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HomeMy WebLinkAbout000 2022-0127 Agenda PacketCITY OF PALM DESERT REGULAR PALM DESERT CITY COUNCIL (CC), SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (SA), AND HOUSING AUTHORITY (HA) MEETING (VIRTUAL MEETING) THURSDAY, JANUARY 27, 2022 3:00 p.m. Closed Session 4:00 p.m. Regular Session Note: Pursuant to Assembly Bill 361, this meeting may be conducted by teleconference and there will be no in-person public access to the meeting location. City Council Meetings are live-streamed. You can access and view the meetings through the City’s website at https://www.cityofpalmdesert.org and click on “Council Agenda” at the top of the page. Options for participating in the meeting: To participate by email, internet or telephone, see detailed instructions on the last page. AGENDA JANUARY 27, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 2 CALL TO ORDER – 3:00 P.M. PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY – Any person wishing to discuss any Closed Session business that is within the subject matter may participate utilizing one of the three options listed on the back page of this agenda. ADJOURN TO CLOSED SESSION A.Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1)(Successor Agency) Property: 18.73-acre site, located on Desert Willow Drive, northwest of Market Place (APNs 620-450-012, 013, 014). City Negotiator: Todd Hileman/Martin Alvarez Other Party Negotiator: Family Development Group, Inc. Property Owner: Successor Agency to Palm Desert Redevelopment Agency B.Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1)Potential cases: 2 RECONVENE THE CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MEETING – 4:00 P.M. a)Roll Call b)Pledge of Allegiance to the Flag – Mayor Jan C. Harnik c)Inspiration/Invocation – Mayor Pro Tem Sabby Jonathan REPORT ON ACTION FROM CLOSED SESSION AWARDS, PRESENTATIONS, AND APPOINTMENTS MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION AGENDA JANUARY 27, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 3 NON AGENDA PUBLIC COMMENTS: This is an opportunity for the public to speak on issues that are not on the agenda for a maximum of three minutes. Speakers may utilize one of the three options listed on the back page of this agenda. Because the Brown Act does not allow the City Council, Successor Agency, and Housing Authority Boards to take action on items not on the Agenda, members may briefly respond or instead refer the matter to staff for report and recommendation at a future City Council, Successor Agency, or Housing Authority Meeting. CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and may be approved by one (1) Minute Motion. 1.MINUTES of the regular City Council, Successor Agency, and Housing Authority Meeting of December 16, 2021 (CC) (SA) (HA) ........................................................ Page 9 Rec.: Approve as presented. 2.APPROVE CLAIMS AND DEMANDS WARRANTS: City: 1/7/2022 (CC); Successor Agency: 1/7/2022 (SA) ............................................................................... Page 23 Rec.: Receive and file. 3.RECEIVE AND FILE applications for an Alcoholic Beverage License for Gastro Grind Burgers – 73850 Highway 111 Ste B & C (CC) ......................................... Page 41 Rec.: Receive and file. 4.ORDINANCE NO. 1374: Update Organic Waste Recycling Requirements to the City Municipal Code to Comply with Senate Bill 1383 (2nd reading) (CC) ............ Page 45 Rec.: Waive further reading and adopt. 5.RESOLUTION to authorize new account signers for the Riverside County Treasurer’s Pooled Investment Fund (CC) (SA) ......................................................... Page 125 Rec.: Waive further reading and adopt. 6.RESOLUTION to approve Civic Engagement Committee bylaws (CC) ... Page 131 Rec.: Waive further reading and adopt. AGENDA JANUARY 27, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 4 7.RESOLUTION to authorize the destruction of paper records that have been digitally imaged from the Development Services Department (Planning/Land Development Division) to rely on the electronic record as the official record. (CC) ....... Page 135 Rec.: Waive further reading and adopt. 8.REQUEST TO APPROVE a contract with Romo Studios, LLC, in the amount of $188,390 for replacement of the bronze boy of For Our Freedom located at Freedom Park (CC) ..................................................................................................................... Page 143 Rec.: By Minute Motion: 1.Approve Contract with Romo Studios, LLC, in the amount of $188,390 for replacement of the bronze boy of For Our Freedom located at Freedom Park; and 2.Authorize the Mayor to execute said Contract and allow the City Attorney to make non-substantive changes. 9.REQUEST TO APPROVE a contract between the City of Palm Desert and FG Creative, to provide advertising services for the El Paseo Parking & Business Improvement District, Merchant Outreach and advertising services for the Palm Desert Aquatic Center, to recognize the reassignment of work due to the separation of FG Creative from CV Strategies (CC)......................................................................................................... Page 165 Rec.: By Minute Motion: 1.Approve Contract with FG Creative, Inc. to provide advertising services and Merchant Outreach services for the El Paseo Parking & Business Improvement District (EPPBID), and advertising services for the Palm Desert Aquatic Center (PDAC); 2.Authorize the City Attorney to make non-substantive changes to the contract and the Mayor to execute the agreement on behalf of the City; and 3.Terminate contracts No. C37060, A39220 and A42650. 10.REQUEST TO APPROVE the 2022 Palm Desert Half Marathon and 5K Event (CC) ................................................................................................................. Page 177 Rec.: By Minute Motion: 1.Approve the 2022 Palm Desert Half Marathon and 5K scheduled for Sunday, February 13, 2022; 2.Approve the proposed event route and road closures; 3.Temporary waive the Palm Desert Municipal Code (PDMC) Section 11.01.140 (Amplified Sound); 4.Temporary waive the Palm Desert Municipal Code (PDMC) Section 11.01.080 W (Possession/Consumption of Alcohol in City Parks) pursuant to PDMC 9.58.040; and 5.Temporary waive the Palm Desert Municipal Code (PDMC) Section 11.01.080 (Prohibited Conduct Generally in City Parks, Item Q – Vendor Sales AGENDA JANUARY 27, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 5 11.REQUEST TO AUTHORIZE the City Manager to Purchase a Patrol BMW Motorcycle for the Palm Desert Police Department from BMW Motorcycles of Riverside, California pursuant to PDMC Chapter 3.30.160 (E) and (I) (CC) ............................. Page 187 Rec.: By Minute Motion, authorize the City Manager to Purchase a Patrol BMW Motorcycle for the Palm Desert Police Department from BMW Motorcycles of Riverside, California pursuant to PDMC Chapter 3.30.160(E) and (I). 12.RECEIVE AND FILE the annual Low and Moderate Income Housing Asset Fund Report relative to SB 341 .................................................................................... Page 189 Rec.: Receive and file. 13.RECEIVE AND FILE the resignation of Susan Myrland from the Cultural Arts Committee. (CC)......................................................................................................... Page 199 Rec.: Receive and file with sincere regret. ACTION CALENDAR 14.RESOLUTION to approve signature authority for all California Department of Resources Recycling and Recovery (CalRecycle) grants for which the City of Palm Desert is eligible (CC) ............................................................................................................. Page 201 Rec.: Waive further reading and adopt. 15.REQUEST TO AUTHORIZE the City Manager to negotiate a contract with Kemper Sports for the maintenance and operations of the Desert Willow Golf Resort (Contract No. C42210) (CC) .......................................................................................... Page 205 Rec.: By Minute Motion, authorize the City Manager to negotiate a contract with Kemper Sports Management (“Kemper”) for the management and operations of the Desert Willow Golf Resort and return to the City Council for consideration. 