Palm Springs City Council
February 11, 2026

CITY OF PALM SPRINGS

Regular Meeting Agenda

FEBRUARY 11, 2026
4:30 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.

4:30 PM CLOSED SESSION:

CLOSED SESSION CALL TO ORDER:

PUBLIC COMMENT FOR CLOSED SESSION (Council Chamber):

The City Council welcomes public input. Members of the public may address the City Council on Closed Session items by contacting the City Clerk's Office at 760- 323-8204. Pursuant to State Law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). If you are compensated to communicate with City officials, you may be required to register and/or make certain disclosures as a lobbyist. Please see the City Clerk for additional information.

RECESS TO CLOSED SESSION (Small Conference Room):

CONFERENCE WITH LEGAL COUNSEL: The City Council finds, based on advice from the City Attorney, that discussion in open session of the following described matter(s) will prejudice the position of the City in existing and anticipated litigation.

CLOSED SESSION ITEM(S):

CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION,
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(1)

One (1) matter
Palm Springs Promenade, LLC v City of Palm Springs, American Arbitration Association Case No. 01-23-0002-5716

CLOSED SESSION ADJOURNMENT

5:30 PM REGULAR MEETING:

CALL TO ORDER:

PLEDGE OF ALLEGIANCE:

ROLL CALL:

PRESENTATIONS:

A. SUNLINE TRANSIT AGENCY COMPREHENSIVE

OPERATIONAL ANALYSIS 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.

1A. APPROVAL OF MINUTES

RECOMMENDATION:

Approve the City Council Meeting Minutes of January 28, 2026.

1B. TREASURER’S INVESTMENT REPORT AS OF DECEMBER 31,
2025

RECOMMENDATION:

Receive and File

1C. AUTHORIZE THE PURCHASE OF SANITARY SEWER AND

STORM DRAIN MAINTENANCE VEHICLES FOR USE BY

VEOLIA WATER, FOR A TOTAL NOT-TO-EXCEED AMOUNT
OF $1,513,418.19

RECOMMENDATION:

1. Approve the issuance of a purchase order to Plumber’s Depot, Inc. for the purchase of one new 2026 MC1311-
3S4S GapVax Jet-Vac truck in an amount not to exceed
$829,145.49, after discounts and trade in value, inclusive of the purchase price, sales tax and fees; and

2. Approve the issuance of a purchase order to Municipal Maintenance Equipment Inc. for the purchase of one new
RapidView CCTV Truck in an amount not to exceed
$684,272.70, inclusive of sales taxes and fees; and

3. Appropriate $1,513,418.19 From the Wastewater fund;
and

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

1D. AUTHORIZE A TASK ORDER IN THE AMOUNT OF
$29,419.30 FOR VEOLIA WATER WEST OPERATING
SERVICES, INC. TO PROVIDE PROFESSIONAL SERVICES

FOR A WASTEWATER TOTAL NITROGEN EFFLUENT LIMIT

COMPLIANCE REPORT

RECOMMENDATION:

1. Authorize the City Manager to approve a task order for professional services related to the Total Nitrogen Effluent Limit Compliance Technical Report to Veolia Water West Operating, in an amount not to exceed $29,419.30.

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

1E. APPROVAL OF AMENDMENT NO. 4 IN THE AMOUNT OF
$27,124.24 TO PROFESSIONAL SERVICES AGREEMENT
NO. A6597 WITH DOKKEN ENGINEERING FOR THE EAST
PALM CANYON DRIVE BRIDGE, CITY PROJECT NO. 12-04,
FEDERAL AID PROJECT NO. BRLS 5282(041)

RECOMMENDATION:

1. Approve Amendment No. 4 in the amount of $27,124.24
to Professional Services Agreement No. A6597 with
Dokken Engineering, for a new not to exceed amount of
$1,407,428.52, for the East Palm Canyon Drive Bridge,
City Project No. 12-04, Federal Aid Project No. BRLS
5282(041); and

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

1F. ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS TO ENTER INTO AN
AGREEMENT WITH THE GOVERNOR’S OFFICE OF

BUSINESS AND ECONOMIC DEVELOPMENT FOR CANNABIS

EQUITY GRANT FUNDING

RECOMMENDATION:

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

COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, TO
ENTER INTO AN AGREEMENT WITH THE GOVERNOR’S

OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT FOR
CANNABIS EQUITY GRANT FUNDING.”

2. Authorize the City Manager to execute all documents consistent

with this Resolution.

1G. SECOND READING AND ADOPTION OF ORDINANCE NO.
2124 ADDING CHAPTER 3.29 TO THE PALM SPRINGS

MUNICIPAL CODE, PROVIDING FOR ESTABLISHMENT OF

CITY OF PALM SPRINGS TOURISM IMPROVEMENT

DISTRICT LAW

RECOMMENDATION:

Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2124 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.”

1H. SECOND READING AND ADOPTION OF ORDINANCE NO.
2125, AMENDING PALM SPRINGS MUNICIPAL CODE
ARTICLE V OF CHAPTER 8.04 OF TITLE 8 REGARDING

UNDERGROUNDING OF UTILITIES AND CLARIFYING

RESPONSIBILITIES AND ENFORCEMENT MECHANISMS

FOR PRIVATE CONNECTIONS TO UNDERGROUND PUBLIC

UTILITIES

RECOMMENDATION:

1. Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2125, “AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,

AMENDING PALM SPRINGS MUNICIPAL CODE ARTICLE V OF
CHAPTER 8.04 OF TITLE 8 SECTION 8.04.452 AND ADDING
SECTIONS 8.04.453 THROUGH 8.04.457 CLARIFYING

RESPONSIBILITIES AND ENFORCEMENT MECHANISMS FOR

PRIVATE CONNECTIONS TO UNDERGROUND PUBLIC
UTILITIES.”

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

2. PUBLIC HEARINGS: None.

3. BUSINESS & LEGISLATIVE:

3A. RE-INTRODUCTION OF AN ORDINANCE ADDING CHAPTER

5.27 TO THE PALM SPRINGS MUNICIPAL CODE,
RESTRUCTURING THE CITY’S HOTEL OPERATIONS

INCENTIVE PROGRAM (CITYWIDE)

RECOMMENDATION:

1. Waive the reading of the ordinance text in its entirety and read by title only; and introduce for first reading an Ordinance entitled, “AN

ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,
ADDING CHAPTER 5.27 TO THE PALM SPRINGS MUNICIPAL

CODE, RELATING TO A RESTRUCTURED HOTEL
OPERATIONS INCENTIVE PROGRAM,” and approve the
ordinance. (The new Chapter 5.27 will replace the current Chapter

5.26 program for future agreements.)

2. Authorize the City Manager and City Attorney to make minor non- substantive changes to the ordinance and execute all necessary documents to implement the program.

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 6:30 PM, on 02/04/2026, and posted on the City’s website as required by established policies and procedures.

Brenda Pree, MMC, CERA
City Clerk

PUBLIC NOTICE

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.

(DRAFT MEETING MINUTES)
January 28, 2026
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 Soto on January 28, 2026, at 5:41 p.m.

PLEDGE OF ALLEGIANCE:

Sherlyn Hernandez Laces, an elementary school student, led the City Council in the Pledge of Allegiance.

ROLL CALL:

Present: Councilmember Jeffrey Bernstein, Councilmember Ron deHarte, Councilmember Grace Garner, Mayor Naomi Soto, Mayor Pro Tem David Ready

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:

A. UPDATE ON CITYWIDE TRAFFIC INITIATIVES – PALM SPRINGS

POLICE DEPARTMENT
Chief Mills presented an update on citywide traffic initiatives.

PROCLAMATIONS:

Mayor Soto announced the issuance of the following proclamations:
• On January 17, 2026, Barbara Rogers and Gary Geske were honored with a proclamation.

A – Page 9 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 2
• On January 19, 2026, Matteo Lane was recognized for his sold-out shows at the Plaza Theatre.

ACCEPTANCE OF THE AGENDA:

Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Accept the agenda with the removal of Consent Calendar Item Nos. 1D, 1F, 1H, and 1I for separate discussion; with Councilmember deHarte noting a recusal on Consent Calendar Item 1B.

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

The Closed Session of the City Council of January 28, 2026, was called to order by Mayor Soto at 4:13 p.m.

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— EXISTING LITIGATION, Pursuant to Government Code Section 54956.9(d)(1)

Southern California Edison v. City of Palm Springs, Riv., Sup. Ct. No CVPS2405378

CONFERENCE WITH REAL PROPERTY NEGOTIATORS, Pursuant to Government Code Section 54956.8

Property:

City Negotiator:

Negotiating parties:

Under negotiation:

APN 677-530-015, North of Airport Center Drive and East of El Cielo, Palm Springs, CA 92262
Victoria Carpenter, Assistant Airport Director;
Harry Barrett, Executive Director
Michael D. Chesser, Chesser Real Estate Group, Inc.
for PSP Airport, L.P.

Price and Terms of Payment

A – Page 10 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 3

CONFERENCE WITH LABOR NEGOTIATORS, Pursuant to Government Code Section 54957.6

City Negotiators:

Employee organizations:

Scott Stiles, City Manager
Stephanie George, Human Resources Director
Peter Brown, Legal Counsel
Palm Springs Firefighters Association
Palm Springs Fire Management Association
Public Employees Association of Palm Springs
Management Association of Palm Springs
PUBLIC TESTIMONY: (Non-Public Hearing Agenda Items Only) Joy Brown Meredith, Matt Bousquette, Claudia Murphy, Michael Joseph Pitkin, Kevin Murphy, Andrew Raei, Harry Pflueger, Dena Banes, Tim Erkins, Dominic Moonheart, and John Park provided oral testimony.

1. CONSENT CALENDAR:

Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Approve the Consent Calendar with the removal of Item Nos. 1D, 1F, 1H, and 1I for separate discussion; and Councilmember deHarte recusing from Consent Calendar Item 1B.
1A. APPROVAL OF MINUTES
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Approve the City Council meeting minutes of January 14, 2026.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1B. STAFF AUTHORIZED AGREEMENTS AND PURCHASE ORDERS FOR THE PERIOD OF OCTOBER 1 THROUGH DECEMBER 31, 2025
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 4 – 0, to: Receive and file the report of Staff

A – Page 11 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 4
Authorized Agreements and Purchase Orders for the period of October 1 through December 31, 2025.

AYES: Councilmember Bernstein, Councilmember Garner, Mayor Soto, Mayor Pro Tem Ready
NAYS: None
ABSTAIN: None
RECUSED: Councilmember deHarte
1C. APPROVAL OF PAYROLL & ACCOUNTS PAYABLE WARRANTS,

CLAIMS AND DEMANDS
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to: Adopt Resolution No. 25375 entitled, “A

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

CALIFORNIA, APPROVING PAYMENT OF PAYROLL
WARRANTS/DISBURSEMENTS FOR THE PERIOD ENDING 12-06-25, 12-20- 25, and 01-03-26 TOTALING $9,437,100.80 AND ACCOUNTS PAYABLE WARRANTS DATED 11-25-25, 12-04-25, 12-15-25, 12-18-25, 12-29-25 and 12-31-25 TOTALING $21,670,645.08 IN THE AGGREGATE AMOUNT OF $31,107,745.88 DRAWN ON BANK OF AMERICA”.

AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1D. ACCEPTANCE OF THE 2025 PAVEMENT REHABILITATION PROJECT, CITY PROJECT 25-01
Motion by Councilmember Bernstein, Second by Mayor Soto, CARRIED 5 – 0, to:

1. Accept the 2025 Pavement Rehabilitation Project, City Project No. 25-01, as completed in accordance with the plans and
specifications; and

2. Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for the 2025 Pavement Rehabilitation Project, City Project No. 25-01.

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

A – Page 12 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 5
NAYS: None
ABSTAIN: None
RECUSED: None
1E. APPROVE CONSTRUCTION CONTRACT NO. 25C468 WITH QUINN

COMPANY DBA QUINN POWER SYSTEMS FOR THE PURCHASE AND
INSTALLATION OF (1) NEW CATERPILLAR MODEL C9, EPA TIER 3,

STATIONARY EMERGENCY DIESEL GENERATOR SET AND
PURCHASE AND INSTALLATION OF (1) CATERPILLAR, MODEL CG,

OPEN TRANSITION AUTOMATIC TRANSFER SWITCH FOR THE PALM
SPRINGS ANIMAL SHELTER; IN AN AMOUNT NOT TO EXCEED
$248,813.32
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Approve Construction Contract No. 25C468 with Quinn Company dba Quinn Power Systems, in an amount not to exceed $248,813.32 for the purchase and installation of (1) new Caterpillar model C9, EPA Tier 3, Stationary Emergency Diesel Generator Set and Purchase and Installation of (1) Caterpillar, Model CG, Open Transition Automatic Transfer Switch, City Project No. 19-26 ; 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
1F. APPROVE AMENDMENT NO. 2 TO CONCESSION AGREEMENT NO. 23P069 FOR AIRPORT DISPLAY ADVERTISING WITH FUSE

CONNECT, LLC FOR SPONSORSHIP AND MANAGEMENT OF VACANT

TERMINAL BUILDING SPACE AND ADDITIONAL CAPITAL

INVESTMENT AT THE PALM SPRINGS INTERNATIONAL AIRPORT
Motion by Councilmember Bernstein, Second by Councilmember Garner, CARRIED 5 – 0, to:

1. Approve Amendment No. 2 to Concession Agreement No. 23P069 for Airport Display Advertising with Fuse Connect, LLC for sponsorship and management of vacant terminal building space and capital investment of $50,000 at the Palm Springs International Airport.

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

A – Page 13 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 6
AYES: Councilmember Bernstein, Councilmember deHarte,
Councilmember Garner, Mayor Soto, Mayor Pro Tem
Ready
NAYS: None
ABSTAIN: None
RECUSED: None
1G. APPROVAL OF PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E)

AND AUTHORIZATION TO BID THE AIRPORT FIVE NEW
MONITORING WELLS, AIRPORT PROJECT PSP 26-043
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Approve the plans, specifications and estimate and authorize staff to advertise and solicit bids for the Airport five New Monitoring Wells, (“the Project”).

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
1H. AWARD OF A CONSTRUCTION CONTRACT TO ZECO, INC., A
CALIFORNIA CORPORATION, IN THE AMOUNT OF $6,490,150.31;

APPROVAL OF A TASK ORDER UNDER AN ON-CALL AGREEMENT

FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES
WITH DUDEK & ASSOCIATES, INC. IN THE AMOUNT OF $399,450;

APPROVAL OF A TASK ORDER UNDER AN ON-CALL AGREEMENT

FOR COMMUNITY WORKFORCE AGREEMENT ADMINISTRATION
WITH TSG ENTERPRISES, INC., DBA THE SOLIS GROUP, IN THE AMOUNT OF $24,200; AND APPROVE A CULTURAL MONITORING

AGREEMENT WITH THE AGUA CALIENTE BAND OF CAHUILLA
INDIANS FOR A NOT-TO-EXCEED AMOUNT OF $50,000, FOR THE
DEMUTH PARK DEVELOPMENT PROJECT, CITY PROJECT 21-16
Motion by Councilmember deHarte, Second by Councilmember Bernstein, CARRIED 5 – 0, to:

1. Award a construction contract to Zeco, Inc., in the amount of $6,490,150.31 for the Demuth Park Development Project, City Project No. 21-16 (“the Project”);

A – Page 14 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 7

2. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $600,000 with all change orders reported and filed to the City Council;

3. Authorize the City Manager to approve a task order for project management and inspection services with Dudek & Associates, in an amount of $399,450;

4. Authorize the City Manager to approve a task order for Community Workforce Agreement administration services from an on-call CWA firm, TSG Enterprises, Inc., The Solis Group, in an amount of $24,200;

5. Authorize the City Manager to enter into an agreement with the Agua Caliente Band of Cahuilla Indians for Cultural Monitoring for a not to exceed amount of $50,000, once the language in the final agreement is approved by the City Attorney; and

6. 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
1I. APPROVE PROFESSIONAL SERVICES AGREEMENT NO. 25Q465

WITH ACCENTURE INFRASTRUCTURE AND CAPITAL PROJECTS,

LLC FOR AIRPORT PROGRAM MANAGEMENT AND ADVISORY

CONSULTING SERVICES FOR THE AIRPORT
Motion by Councilmember Garner, Second by Councilmember Bernstein, CARRIED 4 – 1, to:

1. Approve Professional Services Agreement No. 25Q465 with Accenture Infrastructure and Capital Projects, LLC to provide Airport Program Management and Advisory Consulting Services for an amount not to exceed $6,000,000 for an initial three-year term commencing on January 29, 2026, and continuing through January 28, 2029, for an amount not to exceed $6,000,000; with two one- year extension options at the City’s sole discretion.

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

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

A – Page 15 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 8

2. PUBLIC HEARINGS:
2A. AN APPLICATION BY JOAN AND GARY GAND FOR HISTORIC SITE DESIGNATION OF “THE FALLOWS-CONE RESIDENCE” LOCATED AT
765 VIA VADERA (APN 505-093-005), CASE HSPB #168.

Gary Gand, Joan Gand, Jade Nelson, Susan Secoy Jensen, and Michael Joseph Pitkin provided oral testimony.

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

1. Open the public hearing and receive public testimony.

2. Close the public hearing and adopt Resolution No. 25376 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM

SPRINGS, CALIFORNIA, DESIGNATING THE FALLOWS-CONE
RESIDENCE LOCATED AT 765 VIA VADERA, AS A CLASS 1
(LANDMARK) HISTORIC RESOURCE HSPB #168, SUBJECT TO
CONDITIONS (APN 505-093-005).”

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

3. BUSINESS & LEGISLATIVE:
3A. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM

SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL
CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8 REGARDING

UNDERGROUNDING OF UTILITIES AND CLARIFYING

RESPONSIBILITIES AND ENFORCEMENT MECHANISMS FOR

PRIVATE CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES
Motion by Councilmember deHarte, Second by Councilmember Bernstein, as amended, CARRIED 5 – 0, to:

1. Conduct first reading and introduce Ordinance No. 2125, an Ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8 SECTION

8.04.452 AND ADDING SECTIONS 8.04.453 THROUGH 8.04.456

CLARIFYING RESPONSIBILITIES AND ENFORCEMENT MECHANISMS

A – Page 16 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 9
FOR PRIVATE CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES.”

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
RECESS / RECONVENE:

The City Council recessed at 8:29 p.m. and reconvened at 8:38 p.m. 3B. PROVIDE DIRECTION ON RECOMMENDED PARKING MANAGEMENT

STRATEGIES
The City Council reached a consensus to establish a parking management strategies ad hoc subcommittee consisting of Councilmembers deHarte and Bernstein.
3C. INTRODUCE AN ORDINANCE ADDING CHAPTER 5.27 TO THE PALM SPRINGS MUNICIPAL CODE, RESTRUCTURING THE CITY’S HOTEL

OPERATIONS INCENTIVE PROGRAM (CITYWIDE)
The City Council reached consensus to continue the item to the next regular meeting.

PUBLIC COMMENT: (Non-Agenda Items)
Priscilla Careg, Matt Bousquette, Claudia Murphy, Michael Joseph Pitkin, Kevin Murphy, John Park, and Dominic Moonheart provided oral testimony.

CITY COUNCIL AND CITY MANAGER COMMENTS, REPORTS, & AGENDA DEVELOPMENT:

A. TENTATIVE UPCOMING MEETING SCHEDULE
City Manager Stiles and the City Council discussed the tentative meeting schedule and agenda items for upcoming meetings.

ADJOURNMENT:

The City Council adjourned the Regular Meeting of January 28, 2026, at 10:43 p.m.

A – Page 17 of 244

City Council Minutes January 28, 2026
City of Palm Springs (DRAFT) Page 10
Respectfully submitted,
Brenda Pree, MMC, CERA
City Clerk

A – Page 18 of 244

CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 11, 2026 CONSENT CALENDAR
SUBJECT: TREASURER’S INVESTMENT REPORT AS OF DECEMBER 31, 2025 FROM: Scott C. Stiles, City Manager
BY: Department of Finance & Treasury
SUMMARY:

Attached is the Treasurer’s Investment Report as of December 31, 2025.

RECOMMENDATION:

Receive and File.

STAFF ANALYSIS:

The City has compiled a Treasurer’s report working with Chandler Asset Management, the City’s Asset Management Firm, in ensuring the City compiles with Section 17.0 of the Council approved Investment Policy and California Government Code (Code) Section 53607 and 53646.

The Code Section 53607 requires a monthly report of transactions to be submitted to the City Council. Code Section 53646 states if the City chooses to issue a Quarterly Report, it must be submitted within 45 days. See pages 43 – 45 for the transactions by month for the quarter.

The City’s total portfolio value as of December 31, 2025 is $418,146,847 vs. $440,095,698 on September 30, 2025 (Attachment A, page 32).

The City’s average market yield is 3.68% for the total portfolio (Attachment A, page 32).

The average maturity of the City’s Investments is 1.97 years (Attachment A, page 32).

This Treasurer’s Report is in compliance with Section 17.0 of the Investment Policy. The City has sufficient availability of funds to meet the next six months of obligations. The cash balance in the City’s Bank of America account as of September 30, 2025 was $27,833,826 which is not included in the attached Treasurer’s Report.

B – Page 19 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Treasurer’s Investment Report as of December 31, 2025
7 2
8 ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the following City Council Strategic Plan Foundation of Financial and Organizational Well-Being.

FISCAL IMPACT:

None.

REVIEWED BY:

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

ATTACHMENTS:

A. Treasurer’s Investment Report

B – Page 20 of 244

ATT

ACHMENT A
Treasurer's Investment
Report

B – Page 21 of 244

INVESTMENT REPORTCity of Palm Springs | As of December 31, 2025CHANDLER ASSET MANAGEMENT | chandlerasset.comChandler Team:For questions about your account, please call (800) 317-4747, or contact [email protected] contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

B – Page 22 of 244

TABLE OF CONTENTSECONOMIC UPDATE ACCOUNTPROFILECONSOLIDATEDINFORMATIONPORTFOLIO HOLDINGSTRANSACTIONS 1 B – Page 23 of 244

ECONOMIC UPDATE
2 B – Page 24 of 244

ECONOMIC UPDATE
3 B – Page 25 of 244

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 B – Page 26 of 244

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 B – Page 27 of 244

Source: US Department of Labor Source: US Department of Commerce

INFLATION
6 B – Page 28 of 244

Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
7 B – Page 29 of 244

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
8 B – Page 30 of 244

Source: US Department of CommerceSource: S&P

HOUSING
9 B – Page 31 of 244

Source: Institute for Supply Management

SURVEY BASED MEASURES
10 B – Page 32 of 244

Source: US Department of CommerceSource: US Department of Commerce

GROSS DOMESTIC PRODUCT (GDP)
11 B – Page 33 of 244

Source: Federal Reserve Source: Bloomberg

FEDERAL RESERVE
12 B – Page 34 of 244

Source: Bloomberg Source: Bloomberg

BOND YIELDS
13 B – Page 35 of 244

PERIODIC TABLE OF ASSET CLASS RETURNS
Index returns as of 12/31/2025. Past performance is not indicative of future results. Index returns assume reinvestment of all distributions and do not reflect fees or expenses. It is not possible to invest directly in anindex. This information is not intended to constitute an offer, solicitation, recommendation, or advice regarding securities or investment strategy. Please see attached Asset Class Disclosure. 2015 2016 2017 2018 2019 2020 2021 2022 20232024 2025US Real Estate 2.5%US Small Cap Stocks 20.4%Emerging Market Stocks 37.3%International Bonds 3.2%US Large Cap Stocks 31.5%US Mid Cap Stocks 19.8%US Real Estate 43.1%Diversified Commodities 26.0%US Large Cap Stocks 26.3%US Large Cap Stocks 25.0%Emerging Market Stocks 33.6%US Large Cap Stocks 1.4%US High Yield Bonds 17.5%International Stocks 25.0%US Core Bonds 0.0%US Mid Cap Stocks 30.6%US Small Cap Stocks 19.2%Diversified Commodities 40.4%US High Yield Bonds -11.2%US Small Cap Stocks 19.1%US Mid Cap Stocks 17.2%International Stocks 31.2%International Bonds 1.3%US Mid CapStocks 12.6%US Large Cap Stocks 21.8%US High Yield Bonds -2.3%US Small Cap Stocks 25.9%US Large Cap Stocks 18.4%US Large Cap Stocks 28.7%International Bonds -12.7%International Stocks 18.2%US Small Cap Stocks 11.0%International Real Estate 25.2%US Core Bonds 0.6%US Large Cap Stocks 12.0%US Mid Cap Stocks 20.3%US Large Cap Stocks -4.4%US Real Estate 25.8%Emerging Market Stocks 18.3%US Mid Cap Stocks 24.0%US Core Bonds -13.3%US Mid Cap Stocks 14.5%Diversified Commodities 9.2%US Large Cap Stocks 17.9%US Mid CapStocks -0.6%Diversified Commodities 11.4%International Real Estate 20.0%US Real Estate -4.6%International Stocks 22.0%International Stocks 7.8%US Small Cap Stocks 21.1%International Stocks -14.5%US Real Estate 13.7%US Real Estate 8.8%US Small Cap Stocks 12.1%International Stocks -0.8%Emerging Market Stocks 11.2%US Small Cap Stocks 15.2%International Real Estate -6.4%International Real Estate 21.0%US Core Bonds 7.6%International Stocks 11.3%US Mid Cap Stocks -16.9%US High Yield Bonds 13.5%US High Yield Bonds 8.2%US Mid Cap Stocks 11.3%International Real Estate -3.8%US Real Estate 8.6%US High Yield Bonds 7.5%US Mid Cap Stocks -8.1%Emerging Market Stocks 18.4%US High Yield Bonds 6.2%International Real Estate 8.1%US Small Cap Stocks -17.8%Emerging Market Stocks 9.8%Emerging Market Stocks 7.5%US High Yield Bonds 8.5%US Small Cap Stocks -4.1%International Bonds 4.9%Diversified Commodities 5.8%US Small Cap Stocks -11.0%Diversified Commodities 17.6%International Bonds 4.7%US High Yield Bonds 5.4%US Large Cap Stocks -18.1%International Bonds 8.7%International Stocks 3.8%US Core Bonds 7.2%US High Yield Bonds -4.6%US Core Bonds 2.6%US Real Estate 5.1%International Stocks -13.8%US High Yield Bonds 14.4%International Real Estate -7.1%US Core Bonds -1.6%Emerging Market Stocks -20.1%International Real Estate 6.3%International Bonds 3.8%Diversified Commodities 7.1%Emerging Market Stocks -14.9%International Real Estate 1.3%US Core Bonds 3.6%Diversified Commodities -13.8%US Core Bonds 9.0%US Real Estate -7.6%International Bonds -2.1%International Real Estate -24.3%US Core Bonds 5.4%US Core Bonds 1.3%International Bonds 3.0%Diversified Commodities -32.9%International Stocks 1.0%International Bonds 2.6%Emerging Market Stocks -14.6%International Bonds 8.1%Diversified Commodities -23.7%Emerging Market Stocks -2.5%US Real Estate -24.5%Diversified Commodities -4.3%International Real Estate -8.4%US Real Estate 2.9%14

B – Page 36 of 244

ACCOUNT PROFILE
15 B – Page 37 of 244

OBJECTIVESInvestment ObjectivesThe investment objectives of the City of Palm Springs are first, to provide safety of principalto ensure the preservation of capital in the overall portfolio; second, to provide adequate liquidity to meet all requirements which might be reasonably anticipated; and third, to earn a commensurate rate of return.Chandler Asset Management Performance ObjectiveThe performance objective for the portfolio is to achieve a rate of return over a market cyclethat equals or exceeds the return on a market index of similar duration and sector allocation.StrategyIn order to achieve these objectives, the portfolio invests in high quality fixed income securitiesconsistent with the investment policy and California Government Code.16

B – Page 38 of 244

STATEMENT OF COMPLIANCECity of Palm Springs | Account #10805 | As of December 31, 2025Rules Name Limit ActualCompliance StatusNotesAGENCY MORTGAGE SECURITIESMax % (MV) 20.0 5.5 CompliantMax Maturity (Years) 5.0 3.2 CompliantASSET-BACKED SECURITIES (ABS)Max % (MV) 20.0 2.6 CompliantMax % Issuer (MV) 5.0 1.3 CompliantMax Maturity (Years) 5 3 CompliantMin Rating (AA- by 1) 0.0 0.0 CompliantBANKERS' ACCEPTANCESMax % (MV) 20.0 0.0 CompliantMax % Issuer (MV) 5.0 0.0 CompliantMax Maturity (Days) 180 0.0 CompliantMin Rating (A-1 by 3) 0.0 0.0 CompliantCERTIFICATE OF DEPOSIT PLACEMENT SERVICE(CDARS)Max % (MV) 30.0 0.0 CompliantMax Maturity (Years) 5.0 0.0 CompliantCOLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE CD/TD)Max % (MV) 20.0 0.0 CompliantMax Issuer Amount (MV) 500,000.0 0.0 CompliantMax Maturity (Years) 5.0 0.0 CompliantMin Rating (A-1 by 2; A- by 2) 0.0 0.0 CompliantCOMMERCIAL PAPERMax % (MV) 15.0 0.0 CompliantMax % Issuer (MV) 5.0 0.0 CompliantMax Maturity (Days) 270 0.0 CompliantMin Rating (A-1 by 1 or A- by 1) 0.0 0.0 CompliantCORPORATE MEDIUM TERM NOTESMax % (MV) 30.0 20.8 Compliant17

B – Page 39 of 244

STATEMENT OF COMPLIANCECity of Palm Springs | Account #10805 | As of December 31, 2025Rules Name Limit ActualComplianceStatusNotesMax % Issuer (MV) 5.0 1.3 CompliantMax Maturity (Years) 5 4 CompliantMin Rating (A- by 1) 0.0 0.0 CompliantFDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/TD)Max % (MV) 20.0 0.0 CompliantMax Maturity (Years) 5 0.0 CompliantFEDERAL AGENCIESMax % (MV) 60.0 23.5 CompliantMax Callables (MV) 20.0 3.0 CompliantMax Maturity (Years) 5 3 CompliantLOCAL AGENCY INVESTMENT FUND (LAIF)Max Concentration (MV) 75.0 0.0 CompliantLOCAL GOVERNMENT INVESTMENT POOL (LGIP)Max % (MV) 20.0 0.0 CompliantMONEY MARKET MUTUAL FUNDSMax % (MV) 20.0 0.0 CompliantMax % Issuer (MV) 10.0 0.0 CompliantMin Rating (AAA by 2) 0.0 0.0 CompliantMORTGAGE-BACKED SECURITIES (NON-AGENCY)Max % (MV) 20.0 0.0 CompliantMax % Issuer (MV) 5.0 0.0 CompliantMax Maturity (Years) 5.0 0.0 CompliantMin Rating (AA- by 1) 0.0 0.0 CompliantMUNICIPAL SECURITIES (CA, LOCAL AGENCY)Max % (MV) 15.0 0.0 CompliantMax % Issuer (MV) 5.0 0.0 CompliantMax Maturity (Years) 5 0.0 CompliantMin Rating (A- by 1) 0.0 0.0 CompliantMUTUAL FUNDS18

B – Page 40 of 244

STATEMENT OF COMPLIANCECity of Palm Springs | Account #10805 | As of December 31, 2025Rules Name Limit ActualCompliance StatusNotesMax % (MV) 20.0 0.0 CompliantMax % Issuer (MV) 10.0 0.0 CompliantMin Rating (AAA by 2) 0.0 0.0 CompliantNEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)Max % (MV) 30.0 0.0 CompliantMax % Issuer (MV) 5.0 0.0 CompliantMax Maturity (Years) 5 0.0 CompliantMin Rating (A- by 2 or A-1 by 2 if > FDIC Limit) 0.0 0.0 CompliantSRI PROHIBITED INVESTMENTSProhibited Investments - Firearms 0.0 0.0 CompliantSUPRANATIONAL OBLIGATIONSMax % (MV) 30.0 1.3 CompliantMax % Issuer (MV) 10.0 1.3 CompliantMax Maturity (Years) 5 0.0 CompliantMin Rating (AA- by 1) 0.0 0.0 CompliantU.S. TREASURIESMax % (MV) 100.0 46.3 CompliantMax Maturity (Years) 5 4 Compliant19

B – Page 41 of 244

PORTFOLIO CHARACTERISTICSCity of Palm Springs | Account #10805 | As of December 31, 2025Benchmark*12/31/2025Portfolio9/30/2025PortfolioAverage Maturity (yrs) 2.64 2.12 2.29Average Modified Duration 2.47 1.91 2.06Average Purchase Yield 3.97% 3.95%Average Market Yield 3.55% 3.66% 3.80%Average Quality** AA+ AA+ AA+Total Market Value 388,671,877 400,933,285 *Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index**The credit quality is a weighted average calculation of the highest of S&P,and Fitch.20

B – Page 42 of 244

SECTOR DISTRIBUTIONCity of Palm Springs | Account #10805 | As of December 31, 2025 Sector as a Percentage of Market ValueSector 12/31/2025 09/30/2025US Treasury 46.26% 44.78%Agency 23.46% 23.70%Corporate 20.82% 20.12%Agency CMBS 5.53% 5.35%ABS 2.62% 2.54%Supras 1.29% 1.24%Money Mkt Fd 0.03% 2.28%21

B – Page 43 of 244

DURATION ALLOCATIONCity of Palm Springs | Account #10805 | As of December 31, 2025 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+12/31/2025 8.1% 5.5% 8.4% 30.4% 29.7% 16.6% 1.3% 0.0% 0.0%22

B – Page 44 of 244

ISSUERSCity of Palm Springs | Account #10805 | As of December 31, 2025Issuer Investment Type % PortfolioUnited States US Treasury 46.26%Federal Home Loan Banks Agency 12.43%Farm Credit System Agency 11.02%FHLMC Agency CMBS 5.53%Eli Lilly and Company Corporate 1.33%PepsiCo, Inc. Corporate 1.33%Mercedes-Benz Auto Receivables Trust ABS 1.31%GM Financial Automobile Leasing Trus ABS 1.31%Deere & Company Corporate 1.30%International Finance Corporation Supras 1.29%Bank of America Corporation Corporate 1.06%JPMorgan Chase & Co. Corporate 1.06%Merck & Co., Inc. Corporate 1.03%Mastercard Incorporated Corporate 1.03%Morgan Stanley Corporate 1.03%Pfizer Inc. Corporate 1.03%Amazon.com, Inc. Corporate 1.02%Visa Inc. Corporate 1.02%The Home Depot, Inc. Corporate 0.94%Target Corporation Corporate 0.83%Caterpillar Inc. Corporate 0.80%PACCAR Inc Corporate 0.79%Northern Trust Corporation Corporate 0.78%Microsoft Corporation Corporate 0.77%The Procter & Gamble Company Corporate 0.65%The Charles Schwab Corporation Corporate 0.58%BNY Mellon Corp Corporate 0.52%U.S. Bancorp Corporate 0.51%Costco Wholesale Corporation Corporate 0.51%Apple Inc. Corporate 0.51%23

B – Page 45 of 244

ISSUERSCity of Palm Springs | Account #10805 | As of December 31, 2025Issuer Investment Type % PortfolioState Street Corporation Corporate 0.38%Allspring Group Holdings LLC Money Mkt Fd 0.03%Cash Cash 0.00%TOTAL100.00% 24 B – Page 46 of 244

QUALITY DISTRIBUTION
Rating12/31/2025 09/30/2025AAA 6.42% 8.46%AA 75.82% 75.77%A 16.39% 15.78%A-1+ 1.38% --Rating12/31/2025 09/30/2025Aaa 4.67% 6.75%Aa 78.22% 78.07%A 13.13% 12.66%P-1 1.38% --NA 2.61% 2.53%Rating12/31/2025 09/30/2025AAA 5.05% 7.13%AA 75.98% 75.45%A 6.80% 6.53%F1+ 1.38% --NA 10.80% 10.89% City of Palm Springs | Account #10805 | As of December 31, 2025S&P Rating RatingFitch Rating 25 B – Page 47 of 244

0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+Portfolio 8.1% 5.5% 8.4% 30.4% 29.7% 16.6% 1.3% 0.0% 0.0%ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index0.0% 0.0% 2.5% 35.4% 28.7% 21.2% 12.3% 0.0% 0.0% DURATION DISTRIBUTIONCity of Palm Springs | Account #10805 | As of December 31, 2025Portfolio Compared to the Benchmark 26 B – Page 48 of 244

DURATION DISTRIBUTIONCity of Palm Springs | Account #10805 | As of December 31, 2025 Date 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+12/31/2025 8.1% 5.5% 8.4% 30.4% 29.7% 16.6% 1.3% 0.0% 0.0%09/30/2025 4.7% 7.6% 9.3% 25.0% 26.6% 22.3% 4.5% 0.0% 0.0% 27 B – Page 49 of 244

TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since InceptionCity of Palm Springs 1.13% 5.63% 4.79% 4.76% 2.26%Benchmark1.11% 5.73% 4.57% 4.48% 1.53%*Periods over 1 year are annualized.Total rate of return: A measure of a performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index INVESTMENT PERFORMANCECity of Palm Springs | Account #10805 | As of December 31, 2025Total Rate of Return : Inception | 04/01/2021 28 B – Page 50 of 244

PORTFOLIO CHARACTERISTICSCity of Palm Springs Reporting | Account #10806 | As of December 31, 202512/31/2025Portfolio9/30/2025PortfolioAverage Maturity (yrs) 0.00 0.00Average Modified Duration 0.00 0.00Average Purchase Yield 3.98% 4.19%Average Market Yield 3.98% 4.19%Average Quality** AAA AAATotal Market Value 29,474,970 39,162,413 *Benchmark: NO BENCHMARK REQUIRED**The credit quality is a weighted average calculation of the highest of S&P,and Fitch.29

