Palm Springs City Council
August 26, 2026

required by the 1913 Act to be made and filed; and
WHEREAS, the conversion of overhead electric utility distribution system facilities to underground, including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to undergrounding, is categorically exempt from the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”) and its implementing guidelines (California Code of Regulations, title 14, Section 15000 et seq.) (“Guidelines”) pursuant to State CEQA Guidelines Section 15302(d); and
WHEREAS, before ordering the Improvements, the City Council is required, under the 1913 Act, to adopt a resolution declaring its intention to do so; and WHEREAS, the City Council intends to consider issuing bonds secured by the assessments to be levied on property in the Assessment District pursuant to the Improvement Bond Act of 1915, being Division 10 (commencing with Section 8500) of the Streets and Highways Code (“1915 Act”); and
WHEREAS, before issuing bonds, the City Council is required, under the 1915 Act, to adopt a resolution declaring its intention to do so.

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

SECTION 1. The above recitals, and each of them, are true and correct and are incorporated into the substantive portion of this resolution.

SECTION 2. The Map is hereby approved, adopted and declared to describe the proposed boundaries of the Assessment District; and it shall govern all details as to the extent of the Assessment District. The City Clerk is hereby directed to endorse the City Clerk’s certificate on the original of the Map evidencing the date and adoption of this resolution and to file said Map in the City Clerk’s office, and to file a copy of said Map so endorsed with the County Recorder of Riverside County, California within fifteen (15) days after the adoption of the resolution fixing the time and place of hearing on the formation and extent of the Assessment District.

SECTION 3. The Improvements generally include the undergrounding of existing electric, telephone and cable facilities, including the removal of poles, overhead wires, guys and anchors and the installation of new underground service connections and new streetlights and appurtenant work therewith as shown on the Map. The Improvements will be designed by Southern California Edison Company ("Edison") and the other applicable utility providers, which may include Southern California Gas Company, Spectrum, Frontier, and City-owned facilities, as applicable. Either Edison, the City, the other applicable utility providers, or the City's contractors will construct the Improvements, and the City will inspect the work to ensure conformance to City standards and specifications where applicable. Once completed, the underground facilities will become the property and responsibility of Edison, the other applicable utility providers, or the City, as

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Resolution No. _____

applicable. Each owner of property located within the Assessment District will be responsible for arranging and paying for work on the property owner’s property necessary to connect facilities constructed by the public utilities in the public streets to the points of connection on the private property owned by the property owner. Conversion of individual service connections on private property is not included in the work done by the Assessment District. Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property or be provided by the City with the cost and expense assessed against the property benefited in accordance with Palm Springs Municipal Code Section 8.04.455 (Ordinance No. 2125, adopted February 11, 2026). Overhead facilities cannot be removed until all overhead service has been discontinued.

SECTION 4. The City Council hereby finds and declares that the public interest and necessity require the Improvements, and the Improvements will be of direct and special benefit to the properties and land within the Assessment District. The City Council hereby declares its intention to order the conversion of the existing overhead electric and communication facilities to underground locations, and the acquisition of the Improvements, to make the expenses thereof chargeable upon the area included within the Assessment District, and to form the Assessment District.

SECTION 5. The City Council further declares its intention to levy a special assessment upon the land within the Assessment District in accordance with the respective special and direct benefit to be received by each parcel of land from the Improvements.

SECTION 6. This City Council finds and determines that, before ordering the acquisition of the Improvements, it shall take proceedings pursuant to the 1913 Act and Division 4, Part 7.5 (Section 2960 et. seq.) of the Streets and Highways Code, known as the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (the "1931 Act").

SECTION 7. NV5, Inc. is appointed the Assessment Engineer. The Assessment Engineer is hereby authorized and directed to make and file with the City Clerk a written report required by the 1913 Act ("Report"), which Report shall comply with the requirements of Section 10204 and Section 2961 of the Streets and Highways Code and Article XIIID of the California Constitution and shall contain the following:
(a) Plans and specifications for the Improvements;
(b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the Improvements, if the works, appliances or property are to be acquired as part of the Improvements;
(c) An estimate of the cost of the Improvements, and the cost of land, rights-of-way, easements, and incidental expenses in connection with the Improvements, including the cost of registering bonds;

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Resolution No. _____

(d) A diagram showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each parcel of land within the Assessment District as they existed at the time of passage of this resolution (each subdivision to be given a separate number on the diagram);
(e) A proposed assessment of the total amount of the cost and expenses of the proposed Improvements upon the several subdivisions of land in the Assessment District in proportion to the estimated benefits to be received by such subdivision, respectively, from the Improvements (the assessment shall refer to the subdivisions by their respective numbers assigned as provided in (d) above); and
(f) A proposed maximum annual assessment upon each of the several subdivisions of land in the Assessment District to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds.

In addition, the Report shall contain the information required by the 1931 Act as set forth in Streets and Highways Code Section 2961(b), including:
(a) The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than the proposed assessments to be levied with respect to the Assessment District, which would require an investigation and report under the 1913 Act against the total area proposed to be assessed; and
(b) The total true value, as near as may be determined, of the parcels of land and improvements within the Assessment District which are proposed to be assessed. Total true value may be estimated as the full cash value of the parcels as shown upon the last equalized assessment roll of the County of Riverside. Alternatively, total true value may be determined by other reasonable means, including, but not limited to, by adjusting the value shown on the last equalized assessment roll to correct for deviations from market value due to Article XIIIA of the California Constitution.

SECTION 8. Following the acquisition of the Improvements and the payment of all incidental expenses in connection with the formation of the Assessment District and the issuance of bonds pursuant to the 1915 Act, any surplus remaining in the improvement fund established for the Assessment District shall be used as determined by the City Council as provided in Section 10427 of the Streets and Highways Code.

SECTION 9. Notice is hereby given that serial or term bonds to represent unpaid assessments and to bear interest at a rate not to exceed twelve percent (12%) per annum

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Resolution No. _____

will be issued in the manner provided in the Improvement Bond Act of 1915 to represent the unpaid assessments and the last installment of such bonds shall mature a maximum of twenty (20) years from the second day of September next succeeding twelve (12) months from their date. The principal amount of such bonds maturing or becoming subject to mandatory prior redemption each year shall not be an amount equal to an even annual proportion of the aggregate principal amount of the bonds, but rather (except as specifically otherwise provided by the City Council in connection with the sale of such bonds), shall be an amount which, when added to the amount of interest payable in each year, will be a sum which is substantially equal in each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. Such bonds shall be serviced and collected by the City Treasurer or by such registrar and/or paying agent(s) as this City Council may from time to time designate.

SECTION 10. The provisions of Part 11.1 of the Improvement Bond Act of 1915, providing an alternative procedure for the advance payment of assessments and the calling of bonds, shall apply.

SECTION 11. Except as specifically otherwise provided for herein, the Improvements shall be made and ordered pursuant to the provisions of the 1913 Act.

SECTION 12. The City Council hereby determines that the City will not obligate itself to advance available funds from its treasury to cure any deficiency which may occur in the bond redemption fund established for the Assessment District.

SECTION 13. The public interests will not be served by allowing the property owners to take any contract to be let for the construction of the Improvements, and no notice of award of contract shall be published.

SECTION 14. It is hereby determined that the bonds proposed to be issued in these proceedings may be refunded. Any adjustment to assessments resulting from such refunding shall be made on a pro rata basis as required pursuant to Section 8571.5 of the Streets and Highways Code. Any such refunding shall be pursuant to the provisions of Division 11.5 (commencing with Section 9500) of the Streets and Highways Code, except that, if, following the filing of the report specified in Section 9523 and any subsequent modifications of the report, the City Council finds that all of the conditions specified in Section 9525 are satisfied and that the adjustments to assessments are on a pro rata basis, the City Council may approve and confirm the report and without further proceedings, authorize, issue, and sell the refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division 11.5 of the Streets and Highways Code. Any such refunding bonds shall bear interest at the rate of not to exceed twelve percent (12%) per annum, or such higher rate of interest as may be authorized by applicable law at the time of sale of such bonds; and the last installment of such bonds shall mature on such date as will be determined by the City Council in the proceedings for such refunding.

SECTION 15. It is in the public interest and more economical to do certain work

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Resolution No. _____

on private property to eliminate any disparity in level or size between the Improvements and private property and to add the actual cost of such work to the Assessment of the property to which such work was done; provided that no work of this nature shall be performed until and unless the written consent of the owner of property is first obtained.

SECTION 16. Pursuant to Streets and Highways Code Section 10110, the City intends to enter into agreements with Edison and the other applicable utility providers, and any agreement between the City and Edison, or any other applicable utility provider, for the ownership, management, or control of the underground electric, telephone and cable facilities to be installed pursuant to the Improvements, would benefit any current or future residents of the Assessment District.

SECTION 17. Pursuant to State CEQA Guidelines Section 15302(d), the undergrounding of the Improvements will have no significant effect on the environment and is categorically exempt from CEQA. The City Clerk is directed to work with the Community Development Director to cause a notice of exemption to be posted as required by law.

SECTION 18. All inquiries for any and all information relating to these proceedings including information relating to protest procedures should be directed to:

CITY OF PALM SPRINGS
Attention: Diana Shay, Project Manager
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
(760) 323-8253 ext. 8260
SECTION 19. If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 20. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.

ADOPTED THIS _______ DAY OF _________________, 2026.

SCOTT C. STILES

CITY MANAGER, CITY OF PALM SPRINGS

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Resolution No. _____

ATTEST:

BRENDA PREE

CITY CLERK, CITY OF PALM SPRINGS

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Resolution No. _____

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

BRENDA PREE

CITY CLERK, CITY OF PALM SPRINGS

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Attachment C
Resolution to Schedule Public Hearing

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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, PRELIMINARILY
APPROVING THE ASSESSMENT ENGINEER’S REPORT

AND FIXING THE TIME AND PLACE OF THE PUBLIC

HEARING FOR OLD LAS PALMAS UNDERGROUND
UTILITY ASSESSMENT DISTRICT NO. 1
WHEREAS, by Resolution No. _________ ("Resolution of Intention") in the proceedings for the formation of Old Las Palmas Underground Utility Assessment District No. 1 ("Assessment District"), this City Council ordered a report ("Report") prepared by NV5, Inc. ("Assessment Engineer") under and pursuant to the provisions of Article XIIID of the California Constitution ("Article XIIID") and the Municipal Improvement Act of 1913 ("1913 Act"), and, in particular, Section 10204 of the California Streets and Highways Code; and
WHEREAS, the Assessment Engineer has prepared the Report and filed the same with the City Clerk, and the City Clerk has presented the Report to this City Council for consideration; and

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

SECTION 1. The Report is preliminarily approved, and the City Clerk is directed to endorse the fact and date of such approval on the Report and to file the Report in the City Clerk’s office. The Report shall stand as the report for the purpose of all subsequent proceedings under the 1913 Act and Article XIIID except that it may be conformed, modified, or corrected as provided in the 1913 Act and Article XIIID; and SECTION 2. Pursuant to Section 2961 of the Streets and Highways Code and based on the information set forth in the Report, this City Council finds that the total amount of the principal sum of all unpaid special assessments levied against the parcels proposed to be assessed, other than contemplated by the present proceedings, plus the principal amount of the special assessment proposed to be levied in the instant proceedings, does not exceed one-half of the total value of the parcels proposed to be assessed, as computed pursuant to paragraph (2) of subdivision (b) of Section 2961; and SECTION 3. A public hearing shall be held on October 28, 2026, at 5:30 p.m. at the regular meeting place of the City Council at City Hall Council Chambers, 3200 E.

Tahquitz Canyon Way, Palm Springs, California 92262, to hear and consider protests and objections to the proposed Assessment District and the Report and to receive and count the ballots for and against the proposed Assessment District; and SECTION 4. At least forty-five (45) days prior to the public hearing referred to in Section 3 hereof, the City Clerk shall cause a notice of the adoption of the Resolution of Intention, the filing of the Report and the setting of the time and place for the public

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Resolution No. _____

hearing referred to in Section 2 hereof to be mailed, postage prepaid, to all persons owning real property proposed to be assessed in the Assessment District and whose names and addresses appear on the last equalized County of Riverside assessment roll or the State Board of Equalization assessment roll, as the case may be, or who are known to the City Clerk. Such notice shall conform in all respects to the provisions of Section 53753 of the California Government Code and Article XIIID, Section 4 of the California Constitution; and
SECTION 5. The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution; and SECTION 6. If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional; and
SECTION 7. The City Council finds that adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. In addition, the conversion of overhead electric utility distribution system facilities to underground is categorically exempt pursuant to State CEQA Guidelines Section 15302(d); and
SECTION 8. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.

ADOPTED THIS ___TH DAY OF ________________, 2026.

SCOTT C. STILES

CITY MANAGER, CITY OF PALM SPRINGS
ATTEST:

BRENDA PREE

CITY CLERK, CITY OF PALM SPRINGS

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Resolution No. _____

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

BRENDA PREE

CITY CLERK, CITY OF PALM SPRINGS

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Attachment D
Professional Services Agreement
25Q085 - NV5, Inc.

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CITY OF PALM SPRINGS
PROFESSIONAL SERVICES AGREEMENT 25Q085

ON-CALL ASSESSMENT ENGINEERING SERVICES
THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter “Agreement”) is made and entered into, to be effective this 27th day of March, 2025, by and between the City of Palm Springs, a California charter city and municipal corporation, (hereinafter referred to as “City”) and NV5, Inc., (hereinafter referred to as “Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and are hereinafter collectively referred to as the “Parties.”

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

B. Consultant has submitted to City a proposal to provide As-Needed, “On-Call” Assessment Engineering Services to support a variety of utility undergrounding projects under California Public Utilities Commission (CPUC) Rule 20B & 20C for City pursuant to the terms of this Agreement.

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

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

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

1.0 SERVICES OF CONSULTANT

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

1.2 Contract Documents. The Agreement between the Parties shall consist of the following:
(1) this Agreement; (2) the Scope of Services; (3) the City’s Request for Proposals (4) the Consultant’s signed, original proposal submitted to the City (“Consultant’s Proposal”); (5) Fee Schedule; and (5) the Task Order (as defined herein) (collectively referred to as the “Contract Documents”). The City’s Request Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

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

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

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

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

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

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

2.0 COMPENSATION

2.1 Maximum Contract Amount. City and Consultant hereby acknowledge and agree that the Services required by this Agreement will vary dependent upon the number, type, and extent of the Services the Consultant shall provide; and no guarantee of the extent or the type of Services required of Consultant under the terms of this Agreement is made by the City. The annual level of services required by this Agreement is unknown and may significantly increase or decrease from year to year. In acknowledgement of the fact that the number and type of projects requiring the Consultant’s Services has not been identified for this Agreement, City and Consultant hereby acknowledge and agree that a specific “Maximum Contract Amount” shall be imposed on each separate project that the City may assign Consultant as provided in Section 1.8 and in this Section 2.1. Each such separate project shall be identified as a Task Order authorized by the Director of Engineering/City Engineer or the City Manager as provided in this Section 2.1. Consultant shall be compensated and reimbursed for the services rendered under this Agreement in accordance with the fee schedule set forth in Exhibit “D”. The total amount of Compensation for the duration of the term of this agreement, as defined in Section 3.4, shall not exceed $600,000.00.