16.REQUEST TO APPROVE the creation of an Ad Hoc Subcommittee for the Fourth Fire Station Design/Build (CC) ............................................................................ Page 211 Rec.: By Minute Motion, By Minute Motion that the City Council: 1.Create an Ad Hoc Sub-Committee for the Fourth Fire Station Design/Build; and 2.Appoint two members of City Council to serve on said committee. AGENDA JANUARY 27, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 6 17.REQUEST FOR DIRECTION on consideration of future City Council adoption of a resolution calling for a ballot measure on five districts (CC) ..................... Page 213 Rec.: By Minute Motion provide staff feedback and direction on the consideration of a possible Council-initiated five district ballot measure for the 2022 ballot. 18.REQUEST FOR DIRECTION regarding Portola Avenue / I-10 Interchange improvements (Project No. 637-02) (CC) ...................................................................... Page 217 Rec.: By Minute Motion: 1.Direct the City Manager or designee to work with Coachella Valley Association of Governments to return the remaining City bond funds on deposit for the Portola Avenue / I-10 Interchange Improvements project; 2.Direct the City Manager or designee to work with Riverside County Transportation Commission on repurposing the Measure A set aside for the Portola Avenue / I-10 Interchange Improvements project; 3.Direct staff to the City Manager or designee to work with County of Riverside to remove the aesthetic treatments from the design until such time that there is construction funding for the project; and 4.City Council re-affirms its commitment to the Portola/I-10 interchange project and directs staff to continue pursuing funding opportunities for the project. PUBLIC HEARING 19.RESOLUTION to approve a Historic District Designation for Sandpiper Condominiums Circle 2 located on El Paseo (CC) ........................................................... Page 227 Rec.: Open public hearing and continue item to meeting of February 10, 2022. 20.RESOLUTION to approve a Historic District Designation for Sandpiper Condominiums Circle 3 located on El Paseo (CC) ........................................................... Page 229 Rec.: Open public hearing and continue item to meeting of February 10, 2022. 21.ORDINANCE NO. 1375: Continued item for consideration of approval to the City Council for Zoning Ordinance Amendment 21-0002 to amend the Palm Desert Municipal Code, Chapter 25, modifying Section 25.60.60 (Public Hearing and Public Notice), adding Section 25.60.160 “Community Engagement,” and Chapter 5, Section 5.11 “Disclosures Upon Transfer of Residential Property” regulating the public engagement process. (Continued from the meeting of January 13, 2022) (1st Reading) (CC) ………………….Page 231 Rec.: Waive further reading and pass to second reading Ordinance approving Zoning Ordinance Amendment 21-0002 to amend the Palm Desert Municipal Code, Chapter 25, modifying Section 25.60.60 (Public Hearing and Public Notice), adding Section 25.60.160 “Community Engagement,” and Chapter 5, Section 5.11 “Disclosures Upon Transfer of Residential Property” regulating the public engagement process. AGENDA JANUARY 27, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 7 22.PUBLIC HEARING on the Redrawing of Council Member District Boundaries (CC) ................................................................................................................. Page 259 Rec.: By Minute Motion: 1.Receive a report from staff and the City’s redistricting consultant on the redistricting process and permissible criteria to be considered to redraw district boundaries; and 2.Conduct a public hearing to receive public input on district boundaries. 23.CONSIDERATION of an amendment to the Specific Plan, Precise Plan, Tentative Tract Map, and the Disposition and Development Agreement for DSRT Surf, a resort development inclusive of a 5.5-acre surf lagoon and surf center facility, a four-story 92-room hotel, and 83 residential units on a vacant 17.69-acre site; and an addendum of the Environmental Impact Report for the DSRT SURF project located on the west side of Desert Willow Drive (CC). ..................................................................................................................... Page 276 Rec.: Waive further reading and adopt the following City Council Resolution in support of the DSRT SURF Project: 1.Adopt City Council Resolution approving Case Nos. Amendment No. 1 to SP 18- 0002, PP 18-0009, TTM 37639, and an addendum to the EIR for the DSRT SURF Project, subject to the conditions of approval; and By Minute Motion: 1.Approval of a Revised and Restated Disposition and Development Agreement (DDA) between the City of Palm Desert and Desert Wave Ventures, LLC; 2.Approval of a Transient Occupancy Tax (TOT) Agreement as-to-form with Desert Wave Ventures, LLC, in an amount not to exceed $16.1 million for the operation of a 92-room AAA four-diamond hotel located on Parcel B within the Desert Willow Golf Resort; 3.Authorize the Mayor to execute said Agreements; 4.Authorize the City Manager to make non-substantive changes to the DDA and TOT Agreement as needed prior to execution by the Mayor; 5.Authorize the City Manager to draft, negotiate, and execute other supporting agreements that may be required by the DDA, including an Acquisition Agreement as to form and the attached City Cost Reimbursement Agreement as to form; 6.Authorize the City Manager to execute said agreements; and 7.Appropriate $20 million to Fund 451 for costs associated with the public improvements at identified sites of the Project. These funds are reimbursable from the associated residual bond proceeds and controlled by the attached Acquisition Agreement as-to-form. CITY MANAGER COMMENTS ADJOURNMENT AGENDA JANUARY 27, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 8 THREE OPTIONS FOR PARTICIPATING IN THE MEETING Option 1 - To Participate by E-mail: 1.Send your comments by email to: CouncilMeetingComments@cityofpalmdesert.org E-mails received by 12:00 noon prior to the start of the meeting will be made part of the record and distributed to the City Council. This method is encouraged because it will give Councilmembers the opportunity to reflect upon your input. Emails will not be read aloud. Option 2 - To Participate and Provide Verbal Comments by Using Your Internet: 1.Access via https://www.cityofpalmdesert.org/zoom and click “Launch Meeting” or 2.Access www.zoom.us, click “Join Meeting” and enter Webinar ID 833 6744 9572 Option 3 - To Listen and Provide Verbal Comments Using Your Telephone: 1.Dial any of the following based on your location: (669) 900-9128 or (213) 338-8477 or (669)219-2599 or (971) 247-1195 or (253) 215-8782. If there are high volumes of calls, please continue dialing until you connect successfully. 2.Enter the Meeting ID: 833 6744 9572 followed by #. 3.Indicate that you are a participant by pressing # to continue. 4.You will hear audio of the meeting in progress. Remain on the line if the meeting has not yet started. 5.During the meeting, Press *9 to add yourself to the queue and wait for City Clerk staff to announce your name/phone number. The City Clerk will unmute your line when it is your turn to speak. Limit your comments to three (3) minutes. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies regarding any item on this agenda, are available for public inspection at City Hall and on the City’s website at https://www.cityofpalmdesert.org by clicking “Council Agenda” at the top of the page. Declaration of Posting: I, Níamh M. Ortega, Deputy City Clerk of the City of Palm Desert, do hereby certify, under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert City Council, Successor Agency for the Palm Desert Redevelopment Agency, and Housing Authority, was posted on the City Hall bulletin board no less than 72 hours prior to the meeting. Dated this 20th day of January, 2022. Note: This agenda is subject to amendment up to 72 hours in advance of the meeting. Níamh M. Ortega _ Niamh M. Ortega, Deputy City Clerk CITY OF PALM DESERT REGULAR PALM DESERT CITY COUNCIL (CC), SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (SA), AND HOUSING AUTHORITY (HA) MEETING (VIRTUAL MEETING) DRAFT MINUTES Thursday, December 16, 2021 CALL TO ORDER – 3:00 P.M. Mayor Kelly convened the meeting. ROLL CALL Present: Mayor Pro Tem/Vice Chair/Vice Chairman Jan C. Harnik Councilmember/Director/Member Sabby Jonathan Councilmember/Director/Member Gina Nestande Councilmember/Director/Member Karina Quintanilla Mayor/Chair/Chairman Kathleen Kelly Staff Present: Todd Hileman, City Manager/Executive Director Robert W. Hargreaves, City Attorney Andrew Firestine, Assistant City Manager Janet M. Moore, Director of Finance Norma I. Alley, MMC, City Clerk/Secretary Niamh M. Ortega, Deputy City Clerk PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY – None ADJOURN TO CLOSED SESSION A.Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1)(City) Property: Consideration of a lease between Lift to Rise and the City of Palm Desert at the Parkview Office Complex (73-710 Fred Waring Drive, Suite No. 219) City Negotiator: Todd Hileman/Janet Moore/Stephen Aryan Other Party Negotiator: Lift to Rise Property Owner: City of Palm Desert Page 9 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 2 2)(City) Property: Authorization to execute the assignment of an existing Exclusive Negotiation Agreement with The Retail Connection, L.P. to Family Development Group, Inc. for a 15.38-acre site known as Desert Willow Lot Pad “D”, located on Desert Willow Drive, north of Market Place Drive (APNs 620-450-016, 620-450-017, 620-450-018, and 620-450- 020) City Negotiator: Todd Hileman/Martin Alvarez/Eric Ceja Other Party Negotiator: Family Development Group Property Owner: City of Palm Desert B.Conference with Labor Negotiators pursuant to Government Code Section 54957.6: City Negotiator: Todd Hileman Other Party Negotiator: Palm Desert Employee Organization C.Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1)Potential cases: 2 RECONVENE THE CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MEETING – 4:00 P.M. a)Roll Call b) Pledge of Allegiance to the Flag – Councilmember Sabby Jonathan c)Inspiration/Invocation – Mayor Kathleen Kelly REPORT ON ACTION FROM CLOSED SESSION City Attorney Bob Hargreaves stated no reportable action was taken. AWARDS, PRESENTATIONS, AND APPOINTMENTS 1.ANNUAL REORGANIZATION OF THE CITY COUNCIL (CC) Main Motion: 1. Select Mayor and Mayor Pro-Tempore per staff recommendation; 2. Receive comments from outgoing Mayor Kathleen Kelly and Mayor Pro-Tempore Jan Harnik; and 3.Receive comments from newly selected Mayor Jan Harnik and Mayor Pro-Tempore Sabby Jonathan. Moved by: Harnik/Nestande Vote and Action: 5 Yes/0 No. Motion Carried Page 10 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 3 MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Councilmember Nestande thanked Mayor Kelly for her leadership and clarity and stated she looked forward to serving under Mayor Harnik. Councilmember Quintanilla thanked Mayor Kelly for her leadership. She noted the Cultural Arts Committee continued to ask for reinstatement of the Commission name. She reported she took part in a ride-along with Deputy Nelson and looks forward to more opportunities. The League of California Cities recently appointed her to the Environmental Quality Policy Commission. She reminded residents of Palm Desert app to communicate on items needing attention throughout the community. Lastly, she highlighted a recent news story regarding a Palm Desert nursing home’s operation that was assumed by the State. She noted the facility’s staff were unpaid yet still chose to pay for a Thanksgiving meal for the residents from their own pockets. She asked that staff review and determine if there was a way to pay for a holiday meal for any residents that still remained at the nursing home. Councilmember Kelly thanked her colleagues for their encouraging and congratulatory comments. She reported the League of California Cities appointed her to the Governance, Transparency and Labor Relations Policy Committee, and noted the importance of the collaborative organization for its training and advocacy in Sacramento. Councilmember Kelly reminded the City Council of a past request for action to discuss on an agenda whether the Council wished to place an initiative on the ballot to give residents the opportunity to keep the current voting system or to consider moving to five districts. She shared that the Council had asked the City Attorney to contact Counsel regarding the potential to amend a previous settlement agreement to drop ranked choice voting. Mr. Hargreaves responded the plaintiffs’ attorney indicated they were not interested in amending the settlement agreement. Councilmember Quintanilla noted she had questions regarding the accuracy of the statement, and Councilmember Kelly asked Mr. Hargreaves to obtain some clarification prior to the item coming before Council. Mayor Pro Tem Jonathan suggested the litigation subcommittee should meet prior to the next closed session meeting, and since the item is a legal matter he recommended it be discussed in closed session. Mayor Pro Tem Jonathan thanked Councilmember Kelly for her leadership as mayor during the prior year, and congratulated Mayor Harnik and wished her good luck in the year ahead. Mayor Harnik wished everyone a joyous, healthy and meaningful holiday season. She noted she was encouraged to see a number of new businesses open their doors on El Paseo, the Shops at Palm Desert and the Cook Street area. NON AGENDA PUBLIC COMMENTS None. Page 11 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 4 CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and may be approved by one (1) Minute Motion. 2.REQUEST TO AUTHORIZE findings that the State of California continues in a Governor-declared state of emergency to combat the COVID epidemic, that state and local health officials are recommending social distancing, and consequently that the City Council and its other Brown-Act bodies may continue to employ remote teleconferencing under Government Code Section 54953(e) (CC) Rec.: The City Council hereby finds the State of California continues in a Governor-declared state of emergency to combat the COVID epidemic, that state and local health officials are recommending social distancing, and consequently that the City Council and its other Brown-Act bodies may continue to employ remote teleconferencing under Government Code Section 54953(e). 3.APPROVE MINUTES of the regular City Council, Successor Agency, and Housing Authority Meeting of October 28, 2021 (CC) (SA) (HA) Rec.: Approve as presented. 4.RECEIVE AND FILE applications for an Alcoholic Beverage License for: (CC) a.Daves Hot Chicken located at 72333 Highway 111, Suite F b.Mole Cuisine located at 73130 El Paseo, Suite M c.Trattoria Tiramisu located at 72655 Highway 111, Suite B6 Rec.: Receive and file. 5.RECEIVE AND FILE 2021 CLAIMS AND DEMANDS WARRANTS: City: 10/29, 10/30, 11/5, and 11/19 (CC); Successor Agency: 11/5, 11/12, and 11/29 (SA); City and Housing Authority: 11/5, 11/12, 11/19, and 11/29 (CC & HA) Rec.: Receive and file. 6.RECEIVE AND FILE Compliance Analysis and Investment Reports for the months of September and October, 2021 and General Fund Financial Report as of October, 2021 (CC) Rec.: Receive and file. Page 12 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 5 7.ORDINANCE NO. 1372 amending Palm Desert Municipal Code Section 2.52.705(F), “Accrued Vacation Time Buy-Back”, to include a requirement that employees make an irrevocable election if they wish to buy back up to eighty (80) hours of their vacation time per calendar year, prior to accrual and amending section 2.52.305(F), “Probationary Employees” to allow probationary employees use of accrued leave while on probationary status (2nd reading) (CC) Rec.: Waive further reading and adopt Ordinance No. 1372. 