B – Page 51 of 244

SECTOR DISTRIBUTIONCity of Palm Springs Reporting | Account #10806 | As of December 31, 2025 Sector as a Percentage of Market ValueSector 12/31/2025 09/30/2025LAIF 75.01% 81.37%LGIP 24.99% 18.63%30

B – Page 52 of 244

CONSOLIDATED INFORMATION31

B – Page 53 of 244

PORTFOLIO CHARACTERISTICSCity of Palm Springs Cons | Account #10807 | As of December 31, 202512/31/2025Portfolio9/30/2025PortfolioAverage Maturity (yrs) 1.97 2.09Average Modified Duration 1.77 1.88Average Purchase Yield 3.97% 3.97%Average Market Yield 3.68% 3.83%Average Quality** AA+ AA+Total Market Value 418,146,847 440,095,698 *Benchmark: NO BENCHMARK REQUIRED**The credit quality is a weighted average calculation of the highest of S&P,and Fitch.32

B – Page 54 of 244

SECTOR DISTRIBUTIONCity of Palm Springs Cons | Account #10807 | As of December 31, 2025 Sector as a Percentage of Market ValueSector 12/31/2025 09/30/2025US Treasury 43.00% 40.80%Agency 21.80% 21.59%Corporate 19.35% 18.33%LAIF 5.28% 7.22%Agency CMBS 5.14% 4.87%ABS 2.44% 2.32%LGIP 1.76% 1.65%Supras 1.20% 1.13%Money Mkt Fd 0.02% 2.08%33

B – Page 55 of 244

PORTFOLIO HOLDINGS34

B – Page 56 of 244

HOLDINGS REPORTCity of Palm Springs | Account #10805 | As of December 31, 2025Cusip Security DescriptionPar Value/UnitsPurchaseDate PurchaseYieldCost Value Book ValueMkt Price Mkt YTMMarket Value Accrued Int.% of Port. Gain/LossMoody's/ S&P/ FitchMaturityDurationABS362962AD4GMALT 2025-2 A3 4.58 05/22/20285,000,000.0005/27/20254.77%5,005,664.065,004,029.62100.903.87%5,044,870.006,997.221.31%40,840.38NA/AAA AAA2.391.1858768YAD7MBALT 2025-A A3 4.61 04/16/20295,000,000.0005/19/20254.54%5,012,304.695,009,501.10101.323.94%5,065,930.0010,244.441.31%56,428.90NA/AAA AAA3.291.84Total ABS 10,000,000.00 4.65%10,017,968.7510,013,530.72101.113.91%10,110,800.0017,241.672.62%97,269.282.841.51AGENCY3130ALHH0FEDERAL HOME LOAN BANKS 0.9603/05/20263,000,000.0003/28/20222.68%2,806,200.002,991,503.5599.553.54%2,986,458.009,280.000.77%(5,045.55)Aa1/AA+ AA+0.180.173133EPCR4FEDERAL FARM CREDIT BANKS FUNDING CORP 4.75 03/09/20265,000,000.0004/26/20233.87%5,118,550.005,007,586.29100.203.61%5,010,035.0073,888.891.30%2,448.71Aa1/AA+ AA+0.190.183130AWLZ1FEDERAL HOME LOAN BANKS 4.7506/12/20265,250,000.0008/22/20234.85%5,235,772.505,247,749.17100.483.63%5,275,446.7513,161.461.37%27,697.59Aa1/AA+ AA+0.450.443130ANMH0FEDERAL HOME LOAN BANKS 1.1 08/20/20262,000,000.0009/08/20223.68%1,810,600.001,969,638.1798.413.66%1,968,264.008,005.560.51%(1,374.17)Aa1/AA+ AA+0.640.623133EMNW8FEDERAL FARM CREDIT BANKS FUNDING CORP 0.7 01/27/20272,000,000.0004/25/20223.01%1,795,000.001,953,854.3596.983.61%1,939,514.005,988.890.50%(14,340.35)Aa1/AA+ AA+1.071.053130AL5A8FEDERAL HOME LOAN BANKS 0.9 02/26/20275,000,000.00--3.15%4,501,000.004,879,166.5797.053.54%4,852,345.0015,625.001.26%(26,821.57)Aa1/AA+ AA+1.161.123133EPBM6FEDERAL FARM CREDIT BANKS FUNDING CORP 4.125 08/23/20273,800,000.0002/24/20234.36%3,763,862.003,786,784.70100.983.50%3,837,392.0055,733.330.99%50,607.30Aa1/AA+ AA+1.641.563130ATUS4FEDERAL HOME LOAN BANKS 4.25 12/10/20276,000,000.0001/25/20233.63%6,162,990.006,064,866.17101.443.47%6,086,508.0014,875.001.58%21,641.83Aa1/AA+ AA+1.941.853133EPAV7FEDERAL FARM CREDIT BANKS FUNDING CORP 3.875 02/14/20286,000,000.0002/14/20234.07%5,948,760.005,978,268.62100.453.65%6,026,982.0088,479.171.56%48,713.38Aa1/AA+ AA+2.121.993130ATS57FEDERAL HOME LOAN BANKS 4.5 03/10/20286,000,000.0003/30/20233.89%6,163,404.006,072,292.25102.093.50%6,125,436.0083,250.001.59%53,143.75Aa1/AA+ AA+2.192.053133EPGW9FEDERAL FARM CREDIT BANKS FUNDING CORP 3.875 04/25/20285,000,000.0004/26/20233.64%5,053,550.005,024,794.38100.803.51%5,040,100.0035,520.831.31%15,305.62Aa1/AA+ AA+2.322.183133EPNH4FEDERAL FARM CREDIT BANKS FUNDING CORP 3.875 06/21/20287,000,000.0006/22/20234.10%6,928,110.006,964,468.61100.853.51%7,059,689.007,534.721.83%95,220.39Aa1/AA+ AA+2.472.3435

B – Page 57 of 244

HOLDINGS REPORTCity of Palm Springs | Account #10805 | As of December 31, 2025Cusip Security DescriptionPar Value/UnitsPurchaseDatePurchaseYieldCost Value Book ValueMktPriceMkt YTMMarket Value Accrued Int.% of Port. Gain/LossMoody's/S&P/ FitchMaturityDuration3130AWTR1FEDERAL HOME LOAN BANKS4.375 09/08/20285,000,000.0010/19/20235.04%4,856,850.004,921,327.65102.143.53%5,106,950.0068,663.191.32%185,622.35Aa1/AA+ AA+2.692.493130AXQK7FEDERAL HOME LOAN BANKS 4.75 12/08/20287,100,000.0001/23/20244.10%7,299,865.007,220,368.13103.053.64%7,316,599.7021,546.531.90%96,231.57Aa1/AA+ AA+2.942.723133ERAK7FEDERAL FARM CREDIT BANKS FUNDING CORP 4.375 04/10/20295,200,000.0004/25/20244.71%5,122,780.005,149,017.73102.413.59%5,325,387.6051,187.501.38%176,369.87Aa1/AA+ AA+3.273.003133ERDH1FEDERAL FARM CREDIT BANKS FUNDING CORP 4.75 04/30/20298,000,000.0005/07/20244.53%8,077,200.008,051,594.06103.603.59%8,288,000.0064,388.892.15%236,405.94Aa1/AA+ AA+3.333.043130B1BC0FEDERAL HOME LOAN BANKS 4.625 06/08/20298,000,000.0006/06/20244.35%8,097,920.008,067,209.46103.293.60%8,262,832.0023,638.892.14%195,622.54Aa1/AA+ AA+3.443.1588,742,413.50 101.33 90,507,939.05 23.46% 2.15Total Agency 89,350,000.00 4.09% 89,350,489.87 3.57% 640,767.85 1,157,449.18 2.01AGENCY CMBS3137BSRE5 FHMS K-059 A2 3.12 09/25/2026 2,713,922.7502/18/20221.98%2,830,536.622,731,096.7999.383.77%2,697,150.717,056.200.70%(33,946.09)Aa1/AAA AAA0.730.653137H4BY5 FHMS K-746 A2 2.031 09/25/2028 7,000,000.0010/18/20235.43%5,993,476.566,447,687.9895.423.81%6,679,302.0011,847.501.73%231,614.02Aa1/AA+ AAA2.742.563137FK4M5 FHMS K-085 A2 4.06 10/25/2028 4,000,000.0007/28/20254.17%3,980,312.503,982,930.70100.493.80%4,019,508.0013,533.331.04%36,577.30Aaa/AA+ AA+2.822.583137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 4,000,000.0005/01/20253.97%3,956,406.253,964,237.4699.493.81%3,979,512.0012,300.001.03%15,274.54Aaa/AA+ AA+3.072.783137FLN91 FHMS K-091 A2 3.505 03/25/2029 4,000,000.0005/01/20253.98%3,929,375.003,941,525.5498.883.84%3,955,340.0011,683.331.03%13,814.46Aa1/AAA AA+3.232.9020,690,106.93 98.28 21,330,812.71 5.53% 2.65Total Agency CMBS 21,713,922.75 4.22% 21,067,478.48 3.81% 56,420.37 263,334.23 2.43CASHCCYUSD Receivable 11,997.49-- 11,997.4911,997.491.00 11,997.490.000.00%0.00Aaa/AAA AAA0.000.0011,997.49 1.00 11,997.49 0.00% 0.00Total Cash 11,997.49 11,997.49 0.00 0.00 0.0036

B – Page 58 of 244

HOLDINGS REPORTCity of Palm Springs | Account #10805 | As of December 31, 2025Cusip Security DescriptionPar Value/UnitsPurchaseDate PurchaseYieldCost Value Book ValueMkt Price Mkt YTMMarket Value Accrued Int.% of Port. Gain/LossMoody's/S&P/ FitchMaturityDurationCORPORATE58933YAY1 MERCK & CO INC 0.75 02/24/2026 4,000,000.00--2.77%3,742,920.003,988,794.6199.563.83%3,982,232.0010,583.331.03%(6,562.61)Aa3/A+ NA0.150.1406406FAC7BANK OF NEW YORK MELLON CORP 2.8 05/04/20262,000,000.0001/25/20234.38%1,904,400.001,990,143.5099.623.93%1,992,340.008,866.670.52%2,196.50Aa3/AAA-0.340.33808513BR5CHARLES SCHWAB CORP 1.1505/13/20262,250,000.00--3.39%2,067,262.502,232,913.5099.013.90%2,227,788.003,450.000.58%(5,125.50)A2/A-A0.360.3691159HHN3 US BANCORP 2.375 07/22/2026 2,000,000.0008/11/20223.49%1,918,340.001,988,521.0099.273.72%1,985,370.0020,979.170.51%(3,151.00)A3/AA0.560.5424422EVB2JOHN DEERE CAPITAL CORP 2.25 09/14/20262,500,000.00--3.83%2,357,655.002,474,416.0298.923.83%2,472,885.0016,718.750.64%(1,531.02)A1/AA+0.700.68437076CV2HOME DEPOT INC 4.9509/30/20263,600,000.0012/21/20234.42%3,647,736.003,611,763.17100.753.92%3,626,845.2045,045.000.94%15,082.03A2/AA0.750.64717081EA7 PFIZER INC 3.0 12/15/2026 4,000,000.00--4.00%3,852,095.003,965,030.9799.323.73%3,972,932.005,333.331.03%7,901.04A2/ANA0.960.9387612EBM7 TARGET CORP 1.95 01/15/2027 3,250,000.00--2.59%3,164,240.003,230,142.6798.203.73%3,191,558.5029,222.920.83%(38,584.17)A2/AA1.041.00742718FV6PROCTER & GAMBLE CO 1.9 02/01/20272,550,000.0001/27/20221.93%2,546,379.002,549,214.7298.173.64%2,503,306.9520,187.500.65%(45,907.77)Aa3/AA-NA1.091.05594918BY9 MICROSOFT CORP 3.3 02/06/2027 3,000,000.0001/25/20233.96%2,926,980.002,980,094.4899.613.66%2,988,390.0039,875.000.77%8,295.52Aaa/AAANA1.101.0557636QAR5 MASTERCARD INC 3.3 03/26/2027 4,000,000.0005/30/20234.36%3,852,800.003,952,621.6599.493.72%3,979,556.0034,833.331.03%26,934.35Aa3/A+ NA1.231.1992826CAL6 VISA INC 1.9 04/15/2027 4,000,000.0002/14/20234.44%3,617,920.003,882,030.6097.943.55%3,917,780.0016,044.441.02%35,749.40Aa3/AA-NA1.291.25665859AW4NORTHERN TRUST CORP 4.005/10/20273,000,000.0006/13/20224.20%2,973,570.002,992,705.91100.333.75%3,009,786.0017,000.000.78%17,080.09A2/A+A+1.361.2222160KAM7COSTCO WHOLESALE CORP 3.005/18/20272,000,000.0008/24/20223.50%1,956,700.001,987,406.3799.263.55%1,985,290.007,166.670.51%(2,116.37)Aa3/AAAA1.381.33037833DB3 APPLE INC 2.9 09/12/2027 2,000,000.0002/14/20234.45%1,872,980.001,952,890.7398.773.65%1,975,466.0017,561.110.51%22,575.28Aaa/AA+NA1.701.62857477BS1STATE STREET CORP 2.20302/07/20281,500,000.0002/14/20235.03%1,362,523.371,461,938.2998.184.17%1,472,751.0013,218.000.38%10,812.71Aa3/AAA-2.101.0637

B – Page 59 of 244

HOLDINGS REPORTCity of Palm Springs | Account #10805 | As of December 31, 2025Cusip Security DescriptionPar Value/UnitsPurchaseDate PurchaseYieldCost Value Book ValueMkt Price Mkt YTMMarket Value Accrued Int.% of Port. Gain/LossMoody's/ S&P/ FitchMaturityDuration24422EXH7JOHN DEERE CAPITAL CORP 4.501/16/20292,500,000.0006/06/20244.83%2,466,550.002,477,931.74101.603.94%2,539,930.0051,562.500.66%61,998.26A1/A A+3.042.7661744YAP3MORGAN STANLEY 3.772 01/24/20294,000,000.0004/30/20254.52%3,924,160.003,942,835.3299.444.38%3,977,404.0065,800.441.03%34,568.68A1/A-A+3.071.9369371RS80PACCAR FINANCIAL CORP 4.601/31/20293,000,000.0002/12/20244.64%2,994,863.002,996,809.56101.843.96%3,055,068.0057,883.330.79%58,258.44A1/A+ NA3.082.8014913UAJ9CATERPILLAR FINANCIAL SERVICES CORP 4.85 02/27/20293,000,000.0006/06/20244.73%3,015,000.003,010,020.28102.753.91%3,082,530.0050,116.670.80%72,509.72A2/A A+3.162.86532457BV9ELI LILLY AND CO 3.37503/15/20295,200,000.0004/24/20244.96%4,846,452.004,968,330.9498.503.88%5,122,015.6051,675.001.33%153,684.67Aa3/A+ NA3.202.97023135CG9AMAZON.COM INC 3.45 04/13/20294,000,000.0007/30/20244.35%3,848,280.003,894,140.6298.773.85%3,950,800.0029,900.001.02%56,659.38A1/AAAA-3.283.0506051GLG2BANK OF AMERICA CORP 5.202 04/25/20294,000,000.0006/06/20245.18%4,002,680.004,001,597.04102.564.41%4,102,432.0038,148.001.06%100,834.96A1/A-AA-3.312.1546647PEB8JPMORGAN CHASE & CO 5.01201/23/20304,000,000.0004/30/20254.57%4,059,200.004,048,523.17102.474.35%4,098,800.0087,988.441.06%50,276.83A1/AAA-4.062.76713448GB8 PEPSICO INC 4.6 02/07/2030 5,000,000.0005/19/20254.49%5,021,750.005,018,846.57102.283.99%5,114,055.0092,000.001.33%95,208.43A1/A+ NA4.103.58Total Corporate 80,350,000.00 4.18%77,943,435.8779,599,663.40100.003.90%80,327,311.25831,159.6120.82%727,647.852.041.72MONEY MARKETFUND94975P405 ALLSPRING:GOVT MM I 96,540.09--3.65%96,540.0996,540.091.003.65%96,540.090.000.03%0.00Aaa/AAAmAAA0.000.00Total Money Market Fund96,540.09 3.65%96,540.0996,540.091.003.65%96,540.090.000.03%0.000.000.00SUPRANATIONAL45950VHX7INTERNATIONAL FINANCE CORP2.125 04/07/20265,000,000.00--3.19%4,817,056.564,986,782.1399.563.81%4,977,820.0024,791.671.29%(8,962.13)Aaa/AAANA0.270.26Total Supranational 5,000,000.00 3.19%4,817,056.564,986,782.1399.563.81%4,977,820.0024,791.671.29%(8,962.13)0.270.2638

B – Page 60 of 244

HOLDINGS REPORTCity of Palm Springs | Account #10805 | As of December 31, 2025Cusip Security DescriptionPar Value/UnitsPurchaseDate PurchaseYieldCost Value Book ValueMkt Price Mkt YTMMarket Value Accrued Int.% of Port. Gain/LossMoody's/S&P/ FitchMaturityDurationUS TREASURY912797SF5UNITED STATES TREASURY01/13/20265,360,000.0012/31/20253.58%5,353,179.105,353,703.7899.893.56%5,354,259.440.001.39%555.66P-1/A-1+F1+0.040.0391282CBH3UNITED STATES TREASURY 0.37501/31/20262,800,000.0010/25/20211.07%2,718,953.132,798,439.4199.743.68%2,792,725.604,394.020.72%(5,713.81)Aa1/AA+AA+0.080.08912828P46UNITED STATES TREASURY 1.62502/15/20266,000,000.0001/25/20233.83%5,621,250.005,984,727.8299.753.70%5,985,024.0036,827.451.55%296.18Aa1/AA+AA+0.130.129128286L9UNITED STATES TREASURY 2.2503/31/20265,000,000.0008/24/20223.27%4,826,562.504,988,252.7199.673.60%4,983,545.0028,743.131.29%(4,707.71)Aa1/AA+AA+0.250.249128286S4UNITED STATES TREASURY 2.375 04/30/20267,000,000.00--3.39%6,803,789.076,978,276.2399.633.52%6,973,834.0028,473.761.81%(4,442.23)Aa1/AA+AA+0.330.32912828Y95UNITED STATES TREASURY 1.875 07/31/20265,000,000.0006/27/20223.21%4,743,164.064,963,726.6599.043.56%4,952,210.0039,232.341.28%(11,516.65)Aa1/AA+AA+0.580.569128282A7UNITED STATES TREASURY 1.5 08/15/20263,100,000.0012/28/20211.23%3,137,296.883,104,987.6398.743.58%3,060,843.9017,563.860.79%(44,143.73)Aa1/AA+AA+0.620.6091282CDG3UNITED STATES TREASURY 1.12510/31/20265,000,000.0008/11/20223.00%4,629,687.504,927,187.0997.993.62%4,899,415.009,633.981.27%(27,772.09)Aa1/AA+AA+0.830.81912828U24UNITED STATES TREASURY 2.011/15/20263,000,000.0005/25/20222.76%2,903,789.062,981,275.9698.683.56%2,960,361.007,790.060.77%(20,914.96)Aa1/AA+AA+0.870.85912828V98UNITED STATES TREASURY 2.25 02/15/20277,000,000.00--3.60%6,696,316.416,901,064.8898.623.52%6,903,204.0059,490.491.79%2,139.12Aa1/AA+AA+1.131.0891282CEF4UNITED STATES TREASURY 2.5 03/31/20275,000,000.0006/27/20223.23%4,839,648.444,958,088.8898.763.53%4,938,085.0031,936.811.28%(20,003.88)Aa1/AA+AA+1.251.2091282CEN7UNITED STATES TREASURY 2.75 04/30/20275,000,000.0008/24/20223.18%4,905,859.384,973,338.7699.033.50%4,951,565.0023,549.721.28%(21,773.76)Aa1/AA+AA+1.331.28912828X88UNITED STATES TREASURY 2.37505/15/20277,000,000.00--3.79%6,635,781.256,874,884.2898.493.51%6,894,454.0021,584.941.79%19,569.72Aa1/AA+AA+1.371.3391282CFB2UNITED STATES TREASURY 2.7507/31/20275,000,000.0011/23/20224.04%4,726,953.134,907,810.6798.873.49%4,943,555.0057,540.761.28%35,744.33Aa1/AA+AA+1.581.519128282R0UNITED STATES TREASURY 2.25 08/15/20277,000,000.0005/30/20233.94%6,545,546.886,825,255.8398.053.49%6,863,829.0059,490.491.78%38,573.17Aa1/AA+AA+1.621.5691282CFM8UNITED STATES TREASURY 4.12509/30/20277,000,000.0005/30/20233.94%7,050,039.067,020,135.74101.073.48%7,074,921.0073,774.041.83%54,785.26Aa1/AA+AA+1.751.6539

B – Page 61 of 244

HOLDINGS REPORTCity of Palm Springs | Account #10805 | As of December 31, 2025Cusip Security DescriptionPar Value/UnitsPurchaseDate PurchaseYieldCost Value Book ValueMkt Price Mkt YTMMarket Value Accrued Int.% of Port. Gain/LossMoody's/S&P/FitchMaturityDuration9128283F5UNITED STATES TREASURY 2.25 11/15/20276,000,000.0001/25/20233.58%5,651,718.755,864,380.7997.783.49%5,866,878.0017,527.621.52%2,497.21Aa1/AA+AA+1.871.8091282CGH8UNITED STATES TREASURY 3.5 01/31/20286,900,000.0006/22/20234.11%6,723,726.566,820,399.40100.023.49%6,901,345.50101,062.501.79%80,946.10Aa1/AA+AA+2.081.9691282CGT2UNITED STATES TREASURY 3.625 03/31/20285,200,000.0011/15/20234.56%5,008,859.385,101,856.41100.273.50%5,213,811.2048,160.711.35%111,954.79Aa1/AA+AA+2.252.1291282CHE4UNITED STATES TREASURY 3.625 05/31/20287,000,000.0005/30/20233.81%6,940,664.066,971,387.54100.263.51%7,018,319.0022,307.691.82%46,931.46Aa1/AA+AA+2.422.289128284V9UNITED STATES TREASURY 2.875 08/15/20285,250,000.0008/22/20234.48%4,878,398.445,054,495.5098.393.52%5,165,711.2557,011.721.34%111,215.75Aa1/AA+AA+2.622.4791282CJF9UNITED STATES TREASURY 4.875 10/31/20287,000,000.0002/12/20244.14%7,217,656.257,130,694.87103.543.54%7,248,010.0058,446.131.88%117,315.13Aa1/AA+AA+2.842.619128285M8UNITED STATES TREASURY 3.125 11/15/20287,000,000.0002/12/20244.14%6,696,757.816,816,867.5598.883.54%6,921,796.0028,401.241.79%104,928.45Aa1/AA+AA+2.882.71912810FG8UNITED STATES TREASURY 5.2502/15/20297,000,000.00--4.57%7,201,062.517,130,876.12105.173.48%7,362,033.00138,811.141.91%231,156.88Aa1/AA+AA+3.132.8291282CKG5UNITED STATES TREASURY 4.12503/31/20294,000,000.0006/20/20244.29%3,971,562.503,980,677.50101.663.58%4,066,252.0042,156.591.05%85,574.50Aa1/AA+AA+3.252.999128286T2UNITED STATES TREASURY 2.37505/15/20295,200,000.0007/30/20244.06%4,821,781.254,934,014.2696.153.60%4,999,716.8016,034.531.30%65,702.54Aa1/AA+AA+3.373.1991282CKT7UNITED STATES TREASURY 4.505/31/20295,000,000.0006/20/20244.27%5,050,585.945,034,919.71102.883.60%5,143,750.0019,780.221.33%108,830.29Aa1/AA+AA+3.413.1391282CFL0UNITED STATES TREASURY 3.87509/30/20295,000,000.0010/30/20244.13%4,943,750.004,957,130.92100.863.62%5,043,165.0049,502.061.31%86,034.08Aa1/AA+AA+3.753.4291282CFT3UNITED STATES TREASURY 4.010/31/20295,000,000.0005/27/20254.03%4,992,968.754,993,916.69101.313.63%5,065,430.0034,254.141.31%71,513.31Aa1/AA+AA+3.833.5091282CGS4UNITED STATES TREASURY 3.62503/31/20307,000,000.0004/30/20253.77%6,955,976.566,962,006.5099.813.67%6,986,875.0064,831.731.81%24,868.50Aa1/AA+AA+4.253.8691282CGZ8UNITED STATES TREASURY 3.5 04/30/20306,000,000.0005/13/20254.09%5,841,562.505,861,848.1099.283.68%5,956,638.0035,966.851.54%94,789.90Aa1/AA+AA+4.333.9591282CHJ3UNITED STATES TREASURY 3.7506/30/20305,000,000.0007/28/20253.99%4,947,460.944,952,021.93100.243.69%5,011,915.00517.961.30%59,893.07Aa1/AA+AA+4.504.10Total US Treasury 178,810,000.00 3.77%173,982,308.05177,108,650.1199.863.56%178,503,476.691,234,798.7046.26%1,394,826.582.091.9440

B – Page 62 of 244

HOLDINGS REPORTCity of Palm Springs | Account #10805 | As of December 31, 2025Cusip Security DescriptionPar Value/UnitsPurchaseDate PurchaseYieldCost Value Book ValueMkt Price Mkt YTMMarket Value Accrued Int.% of Port. Gain/LossMoody's/ S&P/ FitchMaturityDurationTotal Portfolio 385,332,460.33 3.97%376,301,827.24382,235,132.28100.153.66%385,866,697.282,805,179.85100.00%3,631,565.002.121.91Total Market Value + Accrued388,671,877.13 41 B – Page 63 of 244

HOLDINGS REPORTCity of Palm Springs Reporting | Account #10806 | As of December 31, 2025Cusip Security DescriptionPar Value/UnitsPurchaseDate PurchaseYieldCost Value Book ValueMkt Price Mkt YTMMarket Value Accrued Int.% of Port.Gain/LossMoody's/ S&P/ FitchMaturity DurationCASHCCYUSD Receivable 249,479.10-- 249,479.10249,479.101.00 249,479.100.000.85%0.00Aaa/AAA AAA0.000.00Total Cash 249,479.10249,479.10249,479.101.00 249,479.100.000.85%0.000.000.00LAIF90LAIF$00Local Agency Investment FundState Pool21,923,437.88--3.98%21,923,437.8821,923,437.881.003.98%21,923,437.880.0074.38%0.00NA/NA NA0.000.00Total LAIF 21,923,437.88 3.98%21,923,437.8821,923,437.881.003.98%21,923,437.880.0074.38%0.000.000.00LOCAL GOVINVESTMENT POOL09CATR$04 CalTrust STF 724,410.03--3.96%7,301,180.127,301,180.1210.083.96%7,302,053.110.0024.77%872.99NA/AAAm NA0.000.00Total Local Gov Investment Pool724,410.03 3.96%7,301,180.127,301,180.1210.083.96%7,302,053.110.0024.77%872.990.000.00Total Portfolio 22,897,327.01 3.98%29,474,097.1029,474,097.103.253.98%29,474,970.090.00100.00%872.990.000.00Total Market Value + Accrued29,474,970.0942

B – Page 64 of 244

TRANSACTIONS43

B – Page 65 of 244

TRANSACTION LEDGERCity of Palm Springs | Account #10805|10/01/2025 Through 12/31/2025|TransactionTypeSettlementDateCUSIP Quantity Security Description PriceAcq/DispYieldAmountInterest Pur/SoldTotal Amount Gain/LossACQUISITIONSPurchase 12/31/2025 912797SF5 5,360,000.00UNITED STATES TREASURY 01/13/202699.873 3.58% (5,353,179.10) 0.00 (5,353,179.10) 0.00Total Purchase 5,360,000.00 (5,353,179.10) 0.00 (5,353,179.10) 0.00TOTAL ACQUISITIONS5,360,000.00 (5,353,179.10) 0.00 (5,353,179.10) 0.00DISPOSITIONSMaturity 10/31/2025 91282CAT8 (2,750,000.00)UNITED STATES TREASURY 0.25 10/31/2025100.000 0.67% 2,750,000.00 0.00 2,750,000.00 0.00Maturity 11/15/2025 912828M56 (3,000,000.00)UNITED STATES TREASURY 2.25 11/15/2025100.000 2.70% 3,000,000.00 0.00 3,000,000.00 0.00Maturity 12/12/2025 3130ATUC9 (4,000,000.00)FEDERAL HOME LOAN BANKS 4.5 12/12/2025100.000 4.40% 4,000,000.00 0.00 4,000,000.00 0.00Total Maturity (9,750,000.00) 9,750,000.00 0.00 9,750,000.00 0.00TOTAL DISPOSITIONS(9,750,000.00) 9,750,000.00 0.00 9,750,000.00 0.0044

B – Page 66 of 244

TRANSACTION LEDGERCity of Palm Springs Reporting | Account #10806|10/01/2025 Through 12/31/2025|TransactionTypeSettlementDateCUSIP Quantity Security Description PriceAcq/DispYieldAmountInterest Pur/SoldTotal Amount Gain/LossACQUISITIONSPurchase 10/15/2025 90LAIF$00 360,859.22Local Agency Investment Fund StatePool1.000 4.15% (360,859.22) 0.00 (360,859.22) 0.00Purchase 10/31/2025 09CATR$04 2,508.31 CalTrust STF 10.070 (25,258.67) 0.00 (25,258.67) 0.00Purchase 11/30/2025 09CATR$04 2,241.26 CalTrust STF 10.070 (22,569.50) 0.00 (22,569.50) 0.00Purchase 12/31/2025 09CATR$04 2,578.65 CalTrust STF 10.080 (25,992.78) 0.00 (25,992.78) 0.00Total Purchase 368,187.44 (434,680.17) 0.00 (434,680.17) 0.00TOTAL ACQUISITIONS368,187.44 (434,680.17) 0.00 (434,680.17) 0.00DISPOSITIONSSale 10/22/2025 90LAIF$00 (10,000,000.00)Local Agency Investment Fund State Pool1.000 4.14% 10,000,000.00 0.00 10,000,000.00 0.00Total Sale (10,000,000.00) 10,000,000.00 0.00 10,000,000.00 0.00TOTAL DISPOSITIONS(10,000,000.00) 10,000,000.00 0.00 10,000,000.00 0.0045

B – Page 67 of 244

IMPORTANT DISCLOSURES2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.Information contained herein is confidential. Prices are provided by ICE Data Services Inc an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.Performance results are presented gross-of-advisory fees and represent the Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.Source ICE Data Indices, LLC used with permission. ICE permits use of the ICE indices and related data on an basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an basis and use it at own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.Ratings information have been provided by S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.Security level ratings for U.S. Agency issued mortgage-backed securities reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest.46

B – Page 68 of 244

PERIODIC TABLE OF ASSET CLASS RETURNS DISCLOSURESUS Small Cap StocksMorgan Stanley Capital International (MSCI) Small Cap 1750The MSCI Small Cap 1750 is a market capitalization weighted index that measures theperformance of small capitalization U.S. stocks.US Mid Cap StocksMorgan Stanley Capital International (MSCI) Mid Cap 450The MSCI Mid Cap 450 is a market capitalization weighted index that measures the performanceof mid-capitalization U.S. stocks.US Large Cap StocksStandard &500The S&P 500 is a market value weighted index of500 large capitalization stocks. The 500 companies included in the index capture approximately80% of available U.S. market capitalization.International StocksMorgan Stanley Capital International (MSCI) EAFEThe MSCI EAFEInternational Equity Index is a market capitalization weighted index that captures internationalequity performance of large and mid-cap stocks in the developed stock markets of Europe,Australasia, and the Far East.Emerging Market StocksMorgan Stanley Capital International (MSCI) Emerging MarketsTheMSCI Emerging Markets Index is a market capitalization weighted index that captures equityperformance of large and mid-cap stocks across emerging market countries.U.S. Real EstateMorgan Stanley Capital International (MSCI) REITThe MSCI US REIT Index is afree float-adjusted market capitalization index that is comprised of equity REITs. It representsabout 99% of the US REIT universe and securities are classified in the REIT sector according to theGlobal Industry Classification Standard (GICS®). It excludes Mortgage REITs and selectedSpecialized REITs.International Real EstateS&P Developed Ex-US PropertyThe S&P Developed Ex-US PropertyIndex is a market capitalization weighted index that captures the performance of a universe ofpublicly traded property companies based in developing countries outside of the US. Thecompanies included are engaged in real estate related activities, such as property ownership,management, development, rental and investment.US Core BondsICE BofA US Corporate, Government, MortgageThe ICE BofA US Corporate,Government, Mortgage index is a broad measure of US investment grade bond performance,including US Treasuries, agencies, investment-grade corporates and mortgage securities.US High Yield BondsICE BofA US High YieldThe ICE BofA High Yield Bond Index measures themarket of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds.International BondsBloomberg Barclays Global Aggregate ex-USD Total Return Index ValueUnhedged USDIndex from 2/1/2013current. This index measures the performance of globalinvestment grade debt from 24 local currency markets. This multi- currency benchmark includestreasury, government-related, corporate and securitized fixed-rate bonds from both developedand emerging markets issuers. S&P Citigroup International Govt BondIndex from 1/1/20091/31/2013. This index measures the performance of sovereign bonds of non-U.S. developedcountries.

Diversified CommoditiesS&P GSCI Commodity IndexThe S&P GSCI Commodity Index is aworld production-weighted measure of general commodity price movements and inflation inthe world economy. It consists of a basket of physical commodity futures contracts.Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits the use of ICE Indices and related dataon anbasis; ICE, its affiliates and their respective third party suppliers disclaim any and all warrantiesand representation, express and/or implied, including any warranties of merchantability or fitness for aparticular purpose or use, including the indices, index data and any data included in, related to, or derivedtherefrom. Neither ICE data, its affiliates or their respective third-party providers guarantee the quality,adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof,and the indices and index data and all components thereof are provided on anbasis anduseis atown risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, orrecommend Chandler, or any of its products or services.Bloomberg® and Bloomberg Barclays Global Aggregate ex-USD Total Return Index Value Unhedged USD areservice marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited("BISL"), the administrator of the index (collectively, "Bloomberg") and have been licensed for use for certainpurposes by Chandler Asset Management Inc. Bloomberg is not affiliated with Chandler Asset ManagementInc., and Bloomberg does not approve, endorse, review, or recommend this product. Bloomberg does notguarantee the timeliness, accurateness, or completeness of any data or information relating to this product.Morgan Stanley Capital International® (MSCI), the MSCI indices are service marks of Morgan Stanley CapitalInternational and its affiliates, and have been licensed for use for certain purposes by Chandler AssetManagement Inc. MSCI is not affiliated with Chandler Asset Management Inc., and MSCI does not approve,endorse, review, or recommend these products. MSCI does not guarantee the timeliness, accurateness, orcompleteness of any data or information relating to these products.Disclosure: This report is provided for informational purposes only and should not be construed as specificinvestment or legal advice. The information contained herein was obtained from sources believed to bereliable as of the date of publication, but may become outdated or superseded at any time without notice.Past performance is not indicative of future results. This report is not intended to constitute an offer,solicitation, recommendation or advice regarding any securities or investment strategy and should not beregarded by recipients as a substitute for the exercise of their own judgement.All investments contain risk and may lose value. Fixed income investments are subject to interest rate, credit,and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise.Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bondsgenerally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk:the bond market in general could decline due to economic conditions, especially during periods of risinginterest rates. International: Non-US markets may be more volatile due to a variety of factors including lessliquidity, transparency and oversight of companies and assets. Values of non-US investments may fluctuatedue to changes in currency exchange rates. Non-US companies are also subject to risks that come withpolitical and economic stability that may affect their respective countries. These risks may be greater inemerging market countries. Equities: Investments on equities are subject to risks from stock marketfluctuations that occur in response to economic and business developments.47

B – Page 69 of 244

BENCHMARK DISCLOSURESBenchmark DisclosureICE BofA 1-5 Yr Unsubordinated US Treasury & Agency IndexThe ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 48 B – Page 70 of 244

CITY COUNCIL STAFF REPORT
DATE: February 11, 2026 CONSENT CALENDAR
SUBJECT: AUTHORIZE THE PURCHASE OF SANITARY SEWER AND STORM

DRAIN MAINTENANCE VEHICLES FOR USE BY VEOLIA WATER, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $1,513,418.19
FROM: Scott C. Stiles, City Manager
BY: Engineering Services
SUMMARY:

This action authorizes the expenditure of $1,513,418.19 for the purchase of two fully equipped sewer maintenance vehicles, a GapVax Jet-Vac truck for $829,145.49 and a RapidView IBAK CCTV truck for $684,272.70, to serve as like-for-like replacements for Units 4007-15 and 4010-16 respectively, which have reached the end of their 10-year operational life cycles. These specialized units are essential for maintaining municipal infrastructure.

RECOMMENDATION:

1. Approve the issuance of a purchase order to Plumber’s Depot, Inc. for the purchase of one new 2026 MC1311-3S4S GapVax Jet-Vac truck in an amount not to exceed $829,145.49, after discounts and trade in value, inclusive of the purchase price, sales tax and fees; and

2. Approve the issuance of a purchase order to Municipal Maintenance Equipment Inc. for the purchase of one new RapidView CCTV Truck in an amount not to exceed $684,272.70, inclusive of sales taxes and fees; and

3. Appropriate $1,513,418.19 From the Wastewater fund; and

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

BUSINESS PRINCIPAL DISCLOSURE:

Plumbers Depot, Inc. and Municipal Maintenance Equipment, Inc. are California registered corporations. Public Integrity Disclosures are included in Attachment A.