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

Compensation shall include reimbursement for actual and necessary expenditures for reproduction costs, telephone expense, transportation expense, and all other necessary expenditures required to perform the professional services under this Agreement. Compensation shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City; Consultant shall not be entitled to any additional compensation for attending said meetings. Consultant hereby acknowledges that it accepts the Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

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

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

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

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

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

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

3. SCHEDULE OF PERFORMANCE

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

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

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

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

3.4 Term. Unless earlier terminated under the terms of this Agreement, this Agreement shall commence on April 1, 2025 and continue in full force and effect for one (1) year. At the sole discretion of the City Manager, upon written notice to Consultant and mutual agreement, the term of this Agreement may be extended for two (2) additional one (1) year terms.

4. COORDINATION OF WORK

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

4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City and is subject to change by the City Manager. It shall be the Consultant's responsibility to ensure that the Contract Officer is kept fully informed of the progress of the performance of the Services, and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

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

4.4 Independent Consultant.

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

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

C. No City benefits shall be available to Consultant, its officers, employees, or agents in connection with any performance under this Agreement. Except for professional fees paid to Consultant Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for the performance of Services under this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, or agents, for injury or sickness arising out of performing Services hereunder. If for any reason any court or governmental agency determines that the City has financial obligations, other than pursuant to Section 2 and Subsection 1.8 herein, of any nature relating to salary, taxes, or benefits of Consultant’s officers, employees, servants, representatives, subconsultants, or agents, Consultant shall indemnify City for all such financial obligations.

4.5 California Labor Code Requirements.

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

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

5. INSURANCE

5.1 Types of Insurance. Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, the insurance described herein for the duration of this Agreement, including any extension thereof, or as otherwise specified herein, against claims which may arise from or in connection with the performance of the Work hereunder by Consultant, its agents, representatives, or employees. In the event the City Manager determines that the Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City Manager or his designee. Consultant shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified herein. Except as otherwise authorized below for professional liability (errors and omissions) insurance, all insurance provided pursuant to this Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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Agreement shall be on an occurrence basis. The minimum amount of insurance required hereunder shall be as follows:

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

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

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

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

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

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

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

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

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

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

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

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

E. Consultant agrees to require its insurer to modify insurance endorsements to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the endorsements. Certificates of insurance will not be accepted in lieu of required Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6. INDEMNIFICATION

6.1 To the fullest extent permitted by law, Consultant shall defend (at Consultant’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and reasonable attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Consultant’s employees included), for damage to property, including property owned by City, for any violation of any applicable federal, state, or local law or ordinance or to the extent arising out of, pertaining to, or relating to any acts, Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

7. REPORTS AND RECORDS

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

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

7.3 Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder.

Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Consultant will be at the City's sole risk and without liability to Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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Consultant, and the City shall indemnify the Consultant for all damages resulting therefrom. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. Consultant shall ensure that all its subconsultants shall provide for assignment to City of any documents or materials prepared by them, and in the event, Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom.

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

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

8. ENFORCEMENT OF AGREEMENT

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

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

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

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

Consultant shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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for termination of Work. Consultant may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

8.4 Default of Consultant.

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

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

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

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

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

8.7 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

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

9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

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

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

9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”).

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

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

10. MISCELLANEOUS PROVISIONS

10.1 Patent and Copyright Infringement.

A. To the fullest extent permissible under law, and in lieu of any other warranty by City or Consultant against patent or copyright infringement, statutory or otherwise, it is agreed that Consultant shall defend at its expense any claim or suit against City on account of any allegation that any item furnished under this Agreement, or the normal use or sale thereof arising out of the performance of this Agreement, infringes upon any presently existing U.S. letters patent or copyright and Consultant shall Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

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

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

To Consultant: NV5, Inc.

Attention: Jeffrey M. Cooper, PE
42829 Cook Street, Suite 104
Palm Desert, CA 92211
Telephone: (760) 341-3101

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

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

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

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

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

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

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

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

When funding for the services is provided, in whole or in part, by an agency controlled of the State of California, Consultant shall fully and adequately comply with California Executive Order N-6-22 (“Russian Sanctions Program”). As part of this compliance process, Consultant shall also certify compliance with the Russian Sanctions Program by completing the form located in Exhibit “E” (Russian Sanctions Certification), attached hereto and incorporated herein by reference. Consultant shall also require any subconsultants to comply with the Russian Sanctions Program and certify compliance pursuant to this Section.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN
THE CITY OF PALM SPRINGS AND NV5, INC.

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

CONSULTANT:

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

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: 03/27/2025 Item No. 1K
APPROVED AS TO FORM: ATTEST:

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

By: _______________________________ Date:

City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
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4/2/2025

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EXHIBIT “A”

SCOPE OF SERVICES
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SCOPE OF SERVICES
Background:

This work will be provided on an on-call as-needed basis and no amount of work is guaranteed. The contract value is based on an estimate only and not reflective of the actual amount of work that may or may not be performed. The City will issue Task Orders to the Consultant to provide the requested services associated with each project, as the need occurs for such services. Work will be performed on either a lump sum or cost-plus fixed fee basis as defined in each task order.

All services shall be performed in compliance with industry and professional standards and all applicable federal, state, and local laws, ordinances and regulations and the rules and ordinances of the County of Riverside and the City of Palm Springs.

Scope:

It will be the responsibility of the Consultant to determine the necessary staffing level required to perform the scope of service as may be required for a project when assigned. The City will not provide dedicated workspace or office space, city staff or city resources, printing or copying services, or clerical assistance in the performance of this agreement. The City reserves the right to perform any portion of the scope of work with City personnel and/or by other Consultants. The City may assign projects at its sole discretion.

Responsibilities may include, but are not limited to, the following:

A. Assist with outreach, materials, workshops, and presentations to educate residents, staff and City Council on utility undergrounding district formation guidelines and procedures for California Public Utility Commission (CPUC) Rule 20B projects.

B. Assist with the development of proposed Assessment District boundaries and affected properties.

C. Develop utility undergrounding project budget based on the budget of administration, design and construction costs provided by the utility companies, financing costs, and contingencies.

D. Collaborate with the Financial Advisor and Bond Counsel to determine preliminary assessment amounts for properties within the proposed district boundaries. Prepare a formal petition package for distribution to property owners within proposed district boundaries, ensuring all documentation is complete and precise.

E. Distribute the petition package to property owners within the proposed assessment district boundaries. Conduct all follow-up activities to collect and verify signatures, ultimately issuing a certificate of sufficiency for the petition.

F. Conduct detailed analysis of special benefits the undergrounding project will confer to each property within the district and determine precise amount to be assessed to each property based upon the project budget. Work with the City’s Financial Advisor to determine precise amount to be assessed on each property as a lump sum and/or bond-financed installment amount.

G. Prepare Assessment Engineers Report in compliance with Proposition 218.

H. Participate in and deliver presentations at City Council meetings as required during the formation phase of the Assessment District.

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I. Provide complete balloting services including preparation of unique ballots for each property within the assessment district boundaries and provide support to Bond Counsel during the scheduled Public Hearing to open and record ballots and to determine that a majority (50% +1) of the returned assessment ballots are in favor of the project.

J. Represent the City in meetings with residents, contractors, utility companies, and/or other agencies. Attend project development team meetings and other stakeholder and community meetings for utility undergrounding projects.

K. Assist with bidding procedures, prepare bid summaries, and make recommendations for consideration to award contracts for design, and/or construction of utility undergrounding projects and provide support during bidding, construction and project closeout.

L. Prepare and submit necessary documents, and coordinate with various regional, county, state, federal, and utility companies as needed.

M. Assist the City in tasks necessary to expedite project delivery such as “trouble shooting” and resolving issues with SCE and other utility companies, regulatory parties, and other affected agencies that may hamper project delivery schedules.

N. Employ project administration, contract administration, and project control techniques to ensure projects are delivered within approved scope, schedule, and budget.

O. Assist in obtaining environmental clearance in accordance with the California Environmental Quality Act (CEQA) regulations.

P. Complete any additional tasks and additional responsibilities as assigned by the City Engineer.

Schedule:

Work will commence upon issuance of individual task orders and the task orders will define the schedule for the work.

Compensation:

Work will be authorized under individual task orders and will be compensated on either a lump sum or cost-plus fixed fee basis utilizing the hourly rates, approved overhead and fee/profit included in the contract. Contract pricing in each task order shall include all labor, expenses, and incidentals to complete the work outlined in the contract scope. The Contractor may request monthly payments based on the percentage of work completed for the previous month as long as a detailed progress report is provided to support the amount requested. No additional compensation will be due by the City unless the contract is modified for additional work requested by the City. There is no specific amount of work guaranteed as this is an on-call contract.

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CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF A RESOLUTION OF INTENTION AND A RESOLUTION PRELIMINARILY APPROVING THE ENGINEER’S REPORT FOR

PROPOSED OLD LAS PALMAS UNDERGROUND UTILITY
ASSESSMENT DISTRICT NO. 2
FROM: Scott C. Stiles, City Manager
BY: Department of Engineering Services
SUMMARY:

The property owners within a roughly 24-acre area of the Old Las Palmas neighborhood submitted a petition requesting formation of an underground utility assessment district (Old Las Palmas Underground Utility Assessment District No. 2 [“AD 2”]). The City Council certified the petition for AD 2 on March 11, 2026. This action requests City Council declare its intention to levy assessments and issue bonds to finance the undergrounding project, approve the Preliminary Assessment Engineer’s Report, and set October 28, 2026, as the time and place for a public hearing for AD 2.

RECOMMENDATION:
1) Adopt Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO

TAKE PROCEEDINGS PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 1913 AND TO ISSUE BONDS PURSUANT TO THE IMPROVEMENT BOND ACT OF 1915, AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN

CONNECTION THEREWITH, ALL RELATING TO THE FORMATION OF OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2”; and 2) Adopt Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, PRELIMINARILY APPROVING THE ASSESSMENT ENGINEER’S REPORT AND FIXING THE TIME AND PLACE OF

THE PUBLIC HEARING FOR OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2.”
BUSINESS PRINCIPAL DISCLOSURE:

N/A.

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City Council Staff Report
August 26, 2026 -- Page 2
Underground Utility Assessment District No.2
BACKGROUND:

Owners of property located in the proposed assessment district submitted a petition to the City of Palm Springs (City) in September 2025 requesting formation of a special assessment district to underground overhead utilities within a portion of the Old Las Palmas neighborhood. On February 9, 2026, the assessment engineer certified that owners representing more than 60 percent of the assessable property area within proposed AD 2 had signed a petition for undergrounding overhead utilities. On March 11, 2026, the City Council adopted Resolution No. 25383 accepting and certifying the petition for AD 2.

STAFF ANALYSIS:

The Municipal Improvement Act of 1913 (Streets and Highways Code Division 12, Section 10000 et. seq.) governs the procedures used to create the assessment district. Bonds issued under the Improvement Bond Act of 1915 (Streets and Highways Code Division 10, Section 8500 et. seq.) are issued to finance assessments not paid in cash within 30 days after confirmation of the assessment; the proposed Resolution of Intention provides for bonds with a maximum 20-year maturity.

If, following the public hearing and balloting, AD 2 is formed an assessment lien would be recorded on the title of properties included in the district. Thereafter, a cash collection period would take place to provide property owners with an opportunity to prepay their assessment and remove the assessment lien. A second cash collection period is also anticipated prior to the bond sale, which is anticipated to occur prior to construction and after design is complete. Design is estimated to be completed in twelve (12) to eighteen (18) months. The total estimated assessment for Proposed AD 2 is shown in Table 1:

Table 1 – Proposed Assessment District No. 1

ITEM COST
Cost of Design and Construction $3,345,000
Incidental Costs and Expenses $519,000
Financing (Bond) Costs $336,000
Estimated Total Cost: $4,200,000
In addition to payment of the assessment, each property owner will be responsible for the costs of connecting the main service conduit in the public right-of-way to the property owner’s home or business, if applicable. The cost to the property owner for this conversion varies depending on the condition and location of the current electrical service. Each property owner is encouraged to contact a licensed electrical contractor to assess their particular property needs.

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City Council Staff Report
August 26, 2026 -- Page 3
Underground Utility Assessment District No.2
Preliminary Engineer’s Report:

The preliminary Engineer’s Report describes the methodology for determining the proportionate special benefit for each property within the proposed district, and the resulting allocation of project costs.

Special Benefits:

To equitably assess benefits, the Assessment Engineer related each property’s proportional special benefits to the special benefits of all other properties within the district. Apportionments established for districts formed under the “Municipal Improvement Act of 1913” and Article XIIID of the State Constitution, commonly utilize a weighted apportionment method using a defined unit of measurement to calculate a basic unit of assessment. Collectively, the three benefit categories reflect the proportional special benefit each property within the district will receive. The total cost of the district will be apportioned using the benefit categories below with assigned weighted percentages to each benefit category, based upon the engineer’s field review of the parcels within the district and public testimony. The weighted apportionment of the benefit categories for the proposed district shown in Table 2:

Table 2 – Weighted Benefit
Benefit Category Percentage
Safety Benefit 33.33%
Aesthetics Benefit 33.33%
Reliability Benefit 33.33%
Safety Benefit:

Undergrounding the overhead facilities eliminates the threat to structures or property, including any occupants within, from being damaged or harmed by downed utility lines and poles. The removal of overhead facilities would also mitigate the risks of blocked driveways and access to properties. The removal of the fixed obstructions (existing utility poles, guy wires, and related facilities), and the mitigation of the potential delay by emergency responders, who will neither cross a downed utility line, nor set up equipment if an overhead power line is in the way, has been evaluated in the Engineer’s Report as part of the special-benefit and general-benefit analysis required by Article XIIID.

All parcels within the district receive a special benefit from the undergrounding of poles and wires and share in the cost associated with this safety benefit as apportioned in the Engineer’s Report. The assessment report provides a breakdown for each parcel.

Aesthetics Benefit:

Removing the overhead utilities will improve the overall neighborhood aesthetics for all properties within the district. The special benefit results from improved aesthetics of the streetscape and airspace directly surrounding each property. Each parcel within the

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Underground Utility Assessment District No.2
district will receive an aesthetic benefit as determined by total parcel area. Parcels that are directly adjacent to, or in the proximity of, overhead facilities will receive an aesthetic benefit as detailed in the assessment report.

Reliability Benefit:

Utility undergrounding provides enhanced reliability to parcels due to having new wires and equipment underground which reduces the threat of service interruptions or outages if poles and wires are downed. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions, such as trees. All properties that connect to the new underground system receive a reliability benefit. This benefit is based on the average area of the parcels in the District.

Assessments and Costs: There are 40 assessable parcels in the proposed Old Las Palmas Underground Utility Assessment District No. 2. Proposed individual assessments range from approximately $82,000 to $171,000. Assessments vary due to property size and benefits received.

In addition to the assessments, each property owner who currently receives overhead utility service will be required to hire a contractor to underground the overhead services on their private property. Underground connection costs can vary depending on the terrain, landscaping and hardscaping on the property. This amount is in addition to the assessment amounts.

Schedule:

The Assessment Engineer will mail the Notice of Assessment accompanied by an Assessment Ballot to each affected property owner informing them of their preliminary assessment amounts and the time and place for a public hearing to tally the votes. The ballot also indicates how, when, and to whom the ballots should be returned. Ballots remain sealed until the public hearing and final balloting. All assessment ballots submitted to the City Clerk prior to the close of the public hearing will be tabulated in accordance with Article XIIID, Section 4 of the California Constitution (Proposition 218) and Government Code Section 53753.