8.RESOLUTION NO. 2021-69 rescinding and replacing Resolution No. 2021-59, adopting authorized classifications, allocated positions, salary schedule and salary ranges included herein and attached as Exhibit “A” (CC) Rec.: Waive further reading and adopt Resolution No. 2021-69 rescinding and replacing Resolution No. 2021-59, adopting authorized classifications, allocated positions, salary schedule and salary ranges included herein and attached as Exhibit “A”; and authorize the City Manager to take any actions consistent with the resolution adopted herewith and confirm those actions already taken related thereto. 9.REQUEST FOR CONSIDERATION to approve a side letter amending the Memorandum of Understanding (MOU) (C36180) between the City of Palm Desert and the Palm Desert Employee Organization including a Cost of Living Adjustment (COLA) of 3% effective July 1, 2021, and request approval of Compensation for Unrepresented Employees including a Cost of Living Adjustment (COLA) of 3% effective July 1, 2021 and authorize the City Manager to develop and implement a Manager’s Administrative Leave Option (CC) This item was removed from the consent calendar for separate consideration. Main Motion: 1. Approve a side letter to the Memorandum of Understanding (MOU) between the City of Palm Desert and the Palm Desert Employee Organization (Exhibit “A”), including a Cost of Living Adjustment (COLA) of 3% effective July 1, 2021 for current employees; and 2.Authorize the City Manager to take actions consistent with the MOU and Managers Administrative Leave option approved herewith to implement the changes contemplated. Moved by: Jonathan/Kelly Vote and Action: 5 Yes/0 No. Motion Carried 10.RESOLUTION NO. 2021-70 authorizing the destruction of paper records that have been digitally imaged from the Office of the City Clerk, to rely on the electronic record as the official record (CC) Rec.: Waive further reading and approve Resolution No. 2021-70. Page 13 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 6 11.RESOLUTION NO. 2021-71 authorizing the destruction of paper records, that have been digitally imaged, from the Department of Development Services to rely on the electronic record as the official record (CC) Rec.: Waive further reading and adopt Resolution No. 2021-71. 12.RESOLUTION NO. 2021-72 authorizing the destruction of paper records, that have been digitally imaged, from the Department of Development Services to rely on the electronic record as the official record (CC) Rec.: Waive further reading and adopt Resolution No. 2021-72. 13.RESOLUTION NO. 2021-73: acknowledging receipt of the annual report made by the Fire Chief of the Riverside County Fire Department to fulfill the requirements of Sections 13146.2 and 13146.3 of the California Health and Safety Code (CC) Rec.: Waive further reading and adopt Resolution No. 2021-73. 14.RESOLUTION NO. SA-RDA-087: finding that real property identified as approximate +/-11.94-acre portion of APN 694-310-006 is not subject to requirements of the Surplus Land Act (SA) Rec.: The Successor Agency Board: 1.Waive further reading and adopt Successor Agency Resolution No. SA- RDA-087, a resolution finding that the real property owned by the Successor Agency to the Palm Desert Redevelopment Agency (“SARDA”) located on the south side of Gerald Ford Drive, east of the Palm Desert Sheriff Station, identified as the approximate +/-11.94 acre portion of APN 694-310-006 is not subject to requirements of the Surplus Land Act (SLA); 2.Authorize staff to submit a copy of this resolution to the California Department of Housing and Community Development (“HCD”); and 3.Authorize the Executive Director and staff, in consultation with SARDA legal counsel, to take any other actions they deem appropriate or necessary and are consistent to effectuate the purposes of the proposed resolution. 15.REQUEST FOR CONSIDERATION of the appointment of Kevin Wiseman as the Palm Desert representative on the Palm Springs International Airport Commission for a term ending June 30, 2025 (CC) Rec.: By Minute Motion, appoint Kevin Wiseman as the Palm Desert representative on the Palm Springs International Airport Commission for a term ending June 30, 2025. Page 14 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 7 16.REQUEST FOR CONSIDERATION to accept the letter of resignation from Cultural Arts Committee Member Susan Myrland and appointing Alternate Member Louise Harding to fulfill the remaining term (CC) Rec.: Accept the letter of resignation from Cultural Arts Committee Member Susan Myrland and appoint Alternate Member Louise Harding to fulfill the remaining term of Member Susan Myrland ending June 30, 2023. 17.REQUEST FOR CONSIDERATION to accept off-site improvements and release the Faithful Performance and the Labor and Materials Bonds for Carmax (CC) Rec.: Accept off-site improvements and release the Faithful Performance Bond in the amount of $313,721.00 and Labor and Materials Bond in the amount of $156,860.50. 18.REQUEST FOR CONSIDERATION to approve an amendment to Contract No. HA35560 with Ray, Douglas, Ann, and Patrick, Inc., a.k.a. RPM Company, for affordable housing compliance/property management services for the Housing Authority owned properties for a two-year term in an amount not to exceed $601,560 for the calendar year 2022 (HA) Rec.: The Authority Board: 1.Approve the amendment (“Amendment”) to Contract No. HA35560 with Ray, Douglas, Ann, and Patrick, Inc., a.k.a. RPM Company (“RPM”), for affordable housing compliance/property management services (“Agreement”), effective January 1, 2022, for the Housing Authority owned properties (“Properties”) for a two-year term in an amount not to exceed $601,560 for the calendar year 2022, with an allowable increase as noted in the Amendment; 2.Authorize staff to finalize the Amendment with RPM consistent with the current terms with non-substantive modifications concurred upon by the Executive Director and legal counsel; and 3.Authorize the Chairman and/or the Executive Director to execute the Amendment and any documents necessary to effectuate and implement the actions taken herewith. 19.REQUEST FOR CONSIDERATION to accept Contract No. C41200 for the Desert Willow Golf Resort HVAC Replacement Project as complete and authorize the City Clerk to file the Notice of Completion (Project No. 850-21H) (CC) Rec.: Accept Contract No. C41200 for the Desert Willow Golf Resort HVAC Replacement Project as complete and authorize the City Clerk to file the Notice of Completion. Page 15 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 8 20.REQUEST FOR CONSIDERATION to approve the purchase of the OpenGov Procurement software platform for online bidding and contract management for a first-year price of $37,191 (CC) Rec.: 1. Approve the purchase of OpenGov Procurement software for a total first year cost of $37,191 (annual subscription of $24,056 and set up/training of $13,135); 2.Authorize the Information Systems Manager to add this service to the annual software subscriptions, at $24,056 annually for the first year; and 3.Authorize the City Manager to take any actions needed to effectuate the order and implementation of the software platform. 21.REQUEST FOR CONSIDERATION to approve a monthly Small Business Market on San Pablo (CC) This item was removed from the consent calendar for separate consideration. Main Motion: 1. Authorize the road closure on San Pablo Avenue between Alessandro Drive and San Gorgonio Way, once a month from January through April of 2022; 2.Approve a sponsorship agreement between the City and Thriftology in the amount of $5,000 to assist with launching the Market. Funds to be appropriated from City Sponsored Events Account No. 1104416-4306201; and 3.Authorize waiving of all City-assessed permit and inspection fees pertaining to the event. Moved by: Kelly/Quintanilla Vote and Action: 4 Yes/1 No. (Jonathan) Motion Carried 22.REQUEST FOR CONSIDERATION to authorize a Grant of Easement to Frontier Communications (CC) Rec.: Authorize the Grant of Easement to Frontier Communications for property known as APN 628-130-008, located on Upper Way West, and authorize the Mayor to execute the same. 23.REQUEST FOR CONSIDERATION to award a one-year contract, with an option of four, one-year extensions for Pavement Management Data Collection and Analysis Services to Applied Research Associates, Inc. of Ventura, California in the Amount of $213,150 (C42490) (Project No. 758-21) (CC) Rec.: 1. Award Contract No. C42490, a one-year contract, with an option of four, one-year extensions for Pavement Management Data Collection and Analysis Services to Applied Research Associates, Inc. of Ventura, California in the Amount of $213,150; and Page 16 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 9 2.Authorize the City Manager to execute said agreement, extensions, and any contract amendments associated with this contract based on staff’s recommendations. 