C – Page 71 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Authorize Purchase of Sewer Maintenance Equipment
7 0
5 BACKGROUND:

The City owns the Palm Springs Wastewater Treatment Plant (WWTP) located at 4375 East Mesquite Avenue. The facility is operated and maintained by Veolia Water West Operating Services, Inc. (Veolia) pursuant to a Contract Agreement A6804 dated November 4, 2015. Veolia’s operations also include the Collections System, consisting of operating and maintaining the City’s wastewater collection system. The City collects and transports sewage from various types of structures via a network of approximately 262 miles of sewer pipeline ranging in size from 4 inches to 42 inches in diameter, 5,690 manholes, and six sewer lift stations to its wastewater treatment plant. In addition, Veolia is responsible for maintaining all storm water infrastructure under the City’s responsibility.

Section 5.6(d) of the Agreement with Veolia, “New Rolling Stock,” stipulates that the City shall acquire and lease to Veolia for $1 per year all new rolling stock for their exclusive use. While the agreement originally identified equipment on Schedule S, the vehicles are replaced on a rotating 10-year schedule as part of ongoing operations. Because the equipment currently slated for replacement was acquired after 2015, it does not appear on the original Schedule S; however, it is included in the comprehensive list of in-service vehicles in Attachment B. The following provides additional details on how these maintenance vehicles will be used and their importance in the maintenance fleet:

Combination Hydro-Cleaning & Vacuuming: Utilize combination Jet-Vac truck to perform cleaning operations on both sanitary and storm infrastructure:
Sanitary Sewer: Scours mains to remove roots, debris, and Fats, Oils, and Grease (FOG). This ensures flow capacity and prevents Sanitary Sewer Overflows (SSOs), mitigating the risk of state fines. Storm Drains: Vacuums trash, sediment, and debris from catch basins to prevent downstream clogging and ensure the storm system functions during rain events.
Emergency Response: 24/7 response to sewer backups and line breaks to protect public health and the environment utilizing vacuum capabilities to capture and recover overflowed wastewater.

CCTV Inspection & Condition Assessment: Following cleaning operations, a remote-controlled robotic camera system is deployed to visually inspect the interior of sewer mains. This technology allows for the precise identification of structural defects (such as cracks, fractures, or collapsed pipes) and maintenance issues without the need for excavation. This inspection capability is critical for:
Asset Management: Documenting the condition of the City’s infrastructure to prioritize repairs and Capital Improvement Projects (CIP).

C – Page 72 of 244

City Council Staff Report
February 11, 2026 -- Page 3
Authorize Purchase of Sewer Maintenance Equipment
7 0
5 Quality Control: Verifying that hydro-cleaning was effective and that lines are free of obstructions.
Regulatory Compliance: Maintaining video records as required by the Sewer System Management Plan (SSMP).

STAFF ANALYSIS:

Veolia is requesting the replacement of the existing Sewer Jet-Vac truck Unit 4007-15 (procured in 2015) and CCTV truck and equipment Unit 4010-16 (procured in 2016). Both vehicles have reached their 10-year life cycles and have reached the end of their operational viability. The replacement of this equipment is critical to ensure the City maintains necessary operations. In addition, as these units age, the frequency of mechanical failures increases. Replacing them now is a proactive measure to avoid the significant financial burden of escalating maintenance costs and ensuring uninterrupted sewer collections and storm drain maintenance operations.

In accordance with City of Palm Springs Municipal Code Section 7.03.09, “Special Procurement Methods,” Section 5, “Cooperative Purchasing Programs”, the City Council may authorize the acquisition of supplies or services through a joint powers or other cooperative purchasing program with a public entity or association of public agencies or officials. However, this is provided that the contractor selected has been selected through a competitive process and the department finds that the competitive process is similar to that contained in Title 7 or adequate to protect the public interest, and that due to economies of scale, the nature of the product, or market conditions, the price of the supplies or services is likely to be less through the cooperative purchase than through the City’s independent purchasing pursuant to Title 7. To ensure competitive pricing and compliance, the City requested quotes from vendors currently approved under Sourcewell Contract No. 120721-RVL.

The City of Palm Springs is a public agency that conducts competitive solicitations and awards contracts to qualified vendors, allowing participating agencies to benefit from volume pricing and streamlined procurement processes. This cooperative purchasing arrangement provides competitive pricing and efficient procurement to support the operational needs of the Engineering department for WWTP operations through Sourcewell’s Contract No. 120721-RVL for the purchase of the Jet-Vac and the CCTV truck. The detailed quoted cost of the equipment is included in Attachment C and summarized in Table 1 below.

Cost Category RapidView CCTV Truck GapVax 2026 Jet/Vac
Retail Subtotal / Base Price $634,554.60 $822,388.42
Sourcewell Discount ($25,391.64) (4% Discount) ($81,313.87) (Includes trade-in) Trade-In Credit N/A ($65,000.00)
(Included in discount above)
Freight / Delivery $13,164.00 $12,000.00 (@$4.00 per mile)

C – Page 73 of 244

City Council Staff Report
February 11, 2026 -- Page 4
Authorize Purchase of Sewer Maintenance Equipment
7 0
5 Cost Category RapidView CCTV Truck GapVax 2026 Jet/Vac Additional Fees $4,000.00 (Factory Inspection)
$10.50 (CA Tire Fee) N/A
Estimated Subtotal $626,326.96 $753,074.56
Sales Tax (Estimated) $57,935.24 (9.25%) $76,070.93
Cost $684,272.70 $829,145.49
Total Cost $1,513,418.19
Table 1
Existing Units 4007-15 will be traded in for credit as noted above and 4010-16 will be declared surplus as outlined in the Palm Springs Municipal Code Section 7.08.02 “Disposition of Surplus Property” and sent to public auction.

The Contract agreement with Veolia is included in Attachment D; this document serves as the basis for Veolia’s management of the Wastewater Treatment Plant (WWTP) operations and justifies their role in facilitating the replacement of these vehicles.

ENVIRONMENTAL ASSESSMENT:

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

ALIGNMENT WITH STRATEGIC PLANNING:

Infrastructure and Facilities.

FISCAL IMPACT:

The City achieved a total reduction of $106,705.51 off the retail base price through negotiated Sourcewell contract discounts and the $65,000 trade-in value of Unit 4007-15.

Sufficient funds are available in the Wastewater fund to appropriate and cover these purchases.

C – Page 74 of 244

City Council Staff Report
February 11, 2026 -- Page 4
Authorize Purchase of Sewer Maintenance Equipment
7 0
5 C – Page 75 of 244

City Council Staff Report
February 11, 2026 -- Page 5
Authorize Purchase of Sewer Maintenance Equipment
7 0
5 REVIEWED BY:

City Engineer: Joel Montalvo
Assistant City Manager: Flinn Fagg
Finance Director: Kristopher J. Mooney
City Manager: Scott Stiles

ATTACHMENTS:

A. Public Integrity Disclosures
B. List of in-service equipment.

C. Vendor Quotes
D. Veolia-City Contract Agreement

C – Page 76 of 244

Attachment A
Public Integrity Disclosures

C – Page 77 of 244

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE
(INSTRUCTION FOR APPLICANTS)
(Revised 05/16/19)

CITY OF PALM SPRINGS

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

Why Must I File?
The City of Palm Springs Public Integrity Ordinance advances transparency in municipal government and assists public officials in avoiding conflicts of interest. The City ’s Public Integrity Ordinance, codified in Chapter 2.60 of the municipal code, reflects the City’s interest in ensuring that companies (and other legal entities that are not natural people) doing business in the community are transparent and make disclosure as to their ownership and management, and further that those companies disclose the identity of any person, with a beneficial ownership interest of five percent (5%) or more.

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

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

Note: (1) you must make these disclosures in relation to the applicant entity, and also in relation to any related entity that owns a part of, or makes a profit based upon the business of the applicant entity. Disclosures may include parent, subsidiary or affiliated entities of the applicant entity; (2) if any entity that is not a natural person serves as the applicant entity (e.g. as a member of the applicant LLC), then all officers, directors, members, managers, trustees, etc., of the second entity must be disclosed.

B. The names of persons owning a beneficial interest of five percent (5%) or more in your entity, Owners/investors who have such an interest hold either investment power or voting power, i.e., they can (i) sell or transfer their interest, or (ii) vote their interest in management decisions.

NOTE: USE ADDITIONAL PAGES AS NECESSARY
What if I Have Questions?
If you have any questions about how to complete this form, please contact the Office of the City Clerk, (760) 323-8206, [email protected].

C – Page 78 of 244

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

(Revised 05/16/19)

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

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

4. State where Entity is Registered with Secretary of State

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

5. Type of Entity

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

6. Officers, Directors, Members, Managers , Trustees, Other Fiduc iaries (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

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

 Other ____________________________________

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

 Other ____________________________________

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

 Other ____________________________________

PLUMBERS DEPOT INC.
3921 W 139TH ST, HAWTHORNE CA 90250

SAME AS ABOVE
CA
■

JOSE MARTIN
■

JUAN MARTIN
■

C – Page 79 of 244

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

(Revised 05/16/19)

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

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

SHARON NEGRON, OFFICE MANAGER

PLUMBERS DEPOT INC

PLUMBERS DEPOT INC

JOSE MARTIN
50%

JUAN MARTIN
50%
12/9/25

C – Page 80 of 244

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

(Revised 05/16/19)

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

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

4. State where Entity is Registered with Secretary of State

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

5. Type of Entity

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

6. Officers, Directors, Members, Managers , Trustees, Other Fiduc iaries (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

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

 Other ____________________________________

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

 Other ____________________________________

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

 Other ____________________________________

MUNICIPAL MAINTENANCE EQUIPMENT, INC.
4634 MAYHEW ROAD, SACRAMENTO 95827

CALIFORNIA
■

JAMES WHEELER
■

TIM WHEELER
■

JON KHIRMAN
■

C – Page 81 of 244

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

(Revised 05/16/19)

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

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

JAMES WHEELER

38.3%, MUNICIPAL MAINTENANCE EQUIP

TIM WHEELER

38.3%, MUNICIPAL MAINTENANCE EQUIP

NANCY STEFFAN

23.4%, MUNICIPAL MAINTENANCE EQUIP
12-09-2025

C – Page 82 of 244

Attachment B

C – Page 83 of 244

Palm Springs WWTP Rolling Stock
Unit
Number Make Model Year License Plate
Number Vin Number Description
4001-18 Ford F150 2018 CA1557165 1FTMF1CB1JKD95427 Pickup 4002-15 Ford F350 2015 CA1493786 1FT8X3B68FED69590 4WD Traffic Control Pickup 4003-20 Ford F350 2020 CA1610316 1FT8W3D66LEE33816 4WD Crew Cab/ Long Bed Pickup 4004-16 John Deere 5100M 2016 NA 1LV5100MJHH401383 Tractor W/Spring Tooth Harrow 4005-16 Cat 299D2XHP 2016 NA CAT0299DJDX201464 Skid Steer Loader 4006-16 Cat 938M 2016 NA CAT0938MEJ3R02754 Tractor/Front Load 4007-15 Mack GapVax 2015 CA1364402 1M2AX07CXFM023721 Combination Sewer Jet 4008-19 Ford F350 2019 CA1557321 1FTRF3B66KEC82482 4WD Pickup 4009-19 Ford F350 2019 CA1557322 1FTRF3B68KEC82483 4WD Pickup 4010-16 Ford F550 2016 CA1464049 1FDUF5GT7HEB81038 CCTV 4011-18 Mack GapVax 2018 CA1486446 1M2AX07C9JM040860 Combination Sewer Jet 4014-18 Ford F550 2018 CA1547781 1FD0W5HY7JEB41069 4WD Crew Cab/Dump Truck 4015-20 Ford F150 2020 CA1580530 1FTEX1CB9LKD52023 Crew Cab Pickup 4023-13 JCB 930 2013 NA JCB93002J02228172 Forklift

C – Page 84 of 244

Attachment C
Vendor Quotes

C – Page 85 of 244

..

I
December 4, 2025
~ Ai. :

MAINTENAI\ICE

EQUIPMENT
CSLB #980409
DIR 1000004282
www.source-mme.com
Toll Free 1-888-484-9968
Veolia / City of Palm Springs
4375 E. Mesquite Avenue
Palm Springs , CA 92264
Tel: 760-459-6396
[email protected]
Attention: Jose Lozano, CS Manager
We are pleased to provide the enclosed contract pricing from the Sourcewell program Contract No. 120721-RVL RapidView IBAK CCTV Inspection System for your review.

One (1) Each RapidView IBAK PANORAMO 4K + HD Mainline Truck with the following components:

ITEM
VZ000700
F550 DIESEL 4X2 FOR 16' BOX, Chassis Cab, Regular Cab, 205" WB,

6.7L POWER STROKE DIESEL Engine, 6 Speed Automatic with SelectShift Transmission, 4x2, DRW, Telescoping Mirrors , AM/FM Radio, Power locks, Remote Keyless Entry, Air Conditioning .

RapidView LLC (Vendor) reserves the right to increase the price of vehicle chassis, trailers, and all-terrain vehicles in proportion to any increase of costs to the VENDOR between the date of acceptance of the order and the date of delivery (including without limitation costs relating to exchange rates, model year changes, manufacturer price increases, labor, materials , transport and taxes).

Equip Sales
Misc. Equipment Sales
• Upgrade to newest chassis model year and additional customer requested chassis changes.

VZ000602
FRP Cargo 16' Box
• Dim: 16'x8'x6'6"
• Chassis purchased separately, call for required chassis specifications • Includes installation of box on approved chassis
• Dual swing open rear doors
• Side entry door
• Aluminum plank flooring for easy cleaning and higher traction VZ000621
Inspection Conversion for 16' Commercia l RapidView FRP Box or Trailer
• Walk-thru design with partition wall and door
• Tinted glass viewing window in bulkhead wall
• 12v LED lighting
• Roof Air
• Rear back up camera
• Exterior shore power package with extension cord
• Auxiliary battery and charging system installed with generator and MEPs systems
4634 Mayhew Road
Sacramento, CA 95827
Office: 916-922-1101
Fax: 916-922-1034
4750 Caterpillar Road, #D
Redding, CA 96003
Office: 530-243-4856
Fax: 530-243-1447
13922 Gracebee Avenue
Norwalk, CA 90650
Office: 714-528-8770
Fax: 714-528-8744

RETAIL SOU RC EWELL
$78,416.00 $75,279 .00
$ 4,573 .00 $ 4,390 .00
$23,002 .00 $22,081.92
$ 28,787 .00 $27,635 .52
1930 W. Winton Avenue, #1
Hayward, CA 94545
Office: 510-6 70-0230
Fax: 510-670-9003

C – Page 86 of 244

..

December 4, 2025
Veolia / City of Palm Springs
~ iCIPAL

MAINTENANCE

EQUIPMENT
RapidView IBAK PANORAMO 4K + HD Mainline Truck Sourcewell Quote

FRONT OFFICE:
• Carpeted walls in Studio
• Laminated base cabinetry
• Laminate countertops in studio
• Vibration resistant electronics cabinet with rear door access to outside of truck for easy installation and troubleshooting
• Bench seat over generator
WORKSPACE :
• Heavy-duty, 5 drawer toolbox
• Monitor mount in workspace for installing monitor (monitor sold separately) • 14 Gallon pressurized wash down system
• Butcher block workbench
• Rugged FRP cabinets
• Closet with aluminum storage shelves
• Rugged FRP overhead cabinets with easy-open hardware
SAFETY:
• Directional arrow board at rear
• Strobe light mounted on front roof
• LED side markers on Box.

Equip Sales
Misc. Equipment Sales
• Extend Countertop and Overhead Cabinets on Passenger Side for 16'Box
VZP000112
MEPS 6.3Kw, 120VAC for Diesel F-Series Fords
VZ000825
Fold-Out Steps (side access)
VZ000826
Fold-Down Steps (rear)
(3) VZM000102
Monitor, 22" Widescreen
VZM000104
Monitor Mount - Double
VZ000810
Premium Safety Light Package (UPGRADE)
• Traffic advisor mounted on front and rear of vehicle
• High intensity surface mount LEDs mounted on the grill, rear pillars and each side
• One high-intens ity LED high profile beacon light mounted on roof • Two Super LED rear work lights mounted on rear of vehicle • Please note: this is an upgrade package - some lights on the standard conversion are replaced .
$ 1,250.00 $ 1,200.00
$15,422.00 $ 14,805.12
$ 743.00 $ 713.28
$ 964.00 $ 925.44
$ 935.00 $ 2,692.80
$ 458.00 $ 439.68
$ 5,482.00 $ 5,262.73

C – Page 87 of 244

--
..
. MUNICIPAL

MAINTENANCE

EQUIPMENT
December 4, 2025
Veolia / City of Palm Springs
RapidView IBAK PANORAMO 4K + HD Mainline Truck Sourcewell Quote

VZ000817
Powered Retractable Rear Canopy
• Protects from rain or sun
• Easy, push-button extension and retraction
Equip Sales
Grab Bar - Side Door - Painted Yellow
Equip Sales
Grab Bar - Rear - Painted Yellow
VZ000312
KW Reel cabinet , (Standard Length w/ 3 drawers). Drawers divided in center. All aluminum, locking drawer construction . Provides additional storage under drum. Will not accept LISY drum. (2) VZ3POLEBRACKET
Fiberglass Pole Bracket
• Lower support arm and 1 horizontal support with push on stays . • Holds 3 poles .
(2) V000021
Lowering Poles for Tractors
• Includes fiberglass poles and adapter to lowering claws V4004025
ORPHEUS HD Pan & Tilt Camera WITH TRANSMITTER
• Pan& Tilt, Zoom Camera of 6" pipelines
• Full HD 1920x1080 Resolution, HD-SDI Standard (patent pending) • 160x Zoom (10x Optical , 16x Digital)
• Pan-able zoom optics
• High-power LED lighting with gap lighting
• Intelligent Auto-Focus
• Innovative HUD display
• Includes installed 33hz transm itter
V9051020
PANORAMO 2 4K High Resolution Camera System
• 3-D Spherica l Optoscanner
• For 8" to 36" pipelines
• Light and Heavy additional weights
• Wheel set 108 additional wheelsets available seperately • Small axle extenders included
• IPAS PANORAMO software
• PANORAMO Scan software (vehicle)
• PANORAMO View software
$ 4,136.00 $ 3,970.56
$ 156.00 $ 149.76
$ 156.00 $ 149.76
$ 2,894.00 $ 2,779.00
$ 441 .00 $ 846.72
$ 374.00 $ 718.00
$39 ,235.00 $37 ,665.00
$161,43 1.00 $154,973.76

C – Page 88 of 244

..

December 4, 2025
Veolia I City of Palm Springs

MUNICIPAL

MAINTENANCE

EQUIPMENT
RapidView !BAK PANORAMO 4K + HD Mainline Truck Sourcewell Quote Page4
V9051003
PANORAMO 2/4K height adjusting lift
• Raises the camera in the pipe
• Works with both PANO 2 and PANO 4K
V9049001
T76 HD TRACTOR
• HD Version required for HD System operation
• Mainline tractor for use in pipelines 5" and up
• Zero turn radius , full steering with ATC (Automatic Tilt Compensation) • Includes lowering claw, toolset and 5"/6"/8"/1 O" wheelsets • T76 can be used as the chassis for the LISY 3.2 / 4.2 HD Extension • Requires a HD Camera Base module for normal mainline operations • Add the Remote Elevator (904116031) to help in larger pipelines V9040013
HD Camera Base Module for T76/86 Tractor
• Required for operation of T76/86 HD as mainline tractor • Includes 33kHz and 512Hz transmitters for location
904116031
Remote Elevator for T76/86
• Raises the camera to allow centering in pipeline
• Lifts camera above water line in pipes with flow
903911531
T76 Additonal weight - 17 lbs.
903911031
XL Additional Weight for T76 38 lbs.

Uses:
6001239 - M6x65 Cheese Head Screws x 8
6001531 - M6x25 Oval Head Torx Screws x 2
6001530 - M5x25 Oval Head Torx Screws x 2
904401491
High-Traction Tungsten Carbide Wheels for 6" and up
• For use with T76 / T86 I PAN02 Tractors
• Large Grit
• Uses Wheel Bolt 6002227
900406691
High-Traction Tungsten Carbide Wheels for 8" and up
»>Complete Set of 4 with bolts and washers«<
• For use with T76 / T86 I PAN02 Tractors
• Large Grit
• Uses Wheel Bolt 60000291
• Uses Flat Washer 6000082
$ 10,999.00 $ 10,559.00
$ 26,909.00 $ 25,832.00
$ 7,693.00 $ 7,385.28
$ 9,594.00 $ 9,210.00
$ 1,694.00 $ 1,626.00
$ 2,169.00 $ 2,082.00
$ 1,723.00 $ 1,654.00
$ 1,813.00 $ 1,740.00

C – Page 89 of 244

..

December 4, 2025
Veolia / City of Palm Springs
-

MUNICIPAL

MAINTENANCE

EQUIPMENT
RapidView IBAK PANORAMO 4K + HD Mainline Truck Sourcewell Quote

900410391
T76 Treaded Wheelset Complete for 8" and up pipe
(((Brown/Hard Compound)))
• *RAD 122 PUR
***Uses Replacement Tire #900411042***
Set Contains:
4 - Single Rim Size 122 + Tire = 900410541
16 - Cheese Head Screw 6000291
6 - Cheese Head Screw 6000291
900410891
T76 RAD 150 Complete Treaded Wheelset for 12" And ~p
(Brown / Hard)
• For 16" and up on a T86
• For 12" and up on a T76
• For 10" and up on a T66
*Uses Single Replacement Tire 9004117 42*
*Uses 6000412 M6x35 Cheese Head Screws*
*Uses 6002116 M4x8 Torx Countersunk Screw*
900406690
Pneumatic Tires for T76/86 KRA75/85 PANORAMO and LISY (Grey) ***Comes with 8 - 6000510 (M6x75) & 8 - 6000412 (M6x35) Wheel Bolts and 8 - 6000082 (A6.4) Washers***
904110390
Large Black Pneumatic Tires, Tubes and Rims (Set of 4) for T76/86/ PANORAMO/LISY (Black) - 3.00-4
Comes with 6000082 x 8 ( A6.4 Washer), 6001522 x 8 (M6x113) and 6000510 X 8 (M6x75)
904100890
X-Large Pneumatic Tires for T76/86/PANORAMO/LISY (Black) ***Set of 4 with bolts and washers***
--Comes With:
-- 6000082 A6.4 Washers X8
--6001522 M6x113 Bolts X8
--6001991 M6x80 Bolts X8
V9052009
T66.1 HD Camera Tractor
• For use with HD camera cable/systems
• For camera operation in pipelines 4" and larger
• Zero turn radius, full steering with ATC (Automatic Tilt Compensation) • Incl. test adapter, tool set and lowering claw.
• Includes 4", 6" and 8" wheelsets
• REQUIRES Camera Connection (Sold Separately)
$ 1,545.00 $ 1,483.00
$ 1,961.00 $ 1,882.00
$ 1,635.00 $ 1,569.00
$ 1,604.00 $ 1,539.84
$ 2,466.00 $ 2,367.36
$15 ,950.00 $15,312.00

C – Page 90 of 244

..

December 4, 2025
Veolia I City of Palm Springs

MUNICIPAL

MAINTENANCE

EQUIPMENT
RapidView IBAK PANORAMO 4K + HD Mainline Truck Sourcewell Quote Page6
905244001
Camera Connection Type 2.1 HD for T66.1 HD
• For connection of HD cameras
• Standard straight connector for camera on T66 .1 HD tractor 905211031
Additional Weight for T66
• For 6" and up
• Light and heavy weights included
• Addit ional weight = additional traction = greater distance 905253031
Combination KRA65 & T66 Lowering Claw Used With Pole Adapter 905215991
High-Traction Tungsten Carbide Wheels for 6" and up
• For use with T66 and PANO 150 Tractors
• Large Grit
(((Uses Countersunk Screw 6001541 )))
905216791
High-Traction Tungsten Carbide Wheels for 8" and up
• For use with T66 for 8" and up
• For use with PANO 150 Tractors for 1 O" and up.
• Large Grit
**Comes With 12 Each, 6001562 M5x20 Countersunk Torx,
600 1043 M5x25 Cheese Head and 6000081 A5.3 Flat Washers** 905210191
Treaded Wheel Set 105 PUR Complete - Brown -
**T66 & PAMORAMO 150 Only**
*T66 Used In 6" / 150mm & Up Pipe*
*PANORAMO 150 Used In 8" / 200mm & Up Pipe*
(((Uses Replacement Tire P/N 905206342)))
90521099 1
Treaded Wheel Set 118 PUR Complete - Brown­
**T66 & PANORAMO 150**
*T66 Used In 8" / 200mm & Up Pipe*
*PANORAMO 150 Used In 10" / 250mm & Up Pipe*
(((Uses Replacement Tire P/N 900411042))
V9056001
ARGO Raft
• For use in large , partially filled lines
• Includes floating raft and deflection pulley
• Requires ARGO Adapter box or ARGO holder for camera adapter $ 2,1 10.00 $ 2,025.00
$ 951 .00 $ 912.96
$ 431 .00 $ 413.76
$ 1,723.00 $ 1,654.00
$ 1,991.00 $ 1,911 .00
$ 1,010.00 $ 969.60
$ 1,47 1.00 $ 1,412.16
$ 9,772.00 $ 9,381 .00

C – Page 91 of 244

..

December 4, 2025
Veolia/ City of Palm Springs
............
. MUNICIPAL

MAINTENANCE

EQUIPMENT
RapidView IBAK PANORAMO 4K + HD Mainline Truck Sourcewell Quote

V9056003
ARGO holder for Camera Adapter
• Built in receptacle for Camera Adapter (802300430 sold separately) 905600601
Protection Cage for Camera -ARGO Raft
802310000
KKA 16-10 HD Soft Cable Adapter
• Adapts HD soft cable directly to camera
• For use in vertical inspections or testing.

V1971108
BS10XR Control Unit for CCTV Systems
• for IBAK inspection systems HD, PANORAMO and LISY
• for IBAK camera systems up to 500 m cable length
• with control console BP 10X.2 and control module BE 7-10 R • operation of the camera and tractor functions with 2 multifunctional • joysticks incl. emergency stop
• intercom system with loudspeaker and microphone
**Touch monitor is required.

RAM-2461 U
VESA 75 /100 Mounting Plate With Ball - C Size
RAM-201U-B
Double Socket Arm - C Size Short (3.5"/89mm)
RAM-TRACK-EXA -9BU
9BU 9" Modulare Aluminum Black Tough Track
RAP-354U-TRA 1
Track Ball With T-Bolt Attachment - C Size
10TS7M
10 Inch Touch Screen
GV-N71 OD3-2GL
Graphics Card With HDMI Output
V8056001
KW507 00/12/F04 HD/4K Synchronized Cable Reel
• fully automatic cable winch
• for camera cable 00/12/F04 HD/4K (not included)
• for operation with operating systems BS 1 OX R(500m) and BSX Pro (600m) • for HD camera systems and PANORAMO 4K
• with swivel boom, steel rope winch and workplace light - digital length • counter (switchable between m and feet)
• incl. winch remote control unit
$ 1,471.00 $ 1,412.16
$ 2,733.00 $ 2,623.68
$ 2,526.00 $ 2,424.96
$38 ,047.00 $36 ,525.00
$ 41 .00 $ 39.00
$ 49.00 $ 47.00
$ 38.00 $ 36.00
$ 35.00 $ 33.60
$ 665.00 $ 638.00
$ 92.00 $ 88.00
$46,035.00 $44,193.60

C – Page 92 of 244

..

December 4, 2025
Veolia / City of Palm Springs

MUNICIPAL

MAINTENANCE

EQUIPMENT
RapidView !BAK PANORAMO 4K + HD Mainline Truck Sourcewell Quote

80073400
Camera Cable 00/12/FO 4 4K HD/4K 500m/1640ft
• For KW507
904350020
Cable Deflection Pulley KUV 2.7 with rope and holder (50ft of rope) 802617031A
Cable Deflection Pulley (Adjustable) KW305/505
-Attaches to the boom for off-manhole setups
-Rotates for proper alignment to manhole
802975001
Cable Cleaning Brush for KW305/310/505
*Attaches to drum boom and cleans cable during retrieval 800500841
KW Reel foot-operated winch switch (KW505, 310 and 305) * Control the lowering winch with foot to allow more control while lowering the tractor into the manho le
901601040
Pressure Test Set
$19,158.00
$ 1,196.00
$ 1,609 .00
$ 584 .00
$ 1,258 .00
$ 706.00
V4702467 $ 3,611.00
VM4C9 Full HD MPEG Encoder Card
*Only sold for use with IKAS Evolution. If using a 3rd party software, please contact your software vendor.

Training - 2Day Equipment Training $ 6,750.00
Standard (2) day training at customer's location.
• Includes review of operation and maintenance of supplied equipment. • Training is no charge at RapidView facility in Rochester, Indiana . • RapidView is not responsible for damage incurred that was not a direct • result of our trainer's actions .

WI NGAN Software & Computer:

VX-EXPERT-1-SUB $ 5,406.00
• ANNUAL WinCan VX Expert License includes : Section/Lateral/Manhole, Basic Reporting, Report Generator, Data Viewer, All languages & Standards, Map Expert/ArcGIS, Photo Assistant , Drawing function, Meta DB, Data Transfer Tool, SQL database option, Multiple Inspection, Grading, MPEG1/2/4 Recording, Software Encoding and Text Generator. NASSCO Validator, Inclination, Local deformation & Crack width with laser, HD Video Capture. Work Order Management, Statistics , and GIS Queries.

VX-OFFICE-2-NET-SUB $ 4,161.60
• ANNUAL 2 User WinCan VX Office Network License includes: Section/ Lateral/ Manhole, Basic reporting , Report Generator, Data Viewer, All languages & Standards, Map Entry, Photo Assistant, Drawing function, Meta DB, Data Transfer Tool, SOL database option, Multiple Inspection, Grading , NASSCO Validator , Inclination, Local deformation & Crack width with laser.
$18,391 .00
$ 1,148.00
$ 1,544 .64
$ 560.00
$ 1,207 .00
$ 677.76
$ 3,466.56
$ 6,480.00
$ 5,189.76
$ 3,995 .14

C – Page 93 of 244

..

December 4, 2025
Veolia / City of Palm Springs

MUNICIPAL

MAINTENANCE

EQUIPMENT
RapidView IBAK PANORAMO 4K + HD Mainline Truck Sourcewell Quote

SE-2210-SUB
• ANNUAL Scan Explorer Module
SM-2230-SUB
ANNUAL Scanning Module-Ring Laser Deformation Measurement/Sonar Scanning/lBAK 3DGS
IBAK-2226-PAN03D
• IBAK Panoramo SI License Fee (including 30 Measurement Tools) H-RACKMOUNT-JDC-01
• Intel 17-12700 CPU, 16 GB DDR4, Intel UHD Graphics, 512 GBSSD, Windows 11 Pro, 4U 19" case -Discreet Graphics w/ 2 GB dedicated RAM -1 HDMI and DVI output -512 GB M.2 SSD OS-1TB M.2 SSD T-WINCANTRAINING-2
• Two Day On-Site Installation and Training
(Includes Instructors time and expenses)
SW Price F.O.B. Shipping Point
Less 4% SW Discount
Factory Inspection
PD I/Freight
Sub-Total

9.25% Sales Tax
CA Tire Fee
Total
$ 2,499.00
$ 1,836.00
$ 5,760.00
$ 3,774.00
$ 5,760.00
Purchase Order to be prepared and sent directly to the Sourcewell Contract Assignee:

Municipal Maintenance Equipment, Inc. 4634 Mayhew Road Sacramento , CA 95827 Tel: 916-922-1101 Fax: 916-922-1034 Nancy Steffan - [email protected] $ 2,399.04
$ 1,762.56
$ 5,529.60
$ 3,623.04
$ 5,529.60
$634,554.60
$ 25,391.64
$ 4,000.00
$ 13.164.00
$626,326.96
$ 57,935.24
$ 10.50
$684,272.70
• Municipal Maintenance Equipment, Inc. is the local dealer and will provide warranty support and future service for the RapidView IBAK products.
• Pricing includes delivery and on-site training.
• Normal delivery 90-120 A.RO. depending on component availability during production. • Terms: per Sourcewell Program.
• Quotation valid for 30 days.

Thank you for your interest in this fine product. Should you have any questions or need additional informat ion, please let us know. We look forward to being of service.

Sincerely,
Mu~ -n-=a==nc=~==E=q=ui;::,p~ment, Inc.

Jam~
President

C – Page 94 of 244

SOURCEWELL CONTRACT NO. 101221-GPV

PREPARED BY
PLUMBER'S DEPOT, INC.

PREPARED FOR
QUOTE
City of Palm Springs
UPDATED:
2/25/2025

QUOTE ID
25-22525-1
QUOTE
Plumbers Depot Inc. offers complete service, technical support and repairs in our Hawthorne, California facility. Our service and repair department is capable of testing, repairing or completely rebuilding most sewer cleaning units such as GapVax®, Vactor®, Vac-con® and Super Products®. Our mission is to provide the highest quality tools and equipment for our customers at a fair price. We stand behind our products after the sale and ensure outstanding customer service comes with our products.

C – Page 95 of 244

QUOTE ID: 25-22525-1

ALPHA OPTION DESCRIPTION NOTES QTY

CHA CHASSIS OPTIONS --
CHA001 CUSTOMER SUPPLIED CHASSIS MODEL YEAR 2026 1
SPECIFICATIONS MUST BE APPROVED BY GAPVAX PRIOR TO ORDER. CHASSIS MUST

BE PDI COMPLETE PRIOR TO ARRIVAL AT GAPVAX AND MUST BE DELIVERED FULL OF FUEL.

CONSULT FACTORY --

A DEBRIS BODY OPTIONS --
STD 11 USABLE YARD DEBRIS TANK MADE OF 3/16'' ASTM A-572 GRADE 50 EXTEN STEEL STANDARD

STD FULL-OPENING REAR TAILGATE STANDARD

STD STAINLESS STEEL TAILGATE SEALING ROD STANDARD

STD FOUR HYDRAULIC REAR DOOR LOCKS STANDARD

STD DUAL TAILGATE LIFT CYLINDERS STANDARD
STD FRONT MOUNTED HOIST CYLINDER, POWER UP AND DOWN, 55,000 LB CAPACITY STANDARD

STD THREE TIE-OFF ANCHORS ON TOP OF BODY STANDARD

STD FIVE YEAR WARRANTY ON DEBRIS TANK AGAINST RUST THROUGH, DISTORTION AND

CRACKS STANDARD
STD THREE TIE-OFF ANCHORS ON TOP OF THE BODY 6' APART STANDARD A1C STAINLESS DEBRIS BODY FLUSH OUT SYSTEM, MOUNTED AT MID-LEVEL IN DEBRIS TANK INCLUDES LOW POINT DRAIN 1
A2A DRAIN AT BOTTOM OF TAILGATE - 6" BRASS LEVER VALVE WITH 15' OF LAYFLAT HOSE VALVE IS NOT 100% LEAK PROOF 1 A3-CS FLOAT TYPE LIQUID LEVEL INDICATOR ON SIDE OF DEBRIS TANK 1 A11A FILTER SCREEN FOR DRAIN VALVE (SHORT BOX) REQUIRES A2 1 A17 UPGRADE TO STAINLESS STEEL DEBRIS TANK 1
A20 UPGRADE TO 1/4" DEBRIS TANK 1
A21 CURBSIDE LADDER TO PORT INSPECTION AREA 1
A18 PURGE VALVE AT GRAVITY DRAIN (1-1/4" BALL VALVE) 1
A22A GALVANIZED BOLT ON TAILGATE SPLASH SHIELDS 1
A34B UPGRADE DEBRIS BODY BAFFLE TO STAINLESS STEEL SS DEBRIS BODY UPGRADE REQUIRED A37A UPGRADE BODY INLET CANNON TO HX STYLE WITH CLEANOUT 1 A44 PNEUMATIC TAILGATE PROP (IN ADDITION TO STANDARD TAILGATE PROP ROD) 1

B WATER TANK OPTIONS --
STD 1300 GALLON WATER TANK MADE OF 3/16'' 304 STAINLESS STEEL STANDARD 2026 MC1311-3S4S COMBINATION JET/VAC
September 15, 2025
NOTE: THE GAPVAX MC UNIT MAY EXCEED FEDERAL BRIDGE ALLOWABLE WEIGHTS WHEN LOADED WITH WATER, OR DEBRIS, AND/OR BOTH WATER AND DEBRIS COMBINED. PLEASE CONSULT FACTORY.

