions of this chapter.

2. Type 2 (600 sq. ft. or larger). A type 2 condition on a valid dispensary permit authorizes a cannabis dispensary
permittee to allows persons to allow the preparation and sale of food, host non-ticketed events, and host up to twenty-four (24) ticketed events per year, subject to the provisions of this chapter.

C. Cannabis lounges may apply to host outdoor special events utilizing the City’s land use permit process and will be subject to the conditions of approval to operate said events. Cannabis lounges located adjacent to a site that sells primarily alcoholic beverages, tobacco, or tobacco products on the site may not operate outdoor events.

D. Cannabis Lounges may apply to operate an onsite kitchen facility.

Operators must comply with both State and Riverside County regulations. Additionally, all proposed kitchen facilities must be inspected by the City to determine that the facility is safe to occupy and suitable for the intended use.

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5.55.510 Site Management Requirements.

Notwithstanding any other provision of the code, a cannabis lounge consumption operator shall:

A. Prevent and eliminate nuisances on its site, including the unlawful consumption of cannabis and cannabis products;
B. Maintain the exterior of the site, including any parking lots under the control of the permittee, free of litter, debris, and trash; C. Properly store and dispose of all waste generated on the site, including chemical and organic waste, in accordance with all applicable laws and regulations; and
D. Make cannabis and cannabis products unusable and
unrecognizable before discarding them.

E. Maintain sanitary surfaces and devices. Sanitation and cleaning frequency. Each cannabis consumption lounges shall ensure that:

1. The surfaces, utensils, and reusable devices that have direct contact with cannabis products are adequately washed,
rinsed and sanitized.

2. After being cleaned, surfaces of equipment, utensils, and reusable devices that have direct contact with cannabis products are sanitized in:
a) Hot water manual operations by immersion for at least 30 seconds with a temperature of 170°F (77°C) or
above;
b) Hot water mechanical operations by being cycled
through equipment that is set up and achieving a
utensil surface temperature of 160°F (71°C) as
measured by an irreversible registering temperature
indicator; or
c) Chemical manual or mechanical operations, including, without limitation, the application of sanitizing
chemicals by immersion, manual swabbing, brushing
or pressure spraying methods using a solution as
specified on the manufacturer’s label use instructions
that are approved by the Environmental Protection
Agency, by providing an exposure time of at least 30

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seconds unless the manufacturer’s label use
instructions provide otherwise.

3. If the surfaces of utensils or equipment come into contact with potentially hazardous cannabis products and ingredients, the surfaces and utensils are cleaned throughout the day at least once every 4 hours.

4. The surfaces of utensils and equipment that have direct contact with cannabis products and ingredients that are not
potentially hazardous are cleaned:
a) At any time when contamination may have occurred;
and
b) In equipment, including, without limitation, ice bins and beverage dispensing nozzles, and enclosed
components of equipment, such as ice makers,
cooking oil storage tanks and distribution lines,
beverage and syrup dispensing lines or tubes, coffee
bean grinders and water vending equipment:
(1) At a frequency specified by the manufacturer; or
(2) If the manufacturer does not specify a frequency,
at a frequency necessary to prevent the
accumulation of soil or mold.

State and local public health regulatory agencies may require permits and/or conduct inspections related to the services offered at the cannabis consumption lounge.

G. Any preparation or sale of noncannabis food or beverage products shall be in compliance with all applicable provisions of the California Retail Food Code (Chapter 1 (commencing with Section 113700) of Part 7 of Division 104 of the Health and Safety Code).

5.55.515 Cannabis Consumption Lounge Premises Restrictions.

A. Enclosed. A cannabis consumption lounge must be indoors and fully enclosed.

B. Not visible to the public. Cannabis consumption shall not be visible from any public place, non-age-restricted areas, the unsecured areas surrounding the buildings on the site, or the site’s main entrance and lobby.

C. Partitioned. A cannabis consumption lounge must be separated from all other areas of the cannabis dispensary by solid walls and doors. The wall may include glass to provide visibility between the dispensary and the lounge.

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D. Soundproof. A cannabis consumption lounge must be adequately soundproofed so that the interior noise does not violate chapter

11.74 (Noise Ordinance).

E. Licensed Security Personnel. A cannabis consumption lounge shall have adequate state-licensed security personnel to patrol the site and the area within 100 feet of the site to preserve the safety of persons and to protect the site from theft. All security personnel shall possess a valid California Department of Consumer Affairs security guard license while on duty on the site.

F. Loitering in or around the business is prohibited, and the cannabis consumption operator shall ensure the absence of loitering.

G. Smoking or vaporizing of any cannabis product by an employee or customer is not allowed in the food preparation, food storage, or warewashing area of a food facility located on the premises. For purposes of this subparagraph, the following definitions apply:
(I) “Food facility” has the same meaning as that term is defined in Section 113789 of the Health and Safety Code.
(II) “Warewashing” has the same meaning as that term is defined in Section 113940 of the Health and Safety Code.

5.55.520 Ventilation Requirements.

A. The cannabis consumption lounge shall be designed to have negative pressure to limit, to the extent possible, leakage of smoke and particulate matter into the non-smoking areas of the site; B. The lounge shall have an HVAC system that does not recirculate air and that has a high rate of air exchange; and
C. The lounge shall have an odor-absorbing ventilation and exhaust system that prevents the odor from inside of the lounge from being detected outside of the site or within any other area located within the same building as the lounge.

5.55.530 Authorization To Operate Must Be Displayed.

A cannabis consumption lounge operator shall display a valid cannabis permit with a condition that authorizes the operation of a cannabis consumption lounge in a conspicuous place inside of the lounge so that all persons inside of the lounge may readily see it.

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Additionally, at the entrance of the lounge a sign that states, “Cannabis consumption, including smoking and vaping, is allowed inside of this lounge. No person under 21 years of age shall be in the lounge.” The sign must be in a conspicuous place so that all persons entering the cannabis lounge may readily see it. The sign must be clearly legible and not less than 8 inches by 10 inches in size.

5.55.535 Worker Protections.

A. Employees shall be permitted at their discretion and without penalty or sanction to wear a mask for respiration, including N95 and NIOSH N95 rated masks in any area where cannabis is smoked.

Employers are required to pay for such masks.

B. When hired, employees who will be working where cannabis is smoked shall be provided in writing the Department of Public Health or its successor’s guidance regarding secondhand cannabis smoke.

C. A cannabis consumption lounge that offers on-site consumption of cannabis products shall include secondhand smoke in their analysis of potential work hazards for purposes of their injury and illness prevention programs required by Section 3203 of Title 8 of the California Code of Regulations.

5.55.540 Required Health Warnings.

A cannabis consumption lounge operator shall display signs designated by the city that address the health impacts of the consumption of cannabis. The signs must be displayed at the entrance to the lounge in a conspicuous place so that all persons may readily see it.

5.55.545 Waste Containers.

Cannabis consumption lounge operators shall include properly maintained solid waste, organic waste, and recycling containers in sufficient numbers and locations to service the needs of the lounge.

5.55.550 Operating Hours.

A. All cannabis consumption lounges may operate between the hours of 10:00 am and 10:00 pm.

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B. Type 2 cannabis consumption lounges, as defined in Section

5.55.500(B), may host ticketed events with extended operating hours and may operate between the hours of 10:00 am and 12:00 am. All sales of cannabis must cease at 10:00 pm. Cannabis sales beyond 10:00 pm are prohibited, and noncompliance shall constitute a violation of the permit issued and shall render the permittee subject to suspension or revocation of such permit.

5.55.560 Age Restriction.

A. Access to any area where cannabis consumption is allowed shall be restricted to persons 21 years of age or older and each entrance to any such area shall be prominently posted with a warning that cannabis consumption, including smoking of cannabis, is permitted inside.

B. No cannabis consumption lounge operator shall allow any violation of this section.

5.55.570 Personnel Requirements.

A. Operator age limit. No person under 21 years of age shall operate a cannabis consumption lounge in any capacity, including as a manager, employee, contractor, or volunteer.

B. Education and training. The cannabis consumption lounge operator shall educate their managers and employees, and volunteers about the various types of cannabis and cannabis products allowed in the consumption lounge, including the potency, absorption time, and effects; and shall train their managers, employees to likewise educate customers on their purchases. The cannabis lounge operator shall also train their employees to recognize signs of impairment in their customers.

C. Community relations employee. The cannabis lounge operator shall designate an employee as their onsite community-relations contact; provide their name and phone number by certified mail to all neighboring properties within 100 feet of the site; and advise them to notify the community-relations contact if there are operational problems with the lounge that impact the neighborhood. The cannabis consumption lounge operator shall also provide the name and phone number by amil to all neighboring properties within 100 feet of the site; and advise them to notify the community relations contact if there are operational problems with the lounge that impact the neighborhood. The cannabis consumption lounge

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operator shall also provide the name and phone number of the onsite community relations contact to the Department of Special Program Compliance.

D. Manager. The cannabis consumption lounge operator’s manager shall be in the lounge whenever there is a customer in the lounge.

5.55.580 Consumption Of Cannabis and Cannabis Products On Site.

A. Consumption in lounge only. No person shall consume cannabis or cannabis products on a cannabis lounge in any area other than within the authorized portions of a licensed cannabis consumption lounge, or as authorized by a land use permit.

B. No cannabis consumption lounge operator shall allow any person to consume in the lounge any cannabis or cannabis product that was not purchased from the associated dispensary.

5.55.585 Consumption of Prepackaged Food and Beverages.

A. No cannabis consumption lounge operator shall sell or provide for free any cannabis or cannabis products inside the lounge area.

B. No cannabis consumption lounge operator may sell or provide for free any food or beverages inside the lounge unless it does not contain cannabis or alcohol.

C. No cannabis consumption lounge operator shall store, display, contaminate, or commingle any food or beverage with any cannabis or cannabis product on the site.

5.55.590 Customer Conduct.

A. Closing announcement. One hour before the closing time of the lounge and at the closing time, the cannabis consumption lounge operator or their manager shall announce the closing time of the lounge and request that customers respect the residents of the adjacent neighbors by being quiet when leaving.

B. Retail limit. No cannabis consumption lounge operator or its manager, employee, or volunteer shall provide cannabis or cannabis products to obviously impaired customers.

C. Car services. A cannabis consumption lounge operator shall

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provide written information on ridesharing and ride-hailing car services for their customers.

D. Entry and exit of the lounge. A cannabis consumption lounge operator or its manager, employee, or volunteer shall provide cannabis or cannabis products to obviously impaired customers.

E. Alcohol/Tobacco. The sale or consumption of alcohol or tobacco is prohibited on the cannabis consumption lounge premises.” SECTION 4. The City Council finds that the adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA) because it is the adoption of an ordinance, rule, or regulation that requires discretionary review, including environmental review, and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity (California Business and Professions Code section 26055(h)) and because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines section 15061(b)(3)).

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS _____ DAY OF ______________, 2026.

MAYOR
ATTEST:

BRENDA PREE, MMC, CERA

CITY CLERK

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

BRENDA PREE, MMC, CERA

CITY CLERK

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CITY COUNCIL STAFF REPORT
DATE: January 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 5 TO PROFESSIONAL SERVICES AGREEMENT NO. A9141 WITH MWH CONSTRUCTORS, INC. (MWH) IN THE AMOUNT OF $18,340 AND EXTEND AGREEMENT THROUGH
MARCH 31, 2026, FOR THE WASTEWATER TREATMENT PLANT
(WWTP) DIGESTER NO. 2 GAS FLARE AND FILTRATE PUMP STATION, CITY PROJECTS 20-25 & 21-07 (THE PROJECT).

FROM: Scott C. Stiles, City Manager
BY: Engineering Services
SUMMARY:

Amendment No. 5 to Professional Services Agreement (PSA) No. A9141 with MWH Constructors, Inc. (MWH) increases the not-to-exceed budget by $18,340 and extends the agreement through March 2026, ensuring continuous Construction Management (CM) and inspection support for Project. The contract extension is required due to unavoidable delays caused by Gas Holder coordination, SCADA integration requirements, and pending system startup activities, guaranteeing uninterrupted oversight during the project's final commissioning phase.

RECOMMENDATION:

1. Approve amendment No.5 in the amount of $18,340 to Professional Services Agreement No. PSA A9141 with MWH for a new not-to-exceed amount of $2,071,412.14 and extend the agreement to March 31 2026 for the for the wastewater treatment plant (WWTP) digester no. 2 gas flare and filtrate pump station, city projects 20-25 & 21-07.

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

BUSINESS PRINCIPAL DISCLOSURE:

MWH Constructors Inc. is a California corporation. A copy of their Public Integrity Disclosure Form is included as Attachment A.

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City Council Staff Report
January 14, 2026 -- Page 2
MWH AMMENDMENT FOR CIP 20-25 & 21-07
BACKGROUND:

On May 12, 2022, the City Council awarded a construction contract to Rados (“Contractor”) in the amount of $15,905,500 for the WWTP Digester No. 2 Waste Gas Flare and Filtrate Pump Station Projects. The initial scope of work included replacing Digester No. 2, construction of a new gas holder, replacement of the existing waste gas flare and replacement of the Filtrate Pump Station and Filtrate Pump Station main as shown in Figure 1 below.

The gas holder stores biogas, a byproduct of anaerobic digesters. The disposal of this gas is done via a flare that safely burns excess or unusable gases, controlling odors, reducing potent greenhouse gas emissions, such as methane, to meet environmental regulations. This holder is built of a membrane material and has shown structural problems. These problems are currently being investigated by the contractor, their subcontractors and the manufacturer. Consequently, the project will not be accepted until this issue is resolved. Construction Management and Inspection support services are crucial to the City during this process.

On December 5, 2025 the Construction Manager (CM) submitted an amendment request stating that as the project progresses toward final completion, funding and schedule for the agreement require immediate attention. The current agreement funds for construction management and inspection support are anticipated to be fully exhausted by the end of October 2025. The Contractor's latest schedule indicates that contract completion is not expected until January 26, 2026, but outstanding issues with the gas holder may extend the schedule past the January date. This leaves a significant gap of approximately three months or more where critical construction management and inspection services will be unfunded. A copy of the amendment request detailing purpose and scope is included as Attachment B
Figure 1 – Site Vicinity Map

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City Council Staff Report
January 14, 2026 -- Page 3
MWH AMMENDMENT FOR CIP 20-25 & 21-07
STAFF ANALYSIS:

Maintaining an independent, continuous inspection presence is a critical component of the project. The contractor’s integration, startup procedures and certifications must be documented and approved before acceptance of the project by the City. In addition, the Construction Manager’s assistance is required to evaluate and guide the process that will allow the city to make decisions regarding the issues with the gas holder. Approval of this amendment ensures that expert oversight, documentation and consultation will be available through the satisfactory completion of the project.

ENVIRONMENTAL ASSESSMENTS:

Section 21084 of the California Public Resources Code mandates guidelines for implementing the California Environmental Quality Act (CEQA).

In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15302 “Replacement or Reconstruction”, Class 2 projects consist of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the replacement structure and will have substantially the same purpose and capacity as the structure replaced. Therefore, Staff have determined that the City of Palm Springs Wastewater Treatment Plant Digester No. 2, Waste Gas Flare and Filtrate Pump Station Improvement Project, City Projects No. 20-25 and 21-07, are considered categorically exempt from CEQA.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the City Council Broad Goal of Infrastructure and Facilities.

FISCAL IMPACT:

The Engineering Department's original budget for this agreement was $1,246,123.14.