A Preliminary Engineer’s Report has been prepared by NV5 and is ready for City Council consideration (Attachment A). Staff recommends City Council adopt the Resolution of Intention to form the district (Attachment B), and the resolution preliminarily approving the Engineer’s Report to commence the process for a public hearing and final balloting by affected property owners (Attachment C). The on-call professional services agreement with NV5 has been included in Attachment D.

ENVIRONMENTAL ASSESSMENT:

On March 11, 2026, City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15302(d)

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Underground Utility Assessment District No.2
(California Code of Regulations, title 14, Section 15302(d)) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding).

ALIGNMENT WITH STRATEGIC PLANNING:

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

FISCAL IMPACT:

No fiscal impact to the City’s General Fund is anticipated. Funding of the Engineer’s Report and balloting has been deposited with the City by the Old Las Palmas Neighborhood Committee. If the Assessment District is successfully formed, and once the City receives funding from the Proposed District Bond Issue, the City will reimburse the deposit out of the bond funds.

REVIEWED BY:

Acting City Engineer: Francisco Jaime
Assistant City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:

A. Preliminary Assessment Engineer’s Report
B. Resolution No. _____
C. Resolution No. _____
D. Professional Services Agreement 25Q085 with NV5, Inc.

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Attachment A
Preliminary Engineer's Report

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PRELIMINARY ENGINEER’S REPORT FOR
OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2 PREPARED UNDER THE PROVISIONS OF THE MUNICIPAL IMPROVEMENT ACT OF 1913

CITY OF PALM SPRINGS
May 18, 2026
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City of Palm Springs
Old Las Palmas Underground Utility Assessment District No. 2 Preliminary Engineer's Report
May 18, 2026 | 1

TABLE OF CONTENTS
Page
Introduction and Certifications ............................................................................................ 2 PART I Plans and Specifications.......................................................................................... 6 PART II Cost Estimate ......................................................................................................... 7 PART III Assessment Roll and Method of Assessment Spread ........................................... 8 Table 1 - Assessment Roll ....................................................................................... 10 Table 2 - Debt Limit Valuation................................................................................ 11 Exhibit 1-Method and Formula of Assessment Spread ........................................... 12 PART IV Annual Administrative Assessment...................................................................... 18 PART V Diagram of Assessment District ............................................................................ 19 PART VI Description of Facilities........................................................................................ 21 Right-of-Way Certificate ...................................................................................................... 22 Certification of Completion of Environmental Proceedings................................................. 23

APPENDIX
A. Assessment Calculations
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City of Palm Springs
Old Las Palmas Underground Utility Assessment District No. 2 Preliminary Engineer's Report
May 18, 2026 | 2
AGENCY: CITY OF PALM SPRINGS
PROJECT: OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2 TO: CITY COUNCIL
ENGINEER'S "REPORT" PURSUANT TO THE
PROVISIONS OF SECTIONS 2961 AND 10204

OF THE STREETS AND HIGHWAYS CODE
The purpose of this Assessment District is to provide financing to underground power, telephone and cable facilities in the area known as the Old Las Palmas Underground Utility Assessment District No. 2.

The proposed underground utility improvements will provide conversion to an upgraded utility system and will enhance neighborhood aesthetics, safety and reliability.

The construction of these improvements will conform to existing City of Palm Springs, Southern California Gas Company, Southern California Edison, Spectrum, and Frontier. By virtue of such improvements, the proposed improvements are of special and direct benefit to these properties.

Pursuant to the provisions of Article XIIID of the State Constitution, Part 7.5 of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931'', being Division 4 of the Streets and Highways Code of the State of California, and the "Municipal Improvement Act of 1913", being Division 12 of said Code, and the Resolution of Intention, adopted by the City Council of the CITY OF PALM SPRINGS, State of California, in connection with the proceedings for Old Las Palmas Underground Utilities Assessment District No. 2 (hereinafter referred to as the “Assessment District”), I, Jeffrey M. Cooper, P.E., a Registered Professional Engineer and authorized representative of NV5, Inc., the duly appointed Engineer of Work, herewith submits the “Report” for the Assessment District, consisting of six (6) parts as stated below.

PART I
This part contains the plans and specifications which describe the general nature, location and extent for the proposed improvements to be constructed, and are filed herewith and made a part hereof.

Said plans and specifications are on file in the Office of the Superintendent of Streets/City Engineer.

PART II
This part contains an estimate of the cost of the proposed improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto.

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Old Las Palmas Underground Utility Assessment District No. 2 Preliminary Engineer's Report
May 18, 2026 | 3

PART III
This part consists of the following information:

A. A proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the special benefits to be received by such subdivisions from said improvements, which is set forth upon the assessment roll filed herewith and made a part hereof.

B. The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated for the Assessment District, which would require an investigation and report under the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" against the total area proposed to be assessed.

C. The total true value, determined from the latest Assessor's roll, of the parcels of land and improvements which are proposed to be assessed.

PART IV
This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the CITY OF PALM SPRINGS, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both.

PART V
This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment.

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Old Las Palmas Underground Utility Assessment District No. 2 Preliminary Engineer's Report
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PART VI
This part shall consist of the following information:

A. Description of facilities
B. Right-of-Way Certificate
C. Environmental Certificate
This report is submitted on May 18, 2026
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
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Old Las Palmas Underground Utility Assessment District No. 2 Preliminary Engineer's Report
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Preliminary approval by the CITY COUNCIL of the CITY OF PALM SPRINGS, CALIFORNIA, on the _____ day of _______________, 2026.
____________________________

CITY CLERK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
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City of Palm Springs
Old Las Palmas Underground Utility Assessment District No. 2 Preliminary Engineer's Report
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PART I
Plans and Specifications
The plans and specifications to construct the utility undergrounding improvements, and any ancillary improvements thereof, for the area generally described as Old Las Palmas area No. 2, area approximately bounded by N. Via Monte Vista, W. Via Lola, Camino Sur, North Camino del Corte, Hermosa Pl, and W.

Mountain View Place, describe the general nature, location and extent of the improvements for Assessment District are referenced herein and incorporated as if attached and a part of this Report.

Said Plans and Specifications for the improvements are on file in the office of the Superintendent of Streets/City Engineer.

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City of Palm Springs
Old Las Palmas Underground Utility Assessment District No. 2 Preliminary Engineer's Report
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Part II
Cost Estimate
PALM SPRINGS - OLD LAS PALMAS ASSESSMENT DISTRICT NO. 2 CALCULATION Estimate
Length in ft. Cost per ft.

CONSTRUCTION COSTS:

Utility Undergrounding Construction Cost 3,345 $1,000.00 $ 3,345,000.00 $ 3,345,000.00
TOTAL CONSTRUCTION $ 3,345,000.00
INCIDENTIAL EXPENSES:

Total Incidental Expenses $ 519,000.00
Subtotal Incidental Expenses $ 519,000.00
Construction $ 3,345,000.00
Subtotal Incidental & Construction $ 3,864,000.00

FINANCIAL COSTS
Financing + Bond Costs $ 336,000.00
Subtotal & Financial Costs $ 336,000.00
DRAFT
TOTAL ESTIMATE $ 4,200,000.00

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City of Palm Springs
Old Las Palmas Underground Utility Assessment District No. 2 Preliminary Engineer's Report
May 18, 2026 | 8
Part III
Assessment Roll and Method of Assessment Spread
WHEREAS, on _________________, 2026 the City Council of the CITY OF PALM SPRINGS, State of California, did, pursuant to the provisions of the 1913 Act "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code, of the State of California, adopt its Resolution of Intention No. 2026-____, for the installation and construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith (the “improvements”), in a special assessment district known and designated as “Old Las Palmas Underground Utility Assessment District No. 2” (hereinafter referred to as the "Assessment District"); and WHEREAS, said Resolution of Intention, as required by Law, did direct the Engineer of Work to make and file a "Report", consisting of the following as required by Section 10204 of the Act:
a. Plans and Specifications
b. A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvement, if the works, appliances, or property are to be acquired as part of the improvement.
c. Cost Estimates
d. Assessment Diagram showing the Assessment District and the subdivisions of land therein; e. A proposed assessment of the costs and expenses of the works of improvement levied upon the parcels within the boundaries of the Assessment District; f. The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds.

For particulars, reference is made to the Resolution of Intention as previously adopted.

NOW, THEREFORE, I, JEFFREY M. COOPER, P.E., the authorized representative of NV5, pursuant to Article XIIID of the California Constitution and the “Municipal Improvement Act of 1913", do hereby submit the following:

1. Pursuant to the provisions of Law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto and incorporated herein.

2. As required by law, a Diagram is hereto attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll.

3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein.

4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued in one or more series, each with a DRAFT

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term not to exceed the legal maximum term as authorized by law, THIRTY-NINE (39) YEARS from the 2nd day of September next succeeding twelve (12) months from their date. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum.

5. By virtue of the authority contained in said "Municipal Improvement Act of 1913", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below:

For particulars as to the individual assessments and their descriptions, reference is made to Table l (Assessment Roll) attached hereto.

6. The Method of Spread of Assessment is as set forth in the exhibit identified as Part III (Exhibit I), which is attached hereto, referenced and so incorporated.

As Preliminary Approved As Confirmed
Estimated Construction Cost: $ 3,345,000.00 $
Estimated Incidental Expenses: $ 519,000.00 $
Estimated Financial Costs: $ 336,000 $
Estimated Total to Assessment: $ 4,200,000.00 $
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Table 1 - Assessment
Asmt No.

Assessor's
Parcel Number
Total
True Value
Existing
Liens
Assessments as
Preliminarily Approved
Value
To Lien
Ratio
5 505-251-013 3,262,889.00 $ - $ 95,662.53 34.1
6 505-251-007 143,401.00 $ - $ 99,039.34 1.4
7 505-251-006 1,953,258.00 $ - $ 96,338.51 20.3
8 505-252-001 2,706,771.00 $ - $ 97,688.92 27.7
9 505-252-002 3,242,808.00 $ - $ 97,014.49 33.4
10 505-252-020 922,160.00 $ - $ 92,961.70 9.9
11 505-252-019 721,100.00 $ - $ 92,961.70 7.8
12 505-252-018 1,531,882.00 $ - $ 105,792.96 14.5
14 505-273-002 2,188,279.00 $ - $ 171,304.34 12.8
15 505-274-005 4,345,000.00 $ - $ 149,691.51 29
16 505-253-001 1,952,153.00 $ - $ 108,495.34 18
17 505-252-023 1,736,485.00 $ - $ 109,169.77 15.9
18 505-252-013 3,519,000.00 $ - $ 126,729.81 27.8
21 505-252-021 2,262,294.00 $ - $ 124,028.98 18.2
22 505-252-022 528,184.00 $ - $ 92,961.70 5.7
23 505-252-032 932,513.00 $ - $ 120,652.17 7.7
24 505-252-005 3,201,701.00 $ - $ 139,561.08 22.9
25 505-252-006 7,140,000.00 $ - $ 111,872.15 63.8
26 505-252-007 2,509,641.00 $ - $ 97,688.92 25.7
27 505-252-008 2,007,314.00 $ - $ 95,662.53 21
28 505-251-001 4,424,820.00 $ - $ 88,234.47 50.1
29 505-232-011 610,194.00 $ - $ 82,155.28 7.4
30 505-232-010 566,291.00 $ - $ 90,260.87 6.3
31 505-232-009 517,723.00 $ - $ 89,584.89 5.8
32 505-233-003 3,570,000.00 $ - $ 96,338.51 37.1
33 505-233-002 2,811,138.00 $ - $ 95,662.53 29.4
34 505-233-001 2,582,298.00 $ - $ 94,988.10 27.2
35 505-241-008 2,137,802.00 $ - $ 94,988.10 22.5
36 505-241-007 2,759,140.00 $ - $ 94,988.10 29
37 505-241-006 2,152,948.00 $ - $ 95,662.53 22.5
38 505-261-020 1,820,700.00 $ - $ 107,144.93 17
39 505-261-019 363,558.00 $ - $ 117,949.79 3.1
40 505-261-015 3,657,006.00 $ - $ 87,558.49 41.8
41 505-261-014 1,461,983.00 $ - $ 87,558.49 16.7
42 505-261-013 2,444,940.00 $ - $ 88,234.47 27.7
43 505-261-018 7,360,537.00 $ - $ 107,819.36 68.3
44 505-261-021 2,024,168.00 $ - $ 113,898.55 17.8
45 505-261-012 7,428,456.00 $ - $ 118,625.78 62.6
46 505-261-011 977,150.00 $ - $ 115,923.40 8.4
47 505-261-022 357,287.00 $ - $ 107,144.93 3.3
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Table 2
Debt Limit Valuation
A. ESTIMATED BALANCE TO ASSESSMENT (Not including city owned parcels) $ 4,200,000.00 B. UNPAID SPECIAL ASSESSMENTS $0
TOTAL A& B $ 4,200,000.00
C. TRUE VALUE OF PARCELS (Not including city owned parcels) $ 96,834,972.00 AVERAGE VALUE TO LIEN RATIO 23:1
* Unpaid Special Assessments shall consist of the total principal sum of all unpaid special assessments previously levied or proposed to be levied other than in the instant proceedings. ** True Value of Parcels means the total value of the land and improvements as estimated and shown on the last equalized roll of the County or as otherwise reasonably calculated.

This report does not represent a recommendation of parcel value, economic viability or financial feasibility, as that is not the responsibility of the Assessment Engineer.

CERTIFICATION
I, the undersigned Assessment Engineer, do hereby certify that (i) the total amount of the principal sum of the special assessments proposed to be levied, together with the principal amount of previously levied special assessments, as set forth above, do not exceed one-half (1/2) the total true value of the parcels proposed to be assessed, and (ii) the amount proposed to be assessed upon any parcel does not exceed one-half of the true value of the parcel.

EXECUTED ON MAY 18, 2026
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF PALM SPRINGS
DRAFT

STATE OF CALIFORNIA

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Exhibit 1
Method and Formula of Assessment Spread
Since the improvements are to be funded by the levying of assessments, the "Municipal Improvement Act of 1913" and Article XIIID of the State Constitution require that assessments must be based on the special benefit that the properties receive from the works of improvement. In addition, Section 4 of Article XIIID of the State Constitution requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. It also provides that parcels within a district that are owned or used by any public agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings.

The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District.

Based upon an analysis of the special benefit to be received by each parcel from the construction of the works of improvement, the Assessment Engineer recommends the apportionment of costs as outlined below. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and tabulating the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits received by each parcel within the Assessment District. Ballot tabulation will be done at that time and, if a majority of the returned ballots weighted by assessment amount are not in opposition to the Assessment District, the City Council may form the Assessment District.

The following sections set forth the methodology used to apportion the costs of the improvements to each parcel.

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SPECIAL BENEFITS
In further making the analysis, it is necessary that the properties receive a special benefit distinguished from general benefits conferred on real property located in the District or to the public at large.

The purpose of this Assessment District is to provide the financing to underground existing overhead electrical, telephone and cable facilities as well as rehabilitate the affected portions of streets within the District. These facilities are the direct source of service to most properties within the Assessment District.