C – Page 96 of 244

STD 4" HIGH ANTI-SIPHON RING WITH (4) 2-1/2" HOLES STANDARD

STD WATER TANK LEVEL SIGHT TUBE ON CURBSIDE STANDARD

STD DRAIN VALVE AT BOTTOM OF WATER TANK STANDARD
STD 3" FILL LINE WITH 2-1/2" FIRE HOSE CONNECTION CURBSIDE STANDARD STD 3" WATER STRAINER WITH STAINLESS STEEL SCREEN ON WATER TANK FILL LINE STANDARD STD 3" SUPPLY LINE TO WATER PUMP MOUNTED AT REAR HINGE PIN STANDARD

STD FIVE YEAR WARRANTY ON WATER TANK AGAINST RUST THROUGH, DISTORTION AND

CRACKS STANDARD
B3 TANK INTER-CONNECT WITH DEBRIS TANK REQUIRES A2, B10 1 B10 ADDITIONAL 3" FILTER BETWEEN WATER TANK AND PUMP (3" Y-STRAINER) 1 B23B STAINLESS BAFFLES IN THE WATER TANK 1
B30 UPGRADE TO BUTTERFLY VALVE IN 3" SUPPLY LINE STANDARD

C VACUUM SYSTEM OPTIONS --
STD TRUE 8" DIAMETER VACUUM SYSTEM STANDARD

STD VACUUM PUMP DRIVEN VIA MID-SHIP MOUNTED SPLIT SHAFT TRANSFER CASE

GEARBOX (PTO) STANDARD

STD NOISE & VIBRATION DAMPENING MOUNTS ON VACUUM PUMP AND TRANSFER CASE STANDARD

STD NOISE ATTENUATED VACUUM PUMP DISCHARGE SILENCER WITH RAIN CAP AND DRAIN STANDARD STD 24" CENTRIFUGAL CYCLONE SEPARATOR WITH 20" CHAMBER STANDARD

STD DUAL STAINLESS STEEL SHUTOFF FLOAT BALLS MOUNTED AT THE REAR OF DEBRIS

TANK STANDARD

STD STAINLESS STEEL VEE-WIRE SAFETY SCREEN STANDARD
STD 6" SAFETY VACUUM RELIEF STANDARD

STD PANIC SWITCH FUNCTION FOR VACUUM STANDARD
C17 UPGRADE TO HIBON 840 VACUUM PUMP 3,850 CFM AND 27" HG REQUIRES OPTIONS A20 AND C18 1 C2 6" MANUAL VACUUM RELIEF VALVE RECOMMENDED WITH PUMP-OFF SYSTEM 1
C18 VULKAN VIBRATION DAMPENING BLOWER COUPLER REQUIRED FOR OPTION C17 REQUIRED

D WATER SYSTEM OPTIONS --

STD TRI-PLEX WATER PUMP SYSTEM STANDARD

STD AIR PURGE SYSTEM FOR PRIMARY CIRCUIT STANDARD

STD LOW POINT DRAIN VALVES ON WATER LINES STANDARD
D4 MULTIFLOW CONTROL AND SAFETY REGULATOR VALVE (MSUV) 1 STD WASHDOWN CIRCUIT WITH 50' X 1/2'' HOSE, QUICK CONNECT, AND WASHDOWN HAND GUN 50-FT HOSE REEL STANDARD
STD WASHDOWN CIRCUIT(S) WILL INCLUDE A SAFETY FLOW RESTRICTOR (1/4" HOSE) STANDARD D7A HOSE REEL FOR STANDARD WASHDOWN CIRCUIT, 50' X 1/2" 1 D3B GENERAL MKS "2" SERIES WATER PUMP RATED AT 80 GPM @ 2500 PSI (P/N: PUM022755) 1

D-GPVC VIBRATION DAMPENING COUPLER - WATER PUMP REQUIRED D21 WATER RECIRCULATION VIA AUTOMATIC TRANSMISSION (INCLUDES WASHDOWN, ADDITIONAL CIRCUITS, AND LATERAL REEL) JETTER SYSTEM ONLY 1

C – Page 97 of 244

E BOOM OPTIONS --
STD 8" FRONT MOUNTED TELESCOPING BOOM WITH 26' REACH AND 180 DEG. ROTATION STANDARD STD 180 DEGREE POWER ROTATION VIA WORM DRIVE STANDARD
STD DUAL 4" LIFT CYLINDERS STANDARD

STD CAB PROTECTION RACK STANDARD
E6 REMOTE LUBE FOR BOOM LIFT AND ROTATION 1

F HOSE REEL OPTIONS --
STD FRONT FRAME MOUNTED HOSE REEL WITH 180 DEGREE ARTICULATION STANDARD STD HOSE REEL RATED FOR 800' OF HOSE AND 3,000 PSI STANDARD

STD EXTERIOR HOSE EXPANSION RIBS STANDARD
F1C DIGITAL FOOTAGE COUNTER - SHAFT-MOUNTED 1
F6 UPGRADE FRONT HOSE REEL TO POWER ARTICULATE VIA HYDRAULICS 1 F11 AUTOMATIC HOSE LEVEL WINDER (INCLUDES "J-HOOK" STLYE HOSE GUIDE) 1

G CONTROLS, GAUGES, ACCESSORIES OPTIONS --

STD CAB-MOUNTED CONTROLS FOR BLOWER AND HYDRAULICS STANDARD

STD CONTROL PANEL MOUNTED AT FRONT HOSE REEL WITH WATER PUMP CONTROLS STANDARD

STD OPERATOR CONTROL PANEL INCLUDES GAUGES FOR ENGINE, HYDRAULICS, VACUUM,

AND WATER PUMP STANDARD

STD PANIC SWITCH TO RELIEVE WATER PRESSURE AND VACUUM ON FRONT PANEL AND

CURB SIDE OF UNIT STANDARD
G2B G2B CONTROL SYSTEM WITH DM430 DISPLAY INCLUDES: WIRELESS CONTROL REQUIRED 1 LOW WATER SHUTDOWN PROTECTION 1
HIGH WATER TEMPERATURE SHUTDOWN PROTECTION 1
ENGINE OVERSPEED PROTECTION 1
ON-SCREEN DIAGNOSTICS FOR WATER, PTO AND ENGINE LEVELS 1 G19 WIRELESS REMOTE WITH BOOM, VACUUM, AND WATER PRESSURE FUNCTIONS STANDARD 1 G21-TD AARCOMM TRIDENT REMOTE 1
G21-AWR ADDITIONAL WIRELESS TRANSMITTER 1
G30-FHR ADD SWITCH ON CAB CONSOLE FOR FRONT HOSE REEL ARTICULATE (LEFT/RIGHT) REQUIRES OPTION F6 1

H LIGHTING --

STD TRUCK-LITE LED RUNNING (MARKER) LIGHTS STANDARD

STD LED STOP/TAIL/TURN LIGHT WITH POLISHED STAINLESS STEEL BOXES STANDARD H5B (2) BOOM WORK LIGHTS - HELLA LED WORK LIGHTS (PN: LHT022429) 1 H6B (2) REAR WORK LIGHTS - HELLA LED WORK LIGHTS (PN: LHT022429) 1 H7BA (2) SIDE WORK LIGHTS - HELLA LED WORK LIGHTS (PN: LHT022429) (1 PER SIDE) 1 H15C WHELEN ION SUPER LED FLASHERS - 8 LIGHT HEADS 1
2 ON EACH SIDE FRONT @ 90 DEGREES, 2 ON EACH SIDE REAR 1

C – Page 98 of 244

H33 REAR ARROW LIGHT - LOW PROFILE LED (CA TITLE-13 COMPLIANT) TRAFFIC ADVISOR (LHT022544, CODE 3 TORUS NARROWSTIK OR EQUAL) 1
H39B TWO HIGH INTENSITY LED WORK LIGHTS (HELLA PB1500) ON FRONT HOSE REEL TO SHINE INTO MANHOLE 1

I STORAGE OPTIONS --
STD 25' FIRE HOSE BASKET STANDARD
I22 UPGRADE TUBE TRAYS TO STAINLESS STEEL 1
I7B-CS 36" TOOL BOX - ALUMINUM, 36" WIDE X 24" TALL X 24" DEEP, MOUNTED ON THE CURBSIDE 2
I14 TRAFFIC CONE HOLDER ON DRIVER'S SIDE 1
I16A WHEEL CHOCK HOLDER (PER SIDE) - DRIVER'S SIDE 1
I16B WHEEL CHOCK HOLDER (PER SIDE) - CURBSIDE 1
I20A REAR DRAIN HOSE RACK FOR 6" LAYFLAT HOSE X 15' LONG 1 I26B TWO BUMPER TOOL BOXES - ALUMINUM, 16" HIGH X 12" WIDE X 18" DEEP WITH FOLD DOWN DOOR 1

J CHASSIS OPTIONS --

STD DOT LIGHTING / FENDERS / MUD FLAPS / TAILGATE SAFETY PROP, ICC LIGHTS STANDARD

STD REMOTE ACTUATED BODY SAFETY PROP STANDARD
STD 70 GALLONS AW-46 HYDRAULIC OIL, LEVEL/TEMPERATURE GAUGE, SHUTOFF ON

SUCTION STANDARD

STD REAR BUMPER, TRIANGLE KIT, FIRE EXTINGUISHER, BACKUP ALARM STANDARD STD ALLISON 10-BOLT PTO UPGRADE STANDARD
J000 MID-SHIP MOUNTED (SPLIT-SHAFT) TRANSFER CASE WITH TOP DISCONNECT 1 J001 MUST BE "OMSI" BRAND TRANSFER CASE 1
J0B FRONT BUMPER - CALIFORNA FRONT BUMPER 1
J3 TOW HOOKS FRONT 1
J4B TOW HOOKS REAR - FRAME MOUNTED 1
J12-SS STAINLESS STEEL METAL MUD FLAPS IN FRONT OF REAR TIRES SS MUD FLAP UPGRADE 1

K PAINT OPTIONS --

STD PAINTED WITH PPG URETHANE PAINT STANDARD

STD PAINT BODY WHITE STANDARD

STD PAINT FRAME AND PARTS BLACK STANDARD

STD PAINT HOSE REEL AND BOOM BLACK STANDARD

STD FLEET FINISH STANDARD

M MISCELLANEOUS OPTIONS --
STD 25 FEET OF VACUUM TUBING (5) AND CLAMPS STANDARD

STD TIGER TAIL HOSE GUIDE STANDARD

STD TWO SEWER CLEANING NOZZLES STANDARD
M3 FILL HOSE 25' X 2 1/2" 1
M5C LEADER HOSE 25' X 1" 1

C – Page 99 of 244

M9H 1" PIRANHA SEWER HOSE - 3,000 PSI X 800 FT PLASTIC (BLUE) (PN: CAT022382) 1 M12 MANHOLE LIFTING HOOK 1
M13 HYDRANT WRENCH 1
M29B TWO CAMERA - BACK-UP CAMERA SYSTEM WITH 7" COLOR MONITOR (RV-505A), INCLUDES DVR-916 REAR AND DVR-921 FRONT CAMERA 1
* CUSTOM OPTIONS --
* TRADE IN VALUE ON THE CITY OF PALM SPRINGS GAPVAX TRUCK OF $65,000.00 INCLUDED IN SOURCEWELL DISCOUNT. 1
** OPTION 114 TO BE MOUNTED ON REAR BUMPER (REFERENCE A052963, WELDED, USE SHORT REAR BUMPER 1
*** WESTERN STAR 47X-SF (6 X 4) - 470 HP DD13 ENGINE - 66,000 LB. GVWR - AUTO TRANSMISSION, SUPPLIED BY CALIFORNIA APPROVED CHASSIS DEALER 1

C – Page 100 of 244

PRICE OF BASE UNIT WITH OPTIONS: 822,388.42$
SOURCWELL DISCOUNT: 81,313.87$
DELIVERY: ($1,000.00 MINIMUM) @ $4.00 PER MILE 12,000.00$ ESTIMATED SUBTOTAL: 753,074.56$
SALES TAX: 76,070.93$
TOTAL PRICE (PER UNIT): 829,145.49$

SIGNATURE DATE
QUOTE ID LAST UPDATED:
25-22525-1 2/25/2025
TERMS: 15% DOWN PAYMENT BALANCE DUE UPON COMPLETION. IN THE EVENT OF THE PURCHASERS DEFAULT AND THE TERMINATION OF THIS SALES PROPOSAL AGREEMENT PRIOR TO START OF PRODUCTION, 25% OF THE DOWN PAYMENT SHALL BE FORFEITED AND APPLIED TO GAPVAX, INC. AS PART OF ITS DAMAGES. ONCE PRODUCTION HAS COMMENCED ON THIS SALES PROPOSAL AGREEMENT, IN THE EVENT OF THE

PURCHASERS CANCELLING THE SALES PROPOSAL AGREEMENT, OR FAILING TO ACCEPT DELIVERY, OR FAILING TO COMPLETE THE SALES PROPOSAL AGREEMENT, THE ENTIRE DEPOSIT SHALL BE FORFEITED TO GAPVAX, INC. BUT SUCH FORFEITURE SHALL NOT PREJUDICE ANY OTHER REMEDY WHICH GAPVAX, INC. MAY HAVE FOR BREACH OF ANY OF THE SALES PROPOSAL AGREEMENT. IN THE EVENT OF A COMPLETED

UNIT NOT BEING FUNDED IN A PROMPT AND TIMELY MANNER, AN ADDITIONAL FEE WILL OCCUR TO COVER THE ADDITIONAL FLOOR PLAN EXPENSE. FEDERAL EXCISE TAX AND DELIVERY ARE LISTED. STATE SALES TAX IS NOT INCLUDED. STATE SALES TAX AND VEHICLE REGISTRATION IS THE RESPONSIBILITY OF THE PURCHASER. EXCLUDES ALL OTHER APPLICABLE TAXES, DUTIES, TARIFFS, BROKERAGE, OR DOCUMENTATION FEES. DELIVERY, IF COORDINATED BY GAPVAX, IS $4.00 PER MILE, $1,000.00 MINIMUM.

IF THE CUSTOMER SUPPLIED CHASSIS IS REGISTERED WITH A PERMANENT LICENSE PLATE AT THE TIME OF PICK-UP OF THE COMPLETED UNIT AT THE GAPVAX FACTORY IN JOHNSTOWN, PA, THEN GAPVAX INC. IS OBLIGATED TO COLLECT A 6% PENNSYLVANIA STATE SALES TAX ON THE VACUUM UNIT / MODULE. IF SALES TAX EXEMPT, EXEMPTION FORM MUST BE SUPPLIED. DOES NOT APPLY TO A COMPLETED UNIT WITH

TEMPORARY REGISTRATION TAG (CARDBOARD TAG) AT THE TIME OF PICK-UP OR TO A COMPLETED UNIT DELIVERED BY GAPVAX TO AN OUT OF PENNSYLVANIA END DESTINATION.

DELIVERY TERMS: TERMS OF DELIVERY SHALL BE F.O.B. SHIPPING POINT, JOHNSTOWN, PENNSYLVANIA, U.S.A. THIS PROPOSAL WILL REMAIN IN EFFECT FOR 30 DAYS, UNLESS CHANGED IN THE INTERIM UPON WRITTEN NOTICE FROM THE COMPANY. PLEASE RETURN ONE SIGNED COPY OF THIS PROPOSAL, AND ANY FUTURE CORRESPONDENCE TO: GAPVAX, INCORPORATED, 575 CENTRAL AVE., JOHNSTOWN, PA 15902. BY SIGNING THIS PROPOSAL, PURCHASER THEREBY EXPRESSES ACCEPTANCE OF EACH AND EVERY TERM AND CONDITION SET FORTH HEREIN. ANY

PURCHASE ORDER OR ACKNOWLEDGMENT OFFERING TERMS INCONSISTENT WITH THE TERMS AND CONDITIONS HEREOF SHALL HAVE NO BINDING EFFECT WHATSOEVER ON GAPVAX INCORPORATED (THE "COMPANY") OR THE TERMS AND CONDITIONS HEREOF. THIS DOCUMENT AND

THE OTHER DOCUMENTS SPECIFICALLY REFERRED TO AS BEING A PART HEREOF, CONSTITUTE THE ENTIRE CONTRACT ON THE SUBJECT MATTER, AND SHALL NOT BE MODIFIED EXCEPT IN WRITING SIGNED BY BOTH PARTIES. ASSIGNMENT MAY BE MADE ONLY WITH WRITTEN CONSENT OF THE OTHER PARTY.

Chassis and Demo Units are SUBJECT TO PRIOR SALE, a 15% deposit is required with signed proposal

ALL ORDERS ARE SUBJECT TO CURRENT PRICES IN EFFECT AT THE TIME OF ORDER ACKNOWLEDGMENT. PRICES AND SPECIFICATIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE. PRICING DISCLAIMER: WHILE WE MAKE EVERY EFFORT TO MAINTAIN AND PRESERVE PRICING

ACCURACY, ALL COST INCREASES INCURRED AFTER ORDER ACKNOWLEDGMENT FOR MAJOR COMPONENTS AND GOVERNMENT MANDATED

REQUIREMENTS, TARIFFS, AND RAW MATERIAL SURCHARGES WILL BE PASSED THROUGH AND ADDED TO CUSTOMER INVOICES WITH OR WITHOUT NOTICE. ALTHOUGH THE INFORMATION ON THIS QUOTATION IS PRESENTED IN GOOD FAITH AND BELIEVED TO BE CORRECT AT THE TIME OF PRINTING, WE MAKE NO REPRESENTATIONS OR WARRANTIES AS TO THE COMPLETENESS OR ACCURACY OF THIS INFORMATION. WE

RESERVE THE RIGHT TO CHANGE, DELETE, OR OTHERWISE MODIFY THE PRICING INFORMATION WHICH IS REPRESENTED HEREIN WITHOUT ANY PRIOR NOTICE. WE CAREFULLY CHECK PRICING SPECIFICATIONS, BUT OCCASIONALLY ERRORS CAN OCCUR, THEREFORE WE RESERVE THE RIGHT TO CHANGE SUCH PRICES WITHOUT NOTICE. WE DISCLAIM ALL LIABILITY FOR ANY ERRORS OR OMISSIONS IN THE MATERIALS. IN NO

EVENT WILL WE BE RESPONSIBLE FOR ANY DAMAGES OF ANY NATURE WHATSOEVER FROM THE RELIANCE UPON INFORMATION FROM THESE MATERIALS. PLEASE CHECK YOUR ORDER TO CONFIRM YOUR PRICING INFORMATION Please return a signed copy to [email protected]

PRICING SUMMARY

C – Page 101 of 244

C – Page 102 of 244

ATTACHMENT D
(Veolia-City Contract Agreement)

C – Page 103 of 244

CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 11, 2026 CONSENT CALENDAR
SUBJECT: AUTHORIZE A TASK ORDER IN THE AMOUNT OF $29,419.30 FOR VEOLIA WATER WEST OPERATING SERVICES, INC. TO PROVIDE

PROFESSIONAL SERVICES FOR A WASTEWATER TOTAL NITROGEN

EFFLUENT LIMIT COMPLIANCE REPORT
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:

To fulfill the regulatory requirements of the California Regional Water Quality Control Board (the Board), the City has engaged Larry Walker and Associates (LWA) as a subcontractor to Veolia, the City’s wastewater operator. LWA will conduct the required technical evaluations of treatment alternatives and recycled water feasibility to produce a mandatory Total Nitrogen compliance report by June 1, 2026. This specialized support ensures the City remains in full legal compliance with the Board’s order requirements.

RECOMMENDATION:

1. Authorize the City Manager to approve a task order for professional services related to the Total Nitrogen Effluent Limit Compliance Technical Report to Veolia Water West Operating, in an amount not to exceed $29,419.30

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

BUSINESS PRINCIPAL DISCLOSURE:

The Public Integrity Disclosure Form from Veolia is included in Attachment A.

BACKGROUND:

The City of Palm Springs owns a wastewater treatment plant (WWTP) operated by Veolia Water West Operating Services, Inc. Designed for a capacity of 10.9 million gallons per day (MGD), the facility processes domestic wastewater and discharges a portion of the treated effluent into six unlined evaporation and percolation ponds covering 23.3 acres containing various regulated constituents, including nitrogen.

D – Page 104 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Approve Task Order for Nitrogen Report
7 4
1 Excess nitrogen, primarily in the form of nitrate, in groundwater causes significant problems for both human health and the environment. It is one of the most widespread chemical pollutants in groundwater globally, mainly originating from agricultural runoff, septic systems, and wastewater discharge.

Discharges from Palm Springs WWTPs are regulated by the California Regional Water Quality Control Board. Regulatory oversight is exercised through the issuance of individual Waste Discharge Requirements (WDR) site specific, legally binding Orders that dictate permissible discharge parameters.

On November 1, 2017, the City Council approved an amendment to Veolia’s agreement, establishing the development and implementation of a municipal industrial pretreatment program. This amendment also authorized the necessary studies to comply with Board Order WDR R7-2017-0013. Simultaneously, a purchase order for $145,636 was issued to Veolia to engage Larry Walker and Associates (LWA) for various technical studies; LWA was selected from proposals previously requested by Veolia.

On January October 17, 2018, the City Council authorized an increase of $150,000 to Purchase Order 18-0742 with Veolia for additional special groundwater studies and the implementation of a work plan to evaluate total dissolved solids from industrial and commercial sources. These actions are required to maintain compliance with California Regional Water Quality Control Board Order R7-2017-0013.

On February 13, 2024, the Board adopted the most recent Order WDR R7-2024-0009, which introduces a Total Nitrogen effluent limit of 10 mg/L calculated on a 12-month rolling average per Provision G.2.a. Because Palm Springs WWTP cannot currently meet this standard consistently, the Order mandates a 10-year timeline for the City to achieve full compliance. As an initial requirement, the City was directed to submit a proposed compliance schedule outlining key milestones within six months of the Order’s issuance.

On July 9, 2024, the City submitted a proposed schedule, which the Board approved as shown in Table 1 below.

Table 1
Deadline Milestone / Requirement
1-Jun-26
Submit Technical Report (Treatment Options): Assess treatment options for effluent limit compliance within 10 years. Includes evaluation of alternatives and feasibility of recycled water applications (e.g., discharging to Desert Water Agency).
1-Jun-27
Submit Technical Report (Selection & Design): Formally select a treatment option and provide preliminary designs.
1-Jun-28
CEQA Documentation: Complete and submit California Environmental Quality Act documentation for the selected alternative.
1-Feb-29
Commencement of Construction: Provide official notification that installation/construction activities have begun.

D – Page 105 of 244

City Council Staff Report
February 11, 2026 -- Page 3
Approve Task Order for Nitrogen Report
7 4
1 Deadline Milestone / Requirement
1-Jun-30
Completion Report: Submit technical report demonstrating that facility upgrades are complete and align with the approved designs.
1-Jan-31 System Startup: Full operational startup of all new facility components.

On October 10, 2024, the City Council authorized an increase of $182,960.40 to Purchase Order 18000472 issued to Veolia. This authorization secures additional professional services necessary to ensure the City remains in compliance with the requirements of California Regional Water Quality Control Board.

STAFF ANALYSIS:

The Wastewater Treatment Plant (WWTP) is currently operating under time-bound requirements from the Board. To ensure the City remains compliant, Veolia has requested a task order to engage LWA to assist in the preparation of the required technical report and manage subsequent communications with the City and the Board (Attachment B).

The milestones established in Table 1 are designed to ensure consistency with the requirements of WDR Order No. R7-2024-0009, provided as Attachment C.

Staff recommends the approval of this task order as it is an important step toward fulfilling the first technical milestone of the approved 10-year schedule. This ensures the City remains compliant with state environmental requirements and avoids penalties and operational risks.

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 Total Nitrogen Effluent Limit Compliance Technical Report, is considered categorically exempt from CEQA.

ALIGNMENT WITH STRATEGIC PLANNING:

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

FISCAL IMPACT:

Sufficient funds are available in the Wastewater Contractual Services fund for this task order.

D – Page 106 of 244

City Council Staff Report
February 11, 2026 -- Page 4
Approve Task Order for Nitrogen Report
7 4
1 REVIEWED BY:

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

ATTACHMENTS:

A. Veolia Public Integrity Disclosure
B. Letter from Veolia requesting Task Order
C. Board Order WDR No. R7-2024-0009

D – Page 107 of 244

Attachment A
Veolia Public Integrity Disclosure

D – Page 108 of 244

D – Page 109 of 244

D – Page 110 of 244

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM

(Revised 09 13 18)

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

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

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

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

6. Officers, Directors, Members, Mana gers, Trustees, Other Fiduciaries (please s pecify) Note: If any response is not a natural pers on, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity _________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner
 Other ____________________________________
_________________________
________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner
 Other ____________________________________
_________________________
________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner
 Other ____________________________________
Veolia Water West Operating Services, Inc.
53 State Street, 14th Floor, Boston, MA 02109
Delaware
x
x
William DiCroce x x
Jason Salgo x x
Robert Arendell x x

D – Page 111 of 244

CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE FORM APPLICANT DISCLOSURE FORM

(Revised 09 13.18)

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 Veolia Water North America-West, LLC 100%

D – Page 112 of 244

Continuation Page

Item 6, continued
John Gibson, officer
James Pawloski, officer
Daniel Mahoney, officer
Keith Oldewurtel, officer
Francis Ferrara, officer

Each of the persons listed in Item 6 (except James Pawloski) also serve as the officers of Applicant’s parent company Veolia Water North America-West, LLC, and William DiCroce, Jason Salgo, and Robert Arendell also serve as managers of Veolia Water North America-West, LLC.

D – Page 113 of 244

Attachment B
Veolia's Task Order Request Letter.

D – Page 114 of 244

November 20, 2025
Juan Segoviano, PE
Senior Civil Engineer
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262

Regarding: Task Order Request for LWA Nitrogen Effluent Limit Compliance Technical Report

Dear Mr. Segoviano,
The purpose of this letter is to request a task order and PO for reimbursement for LWA assistance with the Nitrogen Effluent Limit Compliance Technical Report pursuant to section 7.5 Direct Cost Items of our Wastewater Services Agreement dated November 4, 2015 with the City of Palm Springs.

Proposal Vendor Cost
Veolia Mark-up
15% Total
Nitrogen Effluent Limit
Compliance Technical
Report, WDR Special
Provision
Larry Walker
Associates $25,582 $3,837.30 $29,419.30

Contract Language:

Section 7.5 Direct Cost Items.

If Veolia is to be reimbursed under this Agreement for an item on a direct cost basis, such as Biosolids Services pursuant to Section 5.2(d), Street Sweeping services pursuant to Section 5.2(t), Rolling Stock Maintenance Services pursuant to Section

5.6(c) and Section 5.6(d), or any other third-party or sub-contracted services, an administrative overhead fee of fifteen percent (15%) shall apply and be paid by City in addition to such services. City shall have the right to request that Veolia seek competitive bids for such items or work; provided, however, that (i) Veolia shall not be obligated to follow the City's bidding process or any other process applicable to public agencies under Applicable Law; (ii) this paragraph shall only apply to work or items that are subcontracted by Veolia and shall not apply to Compensation payable to Veolia under this Agreement for work performed by Veolia's own personnel; (iii) Veolia shall make reasonable efforts to obtain at least three (3) competitive bids; (iv) competitive bidding on an individual scope of work shall not be required more frequently than the later of (1) once every three (3) years; or (2) in the case of an individual scope of work with respect to which a subcontract has been entered into, until the term of that subcontract has expired. If, after good faith efforts, Veolia receives two (2) competitive bids for a subcontracted scope of work, Veolia may proceed to enter into negotiations with the subcontractor submitting the lowest bid. If, after good faith efforts, Veolia

D – Page 115 of 244

receives one (1) competitive bid for a subcontracted scope of work, Veolia may proceed to enter into negotiations with that subcontractor provided the overall cost for that individual scope of work will not increase more than ten percent (10%) above the previously subcontracted scope of work, in which case Veolia shall repeat its efforts to solicit competitive bids. If, after good faith efforts, Veolia receives no competitive bids, Veolia may renegotiate the subcontract for which competitive bidding was initiated, provided the overall cost for that individual scope of work will not increase more than ten percent (10%) above the previously subcontracted scope of work, in which case Veolia shall repeat its efforts to solicit competitive bids.

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

Sincerely;

Doug Loar
Project Manager
Veolia Water West Operating Services, Inc. / Palm Springs

Enclosure: Scope of Work for Nitrogen Effluent Limit Compliance Technical Report, WDR Special Provision

Cc: Joel Montalvo M.P.A., PE, City Engineer
Francisco Jaime, PE, Principal Engineer

Veolia North America
Palm Springs Project
4375 Mesquite Avenue, Palm Springs, CA 92264
Tel 760-323-8166 / Fax 760-325-5747

D – Page 116 of 244

CITY OF PALM SPRINGS
Nitrogen Effluent Limit Compliance Scope of Work November 2025 | 1 November 6, 2025
Mr. Juan Segoviano
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Subject: Scope of Work for Nitrogen Effluent Limit Compliance Technical Report, WDR Special Provision
Dear Mr. Segoviano,
Larry Walker Associates (LWA) would be pleased to assist the City of Palm Springs (City) with preparing the Total Nitrogen Effluent Limit Compliance Technical Report (Technical Report) due to the California Regional Water Quality Control Board, Colorado River Basin Region (Regional Water Board) on June 1, 2026. The Waste Discharge Requirements (WDR) for the Palm Springs Wastewater Treatment Plant (WWTP), Order No. R7-2024-0009 (Order), includes Provision G.2.a which required the City to submit a Total Nitrogen Effluent Limit Compliance Time Schedule. The schedule was submitted to the Water Board on July 9, 20241, and includes submittal of the Technical Report, as described below:

Submit technical report identifying and assessing treatment options for compliance with the effluent limit within 10 years including evaluation of treatment alternatives and evaluating feasibility of using effluent for recycled water application, including discharging to Desert Water Agency for treatment and delivery of recycled water.

LWA is submitting this scope of services to assist the City with the Technical Report described above.

The scope of work, budget and schedule for this effort are provided below.

SCOPE OF WORK
Task 1. Data Compilation and Review
LWA will compile and review influent and effluent data for total nitrogen, nitrate, and nitrite, along with a description of treatment plant operations.

Task 2. Evaluate Treatment and Other Compliance Alternatives LWA will evaluate treatment alternatives for nitrogen removal such as process optimizations, nitrification and denitrification with activated sludge, implementation of denitrification filters, Membrane Aerated Biofilm Reactors (MABRs), or other approaches that may be identified. LWA will also evaluate the feasibility of discharging to Desert Water Agency (DWA) and recycled water uses where current nitrogen levels are not problematic. Finally, LWA will assess compliance alternatives such as implementing a mass-based limit instead of a concentration-based limit. The evaluation will consider technical feasibility, the level of coordination required with other entities ( such as DWA), regulatory implications, and financial considerations.

1 https://documents.geotracker.waterboards.ca.gov/esi/uploads/geo_report/3690201997/WDR100032535.PDF

D – Page 117 of 244

CITY OF PALM SPRINGS
Nitrogen Effluent Limit Compliance Scope of Work November 2025 | 2 Task 3. Preparation of Technical Report
LWA will prepare a draft Technical Report and will then finalize the report for submittal to the Regional Water Board by June 1, 2026. LWA will provide project management and required coordination with the City and Veolia. If needed, LWA will participate in a meeting with Regional Board Staff to discuss the evaluation and findings.

BUDGET
The above work will be conducted for a cost not to exceed $25,582 on a time and materials basis according to our standing billing rates which are attached. An estimated breakdown by staff level is shown below.

Task Task Description
LWA Labor Hours and Rates
Total
Hours
Labor
Cost
Associate Senior
Staff
Project
Staff
$324 $289 $221
1 Data Compilation and Review 2 8 16 26 $6,496
2 Evaluate Treatment and Other Compliance
Alternatives 6 10 16 32 $8,370
3 Preparation of Technical Report 6 12 24 42 $10,716
Total for all tasks 14 30 56 100 $25,582

Thank you for the opportunity to support the City in this effort. Please feel free to contact me at [email protected] or 510-507-1370 should you have additional questions.

Sincerely,

Olin Applegate
Larry Walker Associates, Inc.

D – Page 118 of 244

CITY OF PALM SPRINGS
Nitrogen Effluent Limit Compliance Scope of Work November 2025 | 3 LWA Rate Sheet: Effective July 1, 2025 – June 30, 2026

D – Page 119 of 244

ATTACHMENT C
(WDR No. R7-2024-0009)

D – Page 120 of 244

CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 11, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 4 IN THE AMOUNT OF $27,124.24 TO PROFESSIONAL SERVICES AGREEMENT NO. A6597 WITH DOKKEN

ENGINEERING FOR THE EAST PALM CANYON DRIVE BRIDGE, CITY PROJECT NO. 12-04, FEDERAL AID PROJECT NO. BRLS 5282(041) FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:

Approval of Amendment No. 4 to Professional Services Agreement No. A6597 with Dokken Engineering is requested for the East Palm Canyon Drive Bridge, City Project No. 12-04; Federal Aid Project No. BRLS 5282(041). This amendment adds $27,124.24 to complete environmental surveys, mitigation landscaping, and agency permitting coordination. Additionally, it extends the contract term to June 30, 2028, ensuring compliance with state and federal guidelines through project completion.

RECOMMENDATION:

1. Approve Amendment No. 4 in the amount of $27,124.24 to Professional Services Agreement No. A6597 with Dokken Engineering, for a new not to exceed amount of $1,407,428.52, for the East Palm Canyon Drive Bridge, City Project No. 12-04, Federal Aid Project No. BRLS 5282(041); and

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

BUSINESS PRINCIPAL DISCLOSURE:

Dokken Engineering is a California corporation. A copy of their Public Integrity Disclosure Form is included as Attachment A.

BACKGROUND:

The East Palm Canyon Drive Bridge, constructed in 1956 and widened in 1963, is listed in the Federal Eligible Bridge List with a status of “Structurally Deficient (SD)” and a low Sufficiency Rating (SR) of 53.6 according to the Bridge Inspection Report (BIR) prepared

E – Page 121 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Amendment No. 4 to Agreement A6597
7 2
3 by Caltrans Office of Structure Maintenance and Investigations. Since the bridge is rated with a Sufficiency Rating lower than 80, the bridge is eligible for major rehabilitation in accordance with the Highway Bridge Program (HBP) guidelines.

The Project includes a seismic retrofit and widening of the existing bridge over the Palm Canyon Wash. East Palm Canyon Drive will be maintained with four lanes of traffic (two east bound, two westbound), separated by a new ten-foot-wide striped center median.

The roadway shoulders will be widened to accommodate Class II bicycle lanes and a new ADA-compliant sidewalk on the south side of the bridge. The bicycle/pedestrian bridge on the north side will remain, however, the deteriorated wood deck and railings will be replaced.

On September 3, 2014, the City Council approved Professional Services Agreement No.

A6597 with Dokken Engineering for the environmental and design phase of the Project for a total amount of $1,182,540. The base fee was $790,000, with proposed $392,540 in optional tasks to be used as needed for the Project. Agreement A6597 was previously amended three times to incorporate additional services related to the Project, as follows:

Amendment No. 1 for additional engineering design services in the amount of $85,000 was approved by City Council on October 8, 2020. Amendment No. 2 for additional engineering design services in the amount of $77,764.28 was approved by City Council on September 9, 2021. Amendment 3 for additional engineering design services to update construction documents per the 2023 Caltrans Standard Plan and coordinate permitting with Riverside County Flood Control, in the amount of $35,000 was approved by City Council on November 9, 2023.

STAFF ANALYSIS:

Dokken’s amendment request is necessary to fulfill NEPA (National Environmental Policy Act) avoidance and mitigation measures as prescribed in the Categorical Exclusion Determination, which is included as Attachment B. These tasks were not included in the original scope as they are part of the NEPA categorical exclusion prescriptions but are required to move the Project into the bidding and construction phase, currently projected for late 2026. The additional services needed include plant surveys, HMMP (Habitat Management and Monitoring Plan) Habitat Enhancement Evaluation, and Architectural Review Committee (ARC) Coordination.

Staff recommends City Council approve additional civil engineering services from Dokken, as outlined in their proposal dated January 5, 2026, in the amount of $27,124.24.

Dokken Amendment No.4 is included as Attachment C.

ENVIRONMENTAL ASSESSMENT:

E – Page 122 of 244

City Council Staff Report
February 11, 2026 -- Page 3
Amendment No. 4 to Agreement A6597
7 2
3 Section 21084 of the California Public Resources Code requires Guidelines for Implementation of the California Environmental Quality Act (“CEQA”). In accordance with the CEQA Guidelines, the City acting as “Lead Agency” pursuant to CEQA, previously completed an environmental analysis of the potential impacts resulting from construction of the Project. The Project is funded, in part, by federal funds, requiring local oversight by the State of California, Department of Transportation (“Caltrans”).

As a federally funded project, the Project is subject to environmental review pursuant to the National Environmental Policy Act (NEPA). On November 3, 2017, Caltrans, acting as the lead agency pursuant to NEPA, made an environmental determination that the Project does not individually or cumulatively have a significant impact on the environment as defined by NEPA and is excluded from the requirements to prepare an Environmental Assessment (“EA”) or Environmental Impact Statement (“EIS”), has considered unusual circumstances pursuant to 23 CFR 771.117(b), and that it qualifies for a Categorical Exclusion in accordance with 23 CFR 771.117(d).

ALIGNMENT WITH STRATEGIC PLANNING:

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

FISCAL IMPACT:

The City has programmed up to $1,798,000 for the environmental and design phase of this Project. The proposed Amendment No. 4 will add $27,124.24, for a new total maximum contract amount of $1,407,428.52; Caltrans will reimburse 88.53% in federal funding with CVAG providing 75% of the remaining 11.47%.