24.REQUEST FOR CONSIDERATION to appropriate additional budget of $500,000 for construction contingency and design services related to President’s Plaza East and West Parking Lot Improvements (Project No. 758-14) (CC) This item was removed from the consent calendar for separate consideration. Main Motion: 1. Approve additional contingency funds in the amount of $465,000 to Contract No. C37040A with H&H General Contractors Inc. of Highland, California; 2.Approve Amendment No. 4 to Contract No. C37040 with Dudek of La Quinta, California, for additional design services in an amount not to exceed $35,000; 3.Appropriate $400,000 from the Restricted Capital Project Fund 451 to Account No. 4514692-4400100; 4.Appropriate $100,000 from Unobligated General Funds to Account No. 4004692-4400100; and 5.Authorize the City Manager or designee to execute the amendment and to review and approve written requests for the use of the contingency for unforeseen conditions up to the contingency amount. Moved by: Jonathan/Kelly Vote and Action: 5 Yes/0 No. Motion Carried 25.REQUEST FOR CONSIDERATION to approve Amendment No. 2 to Contract C37870A with KOA Corporation of Monterey Park, California, for engineering design services in an amount not to exceed $229,122.96 for Haystack Road Traffic Calming and Safety Improvements (Project No. 667-21) (CC) Rec.: 1. Approve Amendment No. 2 to Contract C37870A with KOA Corporation of Monterey Park, California, for design services in an amount not to exceed $229,122.96; 2.Appropriate $230,000 from the Measure A Fund 231 for the Haystack Road Traffic Calming and Safety Improvements project; 3.Authorize the Mayor to execute the agreement; and 4.Authorize the City Manager to execute any additional amendments and related documents associated with this contract based on staff’s recommendations. 26.RECEIVE AND FILE informational item regarding Haystack Road Area Improvements (CC) Rec.: Receive and file. Page 17 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 10 Main Motion: Approve all items on the consent calendar, as presented, with the exception of Items 9, 21 and 24 which were considered and moved separately. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried PUBLIC HEARING 27.RESOLUTION NO. 2021-74 making findings regarding the continuing need for unexpended balances of Impact Fees as of June 30, 2021 (CC) Finance Director Janet Moore provided the staff report to Council. Mayor Harnik declared the public hearing open, and seeing no comment, declared the public hearing. Main Motion: 1. Conduct a public hearing and accept public testimony relating to the Development Impact Fees’ annual report and related findings; and 2.Following public testimony, close the public hearing, and request that the City Council waive further reading and adopt Resolution No. 2021-74 accepting the report and making certain findings pursuant to California Government Code Sections 66000-66008. Moved by: Kelly/Nestande Vote and Action: 5 Yes/0 No. Motion Carried ACTION CALENDAR 28.INFORMATION UPDATE regarding the Census redistricting of Council district boundaries as required by Government Code Section 21621 (CC) Main Motion: 1. Receive a report from the City’s census redistricting consultant on the redistricting process and permissible criteria to be considered to redraw City Council District Election District Boundaries; and 2.Direct the consultant, prior to drawing maps to be considered at an upcoming public hearing, to incorporate comments made through Council deliberation to preserve the intent of the settlement agreement relative to a minority/majority district, and to remain flexible when considering the number of residents to be added to the current District 1. Moved by: Kelly/Nestande Vote and Action: 5 Yes/0 No. Motion Carried Page 18 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 11 29.REQUEST FOR DIRECTION on the selection of a pricing program for the lease- purchase of turf equipment, approve a Master Lease-Purchase Agreement for a term of 60 months, and authorize the City Manager to execute a master equipment lease-purchase agreement (C42500) (Continued from November 18, 2021, Meeting) (CC) Main Motion: 1. Affirm the selection of the Kemper Sports pricing option for the lease- purchase of turf equipment through Toro in the amount of $1,930,215.58; 2.Approve a Master-Lease Purchase Agreement for a term of 60 months; 3.Direct the use of the City Golf Course Capital Fund to finance the lease-purchase of the turf equipment; 4.Authorize the City Manager or his designee to execute a Master Equipment Lease-Purchase Agreement and any documents necessary to effectuate the actions taken herewith; 5.Authorize the City Manager to approve changes to the final purchase price up $96,510.78; and 6.Declare the list of Trade-in Equipment as surplus and apply the trade-in value of CCC to the cost of the new equipment. Moved by: Kelly/Nestande Vote and Action: 5 Yes/0 No. Motion Carried 30.REQUEST FOR CONSIDERATION of request by the Bermuda Dunes Learning Center in Palm Desert for $900,000 from the City’s Child Care Facilities Impact Mitigation Fee Fund to fund necessary improvements to expand and operate a childcare facility at 47549 Highway 74 (C42510) (CC) Main Motion: Approve a request by the Bermuda Dunes Learning Center in Palm Desert for $900,000 for necessary improvements to an existing facility for the operation and expansion of a childcare facility at 47549 Highway 74. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried Page 19 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 12 31.REQUEST FOR CONSIDERATION of the selection of a vendor for the lease- purchase of electric golf and utility carts, approve a lease-purchase agreement for a term of 48 months, approve a 48-month lease for GPS technology, and authorize the City Manager to execute a lease-purchase agreement and other documents (CC) Main Motion: 1. Approve the lease-purchase of electric golf and utility carts from Club Car, LLC in an amount not to exceed $1,810,099.84 plus applicable taxes (C42520A); 2.Approve a Master-Lease Purchase Agreement for a term of 48 months; 3.Direct the use of the City Golf Course Capital Fund to finance the lease-purchase of the golf and utility carts; 4.Approve a 48-month lease of GPS technology from Club Car, LLC in an amount not to exceed $347,976.00 plus applicable taxes (C42520B); and 5.Authorize the City Manager or his designee to execute a Master Equipment Lease-Purchase Agreement and any documents necessary to effectuate the actions taken herewith. Moved by: Jonathan/Nestande Vote and Action: 5 Yes/0 No. Motion Carried 32.REQUEST FOR DIRECTION regarding a weekend Farmers’ Market (CC) Council provided the following guidance to staff regarding a weekend Farmers’ Market in Palm Desert: •Council does not want staff to seek a vendor to provide a weekend Farmers’ Market •Council suggested the vendor should provide input on a specific location based on suitability for their particular market •Council does not wish for staff to be involved in the operation of a Farmers’ Market 33.ORDINANCE NO. 1373 adopting an urgency ordinance of the City Council of the City of Palm Desert, California, amending Chapter 25.34 (special use provisions) and adding Chapter 26.30 (urban lot splits) of the City of Palm Desert Municipal Code relating to urban lot splits and two-unit projects and determining the ordinance to be exempt from CEQA (CC) Main Motion: Waive further reading and adopt Urgency Ordinance No. 1373. Moved by: Kelly/Nestande Vote and Action: 5 Yes/0 No. Motion Carried Page 20 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY DECEMBER 16, 2021 