Due to necessary permitting and construction requirements, the agreement has undergone four prior amendments totaling $806,494. Amendment No. 5 will increase the total contract price by $18,340, resulting in a new total price of $2,071,412.14. Sufficient funds are available within the Wastewater Fund to cover this increase REVIEWED BY:

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

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City Council Staff Report
January 14, 2026 -- Page 4
MWH AMMENDMENT FOR CIP 20-25 & 21-07
ATTACHMENTS:

A – MWH Public Integrity Disclosure Form
B – MWH Amendment request.

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Public Integrity Disclosure

ATTACHMENT A
F –
F –
F –
Amendment Request

ATTACHMENT B

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MWH Constructors, Inc.
391 N. Main St., #110
Corona, CA 92878
AMENDMENT NO. 6
Professional Services Agreement A9141
Digester No. 2 Project – Construction Management & Inspection Support City of Palm Springs

1. Purpose of Amendment
Amendment No. 6 is requested to provide continued Construction Management (CM) and inspection services for the Digester No. 2 project (PSA A9141) through March 2026. Current contract funds will be fully exhausted at the end of October 2025, and the project duration has extended beyond the forecast used for Amendment No. 4 due to permitting delays, design coordination, Gas Holder–related changes, and SCADA integration requirements. The contractor’s latest schedule (data date September 1, 2025) shows a Contract Completion date of January 26, 2026. The system startup timeline remains TBD pending Gas Holder integration and coordination.

2. Scope of Services Included in Amendment No. 6
MWH will continue to provide CM and inspection support from November 2025 through March 2026, including:
• Construction Management Services:
• Oversight of remaining construction activities associated with Digester No. 2 and Gas Holder–related changes
• Coordination and monitoring of SCADA integration work • Review of contractor submittals, RFIs, and field directives • Review and processing of the contractor’s upcoming Time Impact Analysis (TIA) • Attendance at progress and technical coordination meetings • Project controls support, including schedule monitoring and pay application review • Inspection Services:
• Field inspection for Gas Holder–related installation modifications • Inspection of SCADA and electrical integration work
• Mechanical system testing and verification
• Punch list verification and corrective work documentation • Daily Inspection Reports and Procore documentation
• Closeout Support:
• Review of O&M manuals, training documentation, and as-builts • Final inspection and punch list verification
• Participation in startup/commissioning coordination once Gas Holder timeline is confirmed

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MWH Constructors, Inc.
391 N. Main St., #110
Corona, CA 92878

3. Level of Effort and Fee
The total amendment amount is $18,340, allocated as follows:
• Construction Manager (70% allocation): $12,838 at $197/hr (≈65.2 hours) • Inspector (30% allocation): $5,502 at $180/hr (≈30.6 hours) Total Not-to-Exceed Amount: $18,340

4. Contract Time
Amendment #5 extends MWH’s period of performance through March 31, 2026.

5. Justification
This amendment is required to ensure uninterrupted CM and inspection coverage through the extended construction period. Without Amendment No. 6, MWH services will conclude at the end of October 2025, resulting in a gap in oversight for critical remaining work, including Gas Holder coordination, SCADA integration, system startup (TBD), and project closeout.

Sincerely,
Michael Dietrick, CCM, RCI, ICC
Regional Manager
MWH Construction Management Services
MWH Constructors, Inc.
391 N. Main St. Suite 110, Corona, CA 92878
www.mwhconstrutors.com

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Amendment Request

ATTACHMENT B

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(BB&K 2024)
AMENDMENT NO. 5 TO THE PROFESSIONAL SERVICES AGREEMENT
A9141 BETWEEN THE CITY OF PALM SPRINGS
AND MWH CONSTRUCTORS, INC.

1. Parties and Date.

This Amendment No. 5 to the Professional Services Agreement A9141 is made and entered into as of this 14th day of January, 2026 by and between the City of Palm Springs, a California charter city and municipal corporation (“City”), and MWH Constructors, Inc., a Delaware corporation, (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. City and Consultant entered into an agreement titled “Professional Services Agreement WWTP Digester No. 2, Waste Gas Flare and Filtrate Pump Station Improvements Project, City Project No. 20-25 and No. 21-07” dated June 21, 2022 (“Agreement”), for the purpose of retaining the services of Consultant to provide construction management, inspection and testing services for an amount of $1,246,123.14.

2.2 Amendment No. 1. City and Consultant entered into Amendment No. 1 dated November 14, 2022, to provide for additional geotechnical testing services.

2.3 Amendment No. 2. City and Consultant entered into Amendment No. 2 dated February 2, 2024 to provide for additional construction management and inspection services.

2.4 Amendment No. 3. City and Consultant entered into Amendment No. 3 dated July 9, 2024 to provide for additional construction management and inspection services for the modifications, design, and construction of the Ferrous Chloride Dosing System.

2.5 Amendment No. 4. City and Consultant entered into Amendment No. 4 dated May 28, 2025 to provide for additional construction management and inspection services for the modifications, design, and construction of the Ferrous Chloride Dosing System and South Coast Air Quality Management District construction permitting and extend the term of the Agreement.

2.6 Amendment No. 5 Purpose. City and Consultant now desire to amend the Agreement to provide for additional construction management and inspection services and extend the term of the Agreement.

2.6 Amendment Authority. This Amendment No. 5 is authorized pursuant to Section 1.8 Additional Services of the Agreement.

3. Terms.

3.1 Scope of Services. Section 1.1 of the Agreement is hereby amended to read as follows:

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(BB&K 2024)
“Exhibit “A” is hereby revised by incorporating the additional professional services outlined in the Consultant’s letter entitled “AMENDMENT NO. 5”, attached hereto and incorporated herein by reference.”

3.2 Maximum Contract Amount. Section 2.1 of the Agreement is hereby amended to read as follows:
“The Maximum Contract Amount is increased by $18,340 to a Maximum Contract Amount of $2,071,412.14.”

3.3 Term. Delete Section 3.4 of the Agreement in its entirety and replace with the following:
“Unless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement shall continue in full force and effect commencing on July 11, 2022 and ending on March 31, 2026, unless extended by mutual written agreement of the Parties.”

3.4 Continuing Effect of Agreement. Except as amended by this Amendment No. 5, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 5. From and after the date of this Amendment No. 5, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 5.

3.5 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 5.

3.6 Severability. If any portion of this Amendment No. 5 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.7 Counterparts. This Amendment No. 5 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]

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(BB&K 2024)
SIGNATURE PAGE FOR AMENDMENT NO. 5 TO THE PROFESSIONAL SERVICES AGREEMENT A9141 BY AND BETWEEN THE CITY OF PALM SPRINGS AND MWH CONSTRUCTORS, INC.

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

MWH CONSTRUCTORS, INC.:

By: ____________________________ By: ______________________________ Signature Signature
(2nd signature required for Corporations)
Date: Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: ____________ Item No. ____
APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ City Attorney City Clerk
APPROVED:

By: _______________________________ Date:

City Manager – up to $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

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MWH Constructors, Inc.
391 N. Main St., #110
Corona, CA 92878
AMENDMENT NO. 5
Professional Services Agreement A9141
Digester No. 2 Project – Construction Management & Inspection Support City of Palm Springs

1. Purpose of Amendment
Amendment No. 5 is requested to provide continued Construction Management (CM) and inspection services for the Digester No. 2 project (PSA A9141) through March 2026. Current contract funds will be fully exhausted at the end of October 2025, and the project duration has extended beyond the forecast used for Amendment No. 4 due to permitting delays, design coordination, Gas Holder–related changes, and SCADA integration requirements. The contractor’s latest schedule (data date September 1, 2025) shows a Contract Completion date of January 26, 2026. The system startup timeline remains TBD pending Gas Holder integration and coordination.

2. Scope of Services Included in Amendment No. 5
MWH will continue to provide CM and inspection support from November 2025 through March 2026, including:
• Construction Management Services:
• Oversight of remaining construction activities associated with Digester No. 2 and Gas Holder–related changes
• Coordination and monitoring of SCADA integration work • Review of contractor submittals, RFIs, and field directives • Review and processing of the contractor’s upcoming Time Impact Analysis (TIA) • Attendance at progress and technical coordination meetings • Project controls support, including schedule monitoring and pay application review • Inspection Services:
• Field inspection for Gas Holder–related installation modifications • Inspection of SCADA and electrical integration work
• Mechanical system testing and verification
• Punch list verification and corrective work documentation • Daily Inspection Reports and Procore documentation
• Closeout Support:
• Review of O&M manuals, training documentation, and as-builts • Final inspection and punch list verification
• Participation in startup/commissioning coordination once Gas Holder timeline is confirmed

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MWH Constructors, Inc.
391 N. Main St., #110
Corona, CA 92878

4. Contract Time
Amendment #5 will extend MWH’s period of performance through March 31, 2026.

Sincerely,
Michael Dietrick, CCM, RCI, ICC
Regional Manager
MWH Construction Management Services
MWH Constructors, Inc.
391 N. Main St. Suite 110, Corona, CA 92878
www.mwhconstrutors.com

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CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVE A TASK ORDER FOR ENGINEERING RESOURCES OF SOUTHERN CALIFORNIA (AGREEMENT 24P381) IN THE AMOUNT OF $278,554 FOR PROFESSIONAL ENGINEERING SERVICES FOR THE

EVALUATION AND DESIGN OF THE TAHQUITZ CANYON WAY SEWER
IMPROVEMENTS, CITY PROJECT CP 25-13
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:

Approve a task order for Engineering Resources of Southern California, a California corporation, for professional engineering services for the Tahquitz Canyon Way Sewer Improvements, City Project 25-13 (“The Project”). The Project is necessary to address an existing 8-inch sewer main between N. Cerritos Drive and N. Civic Drive that has structural deficiencies and operates at 90% capacity in certain sections.

RECOMMENDATION:

2. Appropriate $278,554 from the Wastewater Capital Improvement Fund balance; and

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

BUSINESS PRINCIPAL DISCLOSURE:

The Public Integrity Disclosure Form from Engineering Resources of Southern California, Inc. (ERSC) is included as Attachment A.

BACKGROUND:

In May 2022, the Engineering Services Department received a letter from Veolia Water West Operating Services, Inc. (Veolia), regarding the operational status of the sewer main located on E. Tahquitz Canyon Way, specifically the segment stretching from Sunset Way

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City Council Staff Report
January 14, 2026 -- Page 2
Approve Task Order for CP 25-13
to Farrell Drive.

According to the report submitted, current monitoring indicates that this sewer main is flowing at up to 90% capacity in certain sections. In addition, video inspection shows the pipeline presents structural deficiencies. Sewer pipelines are assessed utilizing the NASSCO (National Association of Sewer Service Companies) PACP (Pipeline Assessment Certification Program) which is the North American standard for documenting sewer pipe conditions. Pipes are graded on a 1-5 scale as shown in Table 1 below. The sections of pipe referenced by Veolia vary in rating from 1-4 with 3 and 4 being most prevalent rating in the section between Sunset Way and Farrell Drive.

Grade Description Implications
5 Immediate Attention Pipe has failed or collapse is imminent. Requires immediate action. 4 Poor Severe defects. Failure is likely soon.
3 Fair Moderate defects. Rehabilitation may be needed in the medium term. 2 Good Minor defects. Unlikely to fail soon; monitor during routine inspections. 1 Excellent Minor cosmetic defects only. No action required.

Table 1
Based on this evaluation, Veolia requested that the City initiate a Capital Improvements Project (CIP). This request is being made in accordance with Section 5.3 of the Wastewater Services Agreement dated November 4, 2015. Under the terms of the Agreement, the “Needed Capital Project" is defined as an improvement resulting from actual or anticipated changes in influent volumes and demands on managed assets.

Veolia has provided supporting documentation and CCTV reports to justify the necessity of this infrastructure upgrade. The letter and supporting documentation are included in Attachment B.

Staff released an RFP to on-call engineering firms on November 3, 2025, to investigate the sewer pipeline alignment between N. Cerritos Drive and Civic Center Drive. The expanded scope includes evaluating a potential realignment for the entire main line reach, shifting it from its current location in a public utility easement behind the curb to the City’s right-of-way. Placing the new alignment within the right-of-way is intended to provide better maintenance access and better facilitate construction activities when installing the upsized pipe. In addition, Staff included scope for the improvement of a storm drain inlet at the corner of Tahquitz and Farrell to address ongoing problems with water accumulation at that location. The location of the sewer pipeline is shown in Figure 1 below. The On-Call Services agreement with ERCS is included in Attachment C.

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City Council Staff Report
January 14, 2026 -- Page 3
Approve Task Order for CP 25-13
Figure 1
STAFF ANALYSIS:

The services are needed for the Tahquitz Canyon Way Sewer Improvements (City Project 25-13) due to critical issues with the existing pipeline. Inspections conducted by Veolia have revealed significant problems. Specifically, the existing 8-inch sewer main has been identified as having structural issues and sections operating at 90 percent of capacity.

This combination of structural problems and operating flows requires the proposed upgrade, which involves the potential realignment and replacement of the sewer between N. Cerritos Drive and N. Civic Drive. The proposed services include a feasibility study that will advise the City of the best actions to address the concerns, while considering overall goals and efficient use of resources.

After a committee evaluation of the responses to the aforementioned RFP, Engineering Resources of Southern California (ERSC) was selected as they provided the most complete proposal. Unlike the other proposals, ERSC included a detailed approach to the drainage work and proactively identified potentially necessary Project actions that were not originally specified in the RFP. Although they were not the lowest proponent, their comprehensive understanding of the scope represents the best value for the Project. The results are shown in Table 2 below and ERSC’s proposal is included in Attachment D.

Rank Consultant Cost
1 Engineering Resources of Southern California, Inc. $278,554 2 TKE Engineering, Inc. $202,000
3 Albert A. Webb Associates $296,666
Table 2

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City Council Staff Report
January 14, 2026 -- Page 4
Approve Task Order for CP 25-13
ENVIRONMENTAL ASSESSMENT:

In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15306 “Information Collection”, Class 6 projects consist of basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. These may be strictly for information gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted, or funded. Therefore, Staff has determined that the issuance of the task order for the Tahquitz Canyon Way Sewer Improvements, City Project No. CP 25-13, is considered categorically exempt from CEQA.

ALIGNMENT WITH STRATEGIC PLANNING:

Infrastructure and Facilities.

FISCAL IMPACT:

An amount of $278,554 needs to be appropriated from the Wastewater Fund. Sufficient Wastewater Capital Improvement Funds are available for this task order with Engineering Resources of Southern California for on-call wastewater services.

REVIEWED BY:

Department Director: Joel Montalvo
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:

A. ERSC - Principal Business Disclosure
B. Veolia’s request and inspection documentation
C. Engineering Resources On-Call Agreement
D. RFP and Engineering Resources Proposal-Link

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ATTACHMENT A
Engineering Resources of Southern California Public Integrity Disclosure

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PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

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

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

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

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
F Officer F Director F Member F Manager
[name] F General Partner F Limited Partner
FOther
F Officer F Director F Member F Manager
[name] F General Partner F Limited Partner
F Other
F Officer F Director F Member F Manager
[name] F General Partner F Limited Partner
F Other
Engineering Resources of Southern California, Inc.
1861 W. Redlands Blvd., Redlands, CA 92373
77-564 Country Club Drive, Suite 128, Palm Desert, CA 92211 California
John M. Brudin, PE, President
Moe Ahmadi, PE, Vice President
Trenton Brudin, PE, Secretary
47

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PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

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

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

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

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

EXAMPLE

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

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

Signature of Disclosing Party, Printed Name, Title Date John M. Brudin, PE 65%
Moe Ahmadi, PE 15%
Trent Brudin, PE 10%
Craig Brudin, QSP 10%
John M. Brudin, PE, President October 16, 2024
g
49

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ATTACHMENT B
Veolia CIP request and inspection records.