REVIEWED BY:

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

ATTACHMENTS:

A. Public Integrity Disclosure Form – Dokken Engineering B. NEPA Categorial Exclusion Determination
C. Amendment No. 4 Request from Dokken Engineering

E – Page 123 of 244

Attachment A
Public Integrity Disclosure - Dokken Engineering

E – Page 124 of 244

E – Page 125 of 244

E – Page 126 of 244

E – Page 127 of 244

Attachment B
NEPA Categorical Exclusion

E – Page 128 of 244

E – Page 129 of 244

E – Page 130 of 244

E – Page 131 of 244

E – Page 132 of 244

E – Page 133 of 244

E – Page 134 of 244

E – Page 135 of 244

Attachment C
Dokken Amendment No.4 Request

E – Page 136 of 244

Revised: 2.9.22

AMENDMENT NO. 4 TO THE PROFESSIONAL SERVICES AGREEMENT
A6597 BETWEEN THE CITY OF PALM SPRINGS AND

DOKKEN ENGINEERING

1. Parties and Date.

This Amendment No. 4 to Professional Services Agreement A6597 is made and entered into as of this 11th day of February, 2026, by and between the City of Palm Springs (“City”) and Dokken Engineering, a California corporation (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

2. Recitals.

2.1 Agreement. City and Consultant have entered into an agreement titled “East Palm Canyon Drive Bridge Widening@Palm Canyon Wash” dated September 29, 2014 (“Agreement”) for the purpose of retaining the services of Consultant to provide professional engineering and consulting services, for East Palm Canyon Drive Bridge, City Project No. 12-04 (“Project”) for a total maximum contract amount of $1,182.540.

2.2 Amendment No. 1 . City and Consultant entered into Amendment No. 1 dated November 3, 2020 for additional professional services.

2.3 Amendment No. 2 . City and Consultant entered into Amendment No. 2 dated October 12, 2021 for additional professional services.

2.4 Amendment No. 3 . City and Consultant entered into Amendment No. 3 dated November 9, 2023 to update the construction documents to the most recent Caltrans Standards (2023), compensate additional time spent coordinating and obtaining needed permits, and providing alternative falsework designs and scour calculations to alleviate concerns regarding channel capacity to handle flows and debris during construction.

2.5 Amendment No. 4 Purpose. City and Consultant now desire to amend the Agreement to provide for additional professional services and extend the term of the Agreement.

2.5 Amendment Authority. This Amendment No. 4 is authorized pursuant to Section 1.8 Additional Services of the Agreement.

3. Terms.

3.1 S cope of S ervices Section 1.1 of the Agreement is hereby amended to read as follows:

The additional services identified in the Consultant’s letter dated January 5, 2026, included herewith as Attachment 1, are hereby incorporated into Exhibit “A” of the Agreement.

3.2 Maximum Contract Amount Section 2.1 of the Agreement is hereby amended to read as follows:

E – Page 137 of 244

Revised: 2.9.22

The total amount of compensation is increased by $27 ,124.24 for a new total not to exceed amount of $1,407,428.52 ("Maximum Contract Amount").

3.3 Term. Delete Section 3.4 of the Agreement i n its entirety and replace with the following:

“Unless earlier terminated under this Agreement, this Agreement shall commence upon the effective date of this Agreement and continue in full force and effect ending on June 30, 2028, unless extended by mutual written agreement of the Parties.”

3.4 Continuing Effect of Agreement . Except as amended by this Amendment No. 4, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 4 . From and after the date of this Amendment No. 4, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4.

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. 4.

3.6 Severability. If any portion of this Amendment No. 4 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. 4 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]

E – Page 138 of 244

Revised: 2.9.22

SIGNATURE PAGE FOR AMENDMENT NO. 4 TO THE PROFESSIONAL SERVICES AGREEMENT A6597 BY AND BETWEEN THE CITY OF PALM SPRINGS AND DOKKEN ENGINEERING

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

DOKKEN ENGINEERING:

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

E – Page 139 of 244

110 Blue Ravine Road, Suite 200  Folsom, CA 95630  Tele: 916 858-0642  Fax: 916 858-0643

January 5, 2026
Mr. Joel Montalvo, PE
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262

RE: East Palm Canyon Drive Bridge, City Project 12-04, Amendment Request

Dear Mr. Montalvo:

This request for amendment on CP#12-04 East Palm Canyon Drive Bridge accounts for additional efforts discussed with City staff to finalize design and obtain permitting with added meetings and submittals. Tasks for which we are seeking budget increases totaling $27,124.24 include Phase 2, Task 2.5 100% PS&E ($10,353.20) and Phase 2, Task 3 Environmental Permitting ($16,771.04).

Budget amendments for Participating/Reimbursable Tasks are requested as follows:
• Protocol Rare Plant Surveys
Scope change language – Increased time (80 hours) to coordinate and perform three (3) separate floristic surveys per 2018 Protocols for Surveying and Evaluating Impacts to Special Status Native Plant Populations published by CDFW. Surveys will be timed in mid-January, late-February, and mid-April; spaced approximately 6 weeks apart with the goal of having all surveys completed before plants dry out in the late spring.
o Deliverable: Memorandum with Documentation of Findings.  Added to Phase 2, Task 3 ($10,193.04)

• Extended Management and Coordination to Obtain Architectural Advisory Committee Concurrence
Scope change language – Increased time (40 hours) to obtain concurrence from the City of Palm Springs’ Architectural Advisory Committee. o Deliverable: Updated Exhibits as Needed for Approval.  Added to Phase 2, Task 3 ($6,578.00)

• Additional Evaluation of HMMP Habitat Enhancement Project Requirements to provide a comparison of watering truck vs. drip irrigation for this project.

Scope change language – Increased time spent (64 hours) providing thorough evaluation of pros/cons and costs involved with long term management, watering, and maintenance of HMMP Habitat Enhancement Project. Amended scope of work to include an analysis of details to implement alternative plans considering cost, availability, and feasibility.
o Deliverable: Landscape (Planting and Irrigation) Plans, Updated Specs, and Updated Estimate.
 Added to Phase 2, Task 2.5 ($10,353.20)
Exhibit A

E – Page 140 of 244

110 Blue Ravine Road, Suite 200  Folsom, CA 95630  Tele: 916 858-0642  Fax: 916 858-0643 The project was authorized for Construction by Caltrans on August 15, 2025. Dokken will continue to provide design support to finalize bid documents along with providing continued coordination with utility owners, until Notice to Owner Letters are provided at the time of bidding.

The current contract value for all tasks on this project totals $1,380,304.28. This amendment, if approved, will increase the total project budget by $27,124.24 (with all funds Participating) to a new contract value of $1,407,428.52. Please find the attached 10-H Form with hours and rates. We would also like to request an extended contract term to June 30, 2028 to include support through the completion of construction.

Please feel free to call me on my cellular phone anytime at (858) 276-9726 or email me at [email protected] if you have any questions.

Sincerely,

Michael Greer, PE, TE
Senior Engineer / Project Manager

DOKKEN ENGINEERING

Exhibit AE

E – Page 141 of 244

COST PROPOSAL - ESTIMATED HOURS BY TASK

EAST PALM CANYON DRIVE BRIDGE
CITY OF PALM SPRINGS CP#12-04
AMENDMENT REQUEST NO. 5
December 30, 2025
Michael Greer, PE, TE
Project Roadway Engineer
Rob Burns, SE
Project Bridge Engineer
Senior Engineer
Associate Engineer
Assistant Engineer
Environmental Manager
Senior Environmental Planner
Associate Environmental
Planner
Environmental Planner
TOTAL
HOURS
OTHER
DIRECT
COSTS

TOTAL COST
FULLY BURDENED RATE $ 210.21 $ 214.50 $ 174.46 $ 163.02 $ 111.54 $ 205.92 $ 154.44 $ 128.70 $ 102.96 PHASE 2: FINAL CIVIL ENGINEERING DESIGN 16 8 16 16 32 14 18 32 32 184 $ 27,124.24- $ Task 2.5 - 100% PS&E 8 8 16 16 8 8 64 10,353.20$
Task 3.0 - Environmental Permitting 8 8 8 16 6 10 32 32 120 16,771.04$ TOTAL HOURS 16 8 16 16 32 14 18 32 32 184
TOTAL COST $ 3,363.36 $ 1,716.00 $ 2,791.36 2,608.32$ $ 3,569.28 $ 2,882.88 $ 2,779.92 $ 4,118.40 $ 3,294.72 $ - 27,124.24$

TASK DESCRIPTION

DOKKEN ENGINEERING
Exhibit A

E – Page 142 of 244

Local Assistance Procedures Manual EXHIBIT 10-H1
Cost Proposal
Note: Mark-Ups are Not Allowed
Consultant: DOKKEN ENGINEERING
Project No. 2079 Contract No. 12-04 Date
Project Name

DIRECT LABOR
Classification/Title Name Hours Actual Hr Rate* Total
Project Roadway Engineer Michael Greer, PE, TE 16 73.50$ 1,176.00$ Project Bridge Engineer Rob Burns, SE 8 75.00$ 600.00$ Senior Engineer STAFF 16 61.00$ 976.00$ Senior Engineer STAFF 0 70.00$ -$
Associate Engineer STAFF 16 57.00$ 912.00$ Assistant Engineer STAFF 32 39.00$ 1,248.00$ Senior CAD STAFF 0 64.00$ -$
Engineering Technician STAFF 0 28.00$ -$ Environmental Manager STAFF 14 72.00$ 1,008.00$ Senior Environmental Planner STAFF 18 54.00$ 972.00$ Associate Environmental Planner STAFF 32 45.00$ 1,440.00$ Environmental Planner STAFF 32 36.00$ 1,152.00$ Right of Way Manager STAFF 0 63.00$ -$ Senior Right of Way Agent STAFF 0 50.00$ -$ Right of Way Agent STAFF 0 36.00$ -$
Right of Way Assistant STAFF 0 20.00$ -$ 184

LABOR COSTS
a) Subtotal Direct Labor Costs 9,484.00$
b) Anticipated Salary Increases $0.00
c) TOTAL DIRECT LABOR COSTS [(a) + (b)] 9,484.00$

INDIRECT COSTS
d) Fringe Benefits (Rate: 65.00% ) c) Total Fringe Benefits [(c) x (d)] 6,164.60$ f) Overhead (Rate: 5.00% ) g) Overhead [(c) x (f)] 474.20$ h) General and Administrative (Rate: 90.00% ) i) Gen & Admin [(c) x (h)] 8,535.60$ j) TOTAL INDIRECT COSTS [(e) + (g) + (i)] 15,174.40$
FIXED FEE k) TOTAL FIXED FEE [(c) + (j)] x fixed fee 10% ] 2,465.84$ l) CONSULTANT’S OTHER DIRECT COSTS (ODC) – ITEMIZE (Add additional pages if necessary) Quantity Unit Unit Cost Total
Printing Each 50.08$ -$
Permit Processing Fee Each 23.60$ -$
i) TOTAL OTHER DIRECT COSTS -$
m) SUBCONSULTANTS' COSTS (Add additional pages if necessary) m) TOTAL SUBCONSULTANTS' COSTS -$
n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l) + (m)] -$ TOTAL COST [(c) + (j) + (k) + (n)] 27,124.24$
NOTES:
$55.00 - $95.00
$30.00 - $50.00
$30.00 - $50.00
$20.00 - $40.00
$50.00 - $80.00
$55.00 - $95.00
$45.00 - $65.00
$50.00 - $80.00
$25.00 - $50.00
$50.00 - $80.00
$45.00 - $65.00
$45.00 - $65.00
$30.00 - $50.00
$15.00 - $30.00

3. Anticipated salary increases calculation (page 2) must accompany.

1. Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks (**). All costs must comply with the Federal cost principles. Subconsultants will provide their own cost proposals.

2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant’s annual accounting period and established by a cognizant agency or accepted by Caltrans.

Description of Item
Range
$55.00 - $95.00
$55.00 - $95.00
EXHIBIT 10-H1 COST PROPOSAL

COST-PLUS-FIXED FEE

OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS
(DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)
December 29, 2025
East Palm Canyon Drive Bridge at palm Canyon Wash - Amendment 5 Prime Consultant Subconsultant 2nd Tier Subconsultant

Exhibit A

E – Page 143 of 244

Local Assistance Procedures Manual EXHIBIT 10-H1
Cost Proposal
Direct Labor Total Hours per Avg 5 Year
Subtotal per Cost Cost Proposal Hourly Contract
Proposal Rate Duration
= $51.54 Year 1 Avg
Hourly Rate
Avg Hourly Rate Proposed Escalation
Year 1 + 5.0% = $54.12 Year 2 Avg Hourly Rate
Year 2 + 5.0% = $56.83 Year 3 Avg Hourly Rate
Year 3 + 5.0% = $59.67 Year 4 Avg Hourly Rate
Year 4 + 5.0% = $62.65 Year 5 Avg Hourly Rate
Estimated % Completed Total Hours per Cost Total Hours per Each Year Proposal Year
Year 1 * 184 = 184 Estimated Hours Year 1
Year 2 * 184 = 0 Estimated Hours Year 2
Year 3 * 184 = 0 Estimated Hours Year 3
Year 4 * 184 = 0 Estimated Hours Year 4
Year 5 * 184 = 0 Estimated Hours Year 5
Total Total = 184
Avg Hourly Rate Estimated hours
(Calculated above) (Calculated Above)
Year 1 * 184 = Estimated Hours Year 1
Year 2 * 0 = Estimated Hours Year 2
Year 3 * 0 = Estimated Hours Year 3
Year 4 * 0 = Estimated Hours Year 4
Year 5 * 0 = Estimated Hours Year 5
Total Direct Labor Cost with Escalation =
Direct Labor Subtotal before Escalation =
Estimated total of Direct Labor Salary Increase = Transfer to Page 1 NOTES:

3. This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted.

4. Calculations for anticipated salary escalation must be provided. $9,484.00
$0.00

1. This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the # of years of the contract, and a breakdown of the labor to be performed each year.

2. An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable. (i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology)
$59.67 $0.00
$62.65 $0.00
$9,484.00
$51.54 $9,484.00
$54.12 $0.00
$56.83 $0.00

0.0%
100.000%

4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours) Cost Per
Year

3. Calculate estimated hours per year (Multiply estimate % each year by total hours) 100.0%

0.0%

0.0%

0.0%

1. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %) $51.54
$54.12
$56.83
$59.67
EXHIBIT 10-H1 COST PROPOSAL

COST-PLUS-FIXED FEE

OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS
(CALCULATIONS FOR ANTICIPATED SALARY INCREASES)

1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) $9,484.00 184

Exhibit A

E – Page 144 of 244

Local Assistance Procedures Manual EXHIBIT 10-H1
Cost Proposal

1. Generally Accepted Accounting Principles (GAAP)

2. Terms and conditions of the contract

3. Title 23 United States Code Section 112 - Letting of Contracts

4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Procedures

5. 6. 48 Code of Federal Regulations Part 9904 - Cost Accounting Standards Board (when applicable) Prime Consultant or Subconsultant Certifying:

Name**: Title**:

Signature: Date of Certification (mm/dd/yyyy):

Email**: Phone Number:

Address: 110 Blue Ravine Road, Suite 200, Folsom, CA 95630-4713 List services the consultant is providing under the proposed contract:

EXHIBIT 10-H1 COST PROPOSAL
Certification of Direct Costs:
**An individual executive or financial officer of the consultant’s or subconsultant’s organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

Professional Engineering Services
I, the undersigned, certify to the best of my knowledge and belief that all direct costs identified on the cost proposal(s) in this contract are actual, reasonable, allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

All costs must be applied consistently and fairly to all contracts. All documentation of compliance must be retained in the project files and be in compliance with applicable federal and state requirements. Costs that are noncompliant with the federal and state requirements are not eligible for reimbursement. Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Rate(s).

John A. Klemunes, Jr. President
[email protected] 916-858-0642
23 Code of Federal Regulations Part 172 - Procurement, Management, and Administration of Engineering and Design Related Service
8/15/2023

Exhibit A

E – Page 145 of 244

CITY COUNCIL STAFF REPORT
DATE: February 11, 2026 CONSENT CALENDAR
SUBJECT: ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS TO ENTER INTO AN AGREEMENT WITH THE
GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC

DEVELOPMENT FOR CANNABIS EQUITY GRANT FUNDING
FROM: Scott C. Stiles, City Manager
BY: Special Program Compliance
SUMMARY:

Staff seeks authorization to enter into an agreement for grant funding in the amount of $650,000 through the Governor’s Office of Business and Economic Development (GO- BIZ) for State Cannabis Equity funding. Staff recommends the City adopt the Resolution authorizing the City Manager to execute the agreement for grant funds authorized by the California Cannabis Equity Act of 2018 established by Senate Bill 1294 and as amended by Assembly Bill 97.

RECOMMENDATION:

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

CITY OF PALM SPRINGS, CALIFORNIA, TO ENTER INTO AN AGREEMENT WITH THE GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT FOR CANNABIS EQUITY GRANT FUNDING.”

2. Authorize the City Manager to execute all documents consistent with this Resolution.

BACKGROUND:

On March 20, 2018, the City Council adopted a Resolution authorizing the implementation of the Cannabis Social Equity Program (“Program”). The Program, as proposed, was contingent on funding by the Cannabis Equity Act of 2018 (“Act”). The grant funds received from the State of California are for the purpose of assisting local equity applicants and local equity licensees to gain entry to and successfully operate in the State’s regulated cannabis marketplace.

F – Page 146 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Cannabis Equity Grant Funding
On October 8, 2025, the Governor’s Office of Business and Economic Development announced a release of the Grant Solicitation for the Cannabis Equity Grants Program for local jurisdictions. The Department of Special Program Compliance submitted an application for Type 2 funding. Based on the review by GO-BIZ, the City is being awarded $650,000. Funds may be utilized to provide assistance with startup and ongoing costs, including but not limited to, rent, leases, local and state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce.

More information about the Cannabis Equity Grant may be found at:

https://business.ca.gov/cannabis-equity-grants-program-for-local-jurisdictions/

STAFF ANALYSIS:

Palm Springs has been on the forefront of cannabis legalization. The City will utilize grant funds to provide assistance to applicants from communities that have been disproportionately impacted by cannabis prohibition. The goal of the program is to assist qualified equity permittees in the legal cannabis industry. The ability to provide financial assistance to permittees creates a greater opportunity for success in the legalized cannabis marketplace.

ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not a “Project” as defined by the California Environmental Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.

According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.

FISCAL IMPACT:

This year’s grant did not require the City to match funds, as it is under $750,000.

F – Page 147 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Cannabis Equity Grant Funding

F – Page 148 of 244

City Council Staff Report
February 11, 2026 -- Page 3
Cannabis Equity Grant Funding
REVIEWED BY:

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

A. Resolution

F – Page 149 of 244

ATTACHMENT A
Resolution

F – Page 150 of 244

RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS AUTHORIZING STATE OF CALIFORNIA

CANNABIS EQUITY GRANT FUNDING

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

WHEREAS, the members of the California Legislature have recognized the need for Cannabis Equity grant funding;
WHEREAS, funding has been provided to the Governor’s Office of Business and Economic Development to provide grant funds to local governments; WHEREAS, the City of Palm Springs has adopted and operates a local equity program for commercial cannabis activity; and
WHEREAS, the City of Palm Springs has determined that it will use grant funds from the Governor’s Office of Business and Economic Development to assist local equity applicants and licensees through its local equity program for commercial cannabis activity as described in its application for grant funds.

SECTION 1.NOW, THEREFORE, BE IT RESOLVED that Scott Stiles, City Manager of the City of Palm Springs, is authorized to execute by electronic signature on behalf of the City of Palm Springs the grant agreement with the Governor’s Office of Business and Economic Development, including any extensions or amendments thereof and any subsequent grant agreement with the Governor’s Office of Business and Economic Development in relation thereto.

SECTION 2.IT IS AGREED that any liability arising out of the performance of this grant agreement, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The Governor’s Office of Business and Economic Development and the State of California disclaim responsibility for any such liability.

ADOPTED THIS ___ DAY OF FEBRUARY 2026.

SCOTT STILES

CITY MANAGER

F – Page 151 of 244

Resolution No. _____

ATTEST:

BRENDA PREE, MMC, CERA

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, MMC, CERA

CITY CLERK

F – Page 152 of 244

CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 11, 2026 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2124 ADDING CHAPTER 3.29 TO THE PALM SPRINGS MUNICIPAL CODE,

PROVIDING FOR ESTABLISHMENT OF CITY OF PALM SPRINGS

TOURISM IMPROVEMENT DISTRICT LAW
FROM: Scott C. Stiles, City Manager
BY: Office of the City Clerk
SUMMARY:

This is the second reading of an ordinance adding Chapter 3.29 to the Palm Springs Municipal Code. Ordinance No. 2124 establishes the City of Palm Springs Tourism Improvement District Law, which allows the City to pledge assessments from the Palm Springs Tourism Infrastructure District No. 2026-01 to obligations issued as part of the Palm Springs Convention Center Modernization Project.

RECOMMENDATION:

Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2124 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.”
BACKGROUND:

On January 14, 2026, Ordinance No. 2124 was introduced for first reading, as noted below:

Motion by Councilmember Bernstein, Second by Councilmember deHarte, CARRIED 5 – 0, to: Introduce and conduct a first reading, by title only, of Ordinance No. 2124 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING A NEW CHAPTER 3.29 TO THE PALM

G – Page 153 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Second Reading of Ordinance No. 2124 to Establish Tourism Improvement District Law 7 2
9 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”

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

This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.

FISCAL IMPACT:

None.

REVIEWED BY:

Department Director: Brenda Pree
City Manager: Scott Stiles

ATTACHMENTS:

A. Ordinance No. 2124 – Ordinance Establishing the City of Palm Springs Tourism Improvement District Law

G – Page 154 of 244

09960.00000\44333132.1

ATTACHMENT A
Ordinance Establishing
City of Palm Springs Tourism
Improvement District Law

G – Page 155 of 244

09960.00000\44333132.1
5 7
7 ORDINANCE NO. 2124

AN ORDINANCE 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
City Attorney’s Summary
This ordinance supplements the Property and Business
Improvement District Law of 1994 for purposes of financing improvements to enhance tourism and business within the City.

WHEREAS, the City Council of the City of Palm Springs does hereby find, determine and declare that:
(a) the City of Palm Springs (the “City”) is a municipal corporation and charter city duly organized and existing under a charter pursuant to which the City has the right and power to make and enforce all laws and regulations in respect to municipal affairs and certain other matters in accordance with and as more particularly provided in Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 102 of Article 1 of the Charter of the City (the “Charter”); and
(b) the City Council of the City acting under and pursuant to the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 102 of Article 1 of the Charter, finds that the public interest and necessity require the establishment by this procedural ordinance of a procedure for the authorization of the levy of assessments and the issuance of special assessment bonds by the City for the purpose of providing financing or refinancing for certain purposes as specified herein.

WHEREAS, A procedural ordinance for the authorization of the levy of special taxes and the issuance of special tax bonds is hereby enacted to read as follows:

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

SECTION 1. A new Chapter 3.29 of the Palm Springs Municipal Code is hereby added to read as follows:

G – Page 156 of 244

09960.00000\44333132.1
5 7
7 “Chapter 3.29 Palm Springs Tourism Infrastructure District No. 2026- 01 Section 3.29.010 Property and Business Improvement District Law of 1994.

In conducting proceedings for the establishment of a property and improvement business district for the purpose of financing certain improvements and activities, the city council may employ the provisions of the Property and Business Improvement District Law of 1994 (Section 36600, et seq., Streets and Highways Code) (the “PBID Law”). Whenever the city council elects to employ that statute, the city council shall have the authority to enact, by ordinance, provisions different than, supplemental to, or in addition to the PBID Law.

Section 3.29.020 Palm Springs Tourism Infrastructure District No. 2026-01.
(a) This section modifies the PBID Law with respect to Palm Springs Tourism Infrastructure District No. 2026-01 (the "District").
(b) Section 36640 of the PBID Law is hereby amended to provide that the city council may, by resolution, pledge any
assessment revenues the District generates to the payment of any bonds, notes, loans, interim certificates, debentures, installment-purchase agreements, leases, or other obligations the city issues or incurs (each, an "Obligation," and
collectively, the "Obligations").
(c) A pledge of assessment revenues to the payment of an Obligation must be evidenced by the indenture, trust
agreement, loan agreement, lease, installment-purchase
agreement, revolving-credit agreement, credit or liquidity agreement, or other instrument or agreement under which the city issues or incurs the Obligation.
(d) An Obligation may extend for more than 30 years, but will not exceed 40 years, and may be payable from assessments and other revenues. Accordingly, section 36640(b) of the PBID Law is hereby amended to provide that the amount of debt service to retire an Obligation may not be more than the amount of revenue estimated to be raised from assessments in the District over 30 years but not more than 40 years, provided, however, that the assessments in the District shall be extended on delinquent assessees in order to pay any

G – Page 157 of 244

09960.00000\44333132.1
5 7
7 delinquencies on the outstanding Obligations arising from such non-payment of assessments.
(e) This section, being necessary for the health, welfare, and safety of the city and its residents, is to be liberally interpreted to carry out its purposes.
(f) This section provides a complete, additional, and alternative method for doing the things authorized, and it is supplemental and additional to the powers conferred by other laws,
including the PBID Law.
(g) The validity of any Obligation does not depend on, and is not affected in any way by, any city proceedings to acquire, construct, or complete any properties or projects for which the Obligation is issued or any agreements made in connection with the acquisition, construction, or operation of those properties or projects. An Obligation will be incontestable, and its issuance or incurrence and delivery will conclusively establish the due performance of all conditions precedent to its issuance, incurrence, and delivery.
(h) This section may not be amended to have a material, adverse effect upon the rights of any holder of any outstanding Obligation without the holder's written consent, except as follows: this section may be amended at any time (1) if the amendment is needed to cure an ambiguity or to correct or supplement a defective provision; (2) if the city council finds that the amendment will not materially impair or adversely affect the city's interests or the interests of the holder; (3) if the city council finds that the amendment is necessary or desirable to assure the exemption from gross federal income taxation of interest on an Obligation, if applicable; or (4) if the amendment will apply solely to Obligations issued after its effective date.
(i) To the extent this section is inconsistent with any general statute or special act, including the PBID Law, this section will control.
(j) If, for any reason, any part of this section is invalid, then all valid parts that are severable from the invalid part remain in effect.”
SECTION 2. This Ordinance is exempt from the requirements of the California Environmental Quality Act (Public Resources Code, §§ 21000 et seq.)(“CEQA”) because it involves the adoption of a governmental funding mechanism, which is not subject to

G – Page 158 of 244

09960.00000\44333132.1
5 7
7 CEQA. (Kaufman & Broad-South Bay, Inc. v. Morgan Hill Unified School District, (1993) 9 Cal.App.4th 464).

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL this 11th day of February 2026.

Naomi Soto
Mayor
ATTEST:

Brenda Pree, MMC
City Clerk

G – Page 159 of 244

09960.00000\44333132.1
5 7
7 CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 2124 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on January 14, 2026, and adopted at a regular meeting of the City Council held on February 11, 2026, 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 February 2026.

Brenda Pree, MMC
City Clerk

G – Page 160 of 244

CITY COUNCIL STAFF REPORT
DATE: Feburary 11, 2026 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2125,

AMENDING PALM SPRINGS MUNICIPAL CODE ARTICLE V OF
CHAPTER 8.04 OF TITLE 8 REGARDING UNDERGROUNDING OF

UTILITIES AND CLARIFYING RESPONSIBILITIES AND ENFORCEMENT

MECHANISMS FOR PRIVATE CONNECTIONS TO UNDERGROUND

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

This is the second reading of an ordinance to amend the Municipal Code Article V of Chapter 8.04 of Title 8, modifying Section 8.04.452 and adding Sections 8.04.453 through

8.04.457 clarifying responsibilities of utility companies, the City and property owners regarding private utility service connections to underground public utilities.

RECOMMENDATION:

1. Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2125, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8 SECTION 8.04.452 AND ADDING SECTIONS 8.04.453 THROUGH 8.04.457 CLARIFYING

RESPONSIBILITIES AND ENFORCEMENT MECHANISMS FOR PRIVATE CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES.”

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

BACKGROUND:

On January 28, 2026, Ordinance No. 2125 was introduced for first reading as noted below:

Motion by Councilmember deHarte, Second by Councilmember Bernstein, as amended, and Carried 5 – 0, to:

H – Page 161 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Second Reading and Adoption of Ordinance No. 2125

1. Conduct first reading and introduce Ordinance No. 2125, an Ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM

SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS MUNICIPAL CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8 SECTION 8.04.452 AND ADDING SECTIONS 8.04.453 THROUGH 8.04.456 CLARIFYING

RESPONSIBILITIES AND ENFORCEMENT MECHANISMS FOR PRIVATE CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES.”

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

The revisions requested by City Council are generally described as follows:

1. Revise Section 8.04.455-Responsibility of Property Owners to remove references to operators, lessees, tenants and those in possession and state that only property owners may be held liable for connecting to underground public utilities;

2. Remove penalty provision; and

3. Authorize the City Manager to promulgate the administrative regulations and enter into repayment agreements with property owners (§ 8.04.457).

A copy of the Ordinance showing the revisions made pursuant to Council direction is included as Attachment A, and a clean version of the Ordinance to be adopted is included as Attachment B.

ENVIRONMENTAL ASSESSMENT:

The proposed ordinance will not have an impact on the environment. As such, pursuant to the California, Environmental Quality Act, Cal. Pub. Res. Code 21000 et seq. (“CEQA”), City Staff will file a Notice of Exemption within five (5) days following adoption of this ordinance.

ALIGNMENT WITH STRATEGIC PLANNING:

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

FISCAL IMPACT:

None.

H – Page 162 of 244

City Council Staff Report
February 11, 2026 -- Page 2
Second Reading and Adoption of Ordinance No. 2125

H – Page 163 of 244

City Council Staff Report
February 11, 2026 -- Page 3
Second Reading and Adoption of Ordinance No. 2125
REVIEWED BY:

Department Director: Joel Montalvo
Assistant City Manager: Flinn Fagg
City Attorney: Jeffrey S. Ballinger
City Manager: Scott Stiles

ATTACHMENTS:

A. Legislative Draft of Ordinance, as introduced
B. Ordinance No. 2125 for adoption

H – Page 164 of 244

ATTACHMENT A
Legislative Draft of Ordinance

H – Page 165 of 244

55575.18120\44644794.1
O
RDINANCE NO. __________
AN O

RDINANCE OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS
MUNICIPAL CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8
SECTION 8.04.452 AND ADDING SECTIONS 8.04.453
THROUGH 8.04.45 7 CLARIFYING RESPONSIBILITIES AND

ENFORCEMENT MECHANISMS FOR PRIVATE

CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES
C
ity Attorney’s Summary
This ordinance amends the City of Palm Springs Municipal Code to clarify responsibilities and enforcement mechanisms for private connections to underground public utilities.

WHEREAS, the City’s municipal code sets the requirements for installing service wires and lines, including but not limited to certain overhead electrical lines, underground (“undergrounding”) for new and existing developments and places the responsibility for compliance on the developer and owner; and
WHEREAS, the City supports undergrounding overhead utility wires and poles; and WHEREAS, undergrounding improves public safety by reducing the threat of fire, impacts from earthquakes and high wind events, and also reduces utility company maintenance costs; and
WHEREAS, undergrounding improves the aesthetics of the City; and WHEREAS, City residents have expressed interest in voluntarily undergrounding service wires, lines, and poles in their residential communities; and WHEREAS, the cost of undergrounding can range in the tens of thousands of dollars per household, or higher; and
WHEREAS, the California Public Utilities Commission (“CPUC”) created the Rule 20 program in the 1970s to assist residents and municipalities with financing the cost of undergrounding; and
WHEREAS, per CPUC Decision 23- 06-008, the Rule 20A program, which promoted municipal undergrounding projects, has been effectively terminated; and WHEREAS, the CPUC left its Rule 20B and Rule 20C programs largely intact; and WHEREAS, Rule 20B programs empower private property owners to support the cost of undergrounding projects in their neighborhoods via the implementation of an assessment district on properties benefitted by the undergrounding project in order to fiscally support the undergrounding effort, with the cost of undergrounding paid over time and assessed on the property owners’ tax rolls; and
WHEREAS, under Rule 20B, a small portion of the project (typically between 20% and

H – Page 166 of 244

55575.18120\44644794.1
40%
of total costs) is eligible (though not guaranteed) for reimbursement by the utility service provider, with the reimbursement spread across ratepayers; WHEREAS, the formation of an assessment district must follow the strict requirements of Proposition 218 (Articles XIIIC and XIIID of the California constitution); and WHEREAS, the formation of an assessment district is a multi-stage endeavor, involving an exploratory phase, a petition phase, and a formal vote(s) before the construction phase can begin; and
WHEREAS, the formation of an assessment district is guided by the policies and procedures adopted by the governing body of the municipality in which the proposed district would reside;
WHEREAS, Ordinance No. 2104 amending Palm Springs Municipal Code Article V of Chapter 8.04 of Title 8 regarding undergrounding of utilities and the formation of underground utility districts was adopted on January 9, 2025; and
WHEREAS, the current Palm Springs Municipal Code does not specifically address the controls and responsibilities of utility companies, the City and property owners regarding private conversions to newly constructed underground public utilities.

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

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

SECTION 2. Code Amendment. Article V, “Undergrounding of Utilities,” of the Palm Springs Municipal Code Chapter 8.04 is amended to read in full as follows. New text is marked in underline, deleted text is marked in strikethrough:
“Article V
Undergrounding of Utilities
§ 8.04.401. New construction.

No certificate of occupancy for new buildings or structures shall be issued unless or until all existing and proposed electrical lines of 35,000 volts or less and overhead service drop conductors, and all gas, telephone, television cable service, and similar service wires or lines, which are on site, abutting, and/or transecting, are installed underground unless specific restrictions are shown in General Orders 95 and 128 of the California Public Utilities Commission, and service requirements published by the utilities.
(Ord. 1124 § 1, 1981; Ord. 1306 § 1, 1988; Ord. 1316 § 1, 1988; Ord. 2104, 1/9/2025)
§ 8.04.402. Existing development.

H – Page 167 of 244

55575.18120\44644794.1
(a
) Utility lines of less than 35 kV and overhead service drop conductor(s), including all lines on site, abutting and transecting shall be placed underground when existing buildings or structures are remodeled or expanded where the modification increases the building footprint (exclusive of porches and patios) of an existing structure by more than 10% for multifamily, commercial and industrial uses and by more than 40% for single-family use unless undergrounding is deferred pursuant hereto.

Deferral may be permitted by the city engineer under the following circumstances: (1) if the length of line to be undergrounded is less than 300 lineal feet; or (2) if the cost of undergrounding would be excessive in comparison to the value of the improvements being constructed and be a financial hardship; or (3) if there are alternative methods of accomplishing the under -grounding; or (4) there is limited public benefit to the undergrounding.
(b) The overhead service drop conductors shall be placed underground when existing buildings or structures are repaired, remodeled or expanded where the value (as determined for building permit fee purposes by the building code of the city) of such repairs or remodeling or expansion in any calendar year exceeds the assessed valuation of the building or structure, or the amount of $20,000, whichever is less. The undergrounding of utilities may be waived or deferred by the planning director under the following circumstances: (1) if the cost of undergrounding would be excessive in comparison to the value of the improvements being constructed and be a financial hardship; or (2) if there are alternative methods of accomplishing the undergrounding; or (3) there is limited public benefit to the undergrounding.
(c) Wherever in this section deferral of undergrounding is approved, a covenant shall be recorded, running with the land and setting forth the circumstances under which undergrounding shall be required and giving enforcement rights to the city. Among other provisions the covenant shall provide that the covenantor shall waive any right to protest the establishment of any undergrounding assessment district or other area- wide method of funding such undergrounding including any obligation to reimburse other parties for their respective share of such undergrounding cost. The city shall retain the right to underground such utilities and to receive from covenantor their respective share of such cost, and to establish a lien against the property should covenantor not pay such funds following reasonable notice. (Ord. 1124 § 1, 1981; Ord. 1306 § 2, 1988; Ord. 1316 § 2, 1988; Ord. 1518 § 1, 1995; Ord. 2031 § 9, 2020; Ord. 2088, 11/9/2023; Ord. 2104, 1/9/2025) § 8.04.403. Responsibility for compliance.

The developer and owner are jointly and severally responsible for complying with the requirements of this chapter and shall make the necessary arrangements with the utility companies to have such facilities, and/or equipment, properly indicated on a site plan to be submitted with the street improvement plans.

H – Page 168 of 244

55575.18120\44644794.1
(
Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.404. Appurtenances.

For the purpose of this chapter, appurtenances and associated equipment, such as, but not limited to, transformers and terminal boxes, shall be installed underground, except in those instances where surface- mounted transformers or pedestal-mounted terminal boxes or meter cabinets, concealed ducts, or similar appurtenances are specifically permitted in aboveground locations as approved by both the city and the utility company.
(Ord. 1124 § 1, 1981; Ord. 1306 § 3, 1988; Ord. 1316 § 3, 1988; Ord. 2104, 1/9/2025)
§ 8.04.405. Risers.

Risers on poles and buildings are permitted on single lot developments and shall be provided by the developer or owner on the existing pole which services said property. In no such case shall a new pole be installed, unless a hardship exists, in which case, the director of community development, or his or her representative, may waive this requirement.
(Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.406. Appeal.

The decision of the director of community development is appealable to the planning commission.
(Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.410. through § 8.04.449. (Reserved)
§ 8.04.450. Underground utility districts—Definitions.

The following words, terms, and phrases, when used in Sections 8.04.450 through

8.04.452, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
"Commission" means the California Public Utilities Commission. "Poles, overhead wires, and associated overhead structures" means poles, towers, supports, wires, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, communication circuits, appliances, attachments, and appur tenances located aboveground within a district and used or useful in supplying electric, communication, or similar or associated service. "Underground utility district" and "district" means that area in the city within which poles, overhead wires, and associated overhead structures are prohibited, as such area is described in a resolution adopted pursuant to Section 8.04.452. "Utility" includes all persons supplying electric, communication, or similar

H – Page 169 of 244

55575.18120\44644794.1
as
sociated service by means of electrical materials or devices. (Ord. 2104, 1/9/2025)
§ 8.04.451. Underground utility districts —Adoption of undergrounding policies and procedures.