The proposed replacement of existing overhead utility facilities (power, telephone and cable facilities) with underground facilities and removal of the existing utility poles and the overhead wires will provide a special benefit to the parcels connected to and adjacent to, or in near proximity of, the facilities as follows:
• Improved Aesthetics Benefit. This benefit relates to the improved aesthetics of the streetscape due to the removal of overhead wires and utility poles. The Aesthetics benefit includes any and all benefit from viewing a pole at each property. The removal of guy wires and other support structures related to the overhead facilities are included in the definition of improved aesthetics.

Properties that are directly adjacent to, or in proximity of, overhead facilities receive an aesthetic benefit. This benefit is based on the area of the parcel. • Safety Benefit. This benefit relates to the additional safety of having the overhead distribution wires placed underground and having the power poles removed, which eliminates the threat of downed utility lines and poles due to wind, rain and other unforeseeable events. Falling facilities can lead to personal injuries and damage to structures, including fire. Properties immediately adjacent to, or in proximity of, the facilities usually have a greater risk. Properties that are adjacent to, or in proximity of, overhead facilities receive a safety benefit. This benefit is based on the average area of the parcels in the District.
• Reliability Benefit. This benefit relates to the enhanced reliability of service from the utilities being underground, due to having all new wires and equipment and having that equipment underground, which reduces the threat of service interruption from downed lines. When compared to overhead systems, fewer outages occur due to various acts of nature, traffic collisions and obstructions (such as trees). Properties that are connected to, or have the ability to connect to, the facilities proposed to be undergrounded receive a reliability benefit. This benefit is based on the average area of the parcels in the District.

By virtue of such special benefits, the proposed improvements will provide a higher level of service, increase the desirability of the properties and will specifically enhance the values of the properties within the Assessment District. Therefore, the proposed improvements are of direct and special benefit to these properties.

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GENERAL BENEFITS
Section 4 of Article XIIID requires that the general benefits imparted by the utility undergrounding project be separated from the special benefits and that only the special benefit portion of the costs of the project be assessed against those parcels which are identified as receiving special benefits. Separating the general from the special benefits requires an examination of the facts and circumstances of the project and the property being assessed.

In this particular assessment district, the streets along which the existing overhead utility facilities are being undergrounded function as local and collector streets. No other roadways are designated as an arterial, a major arterial or a scenic corridor in the Transportation Element of the City's General Plan.

Furthermore, the City has an established network of arterial streets which appear to function as intended to provide for the movement of traffic around and through the community at large without the need to utilize local collector streets for such purposes. Under these circumstances, any use of the streets within the assessment district as ''through" streets is incidental.

The properties situated within the assessment district are residential.

Based on these facts and circumstances, any general benefits to the property within the Assessment District in general, to the surrounding community and to the public at large from the project of undergrounding these local overhead utility facilities on the local streets and alleys, such as to the general public visiting in cars, on bikes or on foot, are incidental and do not exceed five percent (5%) of the estimated project costs. This general benefit portion of the cost is more than offset by the approximate 20% percent utility company contribution. Therefore, the remainder of the project design and construction costs represents the local and special benefits to the parcels within the Assessment District.

Because only the net amount of $4,200,000 is apportioned to the parcels within the District, no parcel is assessed more than its proportional share of the special benefits from the improvements.

METHODOLOGY
Based upon the findings described above, the special benefit received by the properties within the boundaries of the Assessment District is the conversion from an overhead to an underground utility system resulting in additional safety, enhanced reliability, and improved aesthetics to the adjacent properties.

Based on these conditions, it is our conclusion that the improvements specially benefit all assessed properties in the Assessment District.

To establish the benefit to the individual parcels within the Assessment District, the highest and best use of each property is considered. For example, a vacant property is considered developed to its highest potential and connected to the system.

The properties within this Assessment District are zoned primarily residential, with some commercial and institutional zones. There is a direct correlation between the size of a property and the extent to which a property may develop. Because parcel size is one of the main limiting factors for what can be built on a property, or the extent the property is developed, the size of each parcel is used as the base unit for measuring benefit. In this case, only the aesthetic benefit is considered proportional to the parcel size.

This is because aesthetic benefits arise from the removal of overhead wires and support structures.

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Larger parcels receive more aesthetic benefits due to the removal of more of these items adjacent to them compared to smaller parcels. Reliability and safety benefits, however, are not dependent on parcel size and are instead based on a unit basis or the average parcel size in the district.

The special benefits from the undergrounding of overhead utilities are categorized into the three (3) distinct benefits identified above. All parcels within the District receive 3 of the 3 benefits. For the Improved Aesthetics Benefit, the parcel area is multiplied by 1 to calculate the "Aesthetics Benefit Area.” For the Reliability Benefit and Safety Benefit, the average parcel area within the district is determined and applied to the parcel, the “Reliability Benefit Area” and “Safety Benefit Area” are the average size of parcels in the District. The Assessed Benefit Area per parcel is equal to the Aesthetics Benefit Area plus the Safety Benefit Area plus the Reliability Benefit Area, divided by 3.

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ASSESSMENT APPORTIONMENT
Each parcel will be apportioned its fair share of the construction costs based on the Assessed Benefit Area calculated for each property.

Incidental Expenses and Financial Costs have been assessed to the entire Assessment District on a prorata basis relative to the total construction cost allocations.

The individual assessment calculations are provided in Appendix A. For particulars to the Assessment Roll, reference is made to Table 1 in Part III of this report.

In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the special benefits that each parcel receives from the works of improvement.

Federal Income Tax Component of Contribution Tax (ITCC) has not been included. The ITCC is a tax assessed whenever private party contributions in aid of construction (CIAC) are made. To date, underground utility districts have not been assessed this tax as underground utility districts are viewed as providing public benefit by increasing community aesthetics and public safety.

Dated: May 18, 2026
NV5, INC.

JEFFREY M. COOPER, P.E.

R.C.E. No. 31572

ENGINEER OF WORK

CITY OF PALM SPRINGS
DRAFT

STATE OF CALIFORNIA

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I, as CITY CLERK of the CITY OF PALM SPRINGS, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the __________ day of __________________, 2026.

CITY CLERK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
I, as CITY CLERK of the CITY OF PALM SPRINGS, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF PALM SPRINGS, CALIFORNIA, on ___________ day of ___________________, 2026.

CITY CLERK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
I, as CITY CLERK of the CITY OF PALM SPRINGS, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of the CITY OF PALM SPRINGS, CALIFORNIA, on ___________ day of ___________________, 2026.

CITY CLERK

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
I, as SUPERINTENDENT OF STREETS/CITY ENGINEER of the CITY OF PALM SPRINGS, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was recorded in my office on ___________ day of ____________________, 2026.

SUPERINTENDENT OF STREETS/CITY ENGINEER

CITY OF PALM SPRINGS

STATE OF CALIFORNIA
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PART IV
Annual Administrative Assessment
A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District to pay for necessary costs and expenses incurred by the CITY OF PALM SPRINGS, and not otherwise reimbursed, resulting from the administration and collection of assessments, from the administration or registration of any bonds and reserve or other related funds, or both. The maximum assessment is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code and shall not exceed eighty eight dollars ($88) per parcel per year, subject to an annual increase based on the Consumer Price Index (CPI), or 3%, whichever is greater, during the preceding year ending in January, for all Urban Consumers in the Los Angeles, Riverside, and Orange County areas. The exact amount of the administration charge will be established each year by the Superintendent of Streets.

It should be expressly understood that the annual administrative assessment, as set forth above, is separate from, and in addition to, (a) the sixteen dollar ($16.00) per-parcel collection fee that may be added to each annual assessment under California Streets and Highways Code Sections 8682 (to cover expenses of collection) and 8682.1 (to cover bond administration costs), and (b) any fees payable to the City in connection with Assessment prepayments after the issuance of Bonds, apportionment of Assessments to reflect parcels splits or parcel mergers, and late charges and penalties for delinquent Assessment installments.

The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement.

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PART V
Diagram of Assessment
A reduced copy of the Assessment Diagram is attached hereto. Full-sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Palm Springs.

As required by the Act, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part III Table I. The Assessor's Parcel Number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of Riverside County for the boundaries and dimensions of each parcel of land.

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W VIA LOLA

W HERMOSA PL

W MOUNTAIN VIEW PL

W CANYON PL

MERITO PL

CAMINO SUR N PALM CANYON DR N VIA MONTE VISTA N CAMINO DEL CORTO N PATENCIO RD N MISSION RD N PRESCOTT DR N PATENCIO RD 05/18/2026

ASSESSMENT DIAGRAM
PREPARED BY:

CITY OF PALM SPRINGS
OLD LAS PALMAS ASSESSMENT DISTRICT NO. 2
PARCELS: 40
POWER POLES TO BE REMOVED: 28
LEGEND

ON-SITE PARCEL

OFF-SITE PARCELS

POWER POLE TO BE REMOVED

ASSESSMENT DISTRICT AREA BOUNDARY

POWER LINE TO BE REMOVED
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Part VI
Description of Facilities
Section 10100 of the Act provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Act to be installed, or improved under the provisions of the Act, including the acquisition of required right-of-way and/or property. For the general location of the improvements to be constructed referenced is hereby made to the Plans and Specifications described in Part I of this report.

The following improvements are proposed to be constructed and installed in the general location referred to as the Old Las Palmas Underground Utility Assessment District No. 2.

1. Acquisition of any required easements or rights-of-way.

2. Removal of existing utility poles.

3. Removal of overhead resident service drops.

4. Construction of mainline underground power, telephone and cable conduit, with appurtenant manholes and pull boxes, and installation of cabling, wiring and other facilities.

5. Construction of service conduit and appurtenances.

The improvements will be designed by City of Palm Springs, Southern California Gas Company, Southern California Edison, Spectrum, and Frontier. The utility companies will be responsible for inspecting the work for their facilities and the City of Palm Springs will inspect the work to ensure conformance to City standards and specifications where applicable.

The City may construct additional pavement rehabilitation as needed for the project.

Once completed, the underground facilities will become the property and responsibility of City of Palm Springs, Southern California Gas Company, Southern California Edison, Spectrum, and Frontier.

Each owner of property located within the Assessment District will be responsible for arranging for and paying for work on his or her property necessary to connect facilities constructed by the public utilities in the public streets and alleys to the points of connection on the private property. Conversion of individual service connections on private property is not included in the work done by the Assessment District.

The estimated time for completion of the undergrounding of the utilities is 12 months after the sale of bonds. Property owners will be required to provide necessary underground connections following the receipt of the City of Palm Springs’s connection notices to property owners.

Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property pursuant to Section 8.04.455 of the Municipal Code. Overhead facilities cannot be removed until all overhead service has been discontinued.

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Right-of-Way Certificate

STATE OF CALIFORNIA

RIVERSIDE COUNTY

CITY OF PALM SPRINGS
The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct.

That at all time herein mentioned, the undersigned was, and now is, the authorized representative of the duly appointed SUPERINTENDENT OF STREETS/CITY ENGINEER of the CITY OF PALM SPRINGS, CALIFORNIA.

That there have now been instituted proceedings under the provisions of Article XIIID of the California Constitution, and the "Municipal Improvements Act of 1913," being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public improvements in a special assessment district known and designated as Old Las Palmas Underground Utility Assessment District No. 2 (hereinafter referred to as the "Assessment District").

THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS:

All easements or right-of-way necessary for the construction and installation of the public improvements of the Assessment District either have been obtained or are in process of being obtained and will be obtained and in the possession of the affected utility company, the City, Riverside County or the State of California prior to commencement of the construction and installation of such public improvements.

EXECUTED this day of , 2026 at CITY OF PALM SPRINGS,
California.

SUPERINTENDENT OF STREETS/CITY ENGINEER

CITY OF PALM SPRINGS
State of California
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By:

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Certificate of Completion of Environmental Proceedings

STATE OF CALIFORNIA

RIVERSIDE COUNTY

CITY OF PALM SPRINGS
The undersigned, under penalty of perjury, CERTIFIES as follows:

1. That I am the person who authorized to prepare and process all environmental documentation as needed as it relates to the formation of the special Assessment District being formed pursuant to the provisions of the "Municipal Improvement Act of 1913" being Division 12 of the Streets and Highways Code of the State of California, said special Assessment District known and designated as OLD LAS PALMAS UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2 (hereinafter referred to as the "Assessment District").

2. The specific environmental proceedings relating to this Assessment District that have been completed are as follows:

CEQA compliance review:

The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA (replacement or reconstructions).

3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary.

EXECUTED this day of , 2026 at CITY OF PALM SPRINGS,
California.

By:

CITY OF PALM SPRINGS
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STATE OF CALIFORNIA

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APPENDIX
A. AssessmentCalculations
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ASSESSMENT CALCULATIONS
Property
Address
Asmt
No.