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May 25, 2022
Andrew Crider, PE
Senior Civil Engineer
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Regarding: Needed Capital Project on the E Tahquitz Canyon Way Sewer Main Dear Mr. Crider,
The sewer main on E Tahquitz Canyon Way from Sunset Way to Farrell Drive is flowing up to 90% full in places. Therefore, we would like to request a Needed Capital Improvement Project for the upsize of the sewer main.

Section 5.3 Capital Projects from Wastewater Services Agreement dated November 4, 2015 states, in part:

5.3 (a) Defined. Capital Projects shall include a permanent physical expansion, addition or improvement to the Managed Assets, including the replacement of existing equipment or facilities with new or additional equipment or facilities as a result of old age, obsolescence or breakdown of such equipment or facility, which are (i) mutually agreed upon by the City and Veolia ("Agreed Capital Projects"); (ii) which are either directly as a result of a Change of Law or in order for the Treatment Facility to produce Ef luent meeting the Ef luent Specifications and result from (A) a Change of Law, (B) an Uncontrollable Circumstance, (C) actual or anticipated changes in Influent volumes and demands on the Managed Assets, or (D) repeated occurrences of Influent in volumes or concentrations that exceeds the Influent Specifications or that contains Abnormal Substances or Regulated Substances ("Needed Capital Projects"); or (iii) improve the ef iciency, performance or reliability of the Managed Assets ("Desirable Capital Projects"). A Capital Project shall not include any Maintenance Work, as defined in Section 5.4, or any capital project initiated and implemented by the City associated with the generation of electricity by solar photovoltaic or equivalent technology at the Treatment Facility Site, (a "Solar PV Project"); the City, in its sole discretion, may determine to construct the Solar PV Project which will require direct interconnection with the existing electrical system at the Treatment Facility, and Veolia shall reasonably accommodate, to the extent necessary, with the City, or its consultant or contractor, in the design and construction of a Solar PV Project. The area of the Treatment Facility Site reserved by City for its use for the Solar PV Project is identified on the map depicting the Treatment Facility Site identified on Schedule B. (e) Notice. Veolia shall provide to City notice of any Needed Capital Project or Desirable Capital Project.

Veolia's notice shall state the category of Capital Project, as set forth at Section 5.3(a) above and whether the basis for the Capital Project is as a result of a Change of Law, an Uncontrollable Circumstance, an actual or anticipated change in Influent volumes and demands on the Managed Assets (and identify the specific asset af ected), repeated occurrences of Influent in volumes or concentrations that exceeds the Influent Specifications or to improve the ef iciency, performance or reliability of the Managed Assets. Veolia shall further provide City with a budget itemizing the anticipated costs of performing the Capital Project.

If you require any further information, please contact me at the facility.

Sincerely;
Ken Huntzinger
1 G – Page 132 of 696
Assistant Project Manager
Veolia Water West Operating Services, Inc. / Palm Springs Enclosure: Maps, As-Built, and CCTV Reports
Cc: Donn Uyeno, PE, Principal Engineer
Douglas Loar, Project Manager
2 G – Page 133 of 696
The following are reports from inspections conducted in 2021 Each pipe of section is eveluated from Manhole to Manhole and report is produced.

Report Format.

1. Section map.

2. Pipe inspection reports with photos (Video was recorded) , notes and pipe rating.

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G09021
G09169
G09023
G09137
G09051
G09041
G09053
G08007
G09065
G09145
G09101
G09043
G09059
G09067 G09071
G09151
G09001
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G09045
G09017

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Start date/time:
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FEBRUARY 2022
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VCP
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G09027-G09025
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Palm Springs
Height:
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CUES, Inc.
3600 Rio Vista Avenue
Orlando, FL 32805
Phone: 407-849-0190
Fax: 407-425-1569
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G09025-G09023
City:

Palm Springs
Height:
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CUES, Inc.
3600 Rio Vista Avenue
Orlando, FL 32805
Phone: 407-849-0190
Fax: 407-425-1569
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Mainline ID:

G09023-G09021
City:

Palm Springs
Height:
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CUES, Inc.
3600 Rio Vista Avenue
Orlando, FL 32805
Phone: 407-849-0190
Fax: 407-425-1569
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Shape: Width:

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D 1
Project name:

FEBRUARY 2022
Location code:

Material:

VCP
Mainline ID:

G09021-G09019
City:

Palm Springs
Height:
8 in.

CUES, Inc.
3600 Rio Vista Avenue
Orlando, FL 32805
Phone: 407-849-0190
Fax: 407-425-1569
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G09021-G09019
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CUES, Inc.
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Orlando, FL 32805
Phone: 407-849-0190
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ATTACHMENT C
Engineering Resources On-Call Agreement

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CITY OF PALM SPRINGS
PROFESSIONAL SERVICES AGREEMENT3

ON-CALL CIVIL ENGINEERING SERVICES
THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter “Agreement”) is made and entered into, to be effective this 1st day of December, 2024, by and between the City of Palm Springs, a California charter city and municipal corporation, (hereinafter referred to as “City”) and Engineering Resources of Southern California, Inc. (hereinafter referred to as “Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and are hereinafter collectively referred to as the “Parties.”

RECITALS
A. City has determined that there is a need for As-Needed, “On-Call” Civil Engineering Services for a variety of future civil engineering projects, (hereinafter the “Project”).

B. Consultant has submitted to City a proposal to provide As-Needed, “On-Call” Civil Engineering Services for a variety of future civil engineering projects to City pursuant to the terms of this Agreement.

C. Consultant is qualified by virtue of its experience, training, education, reputation, and expertise to provide these services and has agreed to provide such services as provided herein.

D. City desires to retain Consultant to provide such professional services.

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

1.0 SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant agrees to perform the professional services set forth in the Scope of Services described in Exhibit “A,” which is attached hereto and is incorporated herein by reference (hereinafter referred to as the “Services” or “Work”). The Services shall be more particularly described in the individual Task Order issued by the City. As a material inducement to the City entering into this Agreement, Consultant acknowledges that this Agreement requires specialized skills and abilities and is consistent with this understanding, Consultant is a provider of professional services and that Consultant is experienced in performing the Work contemplated herein and, in light of such status and experience, Consultant covenants that it shall perform the Work in a competent, professional, and satisfactory manner consistent with the level of care and skill ordinarily exercised by experienced and well qualified members of the profession currently practicing under similar conditions.

1.2 Contract Documents. The Agreement between the Parties shall consist of the following:
(1) this Agreement; (2) the Scope of Services; (3) the City’s Request for Proposals (4) the Consultant’s signed, original proposal submitted to the City (“Consultant’s Proposal”); (5) Fee Schedule; and (5) the Task Order (as defined herein) (collectively referred to as the “Contract Documents”). The City’s Request

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for Proposals and the Consultant’s Proposal, which are attached as Exhibits “B” and “C” respectively, are incorporated by reference and are made a part of this Agreement. The Scope of Services shall include the Consultant’s Proposal. All provisions of the Scope of Services, Task Order, the City’s Request for Proposals and the Consultant’s Proposal shall be binding on the Parties. Should any conflict or inconsistency exist in the Contract Documents, the conflict or inconsistency shall be resolved by applying the provisions in the highest priority document, which shall be determined in the following order of priority: (1st) the terms of this Agreement; (2nd) the provisions of the Task Order; (3rd) Scope of Services (Exhibit “A”), as may be amended from time to time; (4th) the provisions of the City’s Request for Qualifications (Exhibit “B”); and (5th) the provisions of the Consultant’s Proposal.

1.3 Compliance with Law. Consultant warrants that all Services rendered hereunder shall be performed in accordance with all applicable federal, state, and local laws, statutes, and ordinances and all lawful orders, rules, and regulations promulgated thereunder, including without limitation all applicable Cal/OSHA requirements. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement.

1.4 Licenses, Permits, Fees and Assessments. Consultant represents and warrants to City that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Work required by this Agreement. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, qualification, or approval that is legally required for Consultant to perform the Work under this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant's performance of the Work required by this Agreement, and shall indemnify, defend, and hold harmless City against any such fees, assessments, taxes penalties, or interest levied, assessed, or imposed against City hereunder.

1.5 Familiarity with Work. By executing this Agreement, Consultant affirms that Consultant (a) has investigated and considered the Scope of Services to be performed, (b) has carefully considered how the Services should be performed, and (c) understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be acquainted with the conditions there existing, prior to commencement of any Services hereunder. Should the Consultant discover any latent or unknown conditions that will materially affect the performance of the Services hereunder, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the City.

1.6 Care of Work. Consultant shall adopt reasonable methods during the term of the Agreement to furnish continuous protection to the Work and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Work by the City, except such losses or damages as may be caused by City's own negligence.

1.7 Further Responsibilities of Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement.

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1.8 Performance of Services. City Manager or Director of Engineering/City Engineer, as provided in Section 2.1 of this Agreement, shall have the right at any time during the term of this Agreement to order the performance of services as generally described in the Scope of Services to perform extra or additional work beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from such Work. No Work may be undertaken unless a written order is first given by the City Manager or the Director of Engineering/City Engineer to the Consultant, incorporating therein the identification and description of the Work to be performed, a maximum or not to exceed amount for such Work, and the time to perform the Work.

1.9 Unauthorized Aliens. Consultant hereby represents and warrants that it will comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of any Work under this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to reimburse City for any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, or penalties which arise out of or are related to such employment, together with any and all costs, including attorneys' fees, incurred by City.

2.0 COMPENSATION

2.1 Maximum Contract Amount. City and Consultant hereby acknowledge and agree that the Services required by this Agreement will vary dependent upon the number, type, and extent of the Services the Consultant shall provide; and no guarantee of the extent or the type of Services required of Consultant under the terms of this Agreement is made by the City. The annual level of services required by this Agreement is unknown and may significantly increase or decrease from year to year. In acknowledgement of the fact that the number and type of projects requiring the Consultant’s Services has not been identified for this Agreement, City and Consultant hereby acknowledge and agree that a specific “Maximum Contract Amount” shall be imposed on each separate project that the City may assign Consultant as provided in Section 1.8 and in this Section 2.1. Each such separate project shall be identified as a Task Order authorized by the Director of Engineering/City Engineer or the City Manager as provided in this Section 2.1. Consultant shall be compensated and reimbursed for the services rendered under this Agreement in accordance with the fee schedule set forth in Exhibit “D”. The total amount of Compensation for the duration of the term of this agreement, as defined in Section 3.4, shall not exceed $5,000,000.

The method of compensation for each separate City authorized Task Order may include: (i) a lump sum payment upon completion, (ii) payment for time and materials based upon the Consultant's Schedule of Hourly Billing Rates (Fee Schedule) as shown on Exhibit “D”, or (iii) such other methods as may be specified in the Schedule of Compensation.

Compensation shall include reimbursement for actual and necessary expenditures for reproduction costs, telephone expense, transportation expense, and all other necessary expenditures required to perform the professional services under this Agreement. Compensation shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City; Consultant shall not be entitled to any additional compensation for attending said meetings. Consultant hereby acknowledges that it accepts the

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risk that the Services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates, and that Consultant shall not be entitled to additional compensation, therefore.

It is expressly agreed that the maximum contract amount of this Agreement is undefined and is subject to the number and type of projects requiring the Consultant’s Services throughout the duration of the term of this Agreement, if any. Consultant’s compensation shall be limited to the Maximum Contract Amount identified on each separate, individually authorized Task Order corresponding to a project requiring the services of the Consultant.

By approval of this Agreement, the City Council hereby authorizes the subsequent approval of individual Task Orders (Purchase Orders) in those amounts sufficient to cover the cost of required Services necessary for the projects.

2.2 Method of Payment. Unless some other method of payment is specified in the Schedule of Compensation (Exhibit “D”), in any month in which Consultant wishes to receive payment, no later than the tenth (10) working day of such month, Consultant shall submit to the City, in a form approved by the City’s Finance Director, an invoice for Services rendered prior to the date of the invoice. Such requests shall be based upon the amount and value of the Services performed by Consultant and accompanied by such reporting data including an itemized breakdown of all costs incurred and tasks performed during the period covered by the invoice, as may be required by the City. City shall use reasonable efforts to make payments to Consultant within forty-five (45) days after receipt of the invoice or a soon thereafter as is reasonably practical. There shall be a maximum of one payment per month.

2.3 Changes in Scope. In the event any change or changes in the Scope of Services is requested by the City, the Parties shall execute a written amendment to this Agreement, setting forth with particularity all terms of such amendment, including, but not limited to, any additional professional fees.

An amendment may be entered into: (a) to provide for revisions or modifications to documents or other work product or work when documents or other work product or work is required by the enactment or revision of law subsequent to the preparation of any documents, other work product, or work; and/or (b) to provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Consultant’s profession.

2.4 Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefore by the Palm Springs City Council for each fiscal year covered by the Agreement.

If such appropriations are not made, the City Manager may terminate this Agreement as provided in Section 8.3 of this Agreement; otherwise, there shall be no funding for any Services and Consultant shall not be entitled to payment for any Services that Consultant may provide.

3. SCHEDULE OF PERFORMANCE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement. The time for completion of the Services to be performed by Consultant is an essential condition of this Agreement.

Consultant shall prosecute regularly and diligently the Work of this Agreement according to the agreed upon Schedule of Performance for each Task Order. Neither Party shall be accountable for delays in performance caused by any condition beyond the reasonable control and without the fault or negligence of the non-performing Party. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay.

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3.2 Schedule of Performance. Consultant shall commence the Services pursuant to this Agreement upon receipt of a written Task Order and shall perform all Services within the time period(s) established in the Schedule of Performance. When requested by Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer, but such extensions shall not exceed one hundred eighty (180) days cumulatively; however, the City shall not be obligated to grant such an extension.

3.3 Force Majeure. The time for performance of Services to be rendered under each Task Order may be extended because of any delays due to a Force Majeure Event, if Consultant notifies the Contract Officer within ten (10) days of the commencement of the Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Consultant’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Work); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority. After Consultant notification, the Contract Officer shall investigate the facts and the extent of any necessary delay and extend the time for performing the Services for the period of the enforced delay when and if, in the Contract Officer’s judgment, such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. The Consultant will not receive an adjustment to the contract price or any other compensation. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

3.4 Term. Unless earlier terminated under the terms of this Agreement, this Agreement shall commence on December 1, 2024 and continue in full force and effect for three (3) years. At the sole discretion of the City Manager, upon written notice to Consultant and mutual agreement, the term of this Agreement may be extended for two (2) additional one (1) year terms.

4. COORDINATION OF WORK

4.1 Representative of Consultant. The following principal of Consultant is hereby designated as being the principal and representative of Consultant authorized to act in its behalf with respect to the Services to be performed under this Agreement and make all decisions in connection therewith: John M. Brudin, PE, President. It is expressly understood that the experience, knowledge, education, capability, expertise, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services performed hereunder. The foregoing principal may not be changed by Consultant without prior written approval of the Contract Officer.

4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City and is subject to change by the City Manager. It shall be the Consultant's responsibility to ensure that the Contract Officer is kept fully informed of the progress of the performance of the Services, and the Consultant shall refer any decisions which must be made by City to the Contract

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Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

4.3 Prohibition Against Subcontracting or Assignments. The experience, knowledge, education, capability, and reputation of Consultant, its principals and employees, were a substantial inducement for City to enter into this Agreement. Consultant shall not contract with any other individual or entity to perform any Services required under this Agreement without the City's express written approval. In addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement including without limitation the insurance and indemnification requirements. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to City for the acts and omissions of its subconsultant(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subconsultant and City. All persons engaged in the Work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written consent of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Consultant or any surety of Consultant from any liability hereunder without the express written consent of City.