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 13 34. REQUEST FOR CONSIDERATION to award a Professional Services Agreement (PSA) with Coldwell Banker Richard Ellis (CBRE) for real estate advisory services related to The Shops at Palm Desert, formerly Westfield Palm Desert, located at 72840 Highway 111 (C42480) (CC) Main Motion: Approve Contract No. C42480 authorizing the allocation of $98,000 for real estate advisor services to CBRE for services related to The Shops at Palm Desert mall, formally Westfield Palm Desert. Moved by: Jonathan/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried INFORMATIONAL UPDATE 35. RECEIVE AND FILE a report on the removal of Lupine Plaza temporary improvements (CC) The report was received and filed. CITY MANAGER COMMENTS Mayor Harnik noted that Lt. Matthew Martello retired, and City Manager Hileman introduced Lt. Chris Willison who was selected to serve as Lt. Martello’s successor. ADJOURNMENT With City Council, Successor Agency, and Housing Authority concurrence, Mayor Harnik adjourned the meeting at 6:25 p.m. JAN C. HARNIK MAYOR/CHAIR/CHAIRMAN ATTEST: NÍAMH M. ORTEGA, DEPUTY CITY CLERK AND SECRETARY Palm Desert City Council Successor Agency to the Palm Desert Redevelopment Agency Housing Authority Page 21 [This page has intentionally been left blank.] Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 [This page has intentionally been left blank.] Page 40 Page 41 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION, CODE COMPLIANCE DIVISION, AND PLANNING DIVISION N , CITY CLERK Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY: _____________________________________________________ A copy of the subject ABC License Application is attached for your review and recommendation to the City Council or to another department(s) for further action. A response is required. Please mark the appropriate response below and return to my office by __________________________ Responding Department: __________________________ Date:_______________ Response: No comment – okay to present to City Council. Refer to ______________________________________ related comments (attach additional sheets, if necessary): _________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Other – Additional comments (attach additional sheets, if necessary): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Gastro Grind Burgers - 73850 Highway 111 Ste B & C, Palm Desert, CA 9226 Friday, January 14, 2022. January 19, 2022Building and Safety January 6, 2022 Page 42 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION, CODE COMPLIANCE DIVISION, AND PLANNING DIVISION N , CITY CLERK Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY: _____________________________________________________ A copy of the subject ABC License Application is attached for your review and recommendation to the City Council or to another department(s) for further action. A response is required. Please mark the appropriate response below and return to my office by __________________________ Responding Department: __________________________ Date:_______________ Response: No comment – okay to present to City Council. Refer to ______________________________________ related comments (attach additional sheets, if necessary): _________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Other – Additional comments (attach additional sheets, if necessary): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Gastro Grind Burgers - 73850 Highway 111 Ste B & C, Palm Desert, CA 9226 Friday, January 14, 2022. January 10, 2022Code Compliance January 6, 2022 Page 43 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION, CODE COMPLIANCE DIVISION, AND PLANNING DIVISION N , CITY CLERK Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY: _____________________________________________________ A copy of the subject ABC License Application is attached for your review and recommendation to the City Council or to another department(s) for further action. A response is required. Please mark the appropriate response below and return to my office by __________________________ Responding Department: __________________________ Date:_______________ Response: No comment – okay to present to City Council. Refer to ______________________________________ related comments (attach additional sheets, if necessary): _________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Other – Additional comments (attach additional sheets, if necessary): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Gastro Grind Burgers - 73850 Highway 111 Ste B & C, Palm Desert, CA 9226 Friday, January 14, 2022. January 6, 2022Dev. Services- Planning Division January 6, 2022 Page 44 Page 45 ORDINANCE NO. -2- F. “Month” means a calendar month. G. “Must” and “shall” are each mandatory. H. “Oath” means and includes an affirmation or declaration in all cases in which, by law, an affirmation may be substituted for an oath, and in such cases the words “swear” and “sworn” shall be equivalent to the words “affirm” and “affirmed.” I. “Owner,” applied to a building or land, includes any part owner, joint owner, tenant in common, joint tenant, tenant by the entirety, of the whole or a part of such building or land. J. “Person” means and includes a natural Person, joint venture, joint stock company, partnership, association, club, company, corporation, business, trust, organization, or the Manager, lessee, agent, servant, officer, or employee of any of them. K. “Personal Property” includes money, goods, chattels, things in action and evidences of debt. L. “Preceding” and “following” mean next before and next after, respectively. M. “Property” includes Real and Personal Property. N. “Real Property” includes lands, tenements and hereditaments. O. “Sidewalk” means that portion of a Street between the curbline and the adjacent property line intended for the use of pedestrians. P. “State” means the State of California. Q. “Street” includes all streets, highways, avenues, lanes, alleys, courts, places, squares, curbs, or other public ways in the City which have been or may hereafter be dedicated and open to public use, or such other public property so designated in any law of the State. R. “Tenant” and “Occupant,” applied to a building or land, include any Person who occupies the whole or a part of such building or land, whether alone or with others. S. Title of Office. Use of the title of any officer, employee, Department, board, or commission means that officer, employee, Department, board, or commission of the City. T. “Written” includes printed, typewritten, mimeographed, multigraphed, or otherwise reproduced in permanent visible form. U. “Year” means a calendar year. 1.04.020 INTERPRETATION OF LANGUAGE. Page 46 ORDINANCE NO. -3- All words and phrases shall be construed according to the common and approved usage of the language, but technical words and phrases and such others as may have acquired a peculiar and appropriate meaning in the law shall be construed and understood according to such peculiar and appropriate meaning. 1.04.030 GRAMMATICAL INTERPRETATION. The following grammatical rules shall apply in this code, unless it is apparent from the context that a different construction is intended: A. Each gender includes the masculine, feminine and neuter genders. B. The singular number includes the plural and the plural includes the singular. C. Words used in the present tense include the past and the future tenses and vice versa, unless manifestly inapplicable. 1.04.040 ACT BY AGENT DEEMED ACT BY PRINCIPAL. When an act is required by this code, the same being such that it may be done as well by an agent as by the principal, such requirements shall be construed to include all such acts performed by an authorized agent. 1.04.050 PROHIBITED ACTS INCLUDE CAUSING AND PERMITTING. Whenever in this code any act or omission is made unlawful, it includes causing, allowing, permitting, aiding, abetting, suffering, or concealing the fact of the act or omission. 1.04.060 COMPUTATION OF TIME. Except when otherwise provided, the time within which an act is required to be done shall be computed by excluding the first day and including the last day, unless the last day is Sunday or a holiday, in which case it shall also be excluded. 