The city council may, from time to time, adopt by resolution those policies and procedures for the exploration, petition, and formation of underground utility districts by interested residents.
(Ord. 2104, 1/9/2025)
§ 8.04.452. Underground utility districts—Assessment district formation and formal votes (weighted and parcel).

The city council shall consider the application and/or petition of the proponents of proposed underground utility districts, provided such application and/or petition complies with the city's then- current policies and procedures for the formation of underground utility districts. If the city council approves the formation, it shall adopt a resolution of initiation and direct the city engineer to prepare the required Proposition 218- compliant Engineer's Report identifying the special benefits the proposed undergrounding project confers to the properties. The Engineer's Report shall determine the precise assessment amount on each property within the proposed district based upon the specific special benefit conferred upon each parcel, taking into account administrative, design, and construction costs quoted by the participating utility companies as well as financing costs, making allowances for cost overruns.

The city council shall consider the Engineer's Report and may approve it by resolution. In such event, the city council shall direct the city clerk to mail assessment ballots to all affected property owners, along with a notice of public hearing, as required by Proposition 218. The ballots shall be printed in such a way as to allow affected property owners to indicate their support for, or opposition to, the proposed assessment. Property owners shall have 45 days to return the ballots, which shall be opened and tabulated at the noticed public hearing.

If a majority (50% + 1) of the returned assessment ballots are in favor of the project, as weighted by each assessment amount, the city council will approve a resolution forming the assessment district. Otherwise, the assessment district is not formed.

Regardless of whether a property owner voted to approve the formation of the assessment district, upon such formation all owners of property within the newly formed assessment district must make arrangements to pay their assigned portion of the assessment. Property owners may, within 30 days, pay all or a portion of their assessment as calculated in the Engineer's Report and approved by a majority of the returned assessment ballots. Property owners who fail to pay the full amount within 30 days shall be liable for any unpaid amount via bond and a lien on the assessed property. Regardless of whether a property owner voted to approve the formation of the assessment district, the property owner, and their successors or assigns, is responsible for all costs of the private connection between the assessed real property and the resulting underground utility system,

H – Page 170 of 244

55575.18120\44644794.1
w
hen available.
(Ord. 2104, 1/9/2025)
§ 8.04.453. Responsibility of Utility Companies.

If underground construction is necessary to provide utility service within a district created by any resolution adopted pursuant to Section 8.04.452 hereof, the supplying utility shall furnish that portion of the conduits, conductors and associated equipment required to be furnished by it under its applicable rules, regulations and tariffs on file with the Commission.
§ 8.04.454. Responsibility of City.

City shall remove at its own expense all City -owned equipment from all poles required to be removed hereunder in ample time to enable the owner or user of such poles to remove the same within the time specified in the resolution enacted pursuant to Section 8.04.452 hereof.
§ 8.04.455. Responsibility of Property Owners.
(a) Every person owning a building or structure within a district shall construct and provide that portion of the service connection on that person’s property between the facilities referred to in Section 8.04.453 and the termination facility on or within said building or structure being served, all in accordance with the applicable rules, regulations and tariffs of the respective utility or utilities on file with the Commission.
(b) In the event any person owning said property does not comply with the provisions of subsection of this section within six months of completion of the public utility underground project, the City Engineer shall post written notice in a conspicuous place on the property being served of the Engineer’s intention to order the disconnection and removal of any and all overhead service wires and associated facilities supplying utility service to said property, and thirty (30) days thereafter, the City Engineer shall have the authority to order said disconnection and removal. In the alternative, the City Engineer shall give notice in writing to the person in possession of such premises, and a notice in writing to the owner thereof, as shown on the last equalized assessment roll, to provide the required underground facilities within ten days after receipt of such notice. The City Engineer may at their discretion extend the time requirement set forth herein. (c) The notice to provide the required underground facilities may be given either by personal service or by mail. In case of service by mail on either of such persons, a copy of the notice described in subsection (B) of this section must be deposited in the United States mail in a sealed envelope with postage prepaid, addressed to the person in possession of such premises at such premises, and a copy of the notice must be addressed to the owner thereof as such owner’s name and last known address appear on the last equalized assessment roll, and when no address appears, to general delivery, City of Palm Springs. If notice is given by mail, such notice shall be deemed, to have been received by the person to whom it has been sent within forty -eight (48) hours after the mailing thereof. If notice is

H – Page 171 of 244

55575.18120\44644794.1
gi
ven by mail to either the owner or occupant of such premises, the City Engineer shall, within forty-eight (48) hours after the mailing thereof, cause a copy thereof, printed on a card not less than eight inches by ten inches in size, to be posted in a conspicuous place on said premises.
(d) The notice given by the City Engineer to provide the required underground facilities shall particularly specify what work is required to be done, and shall state that if said work is not completed within thirty (30) days after receipt of such notice, the City Engineer will provide such required underground facilities, in which case the cost and expense thereof will be assessed against the property benefitted and become a lien upon such property.
(e) If upon the expiration of the thirty (30) day period, the said required underground facilities have not been provided, the City Engineer shall forthwith proceed to do the work; provided, however, if such premises are unoccupied and no electric or communications services are being furnished thereto, the City Engineer shall, in lieu of providing the required underground facilities, have the authority to order the disconnection and removal of any and all overhead service wires and associated facilities supplying utility service to said property. Upon completion of the work by the City Engineer, the City Engineer shall file a written report with the City Council setting forth the fact that the required underground facilities have been provided and the cost thereof, together with a legal description of the property against which such cost is to be assessed. The City Council shall thereupon fix a time and place for hearing protests against the assessment of the cost of such work upon such premises, which said time shall not be less than ten days thereafter.
(f) The City Engineer shall forthwith, upon the time for hearing such protests having been fixed, give a notice in writing to the person in possession of such premises, and a notice in writing thereof to the owner thereof, in the manner hereinabove provided for the giving of the notice to provide the required underground facilities, of the time and place that the City Council will pass upon such report and will hear protests against such assessment. Such notice shall also set forth the amount of the proposed assessment.
(g) Upon the date and hour set for the hearing of protests, the City Council shall hear and consider the report and all protests, if there be any, and then proceed to affirm, modify or reject the assessment.
(h) If any assessment is not paid within five days after its confirmation by the City Council, the amount of the assessment shall become a lien upon the property against which the assessment is made by the City Engineer, and the City Engineer is directed to turn over to the Assessor and Tax Collector a notice of lien on each of said properties on which the assessment has not been paid, and said Assessor and Tax Collector shall add the amount of said assessment to the next regular bill for taxes levied against the premises upon which said assessment was not paid.

Said assessment shall be due and payable at the same time as said property taxes are due and payable, and if not paid when due and payable, shall bear interest at the same prevailing rate imposed by the Riverside County Tax Collector on other delinquent tax monies outstanding.

H – Page 172 of 244

55575.18120\44644794.1
§ 8.

04.456. Extension of Time.

In the event that any act required by this chapter or by a resolution adopted pursuant to Section 8.04.452 hereof cannot be performed within the time provided on account of shortage of materials, war, restraint by public authorities, strikes, labor disturbances, civil disobedience, or any other circumstances beyond the control of the actor, then the time within which such act will be accomplished shall be extended for a period equivalent to the time of such limitation. § 8.04.457. City Manager Authorization.
(a) The City Council authorizes the City Manager to promulgate administrative regulations that may be necessary and convenient to implement the provisions of this chapter.
(b) The City Council authorizes the City Manager to enter into repayment agreements with Property Owners. In entering into such repayment agreements, the City Manager shall ensure fairness and parity among property owners.” SECTION 3. Effective Date. This ordinance shall become effective 30 days after its adoption.

SECTION 4. Certification. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law.

SECTION 5. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared inval id or unconstitutional or contravened via legislation.

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

N AOMI SOTO
MAYOR
ATTEST:

BRENDA PREE, MMC, CERA

CITY CLERK

H – Page 173 of 244

55575.18120\44644794.1

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, BRENDA PREE, City Clerk of the City of Palm Springs, do hereby certify that Ordinance No. ___ is a full, true, and correct copy, and was introduced by the City Council at a regular meeting held on the __ day of _________ ____, 202 6, and adopted at a regular meeting of the City Council held on the __ day of ______________, 2026, 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 ______________, 2026.

BRENDA PREE, MMC, CERA

CITY CLERK

H – Page 174 of 244

ATTACHMENT B
Ordinance No. 2125

H – Page 175 of 244

ORDINANCE NO. __________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, AMENDING PALM SPRINGS
MUNICIPAL CODE ARTICLE V OF CHAPTER 8.04 OF TITLE 8
SECTION 8.04.452 AND ADDING SECTIONS 8.04.453
THROUGH 8.04.456 CLARIFYING RESPONSIBILITIES AND

ENFORCEMENT MECHANISMS FOR PRIVATE

CONNECTIONS TO UNDERGROUND PUBLIC UTILITIES

City Attorney’s Summary
This ordinance amends the City of Palm Springs Municipal Code to clarify responsibilities and enforcement mechanisms for private connections to underground public utilities.

WHEREAS, the City’s municipal code sets the requirements for installing service wires and lines, including but not limited to certain overhead electrical lines, underground (“undergrounding”) for new and existing developments and places the responsibility for compliance on the developer and owner; and
WHEREAS, the City supports undergrounding overhead utility wires and poles; and WHEREAS, undergrounding improves public safety by reducing the threat of fire, impacts from earthquakes and high wind events, and also reduces utility company maintenance costs; and
WHEREAS, undergrounding improves the aesthetics of the City; and WHEREAS, City residents have expressed interest in voluntarily undergrounding service wires, lines, and poles in their residential communities; and WHEREAS, the cost of undergrounding can range in the tens of thousands of dollars per household, or higher; and
WHEREAS, the California Public Utilities Commission (“CPUC”) created the Rule 20 program in the 1970s to assist residents and municipalities with financing the cost of undergrounding; and
WHEREAS, per CPUC Decision 23- 06-008, the Rule 20A program, which promoted municipal undergrounding projects, has been effectively terminated; and WHEREAS, the CPUC left its Rule 20B and Rule 20C programs largely intact; and WHEREAS, Rule 20B programs empower private property owners to support the cost of undergrounding projects in their neighborhoods via the implementation of an assessment district on properties benefitted by the undergrounding project in order to fiscally support the undergrounding effort, with the cost of undergrounding paid over time and assessed on the property owners’ tax rolls; and
WHEREAS, under Rule 20B, a small portion of the project (typically between 20% and 40% of total costs) is eligible (though not guaranteed) for reimbursement by the utility service provider, with the reimbursement spread across ratepayers;

H – Page 176 of 244

WHEREAS, the formation of an assessment district must follow the strict requirements of Proposition 218 (Articles XIIIC and XIIID of the California constitution); and WHEREAS, the formation of an assessment district is a multi-stage endeavor, involving an exploratory phase, a petition phase, and a formal vote(s) before the construction phase can begin; and
WHEREAS, the formation of an assessment district is guided by the policies and procedures adopted by the governing body of the municipality in which the proposed district would reside;
WHEREAS, Ordinance No. 2104 amending Palm Springs Municipal Code Article V of Chapter 8.04 of Title 8 regarding undergrounding of utilities and the formation of underground utility districts was adopted on January 9, 2025; and
WHEREAS, the current Palm Springs Municipal Code does not specifically address the controls and responsibilities of utility companies, the City and property owners regarding private conversions to newly constructed underground public utilities.

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

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

SECTION 2. Code Amendment. Article V, “Undergrounding of Utilities,” of the Palm Springs Municipal Code Chapter 8.04 is amended to read in full as follows. New text is marked in underline, deleted text is marked in strikethrough:
“Article V
Undergrounding of Utilities
§ 8.04.401. New construction.

No certificate of occupancy for new buildings or structures shall be issued unless or until all existing and proposed electrical lines of 35,000 volts or less and overhead service drop conductors, and all gas, telephone, television cable service, and similar service wires or lines, which are on site, abutting, and/or transecting, are installed underground unless specific restrictions are shown in General Orders 95 and 128 of the California Public Utilities Commission, and service requirements published by the utilities.
(Ord. 1124 § 1, 1981; Ord. 1306 § 1, 1988; Ord. 1316 § 1, 1988; Ord. 2104, 1/9/2025)
§ 8.04.402. Existing development.
(a) Utility lines of less than 35 kV and overhead service drop conductor(s), including all lines on site, abutting and transecting shall be placed underground when existing buildings or structures are remodeled or expanded where the modification increases the building footprint (exclusive

H – Page 177 of 244

of porches and patios) of an existing structure by more than 10% for multifamily, commercial and industrial uses and by more than 40% for single-family use unless undergrounding is deferred pursuant hereto.

Deferral may be permitted by the city engineer under the following circumstances: (1) if the length of line to be undergrounded is less than 300 lineal feet; or (2) if the cost of undergrounding would be excessive in comparison to the value of the improvements being constructed and be a financial hardship; or (3) if there are alternative methods of accomplishing the under -grounding; or (4) there is limited public benefit to the undergrounding.
(b) The overhead service drop conductors shall be placed underground when existing buildings or structures are repaired, remodeled or expanded where the value (as determined for building permit fee purposes by the building code of the city) of such repairs or remodeling or expansion in any calendar year exceeds the assessed valuation of the building or structure, or the amount of $20,000, whichever is less. The undergrounding of utilities may be waived or deferred by the planning director under the following circumstances: (1) if the cost of undergrounding would be excessive in comparison to the value of the improvements being constructed and be a financial hardship; or (2) if there are alternative methods of accomplishing the undergrounding; or (3) there is lim ited public benefit to the undergrounding.
(c) Wherever in this section deferral of undergrounding is approved, a covenant shall be recorded, running with the land and setting forth the circumstances under which undergrounding shall be required and giving enforcement rights to the city. Among other provisions the covenant shall provide that the covenantor shall waive any right to protest the establishment of any undergrounding assessment district or other area- wide method of funding such undergrounding including any obligation to reimburse other parties for their respective share of such undergrounding cost. The city shall retain the right to underground such utilities and to receive from covenantor their respective share of such cost, and to establish a lien against the property should covenantor not pay such funds following reasonable notice. (Ord. 1124 § 1, 1981; Ord. 1306 § 2, 1988; Ord. 1316 § 2, 1988; Ord. 1518 § 1, 1995; Ord. 2031 § 9, 2020; Ord. 2088, 11/9/2023; Ord. 2104, 1/9/2025) § 8.04.403. Responsibility for compliance.

The developer and owner are jointly and severally responsible for complying with the requirements of this chapter and shall make the necessary arrangements with the utility companies to have such facilities, and/or equipment, properly indicated on a site plan to be submitted with the street improvement plans. (Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.404. Appurtenances.

For the purpose of this chapter, appurtenances and associated equipment, such as, but not limited to, transformers and terminal boxes, shall be installed

H – Page 178 of 244

underground, except in those instances where surface- mounted transformers or pedestal-mounted terminal boxes or meter cabinets, concealed ducts, or similar appurtenances are specifically permitted in aboveground locations as approved by both the city and the utility company.
(Ord. 1124 § 1, 1981; Ord. 1306 § 3, 1988; Ord. 1316 § 3, 1988; Ord. 2104, 1/9/2025)
§ 8.04.405. Risers.

Risers on poles and buildings are permitted on single lot developments and shall be provided by the developer or owner on the existing pole which services said property. In no such case shall a new pole be installed, unless a hardship exists, in which case, the director of community development, or his or her representative, may waive this requirement.
(Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.406. Appeal.

The decision of the director of community development is appealable to the planning commission.
(Ord. 1124 § 1, 1981; Ord. 2104, 1/9/2025)
§ 8.04.410. through § 8.04.449. (Reserved)
§ 8.04.450. Underground utility districts—Definitions.

The following words, terms, and phrases, when used in Sections 8.04.450 through

8.04.452, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
"Commission" means the California Public Utilities Commission. "Poles, overhead wires, and associated overhead structures" means poles, towers, supports, wires, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, communication circuits, appliances, attachments, and appur tenances located aboveground within a district and used or useful in supplying electric, communication, or similar or associated service. "Underground utility district" and "district" means that area in the city within which poles, overhead wires, and associated overhead structures are prohibited, as such area is described in a resolution adopted pursuant to Section 8.04.452. "Utility" includes all persons supplying electric, communication, or similar associated service by means of electrical materials or devices. (Ord. 2104, 1/9/2025)
§ 8.04.451. Underground utility districts —Adoption of undergrounding policies and procedures.

The city council may, from time to time, adopt by resolution those policies and

H – Page 179 of 244

procedures for the exploration, petition, and formation of underground utility districts by interested residents.
(Ord. 2104, 1/9/2025)
§ 8.04.452. Underground utility districts—Assessment district formation and formal votes (weighted and parcel).

The city council shall consider the application and/or petition of the proponents of proposed underground utility districts, provided such application and/or petition complies with the city's then- current policies and procedures for the formation of underground utility districts. If the city council approves the formation, it shall adopt a resolution of initiation and direct the city engineer to prepare the required Proposition 218- compliant Engineer's Report identifying the special benefits the proposed undergrounding project confers to the properties. The Engineer's Report shall determine the precise assessment amount on each property within the proposed district based upon the specific special benefit conferred upon each parcel, taking into account admini strative, design, and construction costs quoted by the participating utility companies as well as financing costs, making allowances for cost overruns.

The city council shall consider the Engineer's Report and may approve it by resolution. In such event, the city council shall direct the city clerk to mail assessment ballots to all affected property owners, along with a notice of public hearing, as required by Proposition 218. The ballots shall be printed in such a way as to allow affected property owners to indicate their support for, or opposition to, the proposed assessment. Property owners shall have 45 days to return the ballots, which shall be opened and tabulated at the noticed public hearing.

If a majority (50% + 1) of the returned assessment ballots are in favor of the project, as weighted by each assessment amount, the city council will approve a resolution forming the assessment district. Otherwise, the assessment district is not formed.

Regardless of whether a property owner voted to approve the formation of the assessment district, upon such formation all owners of property within the newly formed assessment district must make arrangements to pay their assigned portion of the assessment. Pr operty owners may, within 30 days, pay all or a portion of their assessment as calculated in the Engineer's Report and approved by a majority of the returned assessment ballots. Property owners who fail to pay the full amount within 30 days shall be liable for any unpaid amount via bond and a lien on the assessed property. Regardless of whether a property owner voted to approve the formation of the assessment district, the property owner, and their successors or assigns, is responsible for all costs of the private connection between the assessed real property and the resulting underground utility system, when available.
(Ord. 2104, 1/9/2025)
§ 8.04.453. Responsibility of Utility Companies.

If underground construction is necessary to provide utility service within a district created by any resolution adopted pursuant to Section 8.04.452 hereof, the supplying utility shall furnish that portion of the conduits, conductors and

H – Page 180 of 244

associated equipment required to be furnished by it under its applicable rules, regulations and tariffs on file with the Commission.
§ 8.04.454. Responsibility of City.

City shall remove at its own expense all City -owned equipment from all poles required to be removed hereunder in ample time to enable the owner or user of such poles to remove the same within the time specified in the resolution enacted pursuant to Section 8.04.452 hereof.
§ 8.04.455. Responsibility of Property Owners.
(a) Every person owning a building or structure within a district shall construct and provide that portion of the service connection on that person’s property between the facilities referred to in Section 8.04.453 and the termination facility on or within said building or structure being served, all in accordance with the applicable rules, regulations and tariffs of the respective utility or utilities on file with the Commission.
(b) In the event any person owning said property does not comply with the provisions of subsection of this section within six months of completion of the public utility underground project, the City Engineer shall post written notice in a conspicuous place on the property being served of the Engineer’s intention to order the disconnection and removal of any and all overhead service wires and associated facilities supplying utility service to said property, and thirty (30) days thereafter, the City Engineer shall have the authority to order said disconnection and removal. In the alternative, the City Engineer shall give notice in writing to the person in possession of such premises, and a notice in writing to the owner thereof, as shown on the last equalized assessment roll, to provide the required underground facilities within ten days after receipt of such notice. The City Engineer may at their discretion extend the time requirement set forth herein. (c) The notice to provide the required underground facilities may be given either by personal service or by mail. In case of service by mail on either of such persons, a copy of the notice described in subsection (B) of this section must be deposited in the United States mail in a sealed envelope with postage prepaid, addressed to the person in possession of such premises at such premises, and a copy of the notice must be addressed to the owner thereof as such owner’s name and last known address appear on t he last equalized assessment roll, and when no address appears, to general delivery, City of Palm Springs. If notice is given by mail, such notice shall be deemed, to have been received by the person to whom it has been sent within forty -eight (48) hours after the mailing thereof. If notice is given by mail to either the owner or occupant of such premises, the City Engineer shall, within forty-eight (48) hours after the mailing thereof, cause a copy thereof, printed on a card not less than eight inches by ten inches in size, to be posted in a conspicuous place on said premises.
(d) The notice given by the City Engineer to provide the required underground facilities shall particularly specify what work is required to be done, and shall state that if said work is not completed within thirty (30) days after receipt of such notice, the City Engineer will provide such required underground facilities, in which case the cost and expense thereof will be assessed against the property

H – Page 181 of 244

benefitted and become a lien upon such property.
(e) If upon the expiration of the thirty (30) day period, the said required underground facilities have not been provided, the City Engineer shall forthwith proceed to do the work; provided, however, if such premises are unoccupied and no electric or communications services are being furnished thereto, the City Engineer shall, in lieu of providing the required underground facilities, have the authority to order the disconnection and removal of any and all overhead service wires and associated facilities supplying utility service to said property. Upon completion of the work by the City Engineer, the City Engineer shall file a written report with the City Council setting forth the fact that the required underground facilities have been provided and the cost thereof, together with a legal description of the property against which such cost is to be assessed. The Cit y Council shall thereupon fix a time and place for hearing protests against the assessment of the cost of such work upon such premises, which said time shall not be less than ten days thereafter.
(f) The City Engineer shall forthwith, upon the time for hearing such protests having been fixed, give a notice in writing to the person in possession of such premises, and a notice in writing thereof to the owner thereof, in the manner hereinabove provided for the giving of the notice to provide the required underground facilities, of the time and place that the City Council will pass upon such report and will hear protests against such assessment. Such notice shall also set forth the amount of the proposed assessment.
(g) Upon the date and hour set for the hearing of protests, the City Council shall hear and consider the report and all protests, if there be any, and then proceed to affirm, modify or reject the assessment.
(h) If any assessment is not paid within five days after its confirmation by the City Council, the amount of the assessment shall become a lien upon the property against which the assessment is made by the City Engineer, and the City Engineer is directed to turn over to the Assessor and Tax Collector a notice of lien on each of said properties on which the assessment has not been paid, and said Assessor and Tax Collector shall add the amount of said assessment to the next regular bill for taxes levied against the premises upon which said assessment was not paid.

Said assessment shall be due and payable at the same time as said property taxes are due and payable, and if not paid when due and payable, shall bear interest at the same prevailing rate imposed by the Riverside County Tax Collector on other delinquent tax monies outstanding.
§ 8.04.456. Extension of Time.

In the event that any act required by this chapter or by a resolution adopted pursuant to Section 8.04.452 hereof cannot be performed within the time provided on account of shortage of materials, war, restraint by public authorities, strikes, labor disturbances, civil disobedience, or any other circumstances beyond the control of the actor, then the time within which such act will be accomplished shall be extended for a period equivalent to the time of such limitation. § 8.04.457. City Manager Authorization.

H – Page 182 of 244

(a) The City Council authorizes the City Manager to promulgate regulations and standards to establish and implement the provisions of this chapter. (b) The City Council authorizes the City Manager to enter into repayment agreements with Property Owners.
§ 8.04.458. Penalty.

It shall be unlawful for any person to violate any provision or to fail to comply with any of the requirements of this chapter. Any person violating any provision of this chapter or failing to comply with any of its requirements shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding five hundred dollars ($500.00) or by imprisonment not exceeding six months, or by both such fine and imprisonment. Each such person shall be deemed guilty of a separate offense for each day during any portion of which any violation of any of the provisions of this chapter is committed, continued or permitted by such person, and shall be punishable therefor as provided for in this chapter.”

SECTION 3. Effective Date. This ordinance shall become effective 30 days after its adoption.

SECTION 4. Certification. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law.

SECTION 5. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation.

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

NAOMI SOTO
MAYOR
ATTEST:

BRENDA PREE, MMC, CERA

CITY CLERK

H – Page 183 of 244

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, BRENDA PREE, City Clerk of the City of Palm Springs, do hereby certify that Ordinance No. ___ is a full, true, and correct copy, and was introduced by the City Council at a regular meeting held on the __ day of _________ ____, 202 6, and adopted at a regular meeting of the City Council held on the __ day of ______________, 2026, 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 ______________, 2026.

BRENDA PREE, MMC, CERA

CITY CLERK

H – Page 184 of 244

CITY COUNCIL STAFF REPORT
DATE: February 11, 2026 BUSINESS & LEGISLATIVE
SUBJECT: RE-INTRODUCTION OF AN ORDINANCE ADDING CHAPTER 5.27 TO

THE PALM SPRINGS MUNICIPAL CODE, RESTRUCTURING THE
CITY’S HOTEL OPERATIONS INCENTIVE PROGRAM (CITYWIDE)
FROM: Scott C. Stiles, City Manager
BY: Economic Development
SUMMARY:

This report proposes an update to the Hotel Operations Incentive Program (5.62) with a new Ordinance (Attachment A) (5.27) that establishes a restructured and simplified citywide Hotel Operations Incentive Program. The existing Hotel Operations Incentive Program, first adopted in 2007 and amended in 2013, 2019, and 2023, has successfully stimulated hotel renovations over the last decade.

The City Council reviewed the first draft of the new ordinance during its January 28, 2026 meeting and requested staff return with edits to the ordinance before approving its first reading. This report transmits the updated ordinance language for Council review.

RECOMMENDATION:

1. Waive the reading of the ordinance text in its entirety and read by title only; and introduce for first reading an Ordinance entitled, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 5.27 TO THE PALM

SPRINGS MUNICIPAL CODE, RELATING TO A RESTRUCTURED HOTEL OPERATIONS INCENTIVE PROGRAM,” and approve the ordinance. (The new Chapter 5.27 will replace the current Chapter 5.26 program for future agreements.)

2. Authorize the City Manager and City Attorney to make minor non-substantive changes to the ordinance and execute all necessary documents to implement the program.

BUSINESS PRINCIPAL DISCLOSURE:

Applicants to the updated program will be required to supply the appropriate business disclosure forms at the time of application to the program.

A – Page 185 of 244

City Council Staff Report
Feb 11, 2026 -- Page 2
Re-Introduction of an Ordinance, Restructuring the City’s Hotel Operations Incentive Program (Citywide) 55575.38285\44642455.2
BACKGROUND:

On January 28, City staff presented an updated ordinance to Chapter 5.26, the Palm Springs Hotel Incentive Program (to be 5.27) (Attachment B). The Council was generally supportive of the program, but requested several additions to the program. Those are highlighted below.

STAFF ANALYSIS:

Several questions were raised during the January 28, 2026, meeting. The comments relating specifically to the ordinance language include:

1. Can we restrict the time allowed from incentive award to construction start?

2. Can we restrict the time allowed from construction start to Certificate of Occupancy?

3. Can we consider harsher penalties for non-paying enrollees in the program?

4. Can we ensure the program benefits convention hotels that may not meet the higher thresholds?
The questions are addressed with suggested changes to the ordinance, below:

1. Provide a deadline in which a project participating in the incentive program must commence (i.e., set a date at which construction must begin following project approval from City Council). Recommended: 12 months;

2. Provide a deadline in which a project participating in the incentive program must be completed (i.e., set a date at which construction is complete and Certificate of Occupancy is be issued). Recommended: 30 months;

3. Provide default provisions for operators who are enrolled in the incentive program but fail to stay current on transient occupancy tax payments;

4. Incorporate the 90/10 split of collected and remitted transient occupancy tax increment for first 5 years into Incentive Tier 1; (i.e., only the Base Tier does not receive the 90/10 split in first 5 years).

Other comments included: continue outreach to languishing hotel projects, past participation in incentives of certain hotels, distribution of pro forma models, working with the Convention Center on a hotel availability program, and the possibility of extending a similarly structured incentive to restaurants are either administrative in nature and have been or will be addressed by staff, or will require separate policy development (i.e., restaurant incentive).

Tier Summary
For the sake of clarity, the Tiers are re-stated here:

A – Page 186 of 244

City Council Staff Report
Feb 11, 2026 -- Page 3
Re-Introduction of an Ordinance, Restructuring the City’s Hotel Operations Incentive Program (Citywide) 55575.38285\44642455.2
Tier Min $/Key Split*
(Owner/City)
Base $10,000 50/50 year 1-10
1 $100,000 90/10 first 5 years
55/45 year 6-15
2 $225,000 90/10 first 5 years
60/40 year 6-20
3 $350,000 90/10 first 5 years
65/35 year 6-25
4 $600,000 90/10 first 5 years
75/25 year 6-30
*In no case will reimbursement exceed the Actual Document Investment (ADI) which is determined by the City in its sole discretion.

ENVIRONMENTAL:

Unchanged from the previous report.

FISCAL IMPACT:

Unchanged from previous report, other than this proposes expanding the 90/10 increment split to Tier 1 ($100,000/key). As a result, this would reduce the City’s TOT intake for projects in Tier 1 going forward.

REVIEWED BY:

Department Director: Wayne Olson
City Attorney: Seth Merewitz
City Manager: Scott Stiles

ATTACHMENTS:

A. Staff Report from January 28, 2026
B. Redlined Ordinance adding Chapter 5.27
C. Ordinance adding Chapter 5.27 – An Ordinance of the City of Palm Springs, California, Adding Chapter 5.27 to the Municipal Code “Hotel Operations Incentive Program.”

A – Page 187 of 244

ATTACHMENT A
Staff Report from January 28, 2026

A – Page 188 of 244

3C.

INTRODUCE AN ORDINANCE ADDING CHAPTER 5.27 TO THE
PALM SPRINGS MUNICIPAL CODE, RESTRUCTURING THE CITY’S

HOTEL OPERATIONS INCENTIVE PROGRAM (CITYWIDE)
RECOMMENDATION:

Waive the reading of the ordinance text in its entirety and read by title only; and introduce for first reading an Ordinance entitled, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 5.27 TO THE PALM

SPRINGS MUNICIPAL CODE, RELATING TO A RESTRUCTURED HOTEL OPERATIONS INCENTIVE PROGRAM” and approve the ordinance. (The new Chapter 5.27 will replace the current Chapter 5.26 program for future agreements.)

A – Page 189 of 244

CITY COUNCIL STAFF REPORT
DATE: JANUARY 28, 2026 BUSINESS & LEGISLATIVE
SUBJECT: INTRODUCE AN ORDINANCE ADDING CHAPTER 5.27 TO THE PALM SPRINGS MUNICIPAL CODE, RESTRUCTURING THE CITY’S HOTEL

OPERATIONS INCENTIVE PROGRAM (CITYWIDE)
FROM: Scott C. Stiles, City Manager
BY: Economic Development
SUMMARY:

This report proposes an update to the Hotel Operations Incentive Program (Chapter 5.62) with a new Ordinance (Chapter 5.27, Attachment A) that establishes a restructured and simplified Citywide Hotel Operations Incentive Program. The existing Hotel Incentive Program, first adopted in 2007 and amended in 2013, 2019, and 2023, has successfully stimulated hotel renovations over the last decade.

However, the eligibility criteria of the current program have become restrictive, limiting participation over time. Moreover, because the current program was amended numerous times over the years to target different categories of hotels, the qualifying criteria for the program as a whole has become difficult to navigate. The new ordinance broadens and streamlines the criteria so more hotels can qualify – including hybrid developments like developments that partially renovate a property as well as add new room stock. It extends the program (accepting applications through 2030, vs. 2023 under the old rules) and introduces a straightforward tiered incentive structure for all hotels with potential TOT rebate percentages and terms scaled to the level of hotel investment.

These changes are aimed at continuing the City’s economic development and tourism goals by incentivizing substantial hotel renovations and new hotel construction, while also encouraging historic preservation of iconic properties. Staff recommends approval of the ordinance, finding that it will promote reinvestment in the hospitality sector, enhance the City’s visitor offerings and ultimately increase long-term TOT revenues and public benefits.

RECOMMENDATION:

Waive the reading of the ordinance text in its entirety and read by title only; and introduce for first reading an Ordinance entitled, “AN ORDINANCE OF THE CITY OF PALM

A – Page 190 of 244

City Council Staff Report
January 28, 2026 -- Page 2
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 SPRINGS, CALIFORNIA, ADDING CHAPTER 5.27 TO THE PALM SPRINGS

MUNICIPAL CODE, RELATING TO A RESTRUCTURED HOTEL OPERATIONS INCENTIVE PROGRAM.” and approve the ordinance. (The new Chapter 5.27 will replace the current Chapter 5.26 program for future agreements.) BUSINESS PRINCIPAL DISCLOSURE:

Applicants to the updated program will be required to supply the appropriate business disclosure forms at the time of application to the program.

BACKGROUND:

Palm Springs first adopted a Hotel Operations Incentive Program in December 2007 (Ordinance 1730, effective January 2008) to encourage the development of new hotels and the renovation of existing hotels. The Council’s intent was to enhance the City’s tourism appeal by supporting quality hotel facilities, maximizing use of the Convention Center, and expanding the local economy. Under the original program, qualifying projects entered into Hotel Operations Covenants with the City to receive a rebate of a portion of TOT generated by the hotel. Generally, new hotels could receive up to 50% of the TOT they generated for a set period (depending on the hotel’s size/quality), while renovated existing hotels could receive a share of TOT above their pre-renovation “base” TOT levels. The program proved extraordinarily successful in spurring hotel improvements citywide: by the end of 2012 (the program’s initial sunset), it had catalyzed over $180 million in hotel renovations, upgrading more than 1,600 hotel rooms in Palm Springs. This investment helped boost tourism, with spillover economic benefits, and significantly increased the City’s TOT revenues (which fund general City services). Notably, the City partnered with projects ranging from small boutique hotels to large conference style hotels under this program.

The original program was designed with sunset clauses, so no new applications for incentives were accepted after certain dates (e.g. new hotel projects had to start construction by December 31, 2017, and existing-hotel renovations had to be completed by December 31, 2015). The Council extended some deadlines on a case-by-case basis (for example, the Dream Hotel and Orchid Tree Hotel projects were granted program extensions). In February 2013, Chapter 5.26 was amended to refine program terms (Ord. 1821). However, by late 2012, as the initial program expiration neared, the City had largely paused the blanket program and handled incentives by individual agreements for critical projects.

In early 2019, responding to renewed interest in renovating several smaller hotels, the City revived the Hotel Incentive Program as “Phase II” (Ord. 1972, adopted February 6, 2019). This update re-established incentives for existing hotels only (the program for new hotel construction remained closed). Key terms of the Phase II program included: a minimum $5,000 per room investment in renovations; a 50% rebate of the annual TOT increment (i.e. the increase in TOT above the hotel’s prior 36-month average baseline)

A – Page 191 of 244

City Council Staff Report
January 28, 2026 -- Page 3
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 for a 10-year period; a requirement that renovations be completed by December 31, 2023; and a prohibition on new hotel projects participating. These criteria were intended to jump- start reinvestment in aging hotels and indeed succeeded in attracting participants – for example, the Yara Hotel (10 rooms) undertook an $857,000 renovation in 2024 and was approved under the program to receive a 50% TOT rebate over 10 years (capped at $857,122, equal to its investment). The Phase II program also required that participating hotels have a track record of operations (at least five years in the last 15, with three years of TOT payment history) to ensure incentives went to established operators. (See Attachment B for historic and current participation.)
Over time, staff identified that the narrow parameters of the 2019 “Phase II” program were limiting its usefulness. The fixed sunset of 2023 meant no projects starting after that date could apply, and the strict operating history requirement excluded some newly reopened or rebranded hotels from qualifying. Additionally, the program’s inapplicability to new hotel construction left the City with no active incentive tool to attract new hotel development during a period of robust tourism growth. In July 2023, the City Council discussed extending and refining the program. The Council gave direction (on July 24, 2023) to extend the program to December 31, 2028, to relax the five-year continuous operation rule (allowing non-consecutive operation over 15 years), and to accommodate hotels with limited TOT history by offering them a shorter 5-year incentive term at up to 50% TOT (or 75% for hotels in Class 1 historic buildings). The Council also directed the elimination of the annual CPI adjustment to the TOT baseline, suggesting instead a one-time adjustment mid-way through the incentive period. An ordinance reflecting some of these changes (Ord. 2087) was adopted on September 14, 2023, amending Chapter 5.26 to implement the extended sunset (through 2028) and other tweaks. Even with those amendments, the core structure of the program remained as a single-tier, 50%-for-10- years incentive geared mainly to small renovations. Despite these changes, larger projects found the incentive unable to overcome the prevailing wage requirement, and as a result, either have delayed improvement, or simply not participated in the program. (Paying prevailing wage is required by state law for incentives over $600,000; increases in construction costs estimate anywhere from 130% to 150% of non-prevailing wage costs resulting in a “negative” incentive; in other words, the incentive costs now outweigh the benefits.)
In late 2025, as part of a comprehensive economic development strategy, the Council called for a more fundamental overhaul of the Hotel Incentive Program. The City Attorney’s office and staff have drafted the new Chapter 5.27 as a wholesale restructured program rather than simply amending Chapter 5.26 further. (Chapter 5.26 will effectively be superseded; no new agreements will be made under the old chapter, though existing covenants under 5.26 will remain honored.)
The policy shifts focus away from classifying types of hotels and categorizing projects as renovation vs. new construction, but rather simply incents the amount of investment made “per key” (i.e., per room) by the owner/developer. In this way, the City focuses its incentive on the amount of the investment, rather than on type of construction project. As a result,

A – Page 192 of 244

City Council Staff Report
January 28, 2026 -- Page 4
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 the new ordinance broadens eligibility and introduces multiple incentive “tiers” to better calibrate the incentive to the size of the hotel investment. This approach acknowledges that larger, higher-end hotel projects may require a greater and longer incentive to be financially viable (as evidenced by previous Council-approved deals for major projects, which granted up to 75% TOT rebates over 20-30 years). At the same time, the restructured program continues to support smaller hotel renovations with a more modest incentive, and it retains safeguards to ensure public benefits – such as capping rebates at the amount of the private investment and requiring participating hotels to remain in operation as hotels.