4.4 Independent Consultant.

A. The legal relationship between the Parties is that of an independent Consultant, and nothing herein shall be deemed to make Consultant a City employee. During the performance of this Agreement, Consultant and its officers, employees, and agents shall act in an independent capacity and shall not act as City officers or employees. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of its officers, employees, or agents, except as set forth in this Agreement. Consultant, its officers, employees, or agents shall not maintain an office or any other type of fixed business location at City’s offices. City shall have no voice in the selection, discharge, supervision, or control of Consultant’s employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of service. Consultant shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to social security income tax withholding, unemployment compensation, workers’ compensation, and other similar matters. City shall not in any way or for any purpose be deemed to be a partner of Consultant in its business or otherwise a joint ventures or a member of any joint enterprise with Consultant.

B. Consultant shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner.

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C. No City benefits shall be available to Consultant, its officers, employees, or agents in connection with any performance under this Agreement. Except for professional fees paid to Consultant as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for the performance of Services under this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, or agents, for injury or sickness arising out of performing Services hereunder. If for any reason any court or governmental agency determines that the City has financial obligations, other than pursuant to Section 2 and Subsection 1.8 herein, of any nature relating to salary, taxes, or benefits of Consultant’s officers, employees, servants, representatives, subconsultants, or agents, Consultant shall indemnify City for all such financial obligations.

4.5 California Labor Code Requirements.

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

B. If the Services are being performed as part of an applicable “public works” or “maintenance” project and if the total compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements.

5. INSURANCE

5.1 Types of Insurance. Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, the insurance described herein for the duration of this Agreement, including any extension thereof, or as otherwise specified herein, against claims which may arise from or in connection with the performance of the Work hereunder by Consultant, its agents, representatives, or employees. In the event the City Manager determines that the Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City Manager or his designee. Consultant shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified herein. Except as otherwise authorized below

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for professional liability (errors and omissions) insurance, all insurance provided pursuant to this Agreement shall be on an occurrence basis. The minimum amount of insurance required hereunder shall be as follows:

A. Errors and Omissions Insurance. Consultant shall obtain and maintain in full force and effect throughout the term of this Agreement, standard industry form professional liability (errors and omissions) insurance coverage in an amount of not less than one million dollars ($1,000,000.00) per occurrence and two-million dollars ($2,000,000.00) annual aggregate, in accordance with the provisions of this section.
(1) Consultant shall either: (a) acknowledge in writing to the City that Consultant is unaware of any professional liability claims made against Consultant and is unaware of any facts which may lead to such a claim against Consultant; or (b) if Consultant does not provide the certification pursuant to (a), Consultant shall procure from the professional liability insurer an endorsement providing that the required limits of the policy shall apply separately to claims arising from errors and omissions in the rendition of services pursuant to this Agreement.
(2) If the policy of insurance is written on a “claims made” basis, the policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of three (3) years from the date of the completion of the Services provided hereunder. In the event of termination of the policy during this period, Consultant shall obtain continuing insurance coverage for the prior acts or omissions of Consultant during the course of performing Services under the terms of this Agreement. The coverage shall be evidenced by either a new policy evidencing no gap in coverage, or by obtaining separate extended “tail” coverage with the present or new carrier or other insurance arrangements providing for complete coverage, either of which shall be subject to the written approval by the City Manager.
(3) In the event the policy of insurance is written on an “occurrence” basis, the policy shall be continued in full force and effect during the term of this Agreement, or until completion of the Services provided for in this Agreement, whichever is later. In the event of termination of the policy during this period, new coverage shall immediately be obtained to ensure coverage during the entire course of performing the Services under the terms of this Agreement.

B. Workers’ Compensation Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, workers’ compensation insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California. Consultant agrees to waive and obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City and to require each of its subconsultants, if any, to do likewise under their workers’ compensation insurance policies. If Consultant has no employees, Consultant shall complete the City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.

C. Commercial General Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least one million dollars ($1,000,000.00) and two million dollars ($2,000,000.00) general aggregate for bodily injury and property form property damage, products and completed operations.

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D. Business Automobile Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of business automobile liability insurance written on a per occurrence basis with a single limit liability in the amount of one million dollars ($1,000,000.00) bodily injury and property damage. The policy shall include coverage for owned, nonowned, leased, and hired cars.

E. Employer Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of employer liability insurance written on a per occurrence basis with a policy limit of at least one million dollars ($1,000,000.00) for bodily injury or disease.

5.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager prior to commencing any work or services under this Agreement. Consultant guarantees payment of all deductibles and self-insured retentions. City reserves the right to reject deductibles or self-insured retentions in excess of $10,000, and the City Manager may require evidence of pending claims and claims history as well as evidence of Consultant’s ability to pay claims for all deductible amounts and self-insured retentions proposed in excess of $10,000.

5.3 Other Insurance Requirements. The following provisions shall apply to the insurance policies required of Consultant pursuant to this Agreement:

A. For any claims related to this Agreement, Consultant’s coverage shall be primary insurance as respects City and its officers, council members, officials, employees, agents, and volunteers.

Any insurance or self-insurance maintained by the City and its officers, council members, officials, employees, agents, and volunteers shall be in excess of Consultant’s insurance and shall not contribute with it.

B. Any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to City and its officers, council members, officials, employees, agents, and volunteers.

C. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made, or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City, or its operations shall limit the application of such insurance coverage.

D. None of the insurance coverages required herein will be in compliance with these requirements if they include any limiting endorsement which substantially impairs the coverages set forth herein (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City Manager and approved in writing.

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endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Consultant’s obligation to ensure timely compliance with all insurance submittal requirements as provided herein.

F. Consultant agrees to ensure that subconsultants, and any other parties involved with the Project who are brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subconsultants and others engaged in the Project will be submitted to the City for review.

G. Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on the City nor does it waive any rights hereunder in this or any other regard.

H. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration.

Endorsements as required in this Agreement applicable to the renewing or new coverage shall be provided to City no later than ten (10) days prior to expiration of the lapsing coverage.

I. Requirements of specific insurance coverage features, or limits contained in this section are not intended as limitations on coverage, limits, or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive.

J. The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this section.

K. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the Work performed under this Agreement and for any other claim or loss which may reduce the insurance available to pay claims arising out of this Agreement. City assumes no obligation or liability by such notice but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City, or to reduce or dilute insurance available for payment of potential claims.

L. Consultant agrees that the provisions of this section shall not be construed as limiting in any way the extent to which the Consultant may be held responsible for the payment of damages resulting from the Consultant’s activities or the activities of any person or person for which the Consultant is otherwise responsible.

5.4 Sufficiency of Insurers. Insurance required herein shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless such requirements are waived in writing by the City Manager or his designee due to unique circumstances.

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5.5 Verification of Coverage. Consultant shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, affecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Consultant’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.

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

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

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

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

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

In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies. All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the Consultant’s obligation to provide them.

6. INDEMNIFICATION

6.1 To the fullest extent permitted by law, Consultant shall defend (at Consultant’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and reasonable attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Consultant’s employees included), for damage to property, including property owned by City, for any violation of any applicable

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federal, state, or local law or ordinance or to the extent arising out of, pertaining to, or relating to any acts, errors or omissions, or willful misconduct committed by Consultant, its officers, employees, representatives, and agents, that arise out of or relate to Consultant’s performance of Services or this Agreement. This indemnification clause excludes Claims arising from the sole or active negligence or willful misconduct of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Consultant’s indemnification obligation or other liability under this Agreement. Consultant’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final.

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

7. REPORTS AND RECORDS

7.1 Accounting Records. Consultant shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement. Consultant shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and to enable the Contract Officer to evaluate the performance of such Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

7.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that the City is greatly concerned about the cost of the Work to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Work contemplated herein or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of such fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed.

Any use of such completed documents for other projects and/or use of incomplete documents without

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specific written authorization by the Consultant will be at the City's sole risk and without liability to Consultant, and the City shall indemnify the Consultant for all damages resulting therefrom. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. Consultant shall ensure that all its subconsultants shall provide for assignment to City of any documents or materials prepared by them, and in the event, Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom.

7.4 Release of Documents. All drawings, specifications, reports, records, documents, and other materials prepared by Consultant in the performance of Services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. All information gained by Consultant in the performance of this Agreement shall be considered confidential and shall not be released by Consultant without City’s prior written authorization.

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

8. ENFORCEMENT OF AGREEMENT

8.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California.

Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such County, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

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

8.3 Termination. City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Consultant. Where termination is due to the fault of Consultant and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon receipt of the notice of termination, Consultant shall immediately cease all Services except such as may be specifically approved by the Contract Officer.

Consultant shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall

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not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation for termination of Work. Consultant may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

8.4 Default of Consultant.

A. Consultant’s failure to comply with any provision of this Agreement shall constitute a default.

B. If the City Manager, or his designee, determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Consultant in writing of such default. Consultant shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Consultant fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Consultant shall be liable for any and all reasonable costs incurred by City as a result of such default. Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to Section

8.3. C. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.4.B, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the Maximum Contract Amount (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure to withhold payments to Consultant shall not limit Consultant’s liability for completion of the Services as provided herein.

8.5 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions hereof.

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

8.7 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to

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compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

8.8 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses, including but not limited to reasonable attorney fees, expert consultant fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding.

9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

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

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

Consultant shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis.

As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Consultant certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Consultant activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Consultant is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting.

10. MISCELLANEOUS PROVISIONS

10.1 Patent and Copyright Infringement.

A. To the fullest extent permissible under law, and in lieu of any other warranty by City or Consultant against patent or copyright infringement, statutory or otherwise, it is agreed that Consultant shall defend at its expense any claim or suit against City on account of any allegation that any

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item furnished under this Agreement, or the normal use or sale thereof arising out of the performance of this Agreement, infringes upon any presently existing U.S. letters patent or copyright and Consultant shall pay all costs and damages finally awarded in any such suit or claim, provided that Consultant is promptly notified in writing of the suit or claim and given authority, information and assistance at Consultant’s expense for the defense of same, and provided such suit or claim arises out of, pertains to, or is related to the negligence, recklessness or willful misconduct of Consultant. However, Consultant will not indemnify City if the suit or claim results from: (1) City's alteration of a deliverable, such that City’s alteration of such deliverable created the infringement upon any presently existing U.S. letters patent or copyright; or (2) the use of a deliverable in combination with other material not provided by Consultant when it is such use in combination which infringes upon an existing U.S. letters patent or copyright.

B. Consultant shall have sole control of the defense of any such claim or suit and all negotiations for settlement thereof, Consultant shall not be obligated to indemnify City under any settlement made without Consultant’s consent or in the event City fails to cooperate in the defense of any suit or claim, provided, however, that such defense shall be at Consultant’s expense. If the use or sale of such item is enjoined as a result of the suit or claim, Consultant, at no expense to City, shall obtain for City the right to use and sell the item, or shall substitute an equivalent item acceptable to City and extend this patent and copyright indemnity thereto.

10.2 Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered, sent by pre-paid First Class U.S. Mail, registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission, and shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Any notice, request, demand, direction, or other communication sent by facsimile must be confirmed within forty-eight (48) hours by letter mailed or delivered. Other forms of electronic transmission such as e-mails, text messages, instant messages are not acceptable manners of notice required hereunder. Notices or other communications shall be addressed as follows:

To City: City of Palm Springs
Attention: City Manager
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Telephone: (760) 323-8204

To Consultant: Engineering Resources of Southern California, Inc.

Attention: John M. Brudin, PE, President
1861 W. Redlands Blvd.

Redlands, CA 92373
Telephone: (909) 890-1255 X103

10.3 Entire Agreement. This Agreement constitutes the entire understanding between the Parties and supersedes and cancels all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter hereof. No amendments or other modifications of this Agreement shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees.

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10.4 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

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

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

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

10.8. Corporate Authority. Each of the undersigned represents and warrants that (i) the Party for which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this Agreement, the Party for which he or she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which the Party for which he or she is signing is bound.

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

10.10 Compliance with Economic Sanctions in Response to Russia's Actions in Ukraine.

When funding for the services is provided, in whole or in part, by an agency controlled of the State of California, Consultant shall fully and adequately comply with California Executive Order N-6-22 (“Russian Sanctions Program”). As part of this compliance process, Consultant shall also certify compliance with the Russian Sanctions Program by completing the form located in Exhibit “E” (Russian Sanctions Certification), attached hereto and incorporated herein by reference. Consultant shall also require any subconsultants to comply with the Russian Sanctions Program and certify compliance pursuant to this Section.
[SIGNATURES ON FOLLOWING PAGE]

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SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND ENGINEERING RESOURCES OF SOUTHERN CALIFORNIA, INC.

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

CONSULTANT:

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

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: 11/21/2024 Item No. 1MM
APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ City Attorney City Clerk
APPROVED:

By: _______________________________ Date:

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

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CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF AN APPROPRIATION OF ADDITIONAL FUNDS FOR ONCALL ENGINEERING PLAN CHECK SERVICES IN AN AMOUNT NOT TO EXCEED $400,000
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:

The Engineering Services Department relies on the services of a professional consulting firm to provide on-call plan check services for street, sewer, grading, traffic signal and other improvement plans, subdivision maps, right-of-way documents, and technical reports related to proposed and/or approved development projects located in the City. All costs associated with plan check services are considered pass-through costs.

Developers or Property Owners pay plan check fees up-front on a deposit basis; the deposit then returned to the General Fund. The Engineering Department budgets for plan check services based on the expenses from previous years.

RECOMMENDATION:

Approve an Appropriation of $400,000 from the General Fund to the Engineering Department's Contractual Services Budget.

BUSINESS PRINCIPAL DISCLOSURE:

The Public Integrity Disclosure Form for Engineering Resources of Southern California, Inc., is included as Attachment A.

BACKGROUND:

On June 10, 2021, the City Council approved an agreement with Engineering Resources of Southern California, Inc. to provide the City with on-call engineering plan check services. The term of the agreement was for a three-year initial term with two (2) oneyear extensions. The term of the current agreement expires July 1, 2026.

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City Council Staff Report
January 14, 2026 -- Page 2
Engineering On-Call Plan Check Services
STAFF ANALYSIS:

The Engineering Services Department requires As-Needed, On-Call civil engineering plan check services for a variety of future private development projects. The full extent of required civil engineering plan check services is not known at the present time; however, generally the Department anticipates the need for professional review of street, sewer, grading, traffic signal and other improvement plans, subdivision maps, right-of-way documents, and technical reports related to proposed and/or approved development projects located in the City.

Historically, the budget for plan check services has been set at $350,000 a year. For Fiscal Years 25/26 and 26/27, staff anticipated an increase in services and set the budget at $400,000. What staff did not anticipate was the simultaneous advancement of two major projects at a significantly increased pace. The Miralon and Serena Park Developments both submitted an unprecedented number of plans and maps for review, in addition to the typical projects that the department processes. While the progress of the two projects is welcomed, 95% of the plan check budget within the first four billing cycles has been exhausted.

Based on the volume of plans and maps submitted to date, the City Engineer requests that the budget be doubled to $800,000. It is important to note that fees are collected before services are rendered. From July of 2024 to the present date, staff has taken in approximately $700,000 in plan check fees. It is also important to note that there is a delay between intake of plan check fees and invoicing from our consultant. Historically, the budget of $350,000 was sufficient to cover costs even with the delays noted.