1.04.070 CONSTRUCTION. The provisions of this code and all proceedings under it are to be construed with a view to effect its objects and to promote justice. 1.04.080 REPEAL NOT TO REVIVE ANY ORDINANCES. The repeal of an ordinance shall not repeal the repealing clause of an ordinance or revive any ordinance which has been repealed thereby. 1.04.090 RIGHT OF CITY TO BRING LEGAL ACTION. Page 47 ORDINANCE NO. -4- In addition to the remedies set forth in this code, the City Council is authorized to bring a legal action in a court of competent jurisdiction for the recovery of any moneys expended by it in order to enforce the provisions of this code. In the event that legal action is brought by the City against any individual, corporation, association or entity, reasonable Attorney’s fees and costs shall constitute a debt owing by the individual, corporation, association or entity to the City. After the action is brought and the service of the summons and complaint has been made upon the individual, corporation, association or entity and a judgment has been obtained by the City, the City may enforce the judgment by execution and sale in accordance with the procedures set forth by law for the enforcement of judgments. The judgments shall bear interest at the rate of ten percent per year and shall include reasonable Attorney’s fees and costs of suit. The remedy as set forth in this section shall be nonexclusive and the City may pursue any or all of the remedies as contained in this code for the enforcement of this code. 1.04.095 RECOVERY OF ATTORNEYS’ FEES IN NUISANCE ABATEMENT ACTION. In any action, administrative proceeding or special proceeding, brought by the city to abate a nuisance, the prevailing party shall be entitled to a recovery of reasonable Attorneys’ fees. This section shall apply only if the City elects, at the initiation of the individual action or proceeding, to seek recovery of its own Attorneys’ fees. The amount of Attorneys’ fees in the action, administrative proceeding or special proceeding, shall not exceed the amount of reasonable Attorneys’ fees incurred by the City in the action or proceeding. 1.04.100 JUDICIAL REVIEW—ADMINISTRATIVE DECISIONS. The City Council adopts California Code of Civil Procedure Section 1094.6, which defines the time period in which judicial review may be requested for certain final administrative decisions and orders under California Code of Civil Procedure Section 1094.5. Pursuant to Section 1094.6(f), the City clerk shall provide notice to any party to a final decision indicating that the time within which judicial review must be sought is governed by California Code of Civil Procedure Section 1094.6. Section 1.08 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 1.08 CITATIONS FOR CODE VIOLATIONS 1.08.010 AUTHORITY OF CITY MANAGER. The City Manager and/or their designated representative in the Code Compliance Division shall have the power to issue misdemeanor or infraction citations only with respect to any violation of any section of the municipal code except those specific codes administered solely by the fire department and police department. The City Manager and/or their designated representative acting as the fire marshal and/or fire inspector shall have the power to issue misdemeanor or infraction citations only with respect to any Page 48 ORDINANCE NO. -5- violation of any section of the Uniform Fire Code adopted by the Palm Desert Municipal Code. However, the City Manager and/or their designated representative shall have the power to issue citations for nonmoving traffic violations. Section 1.12 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 1.12 GENERAL PENALTY 1.12.010 GENERAL PENALTY—CONTINUING VIOLATIONS. Whenever in this code or in any other ordinance of the City, or in any resolution of the City adopted in accordance with the provisions of this code, any act is prohibited or is made or declared to be unlawful or an offense or a misdemeanor, or the doing of any act is required or the failure to do any act is declared to be unlawful or any offense or a misdemeanor, where no specific penalty is provided therefor, the violation of any such provision of this code or any other ordinance of the City shall be punished by a fine not exceeding one thousand dollars or imprisonment for a term not exceeding six months, or by both such fine and imprisonment. Unless otherwise indicated to the court upon filing or upon motion of the City Attorney, all violations of this code shall be prosecuted as infractions and the term of imprisonment referred to above shall not be applicable. In unusual situations where there are repeated offenses or where the violation is particularly detrimental, the violation presently designated in this code as a misdemeanor may be prosecuted as a misdemeanor on motion of the City Attorney. 1.12.040 SEPARATE OFFENSE EACH DAY. Except in cases where a different penalty is prescribed by any ordinance of the City, each Person is guilty of a separate offense for each and every day during any portion of which any violation of any provision of the ordinances of the City is committed, continued, or permitted by any such Person, and shall be punishable accordingly. Section 3.30 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 3.30 PURCHASING SYSTEM AND PUBLIC WORKS CONTRACTS 3.30.010 PURPOSE. The purpose of this chapter is to prescribe efficient policies and procedures for the procurement of Public Works projects, Contractual Services, Professional Services, and materials, supplies, and equipment to better serve the City’s residents. All purchasing will be done with absolute integrity and equal opportunity will be provided to all, free of discrimination. Page 49 ORDINANCE NO. -6- 3.30.020 DEFINITIONS. The following terms, whenever used in this chapter, shall be construed as follows: “Contractual Services” mean all services, other than Professional Services, including, but not limited to, repairs, maintenance work, and rental equipment. The term does not include services rendered by City officers or employees. “Department” or “Agency” means a Department, Agency, or other unit of the City government whose affairs and funds are under the supervision and control of the City Council. “Designated Position” means a City staff position authorized by the City Manager to make purchases consistent with this chapter subject to dollar limits set by the City Manager. “Local Business” means a vendor, contractor, or consultant who has a valid physical business address located within one of the nine incorporated cities of the Coachella Valley, or within an unincorporated area of Riverside County in the Coachella Valley within the boundaries of the Coachella Valley Association of Governments, at least six months prior to bid or proposal opening date, from which the vendor, contractor, or consultant operates or performs business on a day-to-day basis, and holds a valid business license by a jurisdiction located in the Coachella Valley. Post office boxes are not verifiable and shall not be used for the purpose of establishing such physical address. “Materials, Supplies, and Equipment” means any and all articles, things, or Property, other than Real Property, furnished to be used by any City Agency. “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51). “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54). “Professional Services” means all services performed in a professional occupation including, but not limited to, accounting, auditing, appraising, computer hardware and software support, engineering, architectural, planning, environmental, redevelopment, financial, economic, social services, legal, construction project management, communications, land surveying and other similar professional functions which may be necessary for the operation of the City. “Public Project” or “Public Works” means: Page 50 ORDINANCE NO. -7- 1.A project for the erection, improvement, painting, or repair of public buildings and works. 2.Work in or about streams, embankments, or other works for protection against overflow. 