Assessor's
Parcel
Number
Parcel
Area (sf)
Assigned
Connections
Aesthetics
Benefit
(YES/NO)
Aesthetics
Benefit Area
Safety
Benefit
(YES/NO)
Safety
Benefit
Area (sf)
Reliability
Benefit
(YES/NO)
Reliability
Benefit
Area (sf)
Assessed
Benefit
Area (sf)
Total Design,
Construction
Incidental
Expenses
Financial
Costs
Final
Total
Assessment
975 N PATENCIO RD 5 505-251-013 16,552 1 YES 16,552 YES 2 2,574.55 YES 22,574.55 20,567.03 $ 76,188.37 $ 1 1,821.16 $ 7,653.00 $ 95,662.53 987 N PATENCIO RD 6 505-251-007 18,730 1 YES 18,730 YES 2 2,574.55 YES 22,574.55 21,293.03 $ 78,877.76 $ 1 2,238.43 $ 7,923.15 $ 99,039.34 993 N PATENCIO RD 7 505-251-006 16,988 1 YES 16,988 YES 2 2,574.55 YES 22,574.55 20,712.37 $ 76,726.74 $ 1 1,904.69 $ 7,707.08 $ 96,338.51 555 W VIA LOLA 8 505-252-001 17,859 1 YES 17,859 YES 2 2,574.55 YES 22,574.55 21,002.70 $ 77,802.25 $ 1 2,071.56 $ 7,815.11 $ 97,688.92 535 W VIA LOLA 9 505-252-002 17,424 1 YES 17,424 YES 2 2,574.55 YES 22,574.55 20,857.70 $ 77,265.11 $ 1 1,988.22 $ 7,761.16 $ 97,014.49 990 N PATENCIO RD 10 505-252-020 14,810 1 YES 14,810 YES 2 2,574.55 YES 22,574.55 19,986.37 $ 74,037.35 $ 1 1,487.41 $ 7,436.94 $ 92,961.70 954 N PATENCIO RD 11 505-252-019 14,810 1 YES 14,810 YES 2 2,574.55 YES 22,574.55 19,986.37 $ 74,037.35 $ 1 1,487.41 $ 7,436.94 $ 92,961.70 494 W HERMOSA PL 12 505-252-018 23,086 1 YES 23,086 YES 2 2,574.55 YES 22,574.55 22,745.03 $ 84,256.54 $ 1 3,072.99 $ 8,463.44 $ 105,792.96 417 W HERMOSA PL 14 505-273-002 65,340 1 YES 65,340 YES 2 2,574.55 YES 22,574.55 36,829.70 $ 136,431.67 $ 2 1,168.32 $ 1 3,704.35 $ 171,304.34 844 N MISSION RD 15 505-274-005 51,400 1 YES 51,400 YES 2 2,574.55 YES 22,574.55 32,183.03 $ 119,218.60 $ 1 8,497.59 $ 1 1,975.32 $ 149,691.51 375 W HERMOSA PL 16 505-253-001 24,829 1 YES 24,829 YES 2 2,574.55 YES 22,574.55 23,326.03 $ 86,408.79 $ 1 3,406.92 $ 8,679.63 $ 108,495.34 390 W HERMOSA PL 17 505-252-023 25,264 1 YES 25,264 YES 2 2,574.55 YES 22,574.55 23,471.03 $ 86,945.93 $ 1 3,490.26 $ 8,733.58 $ 109,169.77 416 W HERMOSA PL 18 505-252-013 36,590 1 YES 36,590 YES 2 2,574.55 YES 22,574.55 27,246.37 $ 100,931.24 $ 1 5,660.18 $ 1 0,138.39 $ 126,729.81 474 W HERMOSA PL 21 505-252-021 34,848 1 YES 34,848 YES 2 2,574.55 YES 22,574.55 26,665.70 $ 98,780.23 $ 1 5,326.44 $ 9,922.32 $ 124,028.98 470 W HERMOSA PL 22 505-252-022 14,810 1 YES 14,810 YES 2 2,574.55 YES 22,574.55 19,986.37 $ 74,037.35 $ 1 1,487.41 $ 7,436.94 $ 92,961.70 515 W VIA LOLA 23 505-252-032 32,670 1 YES 32,670 YES 2 2,574.55 YES 22,574.55 25,939.70 $ 96,090.84 $ 1 4,909.16 $ 9,652.17 $ 120,652.17 467 W VIA LOLA 24 505-252-005 44,866 1 YES 44,866 YES 2 2,574.55 YES 22,574.55 30,005.03 $ 111,150.43 $ 1 7,245.76 $ 1 1,164.89 $ 139,561.08 425 W VIA LOLA 25 505-252-006 27,007 1 YES 27,007 YES 2 2,574.55 YES 22,574.55 24,052.03 $ 89,098.18 $ 1 3,824.20 $ 8,949.77 $ 111,872.15 375 W VIA LOLA 26 505-252-007 17,859 1 YES 17,859 YES 2 2,574.55 YES 22,574.55 21,002.70 $ 77,802.25 $ 1 2,071.56 $ 7,815.11 $ 97,688.92 343 W VIA LOLA 27 505-252-008 16,552 1 YES 16,552 YES 2 2,574.55 YES 22,574.55 20,567.03 $ 76,188.37 $ 1 1,821.16 $ 7,653.00 $ 95,662.53 480 W VIA LOLA 28 505-251-001 11,761 1 YES 11,761 YES 2 2,574.55 YES 22,574.55 18,970.03 $ 70,272.45 $ 1 0,903.26 $ 7,058.76 $ 88,234.47 29 505-232-011 7,840 1 YES 7,840 YES 2 2,574.55 YES 22,574.55 17,663.03 $ 65,430.81 $ 1 0,152.05 $ 6,572.42 $ 82,155.28 460 W VIA LOLA 30 505-232-010 13,068 1 YES 13,068 YES 2 2,574.55 YES 22,574.55 19,405.70 $ 71,886.33 $ 1 1,153.66 $ 7,220.87 $ 90,260.87 444 W VIA LOLA 31 505-232-009 12,632 1 YES 12,632 YES 2 2,574.55 YES 22,574.55 19,260.37 $ 71,347.96 $ 1 1,070.13 $ 7,166.79 $ 89,584.89 370 W VIA LOLA 32 505-233-003 16,988 1 YES 16,988 YES 2 2,574.55 YES 22,574.55 20,712.37 $ 76,726.74 $ 1 1,904.69 $ 7,707.08 $ 96,338.51 350 W VIA LOLA 33 505-233-002 16,552 1 YES 16,552 YES 2 2,574.55 YES 22,574.55 20,567.03 $ 76,188.37 $ 1 1,821.16 $ 7,653.00 $ 95,662.53 330 W VIA LOLA 34 505-233-001 16,117 1 YES 16,117 YES 2 2,574.55 YES 22,574.55 20,422.03 $ 75,651.23 $ 1 1,737.81 $ 7,599.05 $ 94,988.10 286 W VIA LOLA 35 505-241-008 16,117 1 YES 16,117 YES 2 2,574.55 YES 22,574.55 20,422.03 $ 75,651.23 $ 1 1,737.81 $ 7,599.05 $ 94,988.10 256 W VIA LOLA 36 505-241-007 16,117 1 YES 16,117 YES 2 2,574.55 YES 22,574.55 20,422.03 $ 75,651.23 $ 1 1,737.81 $ 7,599.05 $ 94,988.10 216 W VIA LOLA 37 505-241-006 16,552 1 YES 16,552 YES 2 2,574.55 YES 22,574.55 20,567.03 $ 76,188.37 $ 1 1,821.16 $ 7,653.00 $ 95,662.53 285 W VIA LOLA 38 505-261-020 23,958 1 YES 23,958 YES 2 2,574.55 YES 22,574.55 23,035.70 $ 85,333.28 $ 1 3,240.05 $ 8,571.59 $ 107,144.93 1050 N CAHUILLA RD 39 505-261-019 30,927 1 YES 30,927 YES 2 2,574.55 YES 22,574.55 25,358.70 $ 93,938.59 $ 1 4,575.22 $ 9,435.98 $ 117,949.79 296 W HERMOSA PL 40 505-261-015 11,325 1 YES 11,325 YES 2 2,574.55 YES 22,574.55 18,824.70 $ 69,734.08 $ 1 0,819.73 $ 7,004.68 $ 87,558.49 288 W HERMOSA PL 41 505-261-014 11,325 1 YES 11,325 YES 2 2,574.55 YES 22,574.55 18,824.70 $ 69,734.08 $ 1 0,819.73 $ 7,004.68 $ 87,558.49 264 W HERMOSA PL 42 505-261-013 11,761 1 YES 11,761 YES 2 2,574.55 YES 22,574.55 18,970.03 $ 70,272.45 $ 1 0,903.26 $ 7,058.76 $ 88,234.47 275 W VIA LOLA 43 505-261-018 24,393 1 YES 24,393 YES 2 2,574.55 YES 22,574.55 23,180.70 $ 85,870.42 $ 1 3,323.39 $ 8,625.55 $ 107,819.36 225 W VIA LOLA 44 505-261-021 28,314 1 YES 28,314 YES 2 2,574.55 YES 22,574.55 24,487.70 $ 90,712.06 $ 1 4,074.61 $ 9,111.88 $ 113,898.55 220 W HERMOSA PL 45 505-261-012 31,363 1 YES 31,363 YES 2 2,574.55 YES 22,574.55 25,504.03 $ 94,476.96 $ 1 4,658.76 $ 9,490.06 $ 118,625.78 190 W HERMOSA PL 46 505-261-011 29,620 1 YES 29,620 YES 2 2,574.55 YES 22,574.55 24,923.03 $ 92,324.70 $ 1 4,324.82 $ 9,273.87 $ 115,923.40 47 505-261-022 23,958 1 YES 23,958 YES 2 2,574.55 YES 22,574.55 23,035.70 $ 85,333.28 $ 1 3,240.05 $ 8,571.59 $ 107,144.93 $ 3,345,000.00 $ 519,000.00 $ 336,000.00 $ 4,200,000.00 DRAFT

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Jeffrey M. Cooper, P.E.

COO
NV5
Phone: (949) 585-0477
Email: [email protected]
DRAFT

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Attachment B
Resolution of Intention to Form
Assessment District No. 2

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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, DECLARING ITS

INTENTION TO TAKE PROCEEDINGS PURSUANT TO THE
MUNICIPAL IMPROVEMENT ACT OF 1913 AND TO ISSUE

BONDS PURSUANT TO THE IMPROVEMENT BOND ACT
OF 1915, AND MAKING CERTAIN FINDINGS AND

DETERMINATIONS IN CONNECTION THEREWITH, ALL

RELATING TO THE FORMATION OF OLD LAS PALMAS
UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2
WHEREAS, the City Council of the City of Palm Springs (“City”) desires to provide certain property located in the City with the undergrounding of electric, telephone and cable facilities, and removal of poles, overhead wires, guys, anchors and appurtenant work therewith as further described in Section 3 hereof (“Improvements”) and to order the formation of an Assessment District to pay the costs thereof under and pursuant to the provisions of the Municipal Improvement Act of 1913 (the “1913 Act”); and WHEREAS, the proposed assessment district, if it is formed, is to be known and designated as Old Las Palmas Underground Utility Assessment District No. 2 (“Assessment District”); and
WHEREAS, the proposed boundaries of the Assessment District are shown on a map which indicates by a boundary line the extent of the territory proposed to be included in the Assessment District, which map is designated “Boundary Map for Old Las Palmas Underground Utility Assessment District No. 2, City of Palm Springs” (“Map”), which Map is on file in the office of the City Clerk; and
WHEREAS, the City Council has been presented with a petition signed by owners representing more than sixty percent (60%) of the assessable property area within the boundaries of the proposed Assessment District requesting the formation of the Assessment District to finance the Improvements; and
WHEREAS, pursuant to California Streets and Highways Code Sections 5896.5 and 5896.8, there is on file with the City Clerk a certificate of NV5, Inc. certifying the sufficiency of such petition; and
WHEREAS, the Map has been presented to the City Council for approval and is on file in the office of the City Clerk; and
WHEREAS, it appears to the City Council that the Assessment District should be formed to finance the installation of said Improvements under the provisions of the 1913 Act; and
WHEREAS, the City Engineer, with the assistance of NV5, Inc., is competent to make and    file with the City Clerk the report regarding the Improvements, which report is

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Resolution No. _____

required by the 1913 Act to be made and filed; and
WHEREAS, the conversion of overhead electric utility distribution system facilities to underground, including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to undergrounding, is categorically exempt from the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”) and its implementing guidelines (California Code of Regulations, title 14, Section 15000 et seq.) (“Guidelines”) pursuant to State CEQA Guidelines Section 15302(d); and
WHEREAS, before ordering the Improvements, the City Council is required, under the 1913 Act, to adopt a resolution declaring its intention to do so; and WHEREAS, the City Council intends to consider issuing bonds secured by the assessments to be levied on property in the Assessment District pursuant to the Improvement Bond Act of 1915, being Division 10 (commencing with Section 8500) of the Streets and Highways Code (“1915 Act”); and
WHEREAS, before issuing bonds, the City Council is required, under the 1915 Act, to adopt a resolution declaring its intention to do so.

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

SECTION 1. The above recitals, and each of them, are true and correct and are incorporated into the substantive portion of this resolution.

SECTION 2. The Map is hereby approved, adopted and declared to describe the proposed boundaries of the Assessment District; and it shall govern all details as to the extent of the Assessment District. The City Clerk is hereby directed to endorse the City Clerk’s certificate on the original of the Map evidencing the date and adoption of this resolution and to file said Map in the City Clerk’s office, and to file a copy of said Map so endorsed with the County Recorder of Riverside County, California within fifteen (15) days after the adoption of the resolution fixing the time and place of hearing on the formation and extent of the Assessment District.

SECTION 3. The Improvements generally include the undergrounding of existing electric, telephone and cable facilities, including the removal of poles, overhead wires, guys and anchors and the installation of new underground service connections and new streetlights and appurtenant work therewith as shown on the Map. The Improvements will be designed by Southern California Edison Company ("Edison") and the other applicable utility providers, which may include Southern California Gas Company, Spectrum, Frontier, and City-owned facilities, as applicable. Either Edison, the City, the other applicable utility providers, or the City's contractors will construct the Improvements, and the City will inspect the work to ensure conformance to City standards and specifications where applicable. Once completed, the underground facilities will become the property and responsibility of Edison, the other applicable utility providers, or the City, as

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Resolution No. _____

applicable. Each owner of property located within the Assessment District will be responsible for arranging and paying for work on the property owner’s property necessary to connect facilities constructed by the public utilities in the public streets to the points of connection on the private property owned by the property owner. Conversion of individual service connections on private property is not included in the work done by the Assessment District. Failure to convert individual service connections on private property may result in a recommendation to the City Council that the public utilities be directed to discontinue service to that property or be provided by the City with the cost and expense assessed against the property benefited in accordance with Palm Springs Municipal Code Section 8.04.455 (Ordinance No. 2125, adopted February 11, 2026). Overhead facilities cannot be removed until all overhead service has been discontinued.

SECTION 4. The City Council hereby finds and declares that the public interest and necessity require the Improvements, and the Improvements will be of direct and special benefit to the properties and land within the Assessment District. The City Council hereby declares its intention to order the conversion of the existing overhead electric and communication facilities to underground locations, and the acquisition of the Improvements, to make the expenses thereof chargeable upon the area included within the Assessment District, and to form the Assessment District.

SECTION 5. The City Council further declares its intention to levy a special assessment upon the land within the Assessment District in accordance with the respective special and direct benefit to be received by each parcel of land from the Improvements.

SECTION 6. This City Council finds and determines that, before ordering the acquisition of the Improvements, it shall take proceedings pursuant to the 1913 Act and Division 4, Part 7.5 (Section 2960 et. seq.) of the Streets and Highways Code, known as the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (the "1931 Act").

SECTION 7. NV5, Inc. is appointed the Assessment Engineer. The Assessment Engineer is hereby authorized and directed to make and file with the City Clerk a written report required by the 1913 Act ("Report"), which Report shall comply with the requirements of Section 10204 and Section 2961 of the Streets and Highways Code and Article XIIID of the California Constitution and shall contain the following:
(a) Plans and specifications for the Improvements;
(b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the Improvements, if the works, appliances or property are to be acquired as part of the Improvements;
(c) An estimate of the cost of the Improvements, and the cost of land, rights-of-way, easements, and incidental expenses in connection with the Improvements, including the cost of registering bonds;

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Resolution No. _____

(d) A diagram showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each parcel of land within the Assessment District as they existed at the time of passage of this resolution (each subdivision to be given a separate number on the diagram);
(e) A proposed assessment of the total amount of the cost and expenses of the proposed Improvements upon the several subdivisions of land in the Assessment District in proportion to the estimated benefits to be received by such subdivision, respectively, from the Improvements (the assessment shall refer to the subdivisions by their respective numbers assigned as provided in (d) above); and
(f) A proposed maximum annual assessment upon each of the several subdivisions of land in the Assessment District to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds.

In addition, the Report shall contain the information required by the 1931 Act as set forth in Streets and Highways Code Section 2961(b), including:
(a) The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than the proposed assessments to be levied with respect to the Assessment District, which would require an investigation and report under the 1913 Act against the total area proposed to be assessed; and
(b) The total true value, as near as may be determined, of the parcels of land and improvements within the Assessment District which are proposed to be assessed. Total true value may be estimated as the full cash value of the parcels as shown upon the last equalized assessment roll of the County of Riverside. Alternatively, total true value may be determined by other reasonable means, including, but not limited to, by adjusting the value shown on the last equalized assessment roll to correct for deviations from market value due to Article XIIIA of the California Constitution.