ENVIRONMENTAL ASSESSMENT:

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 item aligns with the following City Council Strategic Plan Foundation: Housing.

FISCAL IMPACT:

Fees for civil engineering plan check services are paid by developers in accordance with the City’s comprehensive fee schedule. These fees currently cover the cost for plan check services and City staff time to administer and coordinate the plan check process.

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City Council Staff Report
January 14, 2026 -- Page 3
Engineering On-Call Plan Check Services
Payments made to the consultant for on-call civil engineering plan check services are paid from deposits collected, on a “pass-through” basis; sufficient funds are collected as revenue to offset incurred expenditures on an annual basis for required services. As revenue is collected from the private development community for requested plan check services, the revenue is received and offsets expenditures appropriated in the General Fund in the Engineering Department.

REVIEWED BY:

Department Director: Joel Montalvo
Director of Finance: Kristopher J. Mooney
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:

A. Public Integrity Disclosure Form.

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ATTACHMENT A
Engineering Resources of Southern California Public Integrity Disclosure

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PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

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

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

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

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PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principal Place of Business)

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

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

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

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

EXAMPLE

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

Signature of Disclosing Party, Printed Name, Title Date John M. Brudin, PE 65%
Moe Ahmadi, PE 15%
Trent Brudin, PE 10%
Craig Brudin, QSP 10%
John M. Brudin, PE, President October 16, 2024
g
49

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CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2122, OF

THE CITY OF PALM SPRINGS, CALIFORNIA, TO AUTHORIZE THE
LEVY OF SPECIAL TAXES IN COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK)
FROM: Scott C. Stiles, City Manager
BY: Office of the City Clerk
SUMMARY:

This is the second reading of an ordinance approving the levy of special taxes in Community Facilities District No. 2025-1 (Serena Park). The City entered into a Development Agreement with the Serena Park development, which is located at the former Palm Springs Country Club, East of Sunrise Way and North of Verona Road. The Development Agreement provides for the City to cooperate with the property owner in the formation of a Community Facilities District (CFD) to finance any necessary public improvements for the Project as well as the fee required for purchase of open space. A CFD is a special financing district that will sell bonds to generate funds for the financing of the development fees and public facilities. Special taxes will be levied only on property within the CFD to repay the bonds.

RECOMMENDATION:

Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2122, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM

SPRINGS, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) OF THE CITY OF PALM

SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA AUTHORIZING THE

LEVY OF SPECIAL TAXES IN SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA NOS. 1, 2, 3, AND 4 THEREOF"
STAFF ANALYSIS:

On December 10, 2025, Ordinance No. 2122 was introduced for first reading, as noted below:

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City Council Staff Report
January 14, 2026 -- Page 2
Second Reading, CFD 2025-1 (Serena Park)

MOTION BY COUNCILMEMBER DEHARTE, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to 1) open the public hearing and receive public testimony; and, 2) introduce by title only and waive further reading of Ordinance No. 2122 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) OF THE CITY OF PALM SPRINGS, COUNTY

OF RIVERSIDE, STATE OF CALIFORNIA AUTHORIZING THE LEVY OF SPECIAL

TAXES IN SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA NOS. 1, 2, 3, AND 4 THEREOF"
City Attorney’s Summary: This ordinance will authorize the formation of a Community Facilities District (CFD), which will be used to finance public facilities and development impact fees.

This report is presented to the City Council for consideration to waive further reading and adopt the ordinance. The ordinance shall be effective 30 days from adoption.

REVIEWED BY:

Department Director: Brenda Pree
City Manager: Scott Stiles
ATTACHMENTS:

A. Draft Ordinance No. 2122

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ATTACHMENT A
Ordinance
Levying Special Taxes

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ORDINANCE NO. 2122

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, ACTING AS THE

LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2025-1 (SERENA PARK) OF THE CITY OF

PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF

CALIFORNIA AUTHORIZING THE LEVY OF SPECIAL

TAXES IN SUCH COMMUNITY FACILITIES DISTRICT
AND IMPROVEMENT AREA NOS. 1, 2, 3, AND 4

THEREOF
WHEREAS, the City Council of the City of Palm Springs, California (the “City Council”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of special taxes in each improvement area of the community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”).

WHEREAS, this community facilities district shall hereinafter be referred to as Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs, County of Riverside, State of California (the “District”) and improvement areas therein designated as Improvement Area No. 1, Improvement Area No. 2, Improvement Area No. 3, and Improvement Area No. 4 (each an “Improvement Area” and together the “Improvement Areas”).

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK), DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. This City Council does, by the passage of this Ordinance, authorize the levy of special taxes on all parcels of taxable property located in the Improvement Areas of the District pursuant to the Rate and Method of Apportionment as set forth in Exhibits “A” through “D” attached hereto and incorporated herein by this reference (each a “Rate and Method” and together the “Rates and Methods”).

Section 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by resolution, to annually determine the special tax to be levied within each Improvement Area of the District for the then current tax year or future tax years, commencing fiscal year 2025-26; provided, however, the special tax to be levied in the Improvement Areas shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method for such Improvement Areas.

Section 3. The special taxes herein authorized to be levied, to the extent possible, shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes.

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Ordinance No. 2122

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Section 4. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Section 3114.5 and 3115.5 of the California Streets and Highways Code, which lien shall be a continuing lien and shall secure each levy of the special taxes. The lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special taxes ceases to be levied by the City Council.

Section 5. This Ordinance shall be effective thirty (30) days after its adoption.

Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City.

INTRODUCED at a regular meeting of the City Council of the City of Palm Springs on the 10th day of December, 2025.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Palm Springs on this ____ day of ________________, 202_.

NAOMI SOTO, MAYOR
ATTEST:

BRENDA PREE, CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. _____ is a full, true and correct copy as was introduced at a regular meeting of the Palm Springs City Council on December 10, 2025 and adopted at a regular meeting of the City Council held on __________ by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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Ordinance No. ____

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IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ___ day of __________, 202_.

BRENDA PREE, CITY CLERK

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EXHIBIT “A”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 1
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 1 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 1, unless exempted by law or by the provisions hereof in Section E, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 1 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.

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“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 1 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 1 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 1” or “IA No. 1” means the property in the CFD designated as Improvement Area No. 1 on the Boundary Map.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.

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“Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements. “Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 1.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property, and Property Owners’ Association Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property, Public Property, and Property Owners’ Association Property.
“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a

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private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the original Building Permit issued for the Parcel or, if the Building Permit is not available by reference to a similar official document as selected by the Administrator.
“Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Single Family Property” means all Parcels of Residential Property. “Special Tax(es)” means the special tax to be levied in each Fiscal Year pursuant to the Rate and Method on each Parcel of Taxable Property in accordance with Section D. “Special Tax Requirement” means that amount required in any Fiscal Year: (i) to pay annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) to pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) to pay Administrative Expenses; (iv) to pay any anticipated shortfall due based on Special Tax delinquencies in the prior Fiscal Year; (v) to establish or replenish any reserve funds for the outstanding Bonds or with respect to Bonds expected to be issued in such Fiscal Year; (vi) until the final series of Bonds are issued as determined by the City Council, to pay directly for acquisition or construction of the facilities eligible under the Act, provided that the inclusion of such amount does not increase the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Step 2 or Step 3 of section D below; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture as determined by the Administrator.
“Taxable Property” means all Parcels for which the Special Taxes have not been prepaid in full pursuant to Section H. or that are not exempt from the Special Tax pursuant to law or Section E. “Taxable Unit” means either a Dwelling Unit or an Acre, as shown in Table 1. “Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on ad valorem tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold, and subject to such levies and impositions, excluding PACE Charges (or any other charge entered into voluntarily by the property owner) and service charges such as those related to sewer and trash.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

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B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2026-2027 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method as determined pursuant to Sections C and D.

Parcels of Developed Property shall further be classified as Residential Property or Other Property.

Parcels of Residential Property shall further be classified as Single Family Property. Parcels of Single Family Property shall be further categorized into Land Use Categories based on the Residential Floor Area for such Parcel.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Maximum Special Tax increases. Following the Fiscal Year 2043-2044, the Maximum Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $3,825

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $4,110

3. Single Family Property D/U Greater than 2,299 sq. ft. $4,425

4. Other Property Acre N/A $33,834
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

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b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

A Parcel that does not have any changes made to it after the initial assignment of the Backup Special Tax shall not be increased if other Parcels in a Final Map are changed. Prior to the issuance of Bonds, if Parcels classified or to be classified as Single Family Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified using the methodology described in the preceding paragraph. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

On each July 1, commencing July 1, 2026, the Backup Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Backup Special Tax increases. Following the Fiscal Year 2043-2044, the Backup Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044.

2. Approved Property
The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $33,834 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$33,834

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4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

The Maximum Special Tax for each Parcel of Public Property and/or Property Owners Association Property that is not Exempt Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax rate per Acre in Table 2 multiplied by the Acreage of such Parcel.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

Prior to the issuance of the first series of Bonds, the CFD shall do one of the following 1) select and engage a Price Point Consultant, where the Price Point Consultant shall prepare a Price Point Study setting forth the Minimum Sale Price of Dwelling Units within each Land Use Category of Residential Property or 2) select and engage a MAI Certified Appraiser, where the MAI Certified Appraiser shall prepare an appraisal setting forth at least the minimum market value of Dwelling Units within each Land Use Category of Residential Property. If, based upon such Price Point Study or appraisal, the Administrator calculates that the Total Tax Burden applicable to Dwelling Units within one or more Land Use Category of Residential Property to be constructed within the CFD exceeds 2.00% of the Minimum Sale Price of such Taxable Units, the Special Tax within such Land Use Category of Residential Property shall be reduced to the extent necessary to cause the Total Tax Burden applicable to Dwelling Units within such Land Use Category(ies) not to exceed 2.00% of the Minimum Sale Price of such Taxable Units. Each Special Tax reduction for a Land Use Category shall be calculated by the Administrator separately, and it shall not be required that such reduction be proportionate among Land Use Categories.

If the Special Tax for any Land Use Category is reduced pursuant to the preceding paragraph, the Administrator shall calculate a reduced Maximum Special Tax for Other Property and Undeveloped Property, as well as a reduced Backup Special Tax for Developed Property. The revised Backup Special Tax shall be equal to the Maximum Special Tax as set forth in Table 1, reduced by a percentage equal to the weighted average percentage reduction in the Special Tax for all Land Use Categories of Residential Property. The weighted average percentage will be calculated by taking the sum of the products of the number of Taxable Units constructed or expected to be constructed in each Land Use Category multiplied by the percentage change in the Special Tax for each Land Use Category (or 0 for Land Use Categories that are not changing). This amount is then divided by the total number of Dwelling Units constructed or expected to be constructed and converted to a percentage. The reduced Maximum Special Tax shall be used to compute the reduced Backup Special Tax. Following the issuance of Bonds, no adjustments shall be made to the Backup Special Tax for any Parcel which would result in the reduction of debt service coverage, as projected at the time of Bond issuance.

The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

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Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement; Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Parcel of Developed Property for which the Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for such Parcel;
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Taxable Property that is Public Property or Property Owners’ Association Property at up to 100% of the Maximum Special Tax for such Parcel.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 16.07 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.07 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.07 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION

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The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 1, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

G. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The Administrator shall interpret this Rate and Method and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $9,690,276, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering NewsRecord Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.)

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allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Parcels of Developed Property, (ii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued, and (iv) Parcels of Public Property or Property Owners’ Association Property that are not Exempt Property pursuant to Section E. The Maximum Special Tax obligation applicable to a Parcel may be fully prepaid and the obligation to pay the Special Tax for such Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax obligation for such Parcel shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Parcel. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

1. Confirm that no Special Tax delinquencies apply to such Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

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3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Parcels of Taxable Property based on the applicable Maximum Special Tax for Parcels of Developed Property not including any Parcels for which the Special Tax obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

10. Determine the amount the Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

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14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the Administrator shall remove the current Fiscal Year’s Special Tax levy for the Parcel from the County tax roll. With respect to any Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Parcel, and the obligation to pay the Special Tax for such Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on all Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

2. Prepayment in Part
The Maximum Special Tax obligation for a Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section H.1 shall be modified as provided by the following formula:

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1

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The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

With respect to any Parcel for which the Maximum Special Tax obligation is partially prepaid, the Administrator shall (i) distribute the Partial Prepayment as provided in Paragraph 15 of Section H.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Parcel pursuant to Section D.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2065-2066 Fiscal Year.

J. INTERPRETATIONS
The City Council may interpret this Rate and Method by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 1 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

Developed Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $________

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $________

3. Single Family Property D/U Greater than 2,299 sq. ft. $________

4. Other Property Acre N/A $________

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CERTIFICATE OF MODIFICATION OF SPECIAL TAX
By execution hereof, the undersigned acknowledge, on behalf of the District and CFD No. 2025-1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Tax as set forth in this certificate.

CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 1 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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EXHIBIT “B”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 2
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 2 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 2, unless exempted by law or by the provisions hereof in Section E, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 2 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.

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“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 2 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 2 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 2” or “IA No. 2” means the property in the CFD designated as Improvement Area No. 2 on the Boundary Map.

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“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements. “Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 2.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property, and Property Owners’ Association Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property, Public Property, and Property Owners’ Association Property.

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“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

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“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2026-2027 Fiscal Year, all Parcels of Taxable Property shall be classified as Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method as determined pursuant to Sections C and D.

Parcels of Developed Property shall further be classified as Residential Property or Other Property.

C. MAXIMUM SPECIAL TAX RATE

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,200 sq. ft. $4,265

2. Single Family Property D/U 2,200 sq. ft. – 2,349 sq. ft. $4,440

3. Single Family Property D/U 2,350 sq. ft. – 2,499 sq. ft. $4,615

4. Single Family Property D/U 2,500 sq. ft. – 2,649 sq. ft. $4,790

5. Single Family Property D/U 2,650 sq. ft. – 2,799 sq. ft. $4,965

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6. Single Family Property D/U Greater than 2,799 sq. ft. $5,400

7. Other Property Acre N/A $28,731
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $28,731 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

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TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$28,731

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

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The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 16.57 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.57 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 16.57 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The

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Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 2, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

The Administrator shall interpret this Rate and Method and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $4,839,417, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering NewsRecord Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation

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Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

1. Confirm that no Special Tax delinquencies apply to such Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued,

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compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

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subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1

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F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2068-2069 Fiscal Year.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 2 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,200 sq. ft. $_______

2. Single Family Property D/U 2,200 sq. ft. – 2,349 sq. ft. $_______

3. Single Family Property D/U 2,350 sq. ft. – 2,499 sq. ft. $_______

4. Single Family Property D/U 2,500 sq. ft. – 2,649 sq. ft. $_______

5. Single Family Property D/U 2,650 sq. ft. – 2,799 sq. ft. $_______

6. Single Family Property D/U Greater than 2,799 sq. ft. $_______

7. Other Property Acre N/A $_______

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CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 2 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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EXHIBIT “C”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 3
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 3 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 3, unless exempted by law or by the provisions hereof in Section E, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 3 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.

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“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 3 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 3 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 3” or “IA No. 3” means the property in the CFD designated as Improvement Area No. 3 on the Boundary Map.

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“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements. “Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 3.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property, and Property Owners’ Association Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property, Public Property, and Property Owners’ Association Property.

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“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 3 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

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“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

Parcels of Developed Property shall further be classified as Residential Property or Other Property.