In summary, the existing program’s limitations (tied to specific construction periods and one-size-fits-all terms) are addressed by this new Chapter 5.27, which provides a flexible but accountable framework to encourage ongoing hotel investment in Palm Springs.

STAFF ANALYSIS:

The proposed Chapter 5.27 (Palm Springs Hotel Operations Incentive Program) creates a tiered incentive structure and updates the application process, eligibility criteria, and agreement requirements. Attached Ordinance No. _____ contains the full text; key provisions are summarized below:
Program Eligibility:

The program is open to hotel operators citywide for projects involving substantial new construction or renovation of hotel facilities. Unlike the prior program, there is no minimum hotel size (number of rooms) requirement – even a small boutique hotel can apply, as long as it meets the investment threshold. However, the operator must devote at least 90% of the property’s floor area to hotel use (to prevent misuse of the incentive for predominantly non-hotel projects). Each participating hotelier must enter an Operating Covenant committing to operate and maintain the improvements as a hotel for the duration of the incentive term.

Applications must be submitted and approved before the hotel project is entitled (i.e., prior to issuance of any City discretionary permits for construction). This ensures the incentive is a factor in the project’s planning and is not granted retroactively. Hotels that have already received full entitlements or begun construction are not eligible to apply after the fact.
Investment Threshold & Use of Funds:

To qualify, a project must involve a minimum investment of $10,000 per hotel guest room. This is double the previous $5,000/room requirement, reflecting increased construction costs and the City’s desire for more meaningful upgrades. The “Actual Documented Investment” (ADI) is defined as the total verifiable project cost spent on tangible improvements including construction, furniture, fixtures, and equipment (FF&E), and soft goods (e.g. linens), but excluding soft costs like design and legal fees (those are not reimbursable). To ensure the incentive primarily supports

A – Page 193 of 244

City Council Staff Report
January 28, 2026 -- Page 5
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 substantial physical improvements, the ordinance requires that at least 80% of the project cost be spent on construction and FF&E, with no more than 20% on soft goods (i.e., towels, drapery, bedding).
oFor example, if a hotel plans $125,000 in total upgrades, at least $100,000 of that must be in hard construction/FF&E costs for the project to qualify for incentives on the full amount; soft goods expenses (e.g. new linens, TVs) beyond the 20% cap would not count toward the ADI or be reimbursed. This focus directs the City’s subsidy toward long-term capital improvements that enhance the property’s quality and guest experience.
Incentive Tiers:

The ordinance establishes five levels of incentives based on the per-room investment in the project. All tiers provide a rebate of a percentage of the Transient Occupancy Tax increment generated by the hotel, for a defined term of years, or until the operator has recouped an amount equal to their investment (ADI), whichever occurs first. Importantly, the City will never rebate more than the documented investment in any case – this cap ensures the public funds (foregone TOT revenue) directly leverage at least an equal private investment dollar-for- dollar. The tiers are:
oBase Tier: Investment of $10,000+ per room. Eligible for a 50% TOT increment rebate (City/Operator share TOT 50/50) for a term of 10 years (from the hotel’s covenant recordation). This essentially mirrors the incentive level under the prior program (50% for 10 years), but with the updated cost threshold and other new program conditions. oTier 1: Investment of $100,000+ per room. Eligible for a 55% TOT increment rebate (Operator receives 55%, City 45%) for 10 years. This tier gives a modest increase in the rebate percentage to reward more significant renovations or upscale improvements.
oTier 2: Investment of $225,000+ per room. Eligible for a 90% TOT increment rebate for the first 5 years, and 60% TOT increment rebate for the next 15 years, for a total term of 20 years. In this tier, the City’s share of new TOT is 10% during years 1–5 and 40% in years 6–20. This structure front-loads the benefit to the hotel in the early years when financing gaps are often greatest, then gradually increases the City’s share.
oTier 3: Investment of $350,000+ per room. Eligible for a 90% TOT rebate for the first 5 years, and 65% TOT increment for the next 20 years, for a total term of 25 years. Here the City collects 10% of the increment in years 1–5 and 35% in years 6–25.
oTier 4: Investment of $650,000+ per room. Eligible for a 90% TOT rebate for the first 5 years, and 75% for the next 25 years, for a total term of 30 years. The City’s share is 10% in years 1–5 and 25% in years 6–30. This

A – Page 194 of 244

City Council Staff Report
January 28, 2026 -- Page 6
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 highest tier is aimed at major, transformative projects – for instance, a large luxury resort development or a comprehensive redevelopment of a historic hotel property – which often require substantial incentives to be financially feasible. Notably, Palm Springs has previously approved incentives in this magnitude range (75% of TOT for 30 years) for significant hotel projects to fill financing gaps so this is not without precedence. Tier 4 effectively codifies a similar incentive level, with even greater initial relief (90% in early years) to assist projects through the critical ramp-up period.

Table 1.1 below summarizes the Tiers and their correlative values:

Previous Program Owner/Developer City Term
Renovation 50% 50% 10 years or cost
Historic Property 75% 25% 10 years or cost
New Program ($/key) Owner/Developer City Term
Base Tier ($10,000+) 50% 50% 10 years or cost
Tier 1 ($100,000+) 55% 45% 15 years or cost
Tier 2 ($225,000+) 90% 10% Years 1-5
60% 40% Years 6-20
Tier 3 ($350,000+) 90% 10% Years 1-5
65% 35% Years 6-25
Tier 4 ($600,000+) 90% 10% Years 1-5
75% 25% Years 6-30
Bonus (pick one)
Convention Center +10% -10% Year 6 – Term
Historic +5% -5% Year 6 – Term
Table 1.1
All tiers above Base build upon the principle that greater private investment merits a greater public incentive, within limits. Regardless of tier, no incentive agreement will exceed the amount of TOT equivalent to the operator’s actual investment – for example, if a Tier 4 project invests $20 million, their TOT rebate will cease once $20 million in rebate has been paid out, even if the term has not fully elapsed. In this way, the City ensures that the program’s benefit to the operator is proportional and capped. Furthermore, for existing hotels, the “TOT increment” is calculated as the TOT above the hotel’s historical baseline (the average annual TOT paid in the 36 months prior to the project). This means the City continues to receive all the base TOT it was already collecting from that hotel, and only the new growth in TOT as a result of the renovation is subject to sharing. (In the case of a new hotel on a vacant site, the TOT base is effectively $0, so all TOT is new increment – but since without the project that revenue wouldn’t exist, the rebate still

A – Page 195 of 244

City Council Staff Report
January 28, 2026 -- Page 7
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 represents no loss of existing revenues.) After the incentive term concludes (or the investment is fully repaid), the City will collect 100% of the TOT generated going forward. Bonus Incentives:

To advance specific City policy goals, the ordinance provides two bonus TOT rebate opportunities that can augment the above tier benefits, starting in year 6 of an agreement (after the initial 5-year period):

1. Historic Hotel Bonus: If the hotel property is designated as a Class 1 or Class 2 Historic Resource (per Palm Springs Municipal Code Chapter 8.05), the operator may receive an additional 5% TOT increment rebate beginning in year 6 and for the remainder of the term. This bonus recognizes the higher costs and public benefits of historic preservation. Historic hotels are often smaller or require specialized restoration, so this extra 5% helps offset those challenges. Example: A qualifying historic hotel in Tier 1 would go from a 55% rebate to 60% from year 6 onward; if in Tier 4, the rebate would become 80% for years 6–30 (instead of 90%/75% blend without the bonus).

2. Convention Center Hotel Bonus: If the hotel is larger than 125 keys and has onsite food and beverage and participates in Tier 1 investment or higher, the operator may receive an additional 10% TOT rebate beginning in year 6 for the rest of the term. The intent is to encourage high-quality hotel development near the Convention Center, which will support convention business and tourism. This bonus could apply, for instance, to a new hotel project in the downtown/convention center vicinity.

Only one bonus can be applied per project – they cannot be “stacked.” If a hotel qualifies for both (e.g. a historic hotel with 125 rooms or more), it would choose the single bonus that is more advantageous (likely the 10% Convention Center bonus in that scenario).

These bonuses are incorporated to further the City’s economic development objectives of preserving historic assets and strengthening the Convention Center area hospitality offerings. Therefore, in no case would a benefit exceed 85% share to the owner starting in Year 6 of the agreed upon Tier.
Application & Approval Process:

The ordinance outlines a clear process for application, analysis, and approval of incentive agreements:
oAn interested hotel operator must submit a Hotel Incentive Program application to the City Manager’s Office prior to receiving any entitlements for their project. The application will include a description of the project (scope, location, timeline, estimated costs), an identification of which tier the project’s investment qualifies it for, and any additional information required by the City. City staff will verify that the application is complete and the project meets basic eligibility.

A – Page 196 of 244

City Council Staff Report
January 28, 2026 -- Page 8
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 oUpon a complete application, the City Manager will direct staff to conduct a fiscal analysis of the proposal. This analysis will evaluate the projected TOT that the renovated/new hotel would generate, the potential rebate amount and duration, and the net fiscal impact to the City over time. Factors like the hotel’s expected increase in occupancy or average daily rate (ADR) post- improvement may be considered. The analysis helps ensure the incentive is justified by a need to close a “financial gap” in the project and that the City will still benefit (this approach is consistent with practices in other cities that require demonstrating a funding gap for TOT rebate). oCity staff (Economic Development, Finance, City Attorney) will then negotiate a proposed incentive package with the operator, based on the applicable Tier and any bonus, and draft the hotel operating covenant agreement reflecting the terms. The draft agreement, along with the project’s related entitlements (e.g., Planned Development permits, if any), will be brought forward for approval. Smaller incentives – those valued at less than $100,000 total – may be approved administratively by the City Manager under the ordinance’s delegated authority. This delegation is designed to streamline assistance for minor projects (though in practice, most hotel projects meeting the minimum $10k/room will likely exceed $100k in rebate value over the term). Larger incentives (≥ $100,000) must be approved by the City Council at a noticed public hearing, in compliance with Government Code §53083 (AB 562). This Council approval is the case for virtually all multi-year TOT rebate agreements and ensures transparency and public input on significant economic development subsidies. oOnce an incentive agreement is approved, it will specify the tier, term, percentage of TOT to be rebated, the ADI cap, and any bonus applied. It will also incorporate the standard Operating Covenant to be recorded against the property prior to issuance of the Certificate of Occupancy for the project. The Operating Covenant will run with the land and bind future operators for the duration of the incentive term, ensuring that if the property is sold, the new owner must continue to operate the hotel and honor the agreement (or the incentive can be terminated if the hotel use ceases). The term of the Operating Covenant is equal to the incentive period (ending once the agreed years pass or ADI is reached).
Operating Covenant Requirements:

Each participating hotelier will sign an Operating Covenant agreement with key conditions to protect the City’s interests and policy goals. Two notable requirements are:
oPrevailing Wage for Construction: If the City’s total contribution (i.e. the total estimated rebate value) exceeds $600,000 and 2% of the total project cost, the project will be required to pay prevailing wages for the labor on the construction work. This threshold aligns with state law triggers for public

A – Page 197 of 244

City Council Staff Report
January 28, 2026 -- Page 9
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 subsidies. It ensures that larger projects benefiting from substantial public incentives provide good wages to construction workers, consistent with California Labor Code and the City’s prevailing wage ordinance. For example, if a hotel project costs $10 million and the City incentive is $1 million (10% of cost), prevailing wage would be mandated (since $1M > $600k and =10% > 2%). This requirement does not typically affect smaller rehabs but will apply to the larger tier projects.
oIndemnification: The operator must agree to indemnify and hold the City harmless from any claims arising from the hotel’s participation in the program. This means, for instance, if there were any legal challenges related to the hotel’s participation in the incentive program, the hotel operator would defend and cover the City. This provision protects the City’s taxpayers from liability associated with the private project. In no case can this be waived.
oIn addition, the covenant will reiterate the operational commitments (e.g. the hotel must remain available for short-term/transient occupancy use and, if applicable, participate in the Convention Center Hotel Program, as was required in earlier covenants). The Council retains discretion to impose other conditions in an Operating Covenant as needed to ensure the program’s intent is met. For example, the City could require a certain quality standard or brand level be maintained if that was a factor in approving the incentive. Another example is the City can mandate the development meet a certain time line.
Reimbursement (Payment) Process:

The ordinance specifies several conditions the operator must continually meet to receive incentive payments:
oThe operator must complete the construction/renovation and obtain a Certificate of Occupancy (for new construction or final inspection sign-off for renovations) before any rebate is paid. No upfront funding is given; the incentive is performance-based. This protects the City – the hotel must actually deliver the promised improvements and open for business to start earning the subsidy.
oThe operator must provide documentation such as building permits, contractor licenses, receipts and invoices to verify the costs incurred (i.e. proof of the ADI). City staff will review these to certify the actual investment.

This audit step prevents any “inflated” cost claims and sets the exact dollar cap for the rebate (the certified ADI).
oThe hotel must maintain a valid City business license and remain current on all TOT payments and other City fees throughout the incentive term. If a hotel falls behind on remitting its monthly TOT (which is required by Chapter

3.24 of the Code) or, for example, on utility payments or code compliance

A – Page 198 of 244

City Council Staff Report
January 28, 2026 -- Page 10
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 fines, the City can withhold the rebate until the operator cures the issues. Essentially, a hotel can’t benefit from a TOT rebate if it isn’t fully paying the TOT or obeying City laws. oThe operator must provide any additional forms or records requested by the City to ensure compliance. This could include annual statements of room revenues for verification, etc.
oThe City explicitly reserves the right to withhold or cancel incentive payments if the operator violates the program requirements or the Operating Covenant. The operator would be given notice and 30 days to cure any default. For example, if a hotel stopped operating as a hotel (converted to apartments or closed without City approval) during the covenant period, the City would cease TOT rebate payments and could terminate the agreement. This provision ensures accountability – the subsidy is conditional on delivering the public benefits (an operating hotel, increased TOT, etc.).
Program Sunset:

The new Chapter 5.27 program is not open-ended. It includes a sunset clause: no new applications will be accepted after December 31, 2030. This gives roughly a five-year window (2026–2030) for hotel projects to come forward under the program. The sunset ensures the Council can reassess the program’s effectiveness and fiscal impact in the future rather than creating a perpetual obligation. (By comparison, the previous program was set to sunset end of 2028 after the 2023 extension; this ordinance extends it two additional years to capture planned projects in the pipeline.) Any agreements executed on or before the sunset date will of course be honored through their terms, but no new incentive agreements will be initiated beyond 2030 unless the Council later extends the program by ordinance.

Comparison to Other Cities:

It is worth noting that TOT incentive programs are a fairly common economic development tool among destination cities, though specific terms vary. Palm Springs’ new tiered program is competitive with, and in some aspects more generous than, other California cities, reflecting the City’s strong commitment to tourism development. For example, the City of Dublin, CA offers TOT rebates up to 50% of increment for renovated hotels (for up to 10 years), and up to 70% for 4-star new hotels (for up to 20 years) – percentages and durations in line with Palm Springs’ middle tiers. The City of Morgan Hill recently adopted a program rebating 50% of TOT above baseline for 10 years for qualifying new or improved hotels. Santa Ana and other cities have targeted programs primarily for new luxury hotels (often 50%–100% TOT for 5–20 years depending on project specifics). Palm Springs’ program now spans both new and existing hotels and provides up to 90% TOT sharing for up to 30 years in the most significant cases, which is a notable incentive level.

However, the built-in cap (rebate ≤ investment cost), and the fact that Palm Springs’ TOT

A – Page 199 of 244

City Council Staff Report
January 28, 2026 -- Page 11
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 rate (12.5%) remains in place, ensure that the City will still receive a share of revenue and eventually the full tax. The City’s approach balances attractiveness to developers (especially for large projects that might not proceed without assistance) with protection for the City’s fiscal interests, and continues a tradition of Palm Springs using TOT incentives to shape its resort economy. As seen in the past, such incentives can be instrumental. The new program provides a transparent, criteria-based framework for considering similar large investments going forward, rather than on an ad hoc basis.

Overall, policy rationale for this ordinance is strong: it will help Palm Springs remain a competitive destination by encouraging the renovation of aging hotels and development of new hotel products that meet modern traveler expectations. It also offers a tool to support the preservation of historic hotel properties, which are integral to the City’s mid- century modern heritage and tourism appeal. By tying incentives to actual performance (increased TOT generation) and capping the City’s contribution, the program is essentially self-financing – it leverages new tax revenue that would not exist but for the hotel improvements. The ordinance contains safeguards (e.g. required investment levels, compliance monitoring, and the sunset provision) to ensure the Program can be managed responsibly.

Public Hearing Required Information (GOV. CODE §53083):

Future approvals by the Council require the City obey Gov. Code 53083 which is described in detail, below and will be customized to the individual incentive proposed at the time of review for approval:

Pursuant to Government Code §53083, the City must provide a written report and summary of certain information whenever approving an economic development subsidy of $100,000 or more. This ordinance establishes a citywide program under which individual agreements will constitute economic development subsidies exceeding that threshold. The required information is provided as follows (and in the attached Economic Development Subsidy Report on file):
Beneficiary Names and Addresses:

The Program is not specific to a single business or developer. Rather, it is available to any hotel operator in the City of Palm Springs who meets the program criteria and enters an incentive agreement. Thus, the potential beneficiaries are owners/operators of hotel properties citywide (within Palm Springs jurisdiction) that undertake qualifying hotel development or renovation projects. Each future agreement will identify the specific entity receiving the subsidy (for example, “ABC Hotel LLC, operator of the XYZ Hotel at [address]”). That information will be disclosed publicly with each agreement brought to Council.

A – Page 200 of 244

City Council Staff Report
January 28, 2026 -- Page 11
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 A – Page 201 of 244

City Council Staff Report
January 28, 2026 -- Page 12
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 Start and End Dates of Subsidy:

The Program itself will accept new applications through December 31, 2030 (the program sunset). Any approved Hotel Operations Incentive agreements will have defined start and end dates. The start date of an incentive agreement is typically the date the Operating Covenant is recorded and the first TOT increment is generated. The end date for each agreement will depend on the tier: generally 10 years from start for Base or Tier 1 projects, 20 years for Tier 2, 25 years for Tier 3, or 30 years for Tier 4 – or earlier if the total rebate paid reaches the investment cap. For example, if a covenant is approved for a Tier 1 hotel project, the subsidy period would commence upon the recordation of the Covenant (expected in, say, 2027) and end in 2037 (10 years later), unless the operator receives their full certified investment back sooner. In no event will a subsidy under this program continue beyond 30 years for any single project. After the end date, the City will receive the full 100% of TOT from the hotel.
Description of the Subsidy & Estimated Total Amount:

The subsidy is in the form of a rebate of transient occupancy tax (hotel bed tax) revenues that the City would otherwise collect, up to a percentage of the increment in TOT attributable to the hotel project, as defined by the program tiers. The TOT rate in Palm Springs is 11.5% for “small hotels” and 13.5% for “larger hotels” applied to gross room revenue (unchanged by this ordinance). For an existing hotel renovation, the City will continue to collect the “base” TOT (the hotel’s pre-project average) in full; the TOT increment (increased revenue) generated by the improved hotel will be split with the operator. For a new hotel, all TOT generated is new revenue and subject to the sharing split. Depending on the project’s investment tier, the City will rebate between 50% and 90% of the TOT increment to the operator for a set term, with the City retaining the remaining 10% to 50% of the TOT increment during that term. In addition, a small number of projects may receive a bonus 5–10% share (reducing the City’s portion correspondingly), from year 6 onward, if they meet the historic or location bonus criteria. Importantly, each agreement will specify a maximum dollar amount equal to the operator’s certified investment – once that amount in TOT has been rebated, the subsidy ends (even if the full term of years has not elapsed). Therefore, the estimated total amount of each subsidy will be tied to the project’s cost. For example, if a hotel invests $5,000,000 in a renovation, the maximum subsidy (public revenue “loss”) is $5,000,000 (rebated over the term from new TOT generated). In practice, not all projects will earn the full eligible rebate if their TOT ramp-up is slower than projected or if they reach the term limit first. By way of illustration, under the Base Tier (50% for 10 years), if a hotel’s TOT revenue increases such that it pays a total of $1,714,245 in new TOT over ten years, the City would rebate $857,122 (50%) to the operator and retain $857,122 – that $857k rebate figure represents the subsidy amount. Under a higher tier, say Tier 4 (90%/75% for 30 years), a large new resort might generate on the order of $150 million in TOT over 30 years; the program would allow up to perhaps $120 million of that to be rebated (90% early,

A – Page 202 of 244

City Council Staff Report
January 28, 2026 -- Page 13
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 75% later) if needed to recoup the investment, with the City still netting at least $30 million in that scenario. Each agreement’s total subsidy and the schedule of payments will be detailed in the Council staff report at time of approval. It is noted that no upfront City monies are paid out – the subsidy is a sharing of future tax revenue streams, contingent on performance. If a project does not perform as expected (lower occupancy, etc.), the actual rebate paid will be lower since it’s a percentage of actual TOT generated.
Public Purpose of Subsidy:

The public purposes and goals of this Program are to stimulate economic development in Palm Springs by encouraging the operation, maintenance, and expansion of high-quality hotel facilities. The City Council has determined that attracting and retaining first-class hotels yields significant public benefits: (1) The general welfare and material well-being of Palm Springs residents depend largely on the vitality of the tourism and travel industry. (2) Expanding and upgrading the City’s inventory of hotel rooms creates desirable visitor accommodations, increases tourism and convention business, provides employment opportunities for local residents, and strengthens the City’s economy. (3) But for these incentives, certain hotel projects (especially renovations of older properties or new luxury hotels with high development costs) might not proceed; by inducing such projects that “would not otherwise exist,” the City ultimately generates new tax revenues for the General Fund (TOT, sales taxes from visitor spending, property taxes, etc.) that support public services. (4) The use of public resources in this manner is for a properly public purpose – namely, the enhancement of tourism infrastructure – and the City Council has deemed this objective to be of paramount importance to the City’s long-term prosperity. Additionally, specific policy objectives include revitalizing blighted or underutilized hotel properties, preserving historic buildings (by providing a financial incentive to restore and continue operating them as hotels), and bolstering the Convention Center’s success (by increasing nearby room inventory and requiring participants to support convention housing needs). In summary, the subsidies are given in exchange for clear public benefits: upgraded hotels that improve the City’s image and visitor experience, greater TOT and other tax revenues after the incentive period, temporary and permanent job creation, and the preservation of important community assets. Projected Tax Revenue Effects:

It is challenging to precisely project tax revenue impacts of the program in aggregate, as it will depend on which hotels participate and their performance.

However, the structure ensures that the City retains a share of each dollar of new TOT revenue and all of the base TOT. During the term of an agreement, the City will receive between 10% and 50% of the incremental TOT from the project, as noted above, which is revenue the City would not have if the project hadn’t occurred. After the incentive term, the City receives 100% of TOT revenues going forward. For context, the City’s TOT revenue has grown substantially due in part to prior hotel incentive projects – e.g., TOT receipts climbed from $12.5M to $22M

A – Page 203 of 244

City Council Staff Report
January 28, 2026 -- Page 14
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 annually in the six years following the original program’s launch, indicating that even while sharing TOT with hotels, the City’s tax base expanded. Each individual agreement brought under this program will include a fiscal impact analysis. The City will ensure that the long-term projected TOT gain meets or exceeds the short- term subsidy. Because the incentive is performance-based, if a hotel under- performs, the City isn’t outlaying funds beyond what comes in. In sum, while the program forgoes a portion of new TOT revenue in the short-to-medium term, it should result in net positive revenue in the long term by enabling projects that increase overall TOT generation. (Additionally, improved hotels may raise surrounding property values and generate more sales tax and employment, yielding indirect revenue benefits not captured in TOT figures.). Estimated Employment Creation:

The incentive program is expected to lead to both construction jobs (short-term) and permanent jobs in hospitality (long-term). Every hotel rehabilitation or development will employ contractors and construction workers during the build- out. Upon opening or reopening, hotels typically hire additional staff for operations (front desk, housekeeping, maintenance, food/beverage service, management, etc.). The number of jobs varies by hotel size and class. For example, a small 10- room hotel renovation under the program recently reported creating 4 new full-time and 2 part-time positions (approximately 4 full-time-equivalent jobs) after improvements. Larger full-service hotels can employ dozens to hundreds of staff.

While we cannot precisely predict job numbers without knowing specific projects, we anticipate that each participating project will contribute to job growth. The program’s broader aim is to boost year-round employment in the tourism sector by increasing hotel occupancy and visitor spending. Each subsidy agreement under Gov. Code §53083 will enumerate the estimated jobs created by that particular project (broken down by full-time, part-time, temporary). In general, renovated and newly opened hotels lead to more staffing than shuttered or underutilized properties, so the program should have a positive impact on local employment and wages (especially when prevailing wage provisions apply for construction workers).

ENVIRONMENTAL ASSESSMENT:

Approval of the ordinance and incentive program does not constitute a “Project” under the California Environmental Quality Act (CEQA), as it can be seen with certainty that there is no possibility for it to cause a direct physical change in the environment (CEQA Guidelines §15061(b)(3)). The ordinance involves the creation of an economic assistance program (a governmental financing mechanism) and does not directly authorize any specific development or construction activity. Each hotel development or renovation project that may utilize this program will undergo its own discretionary review and environmental assessment, as applicable, at the time of its entitlement. This action is an organizational/administrative activity of the City in furtherance of its economic

A – Page 204 of 244

City Council Staff Report
January 28, 2026 -- Page 15
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 development goals and thus is not a “project” as defined in CEQA Guidelines §15378(b)(5).

ALIGNMENT WITH STRATEGIC PLANNING:

This initiative aligns with the City’s Strategic Plan focus on “Quality of Life” and “Advancing Economic Development.” The initiative also follows B2.2 of the recently approved Palm Springs Economic Development Strategic Framework (B2.2 “Update the Hotel Operations Incentive”). By stimulating private investment in hotel improvements, the City encourages job creation (both construction and hospitality jobs with living wages) and enhances the overall livability and prosperity of the community. A robust tourism economy supports better services and amenities for residents and visitors alike. Furthermore, preserving historic hotels and improving the built environment contribute to community pride and cultural enrichment, key aspects of quality of life in Palm Springs.

FISCAL IMPACT:

Adoption of the ordinance has no immediate fiscal impact, as it does not appropriate funds or approve a specific subsidy. However, implementation of the Hotel Incentive Program will affect the City’s collection of Transient Occupancy Tax revenues regarding incremental TOT collected from hotels undergoing investment in the community.

Under each incentive agreement, the City will temporarily forgo a portion of new TOT revenue generated by the participating hotel, rebating that portion to the operator, subject to the limits described. The City will continue to collect all existing baseline TOT (for renovations of existing hotels) and will collect a share of incremental TOT during the agreement term, plus full TOT thereafter. In essence, the program leverages future revenue growth – there is no out-of-pocket cost to the City’s current General Fund, only an opportunity cost against future tax receipts. Each agreement will be structured so that the City retains at least 10–50% of the increment in the interim and enjoys 100% of the revenue once the hotel’s investment is reimbursed or the term ends.

Because the incentives are performance-based, the City’s General Fund is protected: if a hotel does not increase its TOT as projected, the City simply pays a smaller rebate (since it’s a percentage of actual TOT). If the hotel succeeds, the City gains additional TOT revenue even while sharing (for example, under a 50% rebate, the City nets $1 for every $1 rebated).
As an illustration, a hotel approved last year shows how the fiscal impact is computed: the hotel’s TOT baseline was $102,481 per year; with renovations, it is expected to generate substantially more TOT. The City agreed to rebate 50% of the incremental TOT over that $102,481 base for up to 10 years, with a maximum rebate of $857,122 (which corresponds to $1.714 million in new TOT over the period). In that scenario, the City also retains $857,000 in new

A – Page 205 of 244

City Council Staff Report
January 28, 2026 -- Page 16
Introduction of an Ordinance – Hotel Operations Incentive Program (Citywide) 7 1
1 revenue over the same period, and after year 10 will receive all (base and increment) TOT going forward.

For larger projects in higher tiers, the City’s share initially may be smaller (e.g. 10%), but those projects are anticipated to produce much larger gross TOT. Even a 10% share of a major resort’s TOT can equal or exceed a 50% share of a small hotel’s TOT in dollar terms. Moreover, the long-term fiscal outlook is strongly positive: once each agreement concludes, the City’s revenue from that hotel jumps to 100% of TOT – essentially a windfall of tax growth that the incentive only delayed partially. History suggests that the program will encourage projects that significantly expand the tax base. For instance, after the initial program spurred widespread hotel upgrades, the City’s annual TOT revenue grew by nearly 75% in six years.

There are some administrative costs to note: City staff time will be required to process applications, monitor compliance, and handle the annual rebate calculations and payments. These can be absorbed by existing staff in the Finance and Economic Development departments, and are justified by the substantial private investment leveraged (historically, every $1 of TOT rebated under the program has leveraged about $1 of private investment and yielded another $1 for the City. Additionally, to comply with State reporting (AB 562), staff will prepare the necessary subsidy reports and post them online, which is a minor cost. Any consulting costs for fiscal analyses of proposals will be covered by application fees or existing economic development funds.

In summary, while the exact fiscal impact will depend on which hotels participate, the program is structured to minimize negative impact on the General Fund. The City is effectively investing a portion of future tax revenue to stimulate projects that provide broader economic and fiscal benefits. Over the long term, the City should realize net new TOT revenue, increased property values, and job growth as a result of the incentivized projects, which will outweigh the temporary sharing of tax revenue. Each agreement will be scrutinized to ensure it is fiscally prudent before Council approval. Staff will also report periodically on the program’s overall outcomes (e.g. amount of TOT rebated vs. retained, private investment generated, etc.) to maintain transparency.

REVIEWED BY:

Department Director: Wayne Olson
City Attorney: Jeffrey S. Ballinger
City Manager: Scott Stiles

ATTACHMENTS:

A. Ordinance No. 5.27 – An Ordinance of the City of Palm Springs, California, Adding Chapter 5.27 to the Municipal Code “The Palm Springs Hotel Incentive Program” B. Historic and current participation in Hotel Incentive programs

A – Page 206 of 244

55575.38285\44439092.4
7 1
4 ATTACHMENT A
Draft Hotel Operations Incentive Program
Ordinance

A – Page 207 of 244

55575.38285\44439092.4
7 1
4 ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ADDING CHAPTER 5.27 TO THE PALM

SPRINGS MUNICIPAL CODE, RELATING TO A

RESTRUCTURED HOTEL OPERATIONS INCENTIVE

PROGRAM
City Attorney’s Summary
The existing hotel operations incentive program is limited to hotels constructed and/or renovated during specific periods of time, and over time, this has resulted in fewer hotels being eligible to apply for the program. This ordinance creates a restructured hotel operations incentive program with broader and more streamlined criteria to allow more hotels to apply for the program.

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 City has an existing hotel operations incentive program set forth in Chapter 5.26 of the Palm Springs Municipal Code; and WHEREAS, the ability of hotels to qualify for the existing hotel operations incentive program has become increasingly difficult due to specific criteria requiring that qualifying hotels have been constructed and/or renovated during specific periods of time; and WHEREAS, the hotel operations incentive program generated an economic benefit to the City; and
WHEREAS, the City wishes to continue providing a hotel operations incentive program while broadening the criteria to apply for the program; and 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.

A – Page 208 of 244

55575.38285\44439092.4
7 1
4 SECTION 2. Chapter 5.27 is hereby added to the Palm Springs Municipal Code and reads as follows:

Chapter 5.27, Hotel Operations Incentive Program

5.27.010. Purpose.

5.27.020 Definitions.

5.27.030 Approval Process

5.27.040 Incentive Tiers.

5.27.050 Incentive Package Use Distribution.

5.27.060 Operating Covenants.

5.27.070 General Fund Revenues.

5.27.080 Administrative Rules and Regulations.

5.27.090 Program Sunset.

5.27.010. Purpose.

The purpose of this chapter is to provide an incentive program for the operation and maintenance of hotel facilities which enhance the tourist and travel experience for visitors to the city of Palm Springs, maximize the use of the Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the city in achieving its tourism goals. In the implementation of this hotel operations incentive program, the city council finds:

A. The general welfare and material wellbeing of the residents of the city of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the city.

B. The operation, maintenance, and expansion of the inventory of hotels in the city of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the city, ensure utilization of the Convention Center, provide employment opportunities for the residents of the city, and promote and enhance the economy of the city.

C. It is in the best interest of the city of Palm Springs to induce and encourage the, operation, and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the city’s general fund which supports the public services that the city provides its residents.

D. The authority granted and the purposes to be accomplished by this chapter are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of hotels is of paramount importance to the city of Palm Springs, its residents, and businesses.

A – Page 209 of 244

55575.38285\44439092.4
7 1
4 5.27.020 Definitions.

For the provisions of this chapter, the following definitions shall apply:
“Actual documented investment” or “ADI” means the total verifiable amount spent by the operator on a project developed pursuant to this chapter. ADI includes actual construction costs; furniture, fixtures, and equipment; and soft goods (e.g. bedding, towels, etc.). ADI does not includes professional services costs. “Construction” means the process of making, building, fabricating, installing, and setting up tangible physical enhancements to a hotel that include without limitation, one or more of the following: (1) modification of an existing structure or amenity, (2) new or upgraded furniture, fixtures or equipment, and/or (3) new or upgraded landscaping. Construction may address hotel rooms, common areas, and/or other areas for guest use.
“Convention Center” means, collectively, the Palm Springs Convention Center located at 277 N. Avenida Caballeros, the Jackie Lee Houston Plaza located at the southwest comer of Amado Road and Calle Alvarado, and the East Lot (also known as the 8.86 acre parcel located at the northwest corner of Avenida Caballeros and Amado Road).
“Convention Center Hotel” means a hotel with 125 rooms or more, including onsite restaurant and bar, and at least a Tier 1 level investment. “Entitlements” means all discretionary permits and approvals from the city required for the development of a project.
“Hotel” means any property containing guest rooms designed, intended, and used as transient occupancy accommodations in exchange for compensation. “Operator” means the person who is proprietor of a hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, franchisee, or any other capacity, or the assignee or designee of such proprietor. “Transient occupancy tax base” means the average of the last 36 months of annualized transient occupancy tax owed to the city by an existing hotel prior to the commencement of a qualified renovation program.
“Transient occupancy tax increment” means the difference between the transient occupancy tax base and the amount of transient occupancy tax owed to the city by an existing hotel after the recordation of the operating covenants by the city. “Transient occupancy tax” or “TOT” means the tax described in Chapter 3.24 of this Code.

A – Page 210 of 244

55575.38285\44439092.4
7 1
4 “Transient occupancy” means an uninterrupted stay of no more than 28 consecutive calendar days.

5.27.030 Approval Process
A. To apply for an incentive package pursuant to this chapter, the operator of a hotel shall complete and submit to the City Manager, the city’s application for participation in the hotel operations incentive program prior to receiving entitlements for the proposed project.

B. The application must:

1. Provide a general description of the project, the project location, projected tax revenue generation, estimated timeline and costs for project;

2. Specify the investment level in Section 5.27.040 that qualifies the project for a specific tier of the hotel operations incentive program; and

3. Include any other information as required by the city.

C. Upon receipt of a completed application, City Manager or his/her designee will review the application and request that city staff perform a fiscal analysis of the proposal and requested incentive tier.

D. Following the completion of the fiscal analysis, the city will negotiate with the operator and develop a proposed incentive package which will be incorporated into a draft agreement for City Manager or City Council consideration and approval, along with the project’s entitlements.

1. The City Manager or his/her designee shall have discretionary approval over incentive packages awarded as part of the hotel operations incentive program valued at less than One
Hundred Thousand Dollars ($100,000.00).

2. The city shall process incentive packages awarded as part of the hotel operations incentive program valued at, or greater than, One Hundred Thousand Dollars ($100,000.00),
pursuant to all requirements of California Government Code 53083 applicable to grants of economic development
subsidies.

E. Applications for the hotel operations incentive program shall be denied if the proposed project has already received entitlements from the city.

F. The city shall not award an incentive package that is greater than the amount equal to ADI.

G. The operator must operate at least 90% of the subject property as a hotel, and make a minimum investment of One Hundred Thousand

A – Page 211 of 244

55575.38285\44439092.4
7 1
4 ($10,000) per room of the subject hotel, to be eligible for an incentive package pursuant to this chapter.

H. Funding for the hotel operations incentive program, and the award of any incentive packages, is at sole discretion of the city and contingent on available TOT funds.

5.27.040 Incentive Tiers.

The amount of the incentive package that the city can award to an operator for their project is categorized into the following tiers based on the specified factors. The term of an incentive program agreement awarded based on any of the following tiers shall commence on the date of the issuance of the certificate of occupancy.