SECTION 8. Following the acquisition of the Improvements and the payment of all incidental expenses in connection with the formation of the Assessment District and the issuance of bonds pursuant to the 1915 Act, any surplus remaining in the improvement fund established for the Assessment District shall be used as determined by the City Council as provided in Section 10427 of the Streets and Highways Code.

SECTION 9. Notice is hereby given that serial or term bonds to represent unpaid assessments and to bear interest at a rate not to exceed twelve percent (12%) per annum

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Resolution No. _____

will be issued in the manner provided in the Improvement Bond Act of 1915 to represent the unpaid assessments and the last installment of such bonds shall mature a maximum of twenty (20) years from the second day of September next succeeding twelve (12) months from their date. The principal amount of such bonds maturing or becoming subject to mandatory prior redemption each year shall not be an amount equal to an even annual proportion of the aggregate principal amount of the bonds, but rather (except as specifically otherwise provided by the City Council in connection with the sale of such bonds), shall be an amount which, when added to the amount of interest payable in each year, will be a sum which is substantially equal in each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. Such bonds shall be serviced and collected by the City Treasurer or by such registrar and/or paying agent(s) as this City Council may from time to time designate.

SECTION 10. The provisions of Part 11.1 of the Improvement Bond Act of 1915, providing an alternative procedure for the advance payment of assessments and the calling of bonds, shall apply.

SECTION 11. Except as specifically otherwise provided for herein, the Improvements shall be made and ordered pursuant to the provisions of the 1913 Act.

SECTION 12. The City Council hereby determines that the City will not obligate itself to advance available funds from its treasury to cure any deficiency which may occur in the bond redemption fund established for the Assessment District.

SECTION 13. The public interests will not be served by allowing the property owners to take any contract to be let for the construction of the Improvements, and no notice of award of contract shall be published.

SECTION 14. It is hereby determined that the bonds proposed to be issued in these proceedings may be refunded. Any adjustment to assessments resulting from such refunding shall be made on a pro rata basis as required pursuant to Section 8571.5 of the Streets and Highways Code. Any such refunding shall be pursuant to the provisions of Division 11.5 (commencing with Section 9500) of the Streets and Highways Code, except that, if, following the filing of the report specified in Section 9523 and any subsequent modifications of the report, the City Council finds that all of the conditions specified in Section 9525 are satisfied and that the adjustments to assessments are on a pro rata basis, the City Council may approve and confirm the report and without further proceedings, authorize, issue, and sell the refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division 11.5 of the Streets and Highways Code. Any such refunding bonds shall bear interest at the rate of not to exceed twelve percent (12%) per annum, or such higher rate of interest as may be authorized by applicable law at the time of sale of such bonds; and the last installment of such bonds shall mature on such date as will be determined by the City Council in the proceedings for such refunding.

SECTION 15. It is in the public interest and more economical to do certain work

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Resolution No. _____

on private property to eliminate any disparity in level or size between the Improvements and private property and to add the actual cost of such work to the Assessment of the property to which such work was done; provided that no work of this nature shall be performed until and unless the written consent of the owner of property is first obtained.

SECTION 16. Pursuant to Streets and Highways Code Section 10110, the City intends to enter into agreements with Edison and the other applicable utility providers, and any agreement between the City and Edison, or any other applicable utility provider, for the ownership, management, or control of the underground electric, telephone and cable facilities to be installed pursuant to the Improvements, would benefit any current or future residents of the Assessment District.

SECTION 17. Pursuant to State CEQA Guidelines Section 15302(d), the undergrounding of the Improvements will have no significant effect on the environment and is categorically exempt from CEQA. The City Clerk is directed to work with the Community Development Director to cause a notice of exemption to be posted as required by law.

SECTION 18. All inquiries for any and all information relating to these proceedings including information relating to protest procedures should be directed to:

CITY OF PALM SPRINGS
Attention: Diana Shay, Project Manager
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
(760) 323-8253 ext. 8260
SECTION 19. If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 20. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.

ADOPTED THIS _______ DAY OF _________________, 2026.

SCOTT C. STILES

CITY MANAGER, CITY OF PALM SPRINGS

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Resolution No. _____

ATTEST:

BRENDA PREE

CITY CLERK, CITY OF PALM SPRINGS

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Resolution No. _____

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

BRENDA PREE

CITY CLERK, CITY OF PALM SPRINGS

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Attachment C
Resolution to Schedule Public Hearing

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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, PRELIMINARILY
APPROVING THE ASSESSMENT ENGINEER’S REPORT

AND FIXING THE TIME AND PLACE OF THE PUBLIC

HEARING FOR OLD LAS PALMAS UNDERGROUND
UTILITY ASSESSMENT DISTRICT NO. 2
WHEREAS, by Resolution No. _________ ("Resolution of Intention") in the proceedings for the formation of Old Las Palmas Underground Utility Assessment District No. 2 ("Assessment District"), this City Council ordered a report ("Report") prepared by NV5, Inc. ("Assessment Engineer") under and pursuant to the provisions of Article XIIID of the California Constitution ("Article XIIID") and the Municipal Improvement Act of 1913 ("1913 Act"), and, in particular, Section 10204 of the California Streets and Highways Code; and
WHEREAS, the Assessment Engineer has prepared the Report and filed the same with the City Clerk, and the City Clerk has presented the Report to this City Council for consideration; and

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

SECTION 1. The Report is preliminarily approved, and the City Clerk is directed to endorse the fact and date of such approval on the Report and to file the Report in the City Clerk’s office. The Report shall stand as the report for the purpose of all subsequent proceedings under the 1913 Act and Article XIIID except that it may be conformed, modified, or corrected as provided in the 1913 Act and Article XIIID; and SECTION 2. Pursuant to Section 2961 of the Streets and Highways Code and based on the information set forth in the Report, this City Council finds that the total amount of the principal sum of all unpaid special assessments levied against the parcels proposed to be assessed, other than contemplated by the present proceedings, plus the principal amount of the special assessment proposed to be levied in the instant proceedings, does not exceed one-half of the total value of the parcels proposed to be assessed, as computed pursuant to paragraph (2) of subdivision (b) of Section 2961; and SECTION 3. A public hearing shall be held on October 28, 2026, at 5:30 p.m. at the regular meeting place of the City Council at City Hall Council Chambers, 3200 E.

Tahquitz Canyon Way, Palm Springs, California 92262, to hear and consider protests and objections to the proposed Assessment District and the Report and to receive and count the ballots for and against the proposed Assessment District; and SECTION 4. At least forty-five (45) days prior to the public hearing referred to in Section 3 hereof, the City Clerk shall cause a notice of the adoption of the Resolution of Intention, the filing of the Report and the setting of the time and place for the public

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Resolution No. _____

hearing referred to in Section 2 hereof to be mailed, postage prepaid, to all persons owning real property proposed to be assessed in the Assessment District and whose names and addresses appear on the last equalized County of Riverside assessment roll or the State Board of Equalization assessment roll, as the case may be, or who are known to the City Clerk. Such notice shall conform in all respects to the provisions of Section 53753 of the California Government Code and Article XIIID, Section 4 of the California Constitution; and
SECTION 5. The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution; and SECTION 6. If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional; and
SECTION 7. The City Council finds that adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. In addition, the conversion of overhead electric utility distribution system facilities to underground is categorically exempt pursuant to State CEQA Guidelines Section 15302(d); and
SECTION 8. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.

ADOPTED THIS ___TH DAY OF ________________, 2026.

SCOTT C. STILES

CITY MANAGER, CITY OF PALM SPRINGS
ATTEST:

BRENDA PREE

CITY CLERK, CITY OF PALM SPRINGS

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Resolution No. _____

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

BRENDA PREE

CITY CLERK, CITY OF PALM SPRINGS

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Attachment D
Professional Services Agreement
25Q085 - NV5, Inc.

B – Page 1189 of 1230

CITY OF PALM SPRINGS
PROFESSIONAL SERVICES AGREEMENT 25Q085

ON-CALL ASSESSMENT ENGINEERING SERVICES
THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter “Agreement”) is made and entered into, to be effective this 27th day of March, 2025, by and between the City of Palm Springs, a California charter city and municipal corporation, (hereinafter referred to as “City”) and NV5, Inc., (hereinafter referred to as “Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and are hereinafter collectively referred to as the “Parties.”

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

B. Consultant has submitted to City a proposal to provide As-Needed, “On-Call” Assessment Engineering Services to support a variety of utility undergrounding projects under California Public Utilities Commission (CPUC) Rule 20B & 20C for City pursuant to the terms of this Agreement.

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

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

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

1.0 SERVICES OF CONSULTANT

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

1.2 Contract Documents. The Agreement between the Parties shall consist of the following:
(1) this Agreement; (2) the Scope of Services; (3) the City’s Request for Proposals (4) the Consultant’s signed, original proposal submitted to the City (“Consultant’s Proposal”); (5) Fee Schedule; and (5) the Task Order (as defined herein) (collectively referred to as the “Contract Documents”). The City’s Request Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

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

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

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

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

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

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

2.0 COMPENSATION

2.1 Maximum Contract Amount. City and Consultant hereby acknowledge and agree that the Services required by this Agreement will vary dependent upon the number, type, and extent of the Services the Consultant shall provide; and no guarantee of the extent or the type of Services required of Consultant under the terms of this Agreement is made by the City. The annual level of services required by this Agreement is unknown and may significantly increase or decrease from year to year. In acknowledgement of the fact that the number and type of projects requiring the Consultant’s Services has not been identified for this Agreement, City and Consultant hereby acknowledge and agree that a specific “Maximum Contract Amount” shall be imposed on each separate project that the City may assign Consultant as provided in Section 1.8 and in this Section 2.1. Each such separate project shall be identified as a Task Order authorized by the Director of Engineering/City Engineer or the City Manager as provided in this Section 2.1. Consultant shall be compensated and reimbursed for the services rendered under this Agreement in accordance with the fee schedule set forth in Exhibit “D”. The total amount of Compensation for the duration of the term of this agreement, as defined in Section 3.4, shall not exceed $600,000.00.

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

Compensation shall include reimbursement for actual and necessary expenditures for reproduction costs, telephone expense, transportation expense, and all other necessary expenditures required to perform the professional services under this Agreement. Compensation shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City; Consultant shall not be entitled to any additional compensation for attending said meetings. Consultant hereby acknowledges that it accepts the Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

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

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

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

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

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

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

3. SCHEDULE OF PERFORMANCE

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

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

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

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

3.4 Term. Unless earlier terminated under the terms of this Agreement, this Agreement shall commence on April 1, 2025 and continue in full force and effect for one (1) year. At the sole discretion of the City Manager, upon written notice to Consultant and mutual agreement, the term of this Agreement may be extended for two (2) additional one (1) year terms.

4. COORDINATION OF WORK

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

4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City and is subject to change by the City Manager. It shall be the Consultant's responsibility to ensure that the Contract Officer is kept fully informed of the progress of the performance of the Services, and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

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

4.4 Independent Consultant.

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

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

C. No City benefits shall be available to Consultant, its officers, employees, or agents in connection with any performance under this Agreement. Except for professional fees paid to Consultant Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for the performance of Services under this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, or agents, for injury or sickness arising out of performing Services hereunder. If for any reason any court or governmental agency determines that the City has financial obligations, other than pursuant to Section 2 and Subsection 1.8 herein, of any nature relating to salary, taxes, or benefits of Consultant’s officers, employees, servants, representatives, subconsultants, or agents, Consultant shall indemnify City for all such financial obligations.

4.5 California Labor Code Requirements.

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

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

5. INSURANCE

5.1 Types of Insurance. Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, the insurance described herein for the duration of this Agreement, including any extension thereof, or as otherwise specified herein, against claims which may arise from or in connection with the performance of the Work hereunder by Consultant, its agents, representatives, or employees. In the event the City Manager determines that the Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City Manager or his designee. Consultant shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified herein. Except as otherwise authorized below for professional liability (errors and omissions) insurance, all insurance provided pursuant to this Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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Agreement shall be on an occurrence basis. The minimum amount of insurance required hereunder shall be as follows:

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

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

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

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

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

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

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

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

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

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

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

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

E. Consultant agrees to require its insurer to modify insurance endorsements to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the endorsements. Certificates of insurance will not be accepted in lieu of required Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6. INDEMNIFICATION

6.1 To the fullest extent permitted by law, Consultant shall defend (at Consultant’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and reasonable attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Consultant’s employees included), for damage to property, including property owned by City, for any violation of any applicable federal, state, or local law or ordinance or to the extent arising out of, pertaining to, or relating to any acts, Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

7. REPORTS AND RECORDS

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

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

7.3 Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder.

Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Consultant will be at the City's sole risk and without liability to Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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Consultant, and the City shall indemnify the Consultant for all damages resulting therefrom. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. Consultant shall ensure that all its subconsultants shall provide for assignment to City of any documents or materials prepared by them, and in the event, Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom.

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

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

8. ENFORCEMENT OF AGREEMENT

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

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

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

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

Consultant shall be entitled to compensation for all Services rendered prior to receipt of the notice of termination and for any Services authorized by the Contract Officer after such notice. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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for termination of Work. Consultant may not terminate this Agreement except for cause, upon thirty (30) days written notice to City.

8.4 Default of Consultant.

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

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

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

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

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

8.7 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

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

9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

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

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

9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”).

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

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

10. MISCELLANEOUS PROVISIONS

10.1 Patent and Copyright Infringement.

A. To the fullest extent permissible under law, and in lieu of any other warranty by City or Consultant against patent or copyright infringement, statutory or otherwise, it is agreed that Consultant shall defend at its expense any claim or suit against City on account of any allegation that any item furnished under this Agreement, or the normal use or sale thereof arising out of the performance of this Agreement, infringes upon any presently existing U.S. letters patent or copyright and Consultant shall Docusign Envelope ID: A1920245-EF8B-4060-B4B6-2EB98934EEF7

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

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

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

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

To Consultant: NV5, Inc.

Attention: Jeffrey M. Cooper, PE
42829 Cook Street, Suite 104
Palm Desert, CA 92211
Telephone: (760) 341-3101

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

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

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

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

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

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

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

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

When funding for the services is provided, in whole or in part, by an agency controlled of the State of California, Consultant shall fully and adequately comply with California Executive Order N-6-22 (“Russian Sanctions Program”). As part of this compliance process, Consultant shall also certify compliance with the Russian Sanctions Program by completing the form located in Exhibit “E” (Russian Sanctions Certification), attached hereto and incorporated herein by reference. Consultant shall also require any subconsultants to comply with the Russian Sanctions Program and certify compliance pursuant to this Section.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE TO AGREEMENT BY AND BETWEEN
THE CITY OF PALM SPRINGS AND NV5, INC.

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

CONSULTANT:

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

CITY OF PALM SPRINGS:

APPROVED BY CITY COUNCIL:

Date: 03/27/2025 Item No. 1K
APPROVED AS TO FORM: ATTEST:

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

By: _______________________________ Date:

City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
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4/2/2025

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EXHIBIT “A”

SCOPE OF SERVICES
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SCOPE OF SERVICES
Background:

This work will be provided on an on-call as-needed basis and no amount of work is guaranteed. The contract value is based on an estimate only and not reflective of the actual amount of work that may or may not be performed. The City will issue Task Orders to the Consultant to provide the requested services associated with each project, as the need occurs for such services. Work will be performed on either a lump sum or cost-plus fixed fee basis as defined in each task order.