C. MAXIMUM SPECIAL TAX RATE

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 1,750 sq. ft. $3,720

2. Single Family Property D/U 1,750 sq. ft. – 1,949 sq. ft. $3,860

3. Single Family Property D/U 1,950 sq. ft. – 2,149 sq. ft. $4,000

4. Single Family Property D/U 2,150 sq. ft. – 2,349 sq. ft. $4,795

5. Single Family Property D/U 2,350 sq. ft. – 2,549 sq. ft. $4,955

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6. Single Family Property D/U 2,550 sq. ft. – 2,749 sq. ft. $5,115

7. Single Family Property D/U Greater than 2,749 sq. ft. $5,400

8. Other Property Acre N/A $27,301
On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $27,301 per Acre.

3. Undeveloped Property

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The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax
Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$27,301

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

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The Special Tax reductions, if required pursuant to this section, shall be reflected in an amended notice of Special Tax lien, which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit B.

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 24.23 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 24.23 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 24.23 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The

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Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 3, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

The Administrator shall interpret this Rate and Method and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $7,088,364, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering NewsRecord Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation

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Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.) allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

1. Confirm that no Special Tax delinquencies apply to such Parcel.

2. For a Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued,

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compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For a Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owners’ Association Property to be prepaid, compute the Maximum Special Tax for the Parcel.

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

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subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

PP = ((PE –A) x F) +A
These terms have the following meaning:

PP = Partial Prepayment
PE = the Prepayment Amount calculated according to Section H.1

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F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section H.1 The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2070-2071 Fiscal Year.

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“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 3 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 1,750 sq. ft. $________

2. Single Family Property D/U 1,750 sq. ft. – 1,949 sq. ft. $________

3. Single Family Property D/U 1,950 sq. ft. – 2,149 sq. ft. $________

4. Single Family Property D/U 2,150 sq. ft. – 2,349 sq. ft. $________

5. Single Family Property D/U 2,350 sq. ft. – 2,549 sq. ft. $________

6. Single Family Property D/U 2,550 sq. ft. – 2,749 sq. ft. $________

7. Single Family Property D/U Greater than 2,749 sq. ft. $________

8. Other Property Acre N/A $________

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CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 3 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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EXHIBIT “D”

RATE AND METHOD OF APPORTIONMENT FOR

THE CITY OF PALM SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(SERENA PARK)

CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA IMPROVEMENT AREA NO. 4
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 4 of the CFD.

The amount of Special Tax to be levied in each Fiscal Year, on a Parcel, shall be determined by the City Council of The City of Palm Springs, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property, and/or Property Owners’ Association Property that is not Exempt Property as set forth in Sections B, C, and D, below. All of the real property within Improvement Area No. 4, unless exempted by law or by the provisions hereof in Section E, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the City related to Improvement Area No. 4 that are chargeable or allocable to carry out its duties as the administrator as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the City as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. “Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a Building Permit on or prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied.

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“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below.
“Backup Special Tax” means the Special Tax amount set forth in Section C.1.b., below. “Bonds” means any bonds or other indebtedness (as defined in the Act), whether in one or more series, issued by the CFD and secured by the levy of Improvement Area No. 4 Special Taxes. “Boundary Map” means a recorded map, as amended, of the CFD which indicates the boundaries of Improvement Area No. 4 of the CFD.
“Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.
“CFD” means Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs established pursuant to the Act.
“City” means The City of Palm Springs.
“City Council” means the City Council of The City of Palm Springs. “County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Dwelling Unit” or “(D/U)” means a residential unit that is offered for sale (and not for rent) that is used or permitted to be used as a domicile by one or more persons, as determined by the Administrator.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the 12 month period starting on July 1 of any calendar year and ending on the following June 30.
“Improvement Area No. 4” or “IA No. 4” means the property in the CFD designated as Improvement Area No. 4 on the Boundary Map.

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“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1. “MAI Certified Appraiser” or “Appraiser” means a certified appraiser and member of the Appraisal Institute who has met strict testing, standards and experience requirements. “Maximum Special Tax” means for each Parcel, the maximum Special Tax, determined in accordance with Section C, which can be levied in any Fiscal Year on such Parcel. “Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category have sold or are expected to be sold in a normal marketing environment and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Category. No incentives or discounts offered by the seller will be deducted from expected or sold home prices. “Other Property” means all Parcels of Developed Property for which a Building Permit was issued for any type of use other than Single Family Property.
“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map located in Improvement Area No. 4.
“Price Point Consultant” means any consultant or firm of such consultants selected by the CFD that (a) has substantial experience in performing price point studies for Residential Property within community facilities districts established under the Act or otherwise estimating or confirming pricing for Dwelling Units of Residential Property in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Dwelling Units of Residential Property in such community facilities districts, (c) is in fact independent and not under the control of the CFD or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) the CFD, (ii) the City, (iii) any owner of real property in the CFD, or (iv) any real property in the CFD, and (e) is not connected with the CFD or the City as an officer or employee thereof, but who may be regularly retained to make reports to the CFD or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C.5 herein. “Property Owners’ Association Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property, and Property Owners’ Association Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property, Public Property, and Property Owners’ Association Property.

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“Public Property” means all Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Rate and Method” means this Rate and Method of Apportionment of Special Tax for Improvement Area No. 4 of Community Facilities District No. 2025-1 (Serena Park) of The City of Palm Springs. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

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“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owners’ Association Property.

Parcels of Developed Property shall further be classified as Residential Property or Other Property.

C. MAXIMUM SPECIAL TAX RATE

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 2025-2026
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $3,470

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $3,735

3. Single Family Property D/U Greater than 2,299 sq. ft. $4,000

4. Other Property Acre N/A $31,262

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On each July 1, commencing July 1, 2026, the Assigned Special Tax shall be increased by an amount equal to two percent (2.0%) of the amount in effect for the previous Fiscal Year. July 1, 2043 shall be the final year the Assigned Special Tax increases. Following the Fiscal Year 2043-2044, the Assigned Special Tax shall not increase from the amount in effect for Fiscal Year 2043-2044. b. Backup Special Tax
When a Final Map is recorded, the Backup Special Tax for a Parcel classified or to be classified as Single Family Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax per Acre by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with (i) Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section E and (ii) Other Property, , and dividing such amount by the number of Parcels within such Final Map classified as either (i) Single Family Property or (ii) Approved Property for which a Building Permit is expected to be issued for Single Family Property (i.e., the number of residential lots).

The Backup Special Tax shall not apply to Other Property, Public Property, or Property Owners’ Association Property.

The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Other Property shall be $31,262 per Acre.

3. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property is shown in Table 2 below.

TABLE 2
Undeveloped Property Maximum Special Tax

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Fiscal Year 2025-2026
Maximum Special Tax Per Acre
$31,262

4. Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to the provisions of Section E.

5. Special Tax Reduction Prior to Issuance of First Series of Bonds.

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D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the City Council shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps:

E. EXEMPTIONS
The Administrator shall classify as Exempt Property all Parcels of (i) Public Property or (ii) Property Owners’ Association Property; provided that such classification shall not reduce the Acreage of all Taxable Property of the CFD to fewer than 10.87 Acres. The Administrator shall not classify a Parcel of Public Property or Property Owners’ Association Property as Exempt Property if such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 10.87 Acres. Such Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Parcels of Taxable Property to fewer than 10.87 Acres will be classified as Property Owners’ Association Property or Public Property and will continue to be subject to Special Taxes. The Administrator shall classify such Parcels as Exempt Property in the chronological order in which property becomes Public Property or Property Owners’ Association Property.

F. MANNER OF COLLECTION

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D-9
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Improvement Area No. 4, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.

The Administrator shall interpret this Rate and Method and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

The City Council may interpret this Rate and Method for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $4,102,493, expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program, or (ii) shall be determined by the City Council concurrently with a covenant that the CFD will not issue any more Bonds.
“Construction Fund” means, collectively, an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act and any account established prior to the issuance of Bonds for such purpose. “Construction Inflation Index” means the annual percentage change in the Engineering NewsRecord Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) Bond proceeds deposited in Construction Funds and accounts and (ii) other amounts (special taxes, interest earnings, etc.)

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D-10
allocated to Construction Funds and accounts that were available to fund such CFD Public Facilities prior to the date of prepayment, but not less than $0.
“Outstanding Bonds” means all previously issued Bonds, which will remain outstanding after the payment of principal from the amount of Special Taxes that have been levied, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

1. Confirm that no Special Tax delinquencies apply to such Parcel.

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D-11

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

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D-12

PP = ((PE –A) x F) +A
These terms have the following meaning:

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D-13
The owner of a Parcel who desires to partially prepay the Maximum Special Tax obligation for the Parcel shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the amount of the Partial Prepayment for the Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment.

I. TERM OF THE SPECIAL TAX
The Special Tax shall not be levied after the 2073-2074 Fiscal Year.

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D-14
“EXHIBIT B”

CERTIFICATE OF MODIFICATION OF SPECIAL TAX
CITY OF PALM SPRINGS AND CFD NO. 2025-1 (SERENA PARK) IMPROVEMENT AREA NO. 4 CERTIFICATE Pursuant to Section C of the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2025-1 (Serena Park) of the City of Palm Springs (“CFD No. 2025-1”), the Special Tax for Residential Property and Other Property within CFD No. 2025-1 has been modified.

The information in Table 1 relating to the Special Tax for Developed Property within CFD No. 2025-1, as stated in Section C.1. of the Rate and Method of Apportionment, has been modified as follows:

The Maximum Special Tax for each Parcel of Other Property shall be the Assigned Special Tax described in Table 1.

TABLE 1
Assigned Special Taxes for Developed Property
Fiscal Year 20__-20__
Land Use Category
Taxable
Unit Residential Floor Area
Assigned Special Tax
Per Taxable Unit

1. Single Family Property D/U Less than 2,100 sq. ft. $______

2. Single Family Property D/U 2,100 sq. ft. – 2,299 sq. ft. $______

3. Single Family Property D/U Greater than 2,299 sq. ft. $______

4. Other Property Acre N/A $______

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D-15

CITY OF PALM SPRINGS
IMPROVEMENT AREA NO. 4 OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (SERENA PARK) By:_________________________________ Date:______________________

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CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVE PROFESSIONAL SERVICES AGREEMENT NO. 25Q441

WITH GLOBALMELK LLC FOR URBAN DESIGN SERVICES AND
PROFESSIONAL SERVICES AGREEMENT NO. 25Q442 WITH
MULTISTUDIO, INC. FOR BRANDING AND MARKETING FOR THE

CONVENTION CENTER CONNECTOR PROJECT
FROM: Scott C. Stiles, City Manager
BY: Wayne Olson, Economic Development
SUMMARY:

This action will award professional services agreements with Globalmelk LLC for urban design services for an amount not to exceed $1,500,000 and Multistudio, Inc. for branding and marketing services for an amount not to exceed $572,250 for the convention center connector project.

RECOMMENDATION:

1. Approve Professional Services Agreement No. 25Q441 (Attachment A) with Globalmelk LLC to provide urban design services for the convention center connector project for a term commencing on January 1, 2026, and continuing through December 31, 2028, for an amount not to exceed $1,500,000;

2. Approve Professional Services Agreement No. 25Q442 (Attachment B) with Multistudio, Inc. to provide branding and marketing services for the convention center connector project for a term commencing on January 1, 2026, and continuing through December 31, 2028, for an amount not to exceed $572,250;

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

BUSINESS PRINCIPAL DISCLOSURE:

According to the Public Integrity Disclosure forms (Attachment C) submitted in October 2025, Globalmelk LLC is registered in the state of New York and Multistudio, Inc. is registered in the state of California.

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City Council Staff Report
January 14, 2026 -- Page 2
Branding and Marketing Services for the Convention Center Connector Project BACKGROUND:

The Palm Springs Convention Center (PSCC), a cornerstone of the city’s hospitality and tourism economy, has served as a premier venue for conferences, exhibitions, and community events since its original construction in 1984. A major expansion and modernization effort was completed in 2005, significantly increasing the facility’s capacity and enhancing its amenities. Despite these improvements, many of the Convention Center’s core systems, finishes, and functional spaces now require further upgrades to meet current industry standards and user expectations.

In response to evolving market demands and the need to maintain competitiveness in the regional convention landscape, the City of Palm Springs is initiating a comprehensive renovation and expansion of the PSCC. The City, together with its hospitality stakeholders, has expressed the intent to establish an identifiable, branded convention district that links the PSCC with adjacent properties and the downtown core while enhancing the pedestrian experience, resolving traffic conflicts, and providing graphic continuity through placemaking and wayfinding.

The City of Palm Springs solicited qualifications from urban design and landscape architecture teams, along with branding and marketing teams, to lead the planning and design of a district scale urban connectivity strategy that links the PSCC with adjacent properties and the downtown core and identifies the PSCC District in harmony with the world class destination of Palm Springs. This work will be a critical component of a broader PSCC Renovation and Expansion Project for the Convention Center.

On September 10, 2025, the City Council unanimously authorized staff to advance the Palm Springs Convention Center modernization and connectivity project. The award of the urban design and branding and marketing agreements are a milestone and reflective of months of planning, engagement, and fiscal diligence, and the dedication of the City Manager’s Stakeholder Group. A subset of Urban Planning working group participated in advisement to City staff of the goals of the RFQ, reviewing and scoring of written statements of qualifications and scoring of interviews.

STAFF ANALYSIS:

On September 25, 2025, the Procurement and Contracting Department issued Request for Qualifications 14-25 (RFQ 14-25) for Urban Design Services for Convention Center Connector project to be completed in tandem with the renovation and expansion project for the Economic Development Department. RFQ 14-25 was advertised in the local newspaper, published on the PlanetBids website with notification to 540 registered vendors, 490 vendors through Bid Broadcast, and citywide notification through the Department of Communications. This extended outreach resulted in 54 attendees at the Pre-Qualification Conference on October 8, 2025, and the submission of 12 Statements of Qualifications (SOQs) for Urban Design and 11 SOQs for Branding and Marketing services.

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City Council Staff Report
January 14, 2026 -- Page 3
Branding and Marketing Services for the Convention Center Connector Project The following firms submitted SOQs for consideration by the October 30, 2025, deadline.

Urban Design – Part 1
• CMG Landscape Architecture – San Francisco, CA
• Design Workshop Inc. – Stateline, NV
• First Forty Feet LLC – Portland, OR
• Globalmelk LLC – New York, NY
• Munden Fry Landscape Associates – San Francisco, CA
• MIG, Inc. – Berkeley, CA (Non-Responsive)
• Multistudio, Inc. – San Francisco, CA
• Perkins Eastman Architects, D.P.C. – Los Angeles, CA
• RC Design Collaborative, LLC dba SITELAB urban studio – San Francisco, CA • Stantec Architecture, Inc. – Santa Monica, CA
• Surface Design, Inc. – San Francisco, CA
• TDG Engineering, Inc. – Silver Springs, MD
Branding and Marketing – Part 2
• JNS Next – Palm Desert, CA
• Johnnie Studio LLC – Dallas, TX
• LMNL LLC – Mill Valley, CA
• MIG, Inc. – Berkeley, CA (Non-Responsive)
• Multistudio, Inc. – San Francisco, CA
• Perkins Eastman Architects, D.P.C. – Los Angeles, CA
• RC Design Collaborative, LLC dba SITELAB urban studio – San Francisco, CA • Stantec Architecture, Inc. – Santa Monica, CA
• Surface Design, Inc. – San Francisco, CA
• TDG Engineering, Inc. – Silver Springs, MD
• Voyager Group, Inc. – San Juan Capistrano, CA
An evaluation committee consisting of City staff from Economic Development, Planning Services, as well as external committee members representing Agua Caliente Band of Cahuilla Indians and Urban Design Stakeholder Group, PS Resorts representative, Chair of the Public Art Commission and Chair of Planning Commission reviewed and scored the statements of qualifications received against the criteria published in the Request for Qualifications. Criteria included the firm’s experience, references, staff’s experience, understanding the scope of work and demonstrated understanding of City goals and values, local tourism marketing organizations, and economic value of a branded district.