A. Base Tier. An operator investing a minimum of Ten Thousand Dollars ($10,000) per room is eligible to receive an amount equal to fifty (50) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code and such payments shall be made for a total of ten (10) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

B. Tier 1. An operator investing a minimum of One Hundred Thousand Dollars ($100,000) per room is eligible to receive an amount equal to fifty-five (55) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code and such payments shall be made for a total of ten (10) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

C. Tier 2. An operator investing a minimum of Two Hundred and Fifty Thousand Dollars ($250,000) per room is eligible to receive an amount equal to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to sixty (60) percent, and such payments shall be made for a total of twenty (20) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

D. Tier 3. An operator investing a minimum of Four Hundred and Fifty Hundred Thousand Dollars ($450,000) per room is eligible to receive an amount equal to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to sixty-five (65) percent, and such payments shall be made for a total of twenty-five (25) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

E. Tier 4. An operator investing a minimum of Seven Hundred and Fifty Hundred Thousand Dollars ($750,000) per room is eligible to receive an amount equal

A – Page 212 of 244

55575.38285\44439092.4
7 1
4 to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to seventy-five (75) percent, and such payments shall be made for a total of thirty (30) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

F. Projects awarded an incentive package pursuant to this chapter, may be eligible for bonus incentives if the below criteria are met. An operator may only elect to receive one of the following bonuses to their incentive package.

1. Hotels that are Class 1 or Class 2 Historic Resources as defined in Palm Springs Municipal Code Chapter 8.05, shall be eligible to receive an additional five (5) percent of the transient occupancy tax increment collected and remitted to the city beginning in the sixth (6 th) year of the incentive package agreement.

2. Convention Center Hotels shall be eligible to receive an additional ten (10) percent of the transient occupancy tax increment collected and remitted to the city beginning in the sixth (6 th) year of the incentive package agreement.

5.27.050 Incentive Package Use Distribution.

A. In order to receive distributions from an incentive package awarded pursuant to this chapter, the operator shall:

1. Complete the project and have received an approved
certificate of occupancy prior to reimbursement;

2. Provide the city with copies of permits and business licenses of contractor for construction of the project;

3. Demonstrate to the city the costs incurred using original receipts, invoices, construction drawings and/or other form of customarily recognized cost documentation;

4. Maintain an active, operating city business license;

5. Remain current with all TOT payments, and other city fees and obligations, before, during, and after the term of the incentive program agreement; and

6. Provide any and all forms, documents, and records as may be reasonably requested by the city.

B. At least eighty (80) percent of distributions received from an incentive package must be used towards costs associated with construction and furniture, fixtures, and equipment. No more than twenty (20) percent of distributions received from an incentive package may be used towards costs associated with soft goods.

C. The city reserves the right to withhold any distribution from an incentive package should operator violate any of the terms of this chapter. Operator shall have the right to cure any violations of this

A – Page 213 of 244

55575.38285\44439092.4
7 1
4 chapter within 30 days of receiving a notice of such violation from the city.

5.27.060 Operating Covenants.

A. Each operator participating in the city’s hotel operations incentive program shall execute an operating covenant agreement negotiated between the city and the operator, approved by the City Council, and recorded in the official records of Riverside County at or after the issuance of the certificate of occupancy, against the property where the project receiving the incentive package is being developed.

B. No incentives, rebates, or credits authorized by this code shall be distributed for a project until the operating covenant agreement is approved and recorded against the property.

C. The term of the operating covenant agreement will run from the recording of the operating covenant agreement to the end of the specified term of the incentive package agreement or until the operator has received an amount equal to ADI, whichever event occurs first.

D. Each operating covenant agreement shall include:

1. A requirement that the hotel operate as a hotel open to the public with rooms designed and intended as temporary or overnight accommodations.

2. A requirement that the hotel maintain the applicable qualifying criteria that its particular incentive was contingent on.

3. A requirement that laborers employed relative to the construction of the project be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq. and Palm Springs Municipal Code Section 7.06.030(1), if the total contribution of the city exceeds Six Hundred Thousand Dollars ($600,000) and 2% of total project cost.

2. A general indemnification whereby the operator agrees, for itself and for its successors and assigns, to indemnify, defend with counsel acceptable to the city, and hold the city, together with its officers, members, officials, employees, agents, volunteers, and
representatives, harmless from and against any loss, liability, claim, or judgment arising from or related to the operator’s participation in the hotel operations incentive program pursuant to this chapter.

A – Page 214 of 244

55575.38285\44439092.4
7 1
4 E. The City Council, in its sole discretion, may include other conditions in an operating covenant agreement to preserve the goals and intent of this chapter.

5.27.070 General Fund Revenues.

Notwithstanding the provisions of Sections 3.24.030, 3.24.035, and 3.24.310 of this code, all transient occupancy tax revenues or transient occupancy tax increment remitted to the city by an operator of a hotel covered by operating covenants as provided in this chapter shall be deemed general fund revenues of the city and shall be deposited in the city’s general fund.

5.27.080 Administrative Rules and Regulations.

Consistent with the intent and goals of this chapter, the City Manager may adopt administrative rules and regulations for implementation and furtherance of the requirements of this chapter.

5.27.090 Program Sunset.

The hotel operations incentive program set forth in this chapter shall cease accepting applications on December 31, 2030.
(Ord. 1730 § 2, 2008; Ord. 1742 § 1, 2008; Ord. 1772 § 1, 2010; Ord. 1786 § 1, 2011; Ord. 1821 § 1, 2013; Ord. 1972 § 1, 2019; Ord. 2087, 9/14/2023) SECTION 4. The ordinance and incentive program does not constitute a “Project” under the California Environmental Quality Act (CEQA), as it can be seen with certainty that there is no possibility for it to cause a direct physical change in the environment (CEQA Guidelines §15061(b)(3)). The ordinance involves the creation of an economic assistance program (a governmental financing mechanism) and does not directly authorize any specific development or construction activity. Each hotel development or renovation project that may utilize this program will undergo its own discretionary review and environmental assessment, as applicable, at the time of its entitlement. This action is an organizational/administrative activity of the City in furtherance of its economic development goals and thus is not a “project” as defined in CEQA Guidelines §15378(b)(5).

A – Page 215 of 244

55575.38285\44439092.4
7 1
4 A – Page 216 of 244

55575.38285\44439092.4
7 1
4 PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS _____ DAY OF ______________, 2026.

NAOMI SOTO
MAYOR
ATTEST:

BRENDA PREE, MMC, CERA

CITY CLERK

A – Page 217 of 244

55575.38285\44439092.4
7 1
4 A – Page 218 of 244

55575.38285\44439092.4
7 1
4 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

A – Page 219 of 244

ATTACHMENT B
Hotel Incentive Participation List Terms

A – Page 220 of 244

Property Name Incentive Start Incentive End Address Term Remaining 1 Hotel Zoso October, 2013 September, 2023 150 S Indian Canyon Dr 10 - 2 Sparrows Hotel October, 2013 September, 2023 1330 E. Palm Canyon Drive 10 - 3 Palm Mountain Resort October, 2015 September, 2025 155 S Belardo Road 10 - 4 Triada Hotel November 2014 October 2019 640 N Indian Canyon Drive 5 - 5 Palm Springs Hotel November, 2014 October, 2024 2135 N. Palm Canyon Drive 10 - 6 Bearfoot Inn January, 2013 December, 2022 888 N. Indian Canyon Dr. 10 1 7 Alcazar Palm Springs January, 2016 December, 2025 622 N Palm Canyon Drive 10 1 8 Rowan Hotel November, 2017 October, 2047 100 W Tahquitz Canyon Way 30 22 9 Descanso Resort February, 2022 January, 2032 288 E Camino Monte Vista 10 7 10Colony Palms March, 2011 February, 2021 572 N Indian Canyon Dr 10 - 11Skylark Hotel March, 2014 February, 2024 1466 N. Palm Canyon Drive 10 - 12Santiago Resort March, 2021 February, 2031 650 E San Lorenzo 10 6 13The Arrive Hotel 10.9% March, 2016 February, 2026 1551 N. Palm Canyon Drive 10 1 14Hyatt Palm Springs May, 2012 April, 2022 285 N Palm Canyon Dr 10 - 15Saguaro Hotel May, 2012 April, 2022 1800 E. Palm Canyon Dr 10 - 16Hilton Palm Springs May, 2013 April, 2023 400 E Tahquitz Canyon Way 10 - 17Margaritaville (Riviera) Hotel June, 2012 May, 2022 1600 N Indian Canyon Dr 10 - 18Dive Palm Springs July, 2015 June, 2025 1586 E Palm Canyon Drive 10 - 19Twin Palms Resorts February, 2023 January, 2033 1930 S Camino Real 10 8 20Caliente Tropics May, 2024 April, 2034 411 E Palm Canyon Dr 10 9 21Royal Sun (formerly LifeHouse) May, 2024 April, 2034 1700 S Palm Canyon Dr 10 9 22Yara Hotel February, 2025 January, 2035 221 E Sonora Rd 10 10 23The Dunes Hotel February, 2025 January, 2035 390 S Indian Canyon Dr 10 10 24Lucille Palm Springs May, 2025 April, 2035 458 W Arenas Rd 10 10

A – Page 221 of 244

ATTACHMENT B
Redlined Hotel Operations
Incentive Program Ordinance

A – Page 222 of 244

55575.38285\44642167.155575.38285\44439092.4

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ADDING CH APTER 5.27 TO THE PALM

SPRINGS MUNICIPAL CODE, RELATING TO A

RESTRUCTURED HOTEL OPERATIONS INCENTIVE

PROGRAM

City Attorney’s Summary
The existing hotel operations in centive program is limited to hotels constructed and/or renovated during specific periods of time, and over time, this has resulted in fewer hotels being eligible to apply for the program. This ordinance creates a restructured hotel operations incentive program with broader and more streamlined criteria to allow more hotels to apply for the program.

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 City has an existing hotel operations incentive program set forth in Chapter 5.26 of the Palm Springs Municipal Code; and

WHEREAS, the ability of hotels to qualify for the existing hotel operations incentive program has become increasingly difficult due to specific criteria requiring that qualifying hotels have been constructed and/or renovated during specific periods of time; and

WHEREAS, the hotel operations in centive program generated an economic benefit to the City; and

WHEREAS, the City wishes to continue pr oviding a hotel operations incentive program while broadening the criteria to apply for the program; and

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 tr ue and correct and are incorporated herein by this reference as material findings in support of this Ordinance.

A – Page 223 of 244

55575.38285\44642167.155575.38285\44439092.4

SECTION 2. Chapter 5.27 is hereby added to the Palm Springs Municipal Code and reads as follows:

Chapter 5.27, Hotel Operations Incentive Program

5.27.010. Purpose.

5.27.020 Definitions.

5.27.030 Approval Process

5.27.040 Incentive Tiers.

5.27.050 Incentive Package Use Distribution.

5.27.060 Operating Covenants.

5.27.070 General Fund Revenues.

5.27.080 Administrative Rules and Regulations.

5.27.090 Program Sunset.

5.27.010. Purpose.

The purpose of this chapter is to provi de an incentive program for the operation and maintenance of hotel facilities which enhance the tourist and travel experience for visitors to the city of Palm Springs, maximize the use of the Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the city in achievi ng its tourism goals. In the im plementation of this hotel operations incentive program, the city council finds:

A. The general welfare and material wellbe ing of the residents of the city of Palm Springs depend in large measur e upon the growth and expansion of the tourism and travel industries in the city.

B. The operation, maintenance, and expansi on of the inventory of hotels in the city of Palm Springs will create desirabl e visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the city, ensure utilization of the Convention Center, provide employment opportunities for the residents of the city, and promote and enhance the economy of the city.

C. It is in the best interest of the city of Palm Springs to induce and encourage the, operation, and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the city’s general fund which supports the public services that the city provides its residents.

D. The authority granted and the purposes to be accomplished by this chapter are properly local governmental and public purposes for which public funds can be expended and that the operati on, maintenance, and expansion of the inventory of hotels is of paramount importance to the city of Palm Springs, its residents, and businesses.

A – Page 224 of 244

55575.38285\44642167.155575.38285\44439092.4

5.27.020 Definitions.

For the provisions of this chapter, the following definitions shall apply:

“Actual documented investment” or “ADI” means the total verifiable amount spent by the operator on a project developed pursuant to this chapter. ADI includes actual construction costs; furniture, fixtures, and equipment; and soft goods (e.g. bedding, towels, etc.). ADI does not includes professional services costs.

“Construction” means the process of making, building, fabricating, installing, and setting up tangible physical enhancements to a hotel that include without limitation, one or more of the following: (1) modification of an existing structure or amenity, (2) new or upgraded furniture, fixtures or equipment, and/or (3) new or upgraded landscaping. Construction may address hotel rooms, common areas, and/or other areas for guest use.

“Convention Center” means, collectively, the Palm Springs Convention Center located at 277 N. Avenida Caballeros, the Jackie Lee Houston Plaza located at the southwest comer of Amado Road and Calle Alvarado, and the East Lot (also known as the 8.86 acre parcel located at the northwest corner of Avenida Caballeros and Amado Road).

“Convention Center Hotel” means a hotel with 125 rooms or more, including onsite restaurant and bar, and at least a Tier 1 level investment.

“Entitlements” means all discretionary permits and approvals from the city required for the development of a project.

“Hotel” means any property containing guest rooms designed, intended, and used as transient occupancy accommodations in exchange for compensation, excluding short term rental properties.

“Operator” means the person who is proprietor of a hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, franchisee, or any other capacity, or the assignee or designee of such proprietor.

“Transient occupancy tax base” means t he average of the la st 36 months of annualized transient occupancy tax owed to the city by an existing hotel prior to the commencement of a qualified renovation program.

“Transient occupancy tax increment” means the difference between the transient occupancy tax base and the amount of trans ient occupancy tax owed to the city by an existing hotel after the recordation of the operating covenants by the city.

“Transient occupancy tax” or “TOT” means the tax described in Chapter 3.24 of this Code.

A – Page 225 of 244

55575.38285\44642167.155575.38285\44439092.4

“Transient occupancy” means an uninte rrupted stay of no more than 28 consecutive calendar days.

5.27.030 Approval Process

A. To apply for an incentive package pur suant to this chapter, the operator of a hotel shall complete and submit to the City Manager, the city’s application for participation in the hot el operations in centive program prior to receiving entitlements for the proposed project.

B. The application must:

1. Provide a general description of the project, the project location, projected tax revenue generation, estimated timeline and costs for project;

2. Specify the investment level in Section 5.27.040 that qualifies the project for a specific tier of the hotel operations incentive program; and

3. Include any other informati on as required by the city.

C. Upon receipt of a completed appl ication, City Manager or his/her designee will review the application and request that city staff perform a fiscal analysis of the proposal and requested incentive tier.

D. Following the completion of the fi scal analysis, the city will negotiate with the operator and develop a proposed incentive package which will be incorporated into a draft incentive package agreement for City Manager or City Council considerat ion and approval, along with the project’s entitlements.

1. The City Manager or his/her designee shall have discretionary approval over incentive packages awarded as part of the hotel operations incentive program valued at less than One
Hundred Thousand Dollars ($100,000.00).

2. The city shall process incentive packages awarded as part of the hotel operations incentive program valued at, or greater than, One Hundred Thousand Dollars ($100,000.00),
pursuant to all requirements of California Government Code 53083 applicable to grants of economic development
subsidies, and shall submit the incentive package agreement to City Council for approval.

E. Applications for the hotel operati ons incentive program shall be denied if the proposed project has already received entitlements from the city.

A – Page 226 of 244

55575.38285\44642167.155575.38285\44439092.4

F. The city shall not award an incent ive package that is greater than the amount equal to ADI.

G. The operator must operate at leas t 90% of the subject property as a hotel, and make a minimum investment of One Hundred Thousand ($10,000) per room of the subject hot el, to be eligible for an incentive package pursuant to this chapter.

H. Funding for the hotel operations incentive program, and the award of any incentive packages, is at sole discretion of the city and contingent on available TOT funds.

5.27.040 Incentive Tiers.

The amount of the incentive package t hat the city can award to an operator for their project is categorized into t he following tiers based on the specified factors. The term of an incentive program package agreement awarded based on any of the foll owing tiers shall commenc e on the date of the issuance of the certific ate of occupancy.

A. Base Tier. An operator investi ng a minimum of Ten Thousand Dollars ($10,000) per room is eligible to receive an amount equal to fifty (50) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code and such payments shall be made for a total of ten (10) years, or until the oper ator has received an amount equal to ADI, whichever event occurs first.

B. Tier 1. An operator investing a minimum of One Hundred Thousand Dollars ($100,000) per room is eligible to receive an amount equal to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to fifty-five (55) percent, of the transient occupancy tax increment collected and remitted to the city purs uant to Chapter 3.24 of this code and such payments shall be made for a total of ten fifteen (1015) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

C. Tier 2. An operator in vesting a minimum of Two Hundred and Fifty Thousand Dollars ($225,000) per room is eligible to receive an amount equal to ninety (90) percent of the trans ient occupancy tax increment collected and remitted to the city pursuant to C hapter 3.24 of this code for five (5) years, thereafter decreasing to sixty (60) percent, and such payments shall be made for a total of twenty (20) years, or until the operat or has received an amount equal to ADI, whichever event occurs first.

D. Tier 3. An operator investing a mi nimum of Four Hundred and Fifty Hundred Thousand Dollars ($350,000) per room is eligible to receive an amount equal

A – Page 227 of 244

55575.38285\44642167.155575.38285\44439092.4

to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to sixty-five ( 65) percent, and such payments shall be made for a total of twenty-five (25) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

E. Tier 4. An operator investing a mi nimum of Seven Hundred and Fifty Hundred Thousand Dollars ($600,000) per room is eligible to receive an amount equal to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to seventy-five (75) percent, and such payments shall be made for a total of thirty (30) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

F. Projects awarded an in centive package pursuant to this chapter, may be eligible for bonus incentives if the below criteria are met. An operator may only elect to receive one of the following bonuses to their incentive package.

1. Hotels that are Class 1 or Class 2 Historic Resources as defined in Palm Springs Municipal Code Chapter 8.05, shall be eligible to receive an additional five (5) percent of the transient occupancy tax increment collected and remitted to the city beginning in the sixth (6 th) year of
the incentive package agreement.

2. Convention Center Hotels shall be eligible to receive an additional ten (10) percent of the transient occupancy tax increment collected and remitted to the city begi nning in the sixth (6
th) year of the incentive
package agreement.

5.27.050 Incentive Package Use Distribution.

A. In order to receive distributions from an incentive package awarded pursuant to this chapter, the operator shall:

1. Obtain a building permit for the project within sixteen (16) months of the date that t he City Council or City Manager approved the incentive package agreement;

1.2. Complete the project Obtain a certificate of occupancy for the project within thirty (30) months of obtaining a building permit for the projectand have receiv ed an approved certificate of occupancy prior to reimbursement;

2.3. Provide the city with copies of permits and business licenses of contractor for construction of the project;

3.4. Demonstrate to the city the costs incurred using original receipts, invoices, construction drawings and/or other form of customarily recognized cost documentation;

A – Page 228 of 244

55575.38285\44642167.155575.38285\44439092.4

4.5. Maintain an active, operating city business license;

5.6. Remain current with all TOT pay ments, and other city fees and obligations, before, during, and after the term of the incentive program agreement; and

6.7. Provide any and all forms, documents, and records as may be reasonably requested by the city.

B. At least eighty (80) percent of di stributions received from an incentive package must be used towards costs associated with construction and furniture, fixtures, and equipm ent. No more than twenty (20) percent of distributions received from an incentive package may be used towards costs associated with soft goods.

C. The city reserves the right to withhold any distribution from an incentive package should operator viol ate any of the terms of this chapter. Except as set forth in Section 5.27.050(D), oOperator shall have the right to cure any violations of this chapter within 30 days of receiving a notice of such violation from the city.

D. Failure to Remain Current with TOT Payments

1. Should an operator fail to remain current with all TOT payments, pursuant to Section 5.27.050(A)(6), the city may issue a written notice to the operator, providing thirty (30) days to become current with all TOT payments.

2. If thirty (30) days passes from the date of receipt of the first notice and the operator is st ill not current with all TOT payments, the city may issue a second notice to the operator providing another thirty (30) days to become current with all TOT payments.

3. If thirty (30) days passes from the date of receipt of the second notice and the operator is st ill not current with all TOT payments, the city may issue a third and final notice to the operator providing another thirty (30) days to become current with all TOT payments.

1.4. If thirty (30) days passes from the date of receipt of the third and final notice and the operator is still not current with all TOT payments, the incentive packa ge agreement shall terminate automatically and operator s hall not be obligated to any further distributions from the its incentive package.

5.27.060 Operating Covenants.

A. Each operator participating in the city ’s hotel operations incentive program shall execute an operating covenant agreement negotiated between the city and the operator, approved by the City Council, and recorded in the official

A – Page 229 of 244

55575.38285\44642167.155575.38285\44439092.4

records of Riverside County at or afterupon the issuance of the certificate of occupancy, against the property where the project receiving the incentive package is being developed.

B. No incentives, rebates, or credits authorized by this code shall be distributed for a project until the operating covenant agreement is approved and recorded against the property.

C. The term of the operating covenant agreement will run from the recording of the operating covenant agreement to the end of the specified term of the incentive package agreement or until the operator has received an amount equal to ADI, whichever event occurs first.

D. Each operating covenant agreement shall include:

1. A requirement that t he hotel operate as a hot el open to the public with rooms designed and intended as temporary or overnight accommodations.

2. A requirement that the hotel maintain the applicable qualifying criteria that its particular incentive was contingent on.

3. A requirement that laborers employ ed relative to the construction of the project be paid the prevailing per diem wage rate for their labor classification, as determined by t he State of California, pursuant to Labor Code Sections 1720, et seq. and Palm Springs Municipal Code Section 7.06.030(1), if the total cont ribution of the city exceeds Six Hundred Thousand Dollars ($600,000) and 2% of total project cost.

4. A general indemnification whereby the operator agrees, for itself and for its successors and assigns, to indemnify, defend with counsel acceptable to the city, and hold the city, together with its office rs, members, officials, employees, agents, volunteers, and representatives, harmless from and against any loss, liability, claim, or ju dgment arising from or related to the operator’s participation in the hotel operations incentive program pursuant to this chapter.

5. Provide the City, for public use, with a minimum of two (2) room nights per month from Monday to Thursday for official City use, subject to availability.

E. The City Council, in its sole discretion, may include other conditions in an operating covenant agreement to preserve the goals and intent of this chapter.

5.27.070 General Fund Revenues.

A – Page 230 of 244

55575.38285\44642167.155575.38285\44439092.4

Notwithstanding the provisions of Sections 3.24.030, 3.24.035, and 3.24.310 of this code, all transient occupancy tax revenues or transient occupancy tax increment remitted to the city by an operator of a hotel covered by operating covenants as provided in this chapter shall be deemed general fund revenues of the city and shall be deposited in the city’s general fund.

5.27.080 Administrative Rules and Regulations.

Consistent with the intent and goals of this chapter, the City Manager may adopt administrative rules and regulations for implementation and furtherance of the requirements of this chapter.

5.27.090 Program Sunset.

The hotel operations incentive program set forth in this chapter shall cease accepting applications on December 31, 2030.

(Ord. 1730 § 2, 2008; Ord. 1742 § 1, 2008; Ord. 1772 § 1, 2010; Ord. 1786 § 1, 2011; Ord. 1821 § 1, 2013; Ord. 1972 § 1, 2019; Ord. 2087, 9/14/2023)

SECTION 4. The City Council finds that the adoption of this Ordinance is exempt from the California Environment al 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 sect ion 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 ADOPTE D BY THE PALM SPRINGS CITY COUNCIL THIS _____ DAY OF ______________, 2026.

NAOMI SOTO
MAYOR

ATTEST:

BRENDA PREE, MMC, CERA

CITY CLERK

A – Page 231 of 244

55575.38285\44642167.155575.38285\44439092.4

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

C I T Y C L E R K

A – Page 232 of 244

55575.38285\44642167.1
7 5
1 ATTACHMENT C
Ordinance Adding Chapter 5.27

A – Page 233 of 244

55575.38285\44671681.1

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ADDING CHAPTER 5.27 TO THE PALM

SPRINGS MUNICIPAL CODE, RELATING TO A

RESTRUCTURED HOTEL OPERATIONS INCENTIVE

PROGRAM

City Attorney’s Summary
The existing hotel operations incentive program is limited to hotels constructed and/or renovated during specific periods of time, and over time, this has resulted in fewer hotels being eligible to apply for the program . This ordinance creates a restructured hotel operations incentive program with broader and more streamlined criteria to allow more hotels to apply for the program.

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 City has an existing hotel operations incentive program set forth in Chapter 5.26 of the Palm Springs Municipal Code; and

WHEREAS, the ability of hotels to qualify for the existing hotel operations incentive program has become increasingly difficult due to specific criteria requiring that qualifying hotels have been constructed and/or renovated during specific periods of time; and

WHEREAS, the hotel operations incentive program generated an economic benefit to the City; and

WHEREAS, the City wishes to continue providing a hotel operations incentive program while broadening the criteria to apply for the program; and

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.

A – Page 234 of 244

55575.38285\44671681.1

SECTION 2. Chapter 5.27 is hereby added to the Palm Springs Municipal Code and reads as follows:

Chapter 5.27, Hotel Operations Incentive Program

5.27.010. Purpose.

5.27.020 Definitions.

5.27.030 Approval Process

5.27.040 Incentive Tiers.

5.27.050 Incentive Package Use Distribution.

5.27.060 Operating Covenants.

5.27.070 General Fund Revenues.

5.27.080 Administrative Rules and Regulations.

5.27.090 Program Sunset.

5.27.010. Purpose.

The purpose of this chapter is to provide an incentive program for the operation and maintenance of hotel facilities which enhance the tourist and travel experience for visitors to the city of Palm Springs, maximize the use of the Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the city in achieving its tourism goals. In the implementation of this hotel operations incentive program, the city council finds:

A. The general welfare and material wellbeing of the residents of the city of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the city.

B. The operation, maintenance, and expansion of the inventory of hotels in the city of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the city, ensure utilization of the Convention Center, provide employment opportunities for the residents of the city, and promote and enhance the economy of the city.

C. It is in the best interest of the city of Palm Springs to induce and encourage the, operation, and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the city’s general fund which supports the public services that the city provides its residents.

D. The authority granted and the purposes to be accomplished by this chapter are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of hotels is of paramount importance to the city of Palm Springs, its residents, and businesses.

A – Page 235 of 244

55575.38285\44671681.1

5.27.020 Definitions.

For the provisions of this chapter, the following definitions shall apply:

“Actual documented investment” or “ADI” means the total verifiable amount spent by the operator on a project developed pursuant to this chapter. ADI includes actual construction costs; furniture, fixtures, and equipment; and soft goods (e.g. bedding, towels, etc.). ADI does not includes professional services costs.

“Construction” means the process of making, building, fabricating, installing, and setting up tangible physical enhancements to a hotel that include without limitation, one or more of the following: (1) modification of an existing structure or amenity, (2) new or upgraded furniture, fixtures or equipment, and/ or (3) new or upgraded landscaping. Construction may address hotel rooms, common areas, and/or other areas for guest use.

“Convention Center ” means , collectively, the Palm Springs Convention Center located at 277 N. Avenida Caballeros, the Jackie Lee Houston Plaza located at the southwest comer of Amado Road and Calle Alvarado, and the East Lot (also known as the 8.86 acre parcel located at the northwest corner of Avenida Caballeros and Amado Road).

“Convention Center Hotel” means a hotel with 125 rooms or more, including onsite restaurant and bar, and at least a Tier 1 level investment.

“Entitlements” means all discretionary permits and approvals from the city required for the development of a project.

“Hotel” means any property containing guest rooms designed, intended, and used as transient occupancy accommodations in exchange for compensation, excluding short term rental properties.

“Operator” means the person who is proprietor of a hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, franchisee, or any other capacity, or the assignee or designee of such proprietor.

“Transient occupancy tax base” means the average of the last 36 months of annualized transient occupancy tax owed to the city by an existing hotel prior to the commencement of a qualified renovation program.

“Transient occupancy tax increment” means the difference between the transient occupancy tax base and the amount of transient occupancy tax owed to the city by an existing hotel after the recordation of the operating covenants by the city.

“Transient occupancy tax” or “TOT” means the tax described in Chapter 3.24 of this Code.

A – Page 236 of 244

55575.38285\44671681.1

“Transient occupancy” means an uninterrupted stay of no more than 28 consecutive calendar days.

5.27.030 Approval Process

A. To apply for an incentive package pursuant to this chapter, the operator of a hotel shall complete and submit to the City Manager, the city’s application for participation in the hotel operations incentive program prior to receiving entitlements for the proposed project.

B. The application must:

1. Provide a general description of the project, the project location, projected tax revenue generation, estimated timeline and costs for project;

2. Specify the investment level in Section 5.27.040 that qualifies the project for a specific tier of the hotel operations incentive program; and

3. Include any other information as required by the city.

C. Upon receipt of a completed application, City Manager or his/her designee will review the application and request that city staff perform a fiscal analysis of the proposal and requested incentive tier.

D. Following the completion of the fiscal analysis, the city will negotiate with the operator and develop a proposed incentive package which will be incorporated into a draft incentive package agreement for City Manager or City Council consideration and approval, along with the project’s entitlements.

1. The City Manager or his/her designee shall have discretionary approval over incentive packages awarded as part of the hotel operations incentive program valued at less than One
Hundred Thousand Dollars ($100,000.00).

2. The city shall process incentive packages awarded as part of the hotel operations incentive program valued at, or greater than, One Hundred Thousand Dollars ($100,000.00),
pursuant to all requirements of California Government Code 53083 applicable to grant s of economic development
subsidies, and shall submit the incentive package agreement to City Council for approval.

E. Applications for the hotel operations incentive program shall be denied if the proposed project has already received entitlements from the city.

A – Page 237 of 244

55575.38285\44671681.1

F. The city shall not award an incentive package that is greater than the amount equal to ADI.

G. The operator must operate at least 90% of the subject property as a hotel, and make a minimum investment of One Hundred Thousand ($10,000) per room of the subject hotel, to be eligible for an incentive package pursuant to this chapter.

H. Funding for the hotel operations incentive program, and the award of any incentive packages, is at sole discretion of the city and contingent on available TOT funds.

5.27.040 Incentive Tiers.

The amount of the incentive package that the city can award to an operator for their project is categorized into the following tiers based on the specified factors. The term of an incentive package agreement awarded based on any of the following tiers shall commence on the date of the issuance of the certificate of occupancy.

A. Base Tier . An operator investing a minimum of Ten Thousand Dollars ($10,000) per room is eligible to receive an amount equal to fifty (50) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code and such payments shall be made for a total of ten (10) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

B. Tier 1. An operator investing a minimum of One Hundred Thousand Dollars ($100,000) per room is eligible to receive an amount equal to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to fifty-five (55) percent, and such payments shall be made for a total of fifteen (15) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

C. Tier 2. An operator investing a minimum of Two Hundred and Fifty Thousand Dollars ($225,000) per room is eligible to receive an amount equal to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to sixty (60) percent, and such payments shall be made for a total of twenty (20) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

D. Tier 3. An operator investing a minimum of Four Hundred and Fifty Hundred Thousand Dollars ($350,000) per room is eligible to receive an amount equal to ninety (90) percent of the transient occupancy tax increment collected and

A – Page 238 of 244

55575.38285\44671681.1

remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to sixty -five (65) percent, and such payments shall be made for a total of twenty-five (25) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

E. Tier 4. An operator investing a minimum of Seven Hundred and Fifty Hundred Thousand Dollars ($600,000) per room is eligible to receive an amount equal to ninety (90) percent of the transient occupancy tax increment collected and remitted to the city pursuant to Chapter 3.24 of this code for five (5) years, thereafter decreasing to seventy -five (75) percent, and such payments shall be made for a total of thirty (30) years, or until the operator has received an amount equal to ADI, whichever event occurs first.

F. Projects awarded an incentive package pursuant to this chapter, may be eligible for bonus incentives if the below criteria are met. An operator may only elect to receive one of the following bonuses to their incentive package.

1. Hotels that are Class 1 or Class 2 Historic Resources as defined in Palm Springs Municipal Code Chapter 8.05, shall be eligible to receive an additional five (5) percent of the transient occupancy tax increment collected and remitted to the city beginning in the sixth (6 th) year of
the incentive package agreement.

2. Convention Center Hotels shall be eligible to receive an additional ten (10) percent of the transient occupancy tax increment collected and remitted to the city beginning in the sixth (6 th) year of the incentive package agreement.

5.27.050 Incentive Package Use Distribution.

A. In order to receive distributions from an incentive package awarded pursuant to this chapter, the operator shall:

1. Obtain a building permit for the project within sixteen (16) months of the date that the City Council or City Manager approved the incentive package agreement;

2. Obtain a certificate of occupancy for the project within thirty (30) months of obtaining a building permit for the project;

3. Provide the city with copies of permits and business licenses of contractor for construction of the project;

4. Demonstrate to the city the costs incurred using original receipts, invoices, construction drawings and/or other form of customarily recognized cost documentation;

5. Maintain an active, operating city business license;

6. Remain current with all TOT payments, and other city fees and obligations, before, during, and after the term of the

A – Page 239 of 244

55575.38285\44671681.1

incentive program agreement; and

7. Provide any and all forms, documents, and records as may be reasonably requested by the city.

B. At least eighty (80) percent of distributions received from an incentive package must be used towards costs associated with construction and furniture, fixtures, and equipment. No more than twenty (20) percent of distributions received from an incentive package may be used towards costs associated with soft goods.

C. The city reserves the right to withhold any distribution from an incentive package should operator violate any of the terms of this chapter. Except as set forth in Section 5.27.050(D), operator shall have the right to cure any violations of this chapter within 30 days of receiving a notice of such violation from the city.

D. Failure to Remain Current with TOT Payments

1. Should an operator fail to remain current with all TOT payments, pursuant to Section 5.27.050(A)(6), the city may issue a written notice to the operator, providing thirty (30) days to become current with all TOT payments.

2. If thirty (30) days passes from the date of receipt of the first notice and the operator is still not current with all TOT payments, the city may issue a second notice to the operator providing another thirty (30) days to become current with all TOT payments.

3. If thirty (30) days passes from the date of receipt of the second notice and the operator is still not current with all TOT payments, the city may issue a third and final notice to the operator providing another thirty (30) days to become current with all TOT payments.

4. If thirty (30) days passes from the date of receipt of the third and final notice and the operator is still not current with all TOT payments, the incentive package agreement shall terminate automatically and operator shall not be obligated to any further distributions from the its incentive package.

5.27.060 Operating Covenants.

A. Each operator participating in the city’s hotel operations incentive program shall execute an operating covenant agreement negotiated between the city and the operator, and recorded in the official records of Riverside County upon the issuance of the certificate of occupancy, against the property where the project receiving the incentive package is being developed.

A – Page 240 of 244

55575.38285\44671681.1

B. No incentives, rebates, or credits authorized by this code shall be distributed for a project until the operating covenant agreement is approved and recorded against the property.

C. The term of the operating covenant agreement will run from the recording of the operating covenant agreement to the end of the specified term of the incentive package agreement or until the operator has received an amount equal to ADI, whichever event occurs first.

D. Each operating covenant agreement shall include:

1. A requirement that the hotel operate as a hotel open to the public with rooms designed and intended as temporary or overnight accommodations.

2. A requirement that the hotel maintain the applicable qualifying criteria that its particular incentive was contingent on.

3. A requirement that laborers employed relative to the construction of the project be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq. and Palm Springs Municipal Code Section 7.06.030(1), if the total contribution of the city exceeds Six Hundred Thousand Dollars ($600,000) and 2% of total project cost.

4. A general indemnification whereby the operator agrees, for itself and for its successors and assigns, to indemnify, defend with counsel acceptable to the city, and hold the city, together with its officers, members, officials, employees, agents, volunteers, and representatives, harmless from and against any loss, liability, claim, or judgment arising from or related to the operator’s participation in the hotel operations incentive program pursuant to this chapter.

5. Provide the City, for public use, with a minimum of two (2) room nights per month from Monday to Thursday for official City use, subject to availability.

E. The City Council, in its sole discretion, may include other conditions in an operating covenant agreement to preserve the goals and intent of this chapter.

5.27.070 General Fund Revenues.

Notwithstanding the provisions of Sections 3.24.030, 3.24.035, and 3.24.310 of this code, all transient occupancy tax revenues or transient occupancy tax increment remitted to the city by an operator of a hotel covered by operating covenants as provided in this chapter shall be deemed general fund revenues of

A – Page 241 of 244

55575.38285\44671681.1

the city and shall be deposited in the city’s general fund.

5.27.080 Administrative Rules and Regulations.

Consistent with the intent and goals of this chapter, the City Manager may adopt administrative rules and regulations for implementation and furtherance of the requirements of this chapter.

5.27.090 Program Sunset.

The hotel operations incentive program set forth in this chapter shall cease accepting applications on December 31, 2030.

(Ord. 1730 § 2, 2008; Ord. 1742 § 1, 2008; Ord. 1772 § 1, 2010; Ord. 1786 § 1, 2011; Ord. 1821 § 1, 2013; Ord. 1972 § 1, 2019; Ord. 2087, 9/14/2023)

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.

NAOMI SOTO
MAYOR

ATTEST:

BRENDA PREE, MMC, CERA

CITY CLERK

A – Page 242 of 244

55575.38285\44671681.1

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

A – Page 243 of 244