All services shall be performed in compliance with industry and professional standards and all applicable federal, state, and local laws, ordinances and regulations and the rules and ordinances of the County of Riverside and the City of Palm Springs.

Scope:

It will be the responsibility of the Consultant to determine the necessary staffing level required to perform the scope of service as may be required for a project when assigned. The City will not provide dedicated workspace or office space, city staff or city resources, printing or copying services, or clerical assistance in the performance of this agreement. The City reserves the right to perform any portion of the scope of work with City personnel and/or by other Consultants. The City may assign projects at its sole discretion.

Responsibilities may include, but are not limited to, the following:

A. Assist with outreach, materials, workshops, and presentations to educate residents, staff and City Council on utility undergrounding district formation guidelines and procedures for California Public Utility Commission (CPUC) Rule 20B projects.

B. Assist with the development of proposed Assessment District boundaries and affected properties.

C. Develop utility undergrounding project budget based on the budget of administration, design and construction costs provided by the utility companies, financing costs, and contingencies.

D. Collaborate with the Financial Advisor and Bond Counsel to determine preliminary assessment amounts for properties within the proposed district boundaries. Prepare a formal petition package for distribution to property owners within proposed district boundaries, ensuring all documentation is complete and precise.

E. Distribute the petition package to property owners within the proposed assessment district boundaries. Conduct all follow-up activities to collect and verify signatures, ultimately issuing a certificate of sufficiency for the petition.

F. Conduct detailed analysis of special benefits the undergrounding project will confer to each property within the district and determine precise amount to be assessed to each property based upon the project budget. Work with the City’s Financial Advisor to determine precise amount to be assessed on each property as a lump sum and/or bond-financed installment amount.

G. Prepare Assessment Engineers Report in compliance with Proposition 218.

H. Participate in and deliver presentations at City Council meetings as required during the formation phase of the Assessment District.

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I. Provide complete balloting services including preparation of unique ballots for each property within the assessment district boundaries and provide support to Bond Counsel during the scheduled Public Hearing to open and record ballots and to determine that a majority (50% +1) of the returned assessment ballots are in favor of the project.

J. Represent the City in meetings with residents, contractors, utility companies, and/or other agencies. Attend project development team meetings and other stakeholder and community meetings for utility undergrounding projects.

K. Assist with bidding procedures, prepare bid summaries, and make recommendations for consideration to award contracts for design, and/or construction of utility undergrounding projects and provide support during bidding, construction and project closeout.

L. Prepare and submit necessary documents, and coordinate with various regional, county, state, federal, and utility companies as needed.

M. Assist the City in tasks necessary to expedite project delivery such as “trouble shooting” and resolving issues with SCE and other utility companies, regulatory parties, and other affected agencies that may hamper project delivery schedules.

N. Employ project administration, contract administration, and project control techniques to ensure projects are delivered within approved scope, schedule, and budget.

O. Assist in obtaining environmental clearance in accordance with the California Environmental Quality Act (CEQA) regulations.

P. Complete any additional tasks and additional responsibilities as assigned by the City Engineer.

Schedule:

Work will commence upon issuance of individual task orders and the task orders will define the schedule for the work.

Compensation:

Work will be authorized under individual task orders and will be compensated on either a lump sum or cost-plus fixed fee basis utilizing the hourly rates, approved overhead and fee/profit included in the contract. Contract pricing in each task order shall include all labor, expenses, and incidentals to complete the work outlined in the contract scope. The Contractor may request monthly payments based on the percentage of work completed for the previous month as long as a detailed progress report is provided to support the amount requested. No additional compensation will be due by the City unless the contract is modified for additional work requested by the City. There is no specific amount of work guaranteed as this is an on-call contract.

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55575.18145\45330059.1

CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 BUSINESS & LEGISLATIVE
SUBJECT: ADOPTION OF AN URGENCY MORATORIUM ORDINANCE TO

TEMPORARILY PROHIBIT THE ACCEPTANCE, PROCESSING, OR

APPROVAL OF DATA CENTERS
FROM: Scott C. Stiles, City Manager
BY: Department of Planning Services
SUMMARY:

Data centers are defined as facilities that are intended to store vast amounts of data and computer systems that can perform complicated tasks and functions to support the needs of traditional computing and artificial intelligence (AI).

While data centers play a vital role in today’s digital landscape, their socio-environmental impacts have raised concerns from multiple jurisdictions in the Coachella Valley and throughout the country. Those concerns have led to the subsequent adoption of urgency ordinances by other legislative bodies to temporarily prohibit data centers and similar land uses while more robust regulations are developed regarding their development.

The cumulative impact of this new and rapidly growing land use warrants that the City Council consider adopting an urgency ordinance to temporarily prohibit accepting, processing, or approving any applications, permits, entitlements, or other approvals related to data centers while the City evaluates such uses as part of the ongoing citywide Zoning Code Update.

California law requires that an urgency ordinance prohibiting designated land uses must be adopted by a 4/5 vote of the City Council for an initial period of forty-five (45) days.

After that 45-day period, the City Council can act to extend the urgency ordinance so that the moratorium would be effective for a total term of one or two years.

RECOMMENDATION:

That the City Council adopt, by a four-fifths vote, an urgency ordinance implementing a moratorium on the acceptance, processing, or approval of applications, permits, entitlements, or other approvals related to data centers, effective immediately upon adoption (Attachment A).

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City Council Staff Report
August 26, 2026 -- Page 2
Urgency Moratorium Ordinance - Data Centers
BACKGROUND:

Following technological advances in recent years, data centers have drawn increased attention due to their heavy infrastructure and resource demands that can create adverse effects on the physical environment and socioeconomic conditions in their host communities.

In response, multiple local governments across the country have started implementing measures to mitigate the potential impacts of data centers. Locally, jurisdictions such as the City of Indio, the City of Coachella, and the City of Desert Hot Springs recently adopted urgency ordinances, along with extensions thereof, to temporarily prohibit data centers and similar land uses while they conduct comprehensive analyses of data centers and their potential impacts or prepare for the adoption of an ordinance for the permanent prohibition of such uses.

The Palm Springs Municipal and Zoning Codes currently do not provide definitions or regulations pertaining to data centers and their related uses, and there are no policies or guidelines in effect for such uses. Generally, under the City’s Zoning ordinance, any uses that are not specifically permitted are prohibited. Therefore, arguably, data centers are already prohibited within the City of Palm Springs. However, if the City Council wanted to adopt an ordinance to avoid any argument to the contrary, the Council could do so.

STAFF ANALYSIS:

The following concerns are associated with data centers:

1. Environmental Impacts:

Data centers generally operate continuously, and they require a significant amount of electricity. The electricity consumed by the equipment in turn generates a substantial amount of heat which must be removed constantly to maintain equipment functionality and efficiency. Depending on facility design, data centers may depend on water cooling systems to mitigate the heat.

These electricity and water demands raise concerns regarding the local resource availability, allocation, and cost, particularly where water supply is already stressed.

Furthermore, some of the electricity supplied to data centers may be generated from fossil fuels, and some facilities may rely on backup or supplemental power generated by natural gas or diesel that may contribute to potential air pollution.

2. Employment:

Data center operation is generally automated and does not require many full-time on-site staff. While data centers may offer short-term employment during their initial construction phase, they currently generally offer limited long-term employment due to the nature of

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August 26, 2026 -- Page 3
Urgency Moratorium Ordinance - Data Centers
their operation. Additionally, they frequently generate very low employment densities relative to the amount of land consumption required. This raises concerns about where they can logically locate given that the City of Palm Springs has limited developable land on which to accommodate employment-generating uses.

3. Community Benefits:

Their facilities generally require a substantial amount of equipment and a building to accommodate it. Suburban and rural areas may be perceived as desirable locations for data centers, as they often offer large undeveloped land at a lower cost. In addition to buildings, data center operation requires auxiliary infrastructure development for data transmission and connectivity. Depending on land use regulations, policies, and the location of the data centers, the existing land stock and environmental assets may be compromised, with limited community benefits.

While data centers may generate some tax revenue, sophisticated analyses are necessary to understand their overall impact on the community.

Although the ongoing review of the City’s Zoning Code can further analyze these issues and provide a more robust regulatory framework, today’s rules lack clarity on how to best locate such uses and mitigate potential impacts on the community.

Moratorium Ordinance
California Government Code Section 65858 authorizes a city to adopt, as an urgency measure, an interim ordinance prohibiting land uses that may conflict with contemplated general plan, specific plan, zoning, or development standard amendments that the City is studying or intends to study within a reasonable time. California Government Code Section 65858 requires that the City Council find that there exists a current and immediate threat to the public health, safety, or welfare, and that the approval of additional use permits, building permits, subdivisions, variances, or other entitlements would result in that threat to public health, safety, or welfare. The proposed Urgency Ordinance would prohibit the approval of any land use entitlement for a “Data Center” in the City of Palm Springs.

Under California law, an interim urgency ordinance prohibiting designated land uses must be adopted by a 4/5 vote of the City Council. The urgency ordinance is effective for fortyfive (45) days. After that 45-day period, the City Council can act to extend the moratorium for an additional ten (10) months and fifteen (15) days. Thus, the term of the moratorium can be a year.1
Under the proposed Urgency Ordinance, “data center” would mean a structure or site used primarily for the storage, management, processing, and transmission of digital data 1 The Government Code alternatively allows this extension to be for a period of twenty two (22) months and fifteen (15) days, for a total of two (2) years.

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Urgency Moratorium Ordinance - Data Centers
and that houses computer or network equipment, systems, servers, appliances, and other associated components related to digital data storage, processing, and related operations. Data center uses include data storage facilities, small data storage facilities, server farms, artificial intelligence training or processing, image processing, cloud computing, email servicing, and other similar uses and appurtenant facilities.

Required Findings
The City Council must adopt specific written findings supporting the existence of a current and immediate threat to public health, safety, or welfare. The following findings support adoption of this Urgency Ordinance and are also contained in the Ordinance:
• Absence of Regulatory Framework. The City of Palm Springs’s Municipal Code does not define or regulate data centers as a land use category. No zoning standards, performance requirements, setback rules, noise standards, utility demand thresholds, or environmental mitigation requirements specifically applicable to data centers have been adopted. Absent a moratorium, a developer could submit and process a land use application under existing zoning designations not designed to accommodate such uses, resulting in ambiguity as to whether that use is permitted and also what standards might apply to such application.
• Need for Study. The City is currently in the process of updating its Zoning Code.

As part of this study, City staff and its consultant team intend to study whether such uses are appropriate. The temporary moratorium is necessary to ensure that no applications are approved in the interim while staff assesses the appropriateness of data centers within the City of Palm Springs.

Survey of Other California Communities
The following summarizes recent and similar actions by public agencies in California:

Monterey Park (Los Angeles County). On January 21, 2026, the Monterey Park City Council adopted an urgency ordinance establishing a 45-day moratorium on all data center development. The moratorium was subsequently extended through January 21, 2027. On April 20, 2026, the Council adopted ordinances designating data centers as a public nuisance and permanently prohibiting all data centers within city limits — making Monterey Park the first city in California, to enact such a permanent ban.

Montebello (Los Angeles County). On February 11, 2026, the Montebello City Council voted to adopt an urgency ordinance imposing a 45-day moratorium on data centers, including artificial-intelligence (AI) facilities, while city staff studies their impacts and develops permanent zoning standards. The citywide moratorium was enacted due to concerns over infrastructure, power, and water consumption.

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City Council Staff Report
August 26, 2026 -- Page 5
Urgency Moratorium Ordinance - Data Centers
Oakley (Contra Costa County). On April 14, 2026, the City of Oakley became one of the first Bay Area cities to adopt a temporary moratorium on data centers by adopting a 45- day urgency ordinance that blocks acceptance, processing, or approval of data center land use applications while the City studies regulatory standards. City leaders have stated their intent to develop permanent zoning standards by the end of 2026. In May 2026, the moratorium was subsequently extended by the City Council for an additional period of 10 months and 15 days.

Calipatria (Imperial County). In May 2026, the Calipatria City Council voted to advertise a public hearing on an interim urgency ordinance that would establish a five-year moratorium on the approval, permitting, construction, or expansion of large-scale data center facilities. The proposed ordinance defines “large-scale data center” as any facility exceeding 10,000 square feet of dedicated server space, 5 megawatts of projected electrical demand, or one acre of land dedicated primarily to such use.

El Monte (Los Angeles County). On May 17, 2026, the El Monte City Council adopted an urgency ordinance establishing a 45-day moratorium prohibiting processing, approval, and acceptance of new data center land use applications. The urgency ordinance was passed in order to allow staff time to evaluate impacts, gather public input, and draft zoning regulations for consideration.

Baldwin Park (Los Angeles County). On March 4, 2026, the City Council of Baldwin Park adopted an urgency ordinance establishing a 45-day moratorium on the approval, establishment, or operation of data centers in the City in order to allow City staff time to analyze and recommend regulatory options for establishing new or updated regulations for data centers. On April 15, 2026, the City Council held a public hearing to extend the urgency ordinance establishing a moratorium for an additional 10 months and 15 days as is permitted by law.

Imperial (Imperial County). On June 3, 2026 the City of Imperial will consider adopting a 45-day temporary moratorium on the approval of certain emergency high-energy industrial and technology uses, including data centers, battery energy storage systems, and similar utility-intensive industrial or technological uses.

Los Angeles County. On April 14, 2026, the LA County Board of Supervisors adopted a motion directing the Department of Regional Planning, Department of Public Health, and other departments to study the health, environmental, and safety impacts of data centers on neighboring communities, including impacts on electrical and water resources, and a review of how other jurisdictions are regulating data centers. The original motion included a potential moratorium; however, that provision was removed before final adoption. The resulting study is expected to be completed within 120 days.

California Legislation. In 2025, Governor Newsom vetoed legislation that would have regulated data center water and electricity usage. The lone surviving measure, SB 57

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City Council Staff Report
August 26, 2026 -- Page 6
Urgency Moratorium Ordinance - Data Centers
(Padilla), was signed into law on October 11, 2025, and requires the CPUC to report on ratepayer cost-shifting impacts of data center electricity loads by January 1, 2027.

City of Indio. On June 3, 2026, the City Council adopted a temporary (45 day) moratorium on data centers. On July 15, the Council extended the moratorium for 90 days and directed city staff to draft an ordinance permanently banning the use in all zones.

Desert Hot Springs. In July of 2026, the City of Desert Hot Springs voted to extend its initial moratorium for a total period of two years.

City of Coachella. In July of 2026, the City of Coachella voted to extend its initial moratorium for 10 months and 45 days. On August 12, 2026, the City Council conducted a first reading of an ordinance permanently banning data centers. It is expected that this ordinance will come back for a second reading on August 26, 2026.

If this urgency moratorium ordinance is adopted, it will return within 45 days with a progress report and materials for a public hearing to extend the moratorium for up to 10 months and 15 days. The timeline for adoption of the Urgency Moratorium Ordinance and related future actions is as follows:

Proposed Timeline for 65868 Urgency Moratorium Ordinance Adoption Task Due Date Notes
Adoption of 45-Day
Moratorium Ordinance
August 26, 2026 Expires October 10, 2026
Ten (10) Day Moratorium
Report
September 9, 2026 65858(d) – At least ten days
prior to the expiration of that
interim ordinance or any
extension, the legislative
body must issue a written
report describing the
measures taken to alleviate
the condition which led to the
adoption of the ordinance.