Globalmelk LLC – Urban Design
Globalmelk is an internationally recognized design practice specializing in landscape architecture, urban design, and public realm placemaking. The firm is known for delivering

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City Council Staff Report
January 14, 2026 -- Page 4
Branding and Marketing Services for the Convention Center Connector Project innovative, climate-responsive, and highly crafted environments that balance conceptual rigor with constructability and long-term performance. Globalmelk’s work spans civic districts, waterfronts, cultural destinations, convention centers, parks, and complex urban infrastructure, with projects completed across North America, Europe, the Middle East, and Latin America.

The Globalmelk-led team is senior, nimble, and directly engaged throughout all phases of work. Each discipline—urban design, landscape architecture, civil engineering, lighting design, and cost management—is represented by experienced professionals accustomed to working in complex public-sector environments and challenging climatic contexts, including Southern California and desert regions. The team emphasizes early technical coordination, clear communication, and hands-on leadership, ensuring accountability, efficiency, and design excellence from concept through delivery.

Jerry van Eyck, ING, RLA, ASLA – Design Lead / Principal-in-Charge, is the Founder and Design Principal of Globalmelk. With more than three decades of international experience, Jerry provides overall design vision, creative leadership, and quality oversight. His work is defined by a rigorous exploration of form, materiality, craft, and cultural identity, resulting in distinctive public spaces that are both innovative and deeply rooted in place. Jerry remains closely involved in all phases of design, ensuring continuity and integrity across scales.

Ian Hampson, RLA, ASLA, CSLA – Project Manager, serves as the connective lead between design vision and day-to-day delivery. With nearly 20 years of experience, Ian manages coordination across disciplines, schedules, and deliverables while maintaining design intent. His work integrates science, fabrication, and emerging technologies into practical, buildable solutions, and he brings extensive experience leading multidisciplinary teams on complex civic and urban projects.

Savina Romanos, Assoc. ASLA, ULI – Urban Designer, supports project coordination and design development, with a focus on public realm and urban-scale interventions. She brings experience in master planning, civic plazas, and streetscapes, ensuring consistency across design deliverables and engagement materials while supporting collaborative workflows.

Multistudio, Inc., – Branding and Marketing
Multistudio, Inc. is a full-service, multidisciplinary design firm with more than two decades of experience delivering integrated brand identity, communications, environmental graphic design, signage, wayfinding, urban design, and experience design solutions for public-sector, institutional, and community-focused clients. The firm is nationally recognized for its ability to align strategic thinking with design excellence, translating complex civic goals into cohesive, place-based brand systems that enhance identity, connectivity, and user experience.

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City Council Staff Report
January 14, 2026 -- Page 5
Branding and Marketing Services for the Convention Center Connector Project Multistudio brings a seasoned team with deep expertise working with municipalities, government agencies, cultural institutions, and community stakeholders. The firm emphasizes collaborative, schedule-conscious processes, strong inter-team coordination, and continuity of staff throughout the project lifecycle. Their approach is rooted in user-centered and community-driven design, ensuring outcomes that are authentic, inclusive, and reflective of local values.

Amanda Harper, Principal-in-Charge and Project Manager, provides overall leadership, project management, and quality control. With more than 19 years of experience, she has led complex branding, placemaking, and experience design initiatives for cities, districts, and institutions nationwide. Amanda oversees project vision, schedule, budget, and coordination across parallel teams, ensuring alignment from early engagement through implementation.

Cady Beansmith, Project Designer – Brand and User Experience, serves as the creative and user experience lead. With a background in experiential design, Cady focuses on translating community input into meaningful brand and visitor experiences. Her work emphasizes clarity, inclusion, and equity, with extensive experience in signage, wayfinding, museum and visitor environments, and mixed-use redevelopment.

Nicole Norgren, AIGA, SEGD, Project Designer – Brand and Signage, leads brand identity, signage, and wayfinding efforts. With over 16 years of experience, Nicole specializes in integrating graphic design with built environments and digital platforms. She is responsible for translating design strategy into clear, compelling visual systems and ensuring alignment across multiple media and project phases.

To support communications strategy and community engagement, Multistudio partners with David Perry & Associates, a Palm Springs–based marketing and public relations firm with deep local knowledge and regional reach. David Perry, Founder and CEO, brings extensive expertise in marketing strategy, public relations, crisis communications, and community relations. His firm provides direct access to local networks, media, and stakeholders, strengthening outreach, trust-building, and two-way engagement throughout the project.

Multistudio does not anticipate forming a formal joint venture for this effort and intends to serve as the prime consultant, engaging subconsultants as needed through standard contractual arrangements. The firm coordinates closely with partners and parallel project teams to ensure seamless integration, consistent communication, and a unified project foundation.

Based on the review of the statements of qualifications, interviews and scoring, staff recommend approval of professional services agreements with the highest scoring firms, Globalmelk LLC, for urban design services for a contract amount not to exceed $1,500,000 and Multistudio, Inc. for branding and marketing services for a contract amount not to exceed $572,250 for the Convention Center connector for terms

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City Council Staff Report
January 14, 2026 -- Page 6
Branding and Marketing Services for the Convention Center Connector Project commencing on January 14, 2026, and continuing through December 31, 2028.

ENVIRONMENTAL ASSESSMENT:

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the following City Council Strategic Plan Foundation: Economic Development.

FISCAL IMPACT:

The Measure J Commission approved expenditures up to $9.9M in design costs related to the Palm Springs Convention Center Modernization. The approval was conditioned by reimbursement to Measure J from debt proceeds issued when the capital project begins later in 2026. Therefore, this initial $2M not to exceed will be funded entirely by Measure J funds, with reimbursement to Measure J once debt is issued. The award of these contracts will result in a total expense not to exceed $2,072,250.

REVIEWED BY:

Department Director: Wayne Olson
City Manager: Scott Stiles
ATTACHMENTS:

A. Professional Services Agreement Global Melk
B. Professional Services Agreement Multistudio
C. Public Integrity Disclosure

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ATTACHMENT A
Professional Services
Agreements 25Q441

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PROFESSIONAL SERVICES AGREEMENT 25Q441

URBAN DESIGN SERVICES FOR CONVENTION

CENTER CONNECTOR
This Professional Services Agreement (“Agreement”) is entered into this 14th day of January, 2026 (“Effective Date”), by and between the City of Palm Springs, a California charter city and municipal corporation, (“City”) and Globalmelk (“!melk”) a limited liability company, (“Consultant”). City and Consultant are individually referred to as “Party” and are collectively referred to as the “Parties.”

RECITALS
A. City requires the services of a qualified firm, for urban design services to develop a comprehensive design vision and implementation strategy for an urban connector that enhances vehicular, pedestrian, and bicycle access between the PSCC and its surrounding downtown context (“Project”).

B. Consultant has submitted to City a proposal to provide urban design services, to City under the terms of this Agreement.

C. Consultant is qualified by virtue of its experience, training, education, reputation, and expertise to provide these services and has agreed to provide such services as provided in this Agreement.

D. City desires to retain Consultant to provide such professional services.

AGREEMENT

1. SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant agrees to perform the professional services set forth in the Scope of Services described in Exhibit “A” (the “Services” or “Work”), which is attached and incorporated herein by this reference. As a material inducement to the City entering into this Agreement, Consultant represents and warrants that Consultant is a provider of first class work and professional services and that Consultant is experienced in performing the Work contemplated and, in light of such status and experience, Consultant covenants that it shall perform the Work in a competent, professional, and satisfactory manner consistent with the level of care and skill ordinarily exercised by high quality, experienced and well qualified members of the profession currently practicing under similar conditions.

1.2 Contract Documents. The Agreement between the Parties shall consist of the following: (1) this Agreement; (2) the Scope of Services; (3) the City’s Request for Proposals; and, (4) the Consultant’s signed, original proposal submitted to the City (“Consultant’s Proposal”), (collectively referred to as the “Contract Documents”). The City’s Request for Proposals and the Consultant’s Proposal, which are both attached as Exhibit “B”, respectively, are incorporated

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herein by this reference and are made a part of this Agreement. The Scope of Services shall include the Consultant’s Proposal. All provisions of the Scope of Services, the City’s Request for Proposals and the Consultant’s Proposal shall be binding on the Parties. Should any conflict or inconsistency exist in the Contract Documents, the conflict or inconsistency shall be resolved by applying the provisions in the highest priority document, which shall be determined in the following order of priority: (1st) the provisions of the Scope of Services (Exhibit “A”); (2nd) the provisions of the City’s Request for Proposal; (3rd) the terms of this Agreement; and, (4th) the provisions of the Consultant’s Proposal.

1.3 Compliance with Law. Consultant warrants that all Services rendered shall be performed in accordance with all applicable federal, state, and local laws, statutes, ordinances lawful orders, rules, and regulations. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement.

1.4 Licenses, Permits, Fees, and Assessments. Consultant represents and warrants to City that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Work required by this Agreement. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, qualification, or approval that is legally required for Consultant to perform the Work and under this Agreement.

1.5 Familiarity with Work. By executing this Agreement, Consultant warrants that Consultant: (a) has thoroughly investigated and considered the Scope of Services to be performed, (b) has carefully considered how the Services should be performed, and (c) fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of any Services. Should the Consultant discover any latent or unknown conditions that will materially affect the performance of the Services, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the City.

2. COMPENSATION

2.1 Maximum Contract Amount. For the Services rendered under this Agreement, Consultant shall be compensated by City in accordance with the Schedule of Compensation, which is attached as Exhibit “B” and incorporated herein by this reference. Compensation shall not exceed the maximum contract amount of One Million Five Hundred Thousand Dollars ($1,500,000) ("Maximum Contract Amount"), except as may be provided under Section 2.3. The method of compensation shall be as set forth in Exhibit “B.” Compensation for necessary expenditures must be approved in advance by the Contract Officer designated under Section 4.2.

The Maximum Contract Amount shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City. Consultant shall not be entitled to any increase in the Maximum Contract Amount for attending these meetings.

2.2. Method of Payment. Unless another method of payment is specified in the Schedule of Compensation (Exhibit “B”), in any month in which Consultant wishes to receive payment, Consultant shall submit to the City an invoice for Services rendered prior to the date of the invoice. The invoice shall be in a form approved by the City’s Finance Director and must be submitted no later than the tenth (10th) working day of such month. Such requests shall be based

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upon the amount and value of the Services performed by Consultant and accompanied by such reporting data including an itemized breakdown of all costs incurred and tasks performed during the period covered by the invoice, as may be required by the City. City shall use reasonable efforts to make payments to Consultant within forty-five (45) days after receipt of the invoice or as soon as is reasonably practical. There shall be a maximum of one payment per month.

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

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

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

3. SCHEDULE OF PERFORMANCE

3.1 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement, this Agreement shall continue in full force and effect for a period of three-years, commencing on the Effective Date, and ending on December 31, 2028, unless extended by mutual written agreement of the Parties. However, the term shall not exceed three years from the Effective Date, except as otherwise provided in the Schedule of Performance described in Section 3.4 below.

3.2 Termination Prior to Expiration of Term. The City may terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Consultant.

Where termination is due to the fault of Consultant and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon receipt of the notice of termination, Consultant shall immediately cease all Services except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed Services, and shall not be entitled to damages or compensation for termination of Work. Consultant may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

3.3 Schedule of Performance. Consultant shall commence the Services under this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the Schedule of Performance. When requested by Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer, but such extensions shall not exceed one hundred eighty (180) days cumulatively; however, the City shall not be obligated to grant such an extension.

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3.4 Force Majeure. The time for performance of Services to be rendered under this Agreement may be extended because of any delays due to a Force Majeure Event, if Consultant notifies the Contract Officer within ten (10) days of the commencement of the Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Consultant’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Work); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority. After Consultant notification, the Contract Officer shall investigate the facts and the extent of any necessary delay, and extend the time for performing the Services for the period of the enforced delay when and if, in the Contract Officer’s judgment, such delay is justified.

The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. The Consultant will not receive an adjustment to the contract price or any other compensation. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

4. COORDINATION OF WORK

4.1 Representative of Consultant. The following principal of Consultant is designated as being the principal and representative of Consultant authorized to act in its behalf and make all decisions with respect to the Services to be performed under this Agreement: Jerry van Eyck, Founder and President. It is expressly understood that the experience, knowledge, education, capability, expertise, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services performed hereunder. The foregoing principal may not be changed by Consultant without prior written approval of the Contract Officer.

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

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may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written consent of City.In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Consultant or any surety of Consultant from any liability under this Agreement without the express written consent of City.

4.4 Independent Consultant. The legal relationship between the Parties is that of an independent Consultant, and nothing shall be deemed to make Consultant a City employee.

A. During the performance of this Agreement, Consultant and its officers, employees, and agents shall act in an independent capacity and shall not act or represent themselves as City officers or employees. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of its officers, employees, or agents, except as set forth in this Agreement. Consultant, its officers, employees, or agents shall not maintain an office or any other type of fixed business location at City’s offices. City shall have no voice in the selection, discharge, supervision, or control of Consultant’s employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of service. Consultant shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to social security income tax withholding, unemployment compensation, workers’ compensation, and other similar matters. City shall not in any way or for any purpose be deemed to be a partner of Consultant in its business or otherwise a joint venturer or a member of any joint enterprise with Consultant.

B. Consultant shall not have any authority to bind City in any manner. This includes the power to incur any debt, obligation, or liability against City.

C. No City benefits shall be available to Consultant, its officers, employees, or agents in connection with any performance under this Agreement. Except for professional fees paid to Consultant as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for the performance of Services under this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, or agents, for injury or sickness arising out of performing Services. If for any reason any court or governmental agency determines that the City has financial obligations, other than under Section 2 and Subsection 1.8 in this Agreement, of any nature relating to salary, taxes, or benefits of Consultant’s officers, employees, servants, representatives, subconsultants, or agents, Consultant shall indemnify City for all such financial obligations.

4.5 California Labor Code Requirements.

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failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

5. INSURANCE

5.1 Types of Insurance. Consultant shall procure and maintain, at its sole cost and expense, the insurance described herein. The insurance shall be for the duration of this Agreement and includes any extensions, unless otherwise specified in this Agreement. The insurance shall be procured in a form and content satisfactory to City. The insurance shall apply against claims which may arise from the Consultant's performance of Work under this Agreement, including Consultant's agents, representatives, or employees. In the event the City Manager determines that the Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City Manager or his designee. Consultant shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified in this Agreement. Except as otherwise authorized below for professional liability (errors and omissions) insurance, all insurance provided under this Agreement shall be on an occurrence basis. The minimum amount of insurance required shall be as follows:

A. Errors and Omissions Insurance. Contractor shall obtain and maintain in full force and effect throughout the term of this Agreement, standard industry form contract liability (errors and omissions) insurance coverage in an amount of not less than one million dollars ($1,000,000.00) per occurrence and two-million dollars ($2,000,000.00) annual aggregate, in accordance with the provisions of this section.

X required
is not required;
(1) Consultant shall either: (a) certify in writing to the City that Consultant is unaware of any professional liability claims made against Consultant and is unaware of any facts which may lead to such a claim against Consultant; or (b) if Consultant does not provide the certification under (a), Consultant shall procure from the professional liability insurer an endorsement providing that the required limits of the policy shall apply separately to claims arising from errors and omissions in the rendition of services under this Agreement.

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(2) If the policy of insurance is written on a “claims made” basis, the policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of three (3) years from the date of the completion of the Services provided hereunder. In the event of termination of the policy during this period, Consultant shall obtain continuing insurance coverage for the prior acts or omissions of Consultant during the course of performing Services under the terms of this Agreement. The coverage shall be evidenced by either a new policy evidencing no gap in coverage, or by obtaining separate extended “tail” coverage with the present or new carrier or other insurance arrangements providing for complete coverage, either of which shall be subject to the written approval by the City Manager. (3) In the event the policy of insurance is written on an “occurrence” basis, the policy shall be continued in full force and effect during the term of this Agreement, or until completion of the Services provided for in this Agreement, whichever is later. In the event of termination of the policy during this period, new coverage shall immediately be obtained to ensure coverage during the entire course of performing the Services under the terms of this Agreement.

C. Commercial General Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least one million dollars ($1,000,000.00) and two million dollars ($2,000,000.00) general aggregate for bodily injury and property damage including coverages for contractual liability, personal injury, independent Consultants, broad form property damage, products and completed operations.

5.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager or his/her designee prior to commencing any work or services under this Agreement. Consultant guarantees payment of all deductibles and self-insured retentions. City reserves the right to reject deductibles or selfinsured retentions in excess of $10,000, and the City Manager or his/her designee may require evidence of pending claims and claims history as well as evidence of Consultant’s ability to pay claims for all deductible amounts and self-insured retentions proposed in excess of $10,000.

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5.3 Other Insurance Requirements. The following provisions shall apply to the insurance policies required of Consultant under this Agreement:

A. For any claims related to this Agreement, Consultant’s coverage shall be primary insurance with respect to the City and its officers, council members, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City and its officers, council members, officials, employees, agents, and volunteers shall be in excess of Consultant’s insurance and shall not contribute with it.

C. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage.

D. No required insurance coverages may include any limiting endorsement which substantially impairs the coverages set forth in this Agreement (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City Manager and approved in writing.

E. Consultant agrees to require its insurer to modify insurance endorsements to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the endorsements. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Consultant’s obligation to ensure timely compliance with all insurance submittal requirements as provided in this Agreement.

H. Consultant shall provide proof that policies of insurance required in this Agreement, expiring during the term of this Agreement, have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. Endorsements as required in this Agreement applicable to the renewing or new coverage shall be provided to City no later than ten (10) days prior to expiration

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of the lapsing coverage.

I. Requirements of specific insurance coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements, or as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

J. The requirements in this section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impair the provisions of this section.

K. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the Work performed under this Agreement and for any other claim or loss which may reduce the insurance available to pay claims arising out of this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City, or to reduce or dilute insurance available for payment of potential claims.

5.4 Sufficiency of Insurers. Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless such requirements are waived in writing by the City Manager or his designee due to unique circumstances.

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

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

6. INDEMNIFICATION

6.1 Indemnification and Reimbursement. To the fullest extent permitted by law, Consultant shall defend (at Consultant’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to, Claims arising from injuries to or death of persons (Consultant’s employees included), for damage to property, including property owned by City, for any violation of any federal, state, or local law or ordinance or in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct committed by Consultant, its officers, employees, representatives, and agents, that arise out of or relate to Consultant’s performance of Services or this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Consultant’s indemnification obligation or other liability under this Agreement. Consultant’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final.

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

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7. REPORTS AND RECORDS

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

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

7.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement, or as the Contract Officer shall require. Consultant acknowledges that the City is greatly concerned about the cost of the Work to be performed under this Agreement. For this reason, Consultant agrees that Consultant shall promptly notify the Contract Officer the estimated increased or decreased cost if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services. If Consultant is providing design services, Consultant shall promptly notify the Contract Officer the estimated increased or decreased cost for the project being designed if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the design services.

7.3 Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the Contract Officer or upon the termination of this Agreement. Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Consultant will be at the City's sole risk and without liability to Consultant, and the City shall indemnify the Consultant for all resulting damages. Consultant may retain copies of such documents for their own use.

Consultant shall have an unrestricted right to use the concepts embodied tin this Agreement.

Consultant shall ensure that all its subconsultants shall provide for assignment to City of any documents or materials prepared by them. In the event Consultant fails to secure such assignment, Consultant shall indemnify City for all resulting damages.

All information gained by Consultant in the performance of this Agreement shall be considered confidential and shall not be released by Consultant without City’s prior written authorization.

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accounting principles and shall clearly identify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

8. ENFORCEMENT OF AGREEMENT

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

8.3 Default of Consultant. Consultant’s failure to comply with any provision of this Agreement shall constitute a default.

A. If the City Manager, or his designee, determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Consultant in writing of such default. Consultant shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Consultant fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Consultant shall be liable for all reasonable costs incurred by City as a result of such default. Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing shall limit City’s right to terminate this Agreement without cause under Section 3.2.

B. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.3(A), take over the work and prosecute the same to completion by contract or otherwise. The Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the Maximum Contract Amount (provided that the City shall use reasonable efforts to mitigate such damages). The City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure to withhold payments to Consultant shall not limit Consultant’s liability for completion of the Services as provided in this Agreement.

8.4 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or

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other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions.

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

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

8.7 Attorney Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses. These include but are not limited to reasonable attorney fees, expert consultant fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding.

9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

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

9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Consultant shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Consultant certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Consultant activity, including but not limited to the following: employment, upgrading, demotion or transfer;

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recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Consultant is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting.

10. MISCELLANEOUS PROVISIONS

10.1 Patent and Copyright Infringement. To the fullest extent permissible under law, and in lieu of any other warranty by City or Consultant against patent or copyright infringement, statutory or otherwise:

A. It is agreed that Consultant shall defend at its expense any claim or suit against City on account of any allegation that any item furnished under this Agreement, or the normal use or sale arising out of the performance of this Agreement, infringes upon any presently existing U.S. letters patent or copyright and Consultant shall pay all costs and damages finally awarded in any such suit or claim, provided that Consultant is promptly notified in writing of the suit or claim and given authority, information and assistance at Consultant’s expense for the defense of same, and provided such suit or claim arises out of, pertains to, or is related to the negligence, recklessness or willful misconduct of Consultant. However, Consultant will not indemnify City if the suit or claim results from: (1) City's alteration of a deliverable, such that City’s alteration of such deliverable created the infringement upon any presently existing U.S. letters patent or copyright; or (2) the use of a deliverable in combination with other material not provided by Consultant when it is such use in combination which infringes upon an existing U.S. letters patent or copyright.

B. Consultant shall have sole control of the defense of any such claim or suit and all negotiations for settlement in the event City fails to cooperate in the defense of any suit or claim, provided, however, that such defense shall be at Consultant’s expense. Consultant shall not be obligated to indemnify City under any settlement that is made without Consultant’s consent, which shall not be unreasonably withheld. If the use or sale of such item is enjoined as a result of the suit or claim, Consultant, at no expense to City, shall obtain for City the right to use and sell the item, or shall substitute an equivalent item acceptable to City and extend this patent and copyright indemnity thereto.

10.2 Notice. Any notice, demand, request, consent, approval, or communication that either party desires, or is required to give to the other party or any other person shall be in writing.

All notices shall be personally delivered, sent by pre-paid First Class U.S. Mail, registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission. All notices shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Any notice, request, demand, direction, or other communication sent by facsimile must be confirmed within forty-eight (48) hours by letter mailed or delivered. Other forms of electronic transmission such as e-mails, text messages, and instant messages are not acceptable manners of notice required hereunder. Notices or other communications shall be addressed as follows:

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To City: City of Palm Springs
Attention: City Manager & City Clerk
3200 E. Tahquitz Canyon Way
Palm springs, California 92262
Telephone: (760) 323-8204
Facsimile: (760) 323-8332
To Consultant: Globalmelk LLC
Attention: Jerry van Eyck, President
48 Wall Street, Fl 11
New York, NY 10005
Telephone: (212) 513-1025

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

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

10.5 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

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

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

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

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

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

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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN

THE CITY OF PALM SPRINGS AND GLOBALMELK LLC
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.

CONSULTANT:

By: ______________________________ By: _______________________________ Jerry van Eyck President Ian Hampson, Director
Date: __ Date:

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: ___January 14, 2026 Item No.

APPROVED AS TO FORM: ATTEST:

By: ___________________________ By: _______________________________ City Attorney City Clerk
APPROVED:

By: _______________________________ Date:

City Manager –up to $150,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000

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EXHIBIT “A”

SCOPE OF SERVICES

1.1. Background:

In response to evolving market demands and the need to maintain competitiveness in the regional convention landscape, the City of Palm Springs is initiating a comprehensive renovation and expansion of the Palm Springs Convention Center (PSCC). A cornerstone of the City’s hospitality and tourism economy, the PSCC has served as a premier venue for conferences, exhibitions, and community events since its original construction in 1984. A major expansion and modernization effort was completed in 2005, significantly increasing the facility’s capacity and enhancing its amenities. Despite these improvements, many of the PSCC’s core systems, finishes, and functional spaces now require further upgrades to meet current industry standards and user expectations.

The City, together with its hospitality stakeholders, has expressed the intent to establish a identifiable, branded convention district that links the PSCC with adjacent properties and the downtown core while enhancing the pedestrian experience, resolving traffic conflicts, and providing graphic continuity through placemaking and wayfinding.

The City of Palm Springs is soliciting qualifications from urban design and landscape architecture teams, along with brand and marketing teams, to lead the planning and design of a district scale urban connectivity strategy that links the PSCC with adjacent properties and the downtown core and identifies the PSCC District in harmony with the world class destination of Palm Springs. This work will be a critical component of a broader PSCC Renovation and Expansion Project for the Convention Center, which is being delivered in multiple stages in a separate solicitation (RFQ #16-25):

1.2. Scope of Work:

Urban Connectivity Objectives
Part 1: Connectivity Strategy and Urban Design
The Consultant shall be responsible for developing a comprehensive design vision and implementation strategy for an urban connector that enhances vehicular, pedestrian, and bicycle access between the PSCC and its surrounding downtown context. In addition, a component of the work product will include branding the convention center district which will carry through, but not limited to, signage, experience, and advertising.

A. Defining Urban Connector District Boundaries
a. Consultant shall consider the following area as a recommendation and starting point.

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Initial boundary was recommended by the Palm Springs joint City and Public Urban Connectivity Working Group. i. Arenas Road and Amado Road routes from the Convention Center to the downtown corridor shall be considered as the key connector with the outer areas as support connectors.

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b. General Information
i. Implementation will happen in stages.
ii. Each stage will have different areas of emphasis but must be approached with the wider district plan in mind.
iii. There will be varying levels of development/improvement throughout the district.
c. Identify other districts/points of interest to connect. i. Include strengthened connections to downtown, hotels, the Agua Caliente Cultural Museum, and the Agua Caliente Casino Palm Springs. d. Integrate the PSCC district master plan with the Section 14 Specific Plan as required.
i. https://www.palmspringsca.gov/home/showpublisheddocument/32127/6 35947779722900000
B. Comprehensive Assessment of Existing Conditions
a. Including, but not limited to land use, zoning, compilation of city provided surveys.
b. Deliverables should include but not limited to
i. A written existing conditions report (in PDF format) including maps, tables, and narrative analysis.
ii. GIS data files or shapefiles if applicable
iii. Summary matrix of key findings and implications for project scope C. Develop District Kit of Parts in concert with the Brand Identification Scope and offer design solutions to implement in this and other downtown areas/nodes. a. This deliverable will be used by the City Council and stakeholders as a menu of options from which to direct the final engineered design solution. The kit of parts should be interchangeable and include multiple options at varying costs such that the final design can be assembled in whole from individual recommended urban design elements.
b. Elements to include but not limited to:
i. Lighting
ii. Public Art
iii. Shade structure(s)
iv. Streetscape improvements
v. District wayfinding/placemaking strategies
vi. Green infrastructure
D. Anticipated professional services:

Consultant shall provide the following professional services.

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a. Urban design
b. Landscape architecture
c. Lighting design
d. Communications and public engagement
E. Deliverables:
a. Understanding of existing master plan goals and identification on path forward for improvements
b. Visioning and strategic planning report
c. Conceptual planning and phasing
d. Develop District Kit of Parts (in concert with Brand Identity) i. Rough Order of Magnitude cost estimate for each design element (to inform the entire Urban Design implementation and construction budgeting process)
e. Public engagement reporting in conjunction with the City i. Working group presentations
ii. City Council presentations

1.3. Schedule:

Work will commence on January 1, 2026, and all work shall be completed by December 31, 2027. Current project planning is based on the following milestones.

Architectural services contract award November2025
District Planning design services contract award December 2025 Stage 1 Construction Begins June 2026
Stage 1 Construction Complete February 2027
Stage 2 Construction Begins March 2027
Stage 2 Construction Complete June 2028
District Improvements Construction Begins January 2027
District Improvements Construction Complete December 2027 Consultant shall coordinate with the other PSCC projects to align the urban planning scope to be designed, permitted and constructed to match the PSCC Renovation and Expansion substantial completion timeline.

1.4. Compensation:

Work will be compensated on a not-to-exceed basis in accordance with Exhibit "B". Contract pricing includes all labor, expenses, and incidentals to complete the work outlined in the contract scope. The Consultant may request monthly payments

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based on the percentage of work completed for the previous month as long as a detailed progress report is provided to support the amount requested. No additional compensation will be due by the City unless the contract is modified for additional work requested by the City.

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EXHIBIT “B”

SCHEDULE OF COMPENSATION

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The fee, staffing, and travel allocations below respond to the City’s request for a breakdown of an allocated $1,500,000 not-to-exceed fee, inclusive of all professional services for !melk and its subconsultants. All services will be billed on an hourly, task-order basis consistent with the contract structure.

A. Scope of Work Summary
!melk’s professional services include:
• Defining district boundaries and connectivity networks; • Comprehensive assessment of existing physical, regulatory, and operational conditions; • Development of a district-wide Vision and Strategic Planning Report; • Urban design and conceptual planning for phased implementation; • Creation of a District Public Realm Kit of Parts, in coordination with the Branding/Marketing team; • Rough Order of Magnitude (ROM) cost estimating for all design elements; • Public engagement support and communications;
• GIS mapping, analysis, and reporting;
• Working Group, stakeholder, and City Council presentations; • Coordination with the PSCC architectural team and the Section 14 Specific Plan.

This work will be structured to align with the PSCC Renovation and Expansion schedule and the phased construction timelines. The contract period extends from January 1, 2026 through December 31, 2028.

B. Task Descriptions

1. Existing Conditions Assessment & District Boundary Definition Includes:
• Land use and zoning review;
• Survey compilation and GIS mapping;
• Mobility and circulation analysis;
• Urban systems and environmental conditions review;
• Written Existing Conditions Report (PDF);
• Summary of key findings and implications.

2. District Visioning & Strategic Planning Report
Includes:
• Urban design framework;
• Connectivity logic and hierarchy;
• District identity principles;
• Integration with the Section 14 Specific Plan;
• Stakeholder and Working Group vision refinement sessions; • Graphic narrative and high-level framework diagrams.

Page 2 of 11 ends

Palm Springs City CouncilJanuary 14, 2026

Palm Springs City Council
January 14, 2026