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City Council Staff Report
August 26, 2026 -- Page 7
Urgency Moratorium Ordinance - Data Centers
Hearing Notice Published for
October 10 Moratorium
Extension
On or before
September 20, 2026
65858(a) - After notice
pursuant to Section 65090
and public hearing, the City
Council may extend the
interim ordinance for 10
months and 15 days and
subsequently extend the
interim ordinance for one
year. Any extension also
requires a four-fifths vote for
adoption. Not more than two
extensions may be adopted.
65090 - notice must be
published pursuant to
Section 6061 in at least one
newspaper of general
circulation within the
jurisdiction of the local
agency which is conducting
the proceeding at least 10
days prior to the hearing, or if
there is no such newspaper
of general circulation, the
notice must be posted at
least 10 days prior to the
hearing in at least three
public places within the
jurisdiction of the local
agency.

Moratorium Extension
Ordinance Adoption
September 30, 2026
ENVIRONMENTAL ASSESSMENT:

Adopting an urgency ordinance has no possibility of resulting in a significant environmental impact. Instead, this moratorium maintains the status quo. Therefore, there is no potential for this ordinance to have any impact on the environment, and the ordinance is therefore exempt from further California Environmental Quality Act (CEQA) review pursuant to Title 14 of the California Code of Regulations Section 15061(b)(3).

City staff is directed to files a Notice of Exemption within five (5) days following adoption of this ordinance.

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City Council Staff Report
August 26, 2026 -- Page 8
Urgency Moratorium Ordinance - Data Centers
ALIGNMENT WITH STRATEGIC PLANNING:

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

FISCAL IMPACT:

Adoption of this Urgency Ordinance is not expected to have a significant direct fiscal impact on the City. Staff time associated with preparing the required written report and scheduling the extension public hearing will be absorbed within existing departmental budgets.

REVIEWED BY:

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

A. Draft Urgency Ordinance

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55575.18145\45330116.1

ATTACHMENT A

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Ordinance No. _____

55575.18145\45330116.1
URGENCY ORDINANCE NO. ____

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, IN

ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE,
SECTION 65858 ENACTING A MORATORIUM ON THE

APPROVAL OF ANY LAND USE ENTITLEMENTS AND/OR

PERMITS TO ALLOW THE OPERATION OF DATA

CENTERS IN THE CITY OF PALM SPRINGS
City Attorney’s Summary
This ordinance would impose a temporary (45 day) ban on the approval of data center applications within the City of Palm Springs. This moratorium may be extended by a second
ordinance adopted by the City Council, for a total term of up to a year or more.

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

SECTION 1. Urgency Findings. In accordance with California Government Code Section 65858 and in order to protect the public health, safety and welfare, the City Council of the City of Palm Springs adopts the following findings in support of this Urgency Ordinance and finding that there is a current and immediate threat to the public health, safety or welfare of the residents of the City of Palm Springs:

A. Authority and Purpose.
1 California Government Code Section 65858 authorizes a city council to adopt, as an urgency measure, an interim ordinance prohibiting land uses that may conflict with contemplated general plan, specific plan, zoning, or development standard amendments that the City is studying or intends to study within a reasonable time.

2. California Government Code Section 65858 further requires that the City Council find that there exists a current and immediate threat to the public health, safety, or welfare, and that the approval of additional use permits, building permits, subdivisions, variances, or other entitlements would result in that threat to public health, safety, or welfare.

3. The City of Palm Springs is currently undertaking a comprehensive update to it’s Zoning Ordinance, which will include a review of potential development standards, infrastructure policies, utility allocation procedures,

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Ordinance No. _____

55575.18145\45330116.1
environmental review thresholds, and performance standards relating to data centers and high-intensity digital infrastructure uses to determine appropriate regulatory standards or, alternatively, their prohibition.

4. A “data center” as defined herein in Section 2 below, without appropriate study and standards, could impose substantial and potentially irreversible impacts on local water supplies, electrical infrastructure, air quality, and community character.

5. The City Council finds that, absent immediate action, applications for new data centers or conversion of existing structures into data centers could be submitted, processed, and vested under existing regulations before the City completes the necessary review of its Zoning Ordinance and adopts updated regulations specifically tailored to address the unique operational, environmental, infrastructure, and public safety impacts associated with such uses.

B. Emerging Nature of Data Center Development.

1. Advances in cloud computing, artificial intelligence, cryptocurrency processing, large-scale digital storage, and high-density computing have resulted in a substantial increase in proposals for large industrial-scale data centers throughout California and the western United States.

2. Data centers differ substantially from traditional office, industrial, warehouse, or research and development uses because they may operate continuously on a twenty-four-hour basis; consume extraordinarily high amounts of electrical power and water; require extensive cooling infrastructure; rely upon diesel backup generators and hazardous materials systems; and generate persistent noise, heat, vibration, and infrastructure demands that are not adequately addressed under the City’s current zoning regulations.

3. The City’s existing zoning code and development standards were adopted before the emergence of modern hyperscale and artificial intelligenceoriented data centers and therefore do not adequately regulate the intensity, utility demand, operational characteristics, environmental impacts, or cumulative impacts associated with such facilities.

4. The California Energy Commission has publicly identified data centers as a rapidly growing source of statewide electrical demand and has projected substantial increases in electricity consumption associated with future data center development.

C. Threats to Electrical Infrastructure and Grid Reliability.

1. The City Council finds that data centers, if unregulated, may impose

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Ordinance No. _____

55575.18145\45330116.1
extraordinary and concentrated electrical loads on local transmission and distribution systems, potentially requiring substantial upgrades to substations, transformers, transmission infrastructure, and backup generation systems.

2. It is not known whether the City’s existing electrical infrastructure is designed to accommodate multiple large-scale data center facilities or high-density computing campuses with continuous baseload demand requirements.

3. The City Council further finds that approval of data center projects before completion of the City’s review of its Zoning Ordinance and associated regulations may adversely affect grid reliability, increase the risk of service interruptions, strain emergency backup systems, and impair the ability of utility providers to serve existing residential, commercial, school, hospital, and public safety uses.

4. The City Council additionally finds that uncontrolled proliferation of data centers may contribute to increased utility costs borne by residents and existing businesses through infrastructure expansion, peak demand impacts, and utility cost shifting.

D. Water Supply and Drought Resiliency Concerns.

1. Many modern data centers rely upon substantial quantities of potable and recycled water for cooling and climate-control systems.

2. The City is located within a region subject to recurring drought conditions, groundwater management obligations, imported water supply constraints, climate change impacts, and increasing long-term uncertainty regarding water availability.

3. The City Council finds that the approval of data center facilities without adequate understanding of their impacts on water supply and infrastructure may threaten the City’s ability to preserve adequate water supplies for residential neighborhoods, schools, parks, hospitals, fire suppression, and other essential community needs.

4. The City Council further finds that existing development standards do not presently include sufficient operational limitations, water efficiency standards, recycled water requirements, drought contingency provisions, or cumulative water demand thresholds specifically applicable to data centers.

E. Public Health and Environmental Impacts.

1. Data centers commonly utilize large-scale mechanical cooling equipment, industrial ventilation systems, emergency backup generators, battery

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Ordinance No. _____

55575.18145\45330116.1
storage systems, transformers, and fuel storage facilities that may create significant noise, vibration, air quality, heat island, and hazardous materials impacts affecting nearby residential and sensitive land uses.

2. The City Council finds that backup diesel generators associated with data centers may create localized emissions impacts during testing, maintenance, or emergency operation and may adversely affect nearby residential neighborhoods, schools, childcare centers, senior housing facilities, and medically vulnerable populations.

3. The City Council further finds that the City’s current zoning regulations do not contain adequate buffering, setback, noise attenuation, generator operation, emissions mitigation, or environmental performance standards specifically tailored to data center operations.

4. The City Council additionally finds that data centers frequently generate comparatively low employment densities relative to the intensity of land consumption, infrastructure demand, and utility usage associated with such facilities, thereby raising substantial land use compatibility and public welfare concerns regarding the long-term allocation of scarce industrial land and utility resources.

F. Fire, Emergency Response, and Public Safety Concerns.

1. Data centers and associated energy infrastructure may involve substantial quantities of lithium-ion batteries, fuel storage systems, electrical equipment, cooling systems, and other facilities that pose unique fire suppression, hazardous materials, and emergency response challenges.

2. The City has identified the need to consider whether existing Fire Department staffing levels, training protocols, hazardous materials response capabilities, water pressure availability, and fire suppression infrastructure are adequate to safely serve large-scale data center facilities.

3. The City Council finds that approval of data center facilities without an appropriate regulatory framework to ensure such evaluations are considered may create immediate and unacceptable risks to emergency response operations, firefighter safety, and neighboring properties.

G. Need for Immediate Interim Moratorium.

1. The City Council finds that there is a current and immediate threat to the public health, safety, and welfare arising from the potential establishment of data centers under the City’s existing zoning and development regulations, which were not designed to address the unique and intensive operational characteristics

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Ordinance No. _____

55575.18145\45330116.1
of such uses.

2. The City Council further finds that the approval of additional land use entitlements, building permits, grading permits, use permits, variances, subdivisions, or any other applicable approvals for data center development during the period in which the City studies appropriate regulatory controls would result in and exacerbate the threats identified herein.

3. The City Council additionally finds that, without the immediate adoption of this interim urgency ordinance, developers could obtain vested rights or approvals under existing regulations before the City has an opportunity to complete the studies and adopt reasonable regulations necessary to protect the public health, safety, and welfare.

4. The City Council finds that a temporary moratorium is necessary to preserve the status quo while the City undertakes a comprehensive review of its Zoning Ordinance and considers appropriate, development standards, utility allocation policies, environmental review procedures, and public safety regulations applicable to data centers.

5. The City Council finds that the adoption of this interim urgency ordinance is necessary for the immediate preservation of the public peace, health, safety, and welfare pursuant to California Government Code Section 65858 and the City’s police powers under Article XI, section 5 of the California Constitution.

6. Based upon all evidence contained in the administrative record, the City Council hereby finds that this interim urgency ordinance is necessary to avoid current and immediate threats to the public health, safety, and welfare pending completion of the studies and regulatory actions described herein.

SECTION 2. Moratorium. The City of Palm Springs shall not issue or approve any General Plan Amendment, Specific Plan Amendment, zone change, building permit, occupancy permit, conditional use permit, variance, subdivision map or other land use entitlement, agreement or permit or regulatory license or permit required to comply with the provisions of the City of Palm Springs Municipal Code for the construction, operation or development of a “data center” by any private or public entity on any property within the City during the time that this Urgency Ordinance is in effect, and continuing for the time set forth in any action taken to extend this moratorium.

For purposes of this Urgency Ordinance, “data center” shall mean a structure or site used primarily for the storage, management, processing, and transmission of digital data and that houses computer or network equipment, systems, servers, appliances, and other associated components related to digital data storage, processing, and related operations. Data center uses include data storage facilities, small data storage facilities, server farms, artificial intelligence training or processing, image processing, cloud

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Ordinance No. _____

55575.18145\45330116.1
computing, email servicing, and other similar uses and appurtenant facilities.

SECTION 3. Compliance with California Environmental Quality Act. The City Council finds that this Urgency Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; it prevents changes in the environment pending the completion of zoning code revisions and related impact studies.

SECTION 4. Effective Date. This Urgency Ordinance was adopted by the necessary four-fifths vote of the members of the City Council pursuant to California Government Code Section 65858, and shall take effect immediately upon its adoption.

SECTION 5. Written Report. At least 10 days before this Urgency Ordinance or any extension expires, the City Manager shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of this Urgency Ordinance.

SECTION 6. Publishing. The City Clerk shall certify to the passage of this Urgency Ordinance and cause the same or a summary thereof to be published within fifteen (15) days after adoption in a newspaper of general circulation, printed and published in Palm Springs, California.

SECTION 7. Severability. If any provision of this Ordinance is held invalid, such invalidity shall not affect other provisions of the Ordinance. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 26TH DAY OF AUGUST, 2026.

NAOMI SOTO
MAYOR
ATTEST:

BRENDA PREE, MMC

CITY CLERK

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Ordinance No. _____

55575.18145\45330116.1

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 Urgency Ordinance No. ____ is a full, true, and correct copy, and was adopted by a four fifths vote at a regular meeting of the City Council held on August 26, 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 26th day of August 2026.

BRENDA PREE, MMC

CITY CLERK

C – Page 1226 of 1230

CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 BUSINESS & LEGISLATIVE
SUBJECT: DISCUSSION OF CITY MAYORAL POSITION AND REPORT FROM AD

HOC SUBCOMMITTEE
FROM: Scott C. Stiles, City Manager
BY: Brenda Pree, City Clerk
SUMMARY:

This report provides an opportunity for the City Council Mayoral Position Ad Hoc Subcommittee (Garner/deHarte) to provide an update on ongoing discussions regarding the City’s mayoral position.

RECOMMENDATION:

Receive and file this report and provide direction to Staff as appropriate.

BACKGROUND:

At the City Council meeting of April 8, 2026, the City Council created an ad hoc subcommittee to further discussions regarding the City’s mayoral position, and appointed Councilmember Garner and Councilmember deHarte as subcommittee members.

STAFF ANALYSIS:

Staff has consolidated California Voting Rights Act (CVRA) records within the City’s document repository (Laserfiche) and established a dedicated webpage to enhance public access to historical materials related to the subject matter. This aims to facilitate efficient searches and promote transparency.

ALIGNMENT WITH STRATEGIC PLANNING
This item aligns with the City Council’s Strategic Plan Foundation to advance fiscal sustainability and organizational resilience.

D – Page 1227 of 1230
City Council Staff Report
August 26, 2026 -- Page 2
Discussion of City Mayoral Position and Report from Ad Hoc Subcommittee FISCAL IMPACT:

None at this time.

REVIEWED BY:

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

A. California Voting Rights Act (CVRA) Document Central Link: California Voting Rights Act (CVRA) and City Webpage

D – Page 1228 of 1230

ATTACHMENT A
California Voting Rights Act (CVRA)
Document Central Link: California Voting Rights
Act (CVRA) & City Webpage

D – Page 1229 of 1230

*These time frames are for internal agenda management purposes only. It should not be relied on by any third party for purposes of establishing when an agenda item may actually be heard.

TENTATIVE UPCOMING MEETING SCHEDULE
Updated Thursday, August 20, 2026
September 9 – Regular Meeting
• Hotel Incentive Agreement, Riviera Hotel – Public Hearing (10 minutes) • Historic Designation, 550 Palisades Dr. – Public Hearing (10 minutes) • Discussion of Community Workforce Agreement – Business & Legislative (30 minutes) • Dream Hotel Project Update – Business & Legislative (30 minutes) • Legislative Platform Update – Business & Legislative (30 minutes) • Discussion of Mayoral Position – Business & Legislative (10 minutes) Total time: 2.0 hours
September 30 – Regular Meeting
• DWA Turf Conversion Program/Ord. 80 – Presentation (10 minutes) October 14 – Regular Meeting
• Hunger Action Month by FIND Food Bank – Presentation (5 minutes) • Vacation Rental Ordinance (Event Houses) – Business & Legislative (30 minutes)

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