3.Street or sewer work except maintenance or repair. “Prime contractor” means the contractor who contracts directly with the City. “Purchasing” means the procurement of Public Projects, Contractual Services, Professional Services, and materials, supplies, and equipment as needed by the City. “Recycled-Content Paper” means Paper Products and Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61). “Subcontractor” means a contractor who contracts directly with the prime contractor. 3.30.030 PURCHASING OFFICER. The Purchasing Officer shall be the City Manager or designee. The City Manager may delegate some or all of the duties of that position to one or more subordinate employees. The Purchasing Officer shall supervise the Purchasing functions of the City. The Purchasing Officer is authorized to establish methods and procedures for efficient and economical Purchasing. 3.30.040 PURCHASING OFFICER—POWERS AND DUTIES. The Purchasing Officer, in accordance with this chapter and any written policies and/or procedures approved by the City Manager consistent with this chapter, shall have the power to: A.Purchase and Contract. Purchase or contract for Public Projects, Contractual Services, Professional Services, and Materials, Supplies, and Equipment required by the City. B.Purchasing Policies Procedures. Prepare and implement policies and procedures governing the bidding, contracting, and Purchasing of Public Projects, Contractual Services, Professional Services, and Materials, Supplies, and Equipment for the City. C.Forms. Prescribe and maintain such forms as may be reasonably necessary to the implementation of this chapter and any other policies and procedures approved by the City Manager consistent with this chapter. D.Surplus Materials, Supplies, and Equipment. Establish policies and procedures to sell, repurpose or Dispose of any Materials, Supplies, and Equipment not needed for public use or that are obsolete, damaged beyond repair, or may become unsuitable for their intended use including establishing value thresholds for surplus. Page 51 ORDINANCE NO. -8- E. Purchase for Resale. May, by adopting a procedure approved by the City Manager, authorize the purchase of Materials, Supplies, and Equipment for resale from such enterprises as the golf course, or visitor’s center to obtain the best possible price for the desired merchandise. Such purchases shall not be subject to the award limits noted in this chapter, provided funding is available within the appropriated budget. F. Bidder, Contractor and Vendor Lists and Catalogs. Develop and maintain any bidder’s list, contractor’s list or vendor’s list necessary to the operation of this chapter and any other policies and procedures approved by the City Manager consistent with this chapter. G. Recycled Product Procurement Policy. Establish and maintain procedures and specifications for the purchase of Recycled-Content Paper and Recycled-Content Paper Products as described in Section 3.30.190.B.4. 3.30.190 PREFERENCE FOR RECYCLED CONTENT. A. Environmentally Preferable Practices: The City will act to make resource conservation an integral part of its waste reduction and recycling programs. The practice of discarding materials used in the City facilities is wasteful of natural resources, energy, and money. 1. The City will integrate the concept of resource conservation, including waste reduction and recycling, into its environmental programs. 2. The City will decrease the amount of waste of consumable materials by: a. Reducing the consumption of consumable material wherever possible. b. Fully utilizing all material prior to Disposal. c. Minimizing the use of nonbiodegradable products wherever possible. 3. The City will cooperate with, and participate in, recycling efforts being made by the City and County. As systems for recovering waste and recycling develop within the City limits, the City will participate by appropriately separating and allowing recovery of recyclable waste products. 4. All vendors providing Paper Products and printing and writing paper shall: a. Provide Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal, and available at equal or lesser price. b. Provide Paper Products and Printing and Writing Paper that meet Federal Trade Commission recyclability standard as defined in 16 Code of Federal Regulations (CFR) Section 260.12. c. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website. Page 52 ORDINANCE NO. -9- d. Certify in writing, on invoices or receipts provided, that the Paper Products and Printing and Writing Paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12. B. Representatives of the City will actively advocate, where appropriate, for resource conservation practices to be adopted at the local, regional, and national levels. Section 8.12 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 8.12 DISCARDED MATERIAL ENCLOSURES 8.12.005 DEFINITION OF TERM. Within this chapter, the term “Discarded Material enclosures” is defined hereinafter as an enclosure for Solid Waste, recyclable materials, and Organic Materials Containers unless otherwise specified. All definitions from Chapter 8.16 will also apply in this Chapter 8.12. 8.12.010 REQUIREMENTS. In order to protect Persons against hazardous conditions and safeguard the public welfare by preventing unsightly storage of Discarded Materials that may devalue the neighborhood and community, the City Council requires Discarded Material enclosures to be provided for all new construction, constructed additions that result in an increase of thirty percent (30%) or more in floor area within a 12 month period, multifamily, office, institutional, commercial, and manufacturing uses in any zone district in the City. All such enclosures shall be constructed in accordance with specifications approved and on file with the City Manager and the building division. Required building permits shall not be issued until the City Manager has approved the size, design, and location of said enclosures. Discarded material enclosures may be combined for more than one Generator, provided the capacity is adequate for all Generators. 8.12.020 EXCEPTIONS. Temporary use of twelve-cubic-yard Containers or larger, or temporary compactors for cleanup of lots or buildings shall not be required to be enclosed. 8.12.030 ENCLOSURE CONSTRUCTION STANDARDS. Discarded material enclosures shall be of adequate size to contain, at minimum, a Solid Waste, a Recyclable Materials, and an Organic Materials Container that meet the needs of the facility as required by the California Code of Regulations, Title 23, the California Green Building Standards Code, Chapter 4 Residential Mandatory Measures, and Chapter 5 Nonresidential Mandatory Measures. Minimum construction standards shall be as designated in Exhibits A, B, C, and D as amended of the ordinance codified in this chapter or as approved by the director of public works or designee. Enclosure(s) shall be Page 53 ORDINANCE NO. -10- of adequate size to accommodate facility’s size and use, properly located for functional use by the user and the disposal company, view-obscured from all sides, and built of approved materials compatible to the buildings, walls, and surroundings. Page 54 ORDINANCE NO. -11- Page 55 ORDINANCE NO. -12- Page 56 ORDINANCE NO. -13- Page 57 ORDINANCE NO. -14- Page 58 ORDINANCE NO. -15- Page 59 ORDINANCE NO. -16- 8.12.040 Size. Page 60 ORDINANCE NO. -17- The normal enclosure area for Discarded Materials shall be of a minimum size to enclose all required Containers, with a six-foot, six-inch, ramp approach, and a six-foot-high decorative wall and sight-obscuring gate. Equal space within the enclosures shall be given to Recyclable Materials, Organic Materials, and Solid Waste Containers. More space may be given to the recyclable Materials Container and/or the Organic Materials Container. Deviation in size may be made by the director of public works or their designee. 8.12.050 INSTALLATION. All existing developments described in Section 8.12.010 shall install approved Discarded Material enclosures within one year from the date of approval of the ordinance codified in this chapter, and within thirty days of the official notification by the City of any violation to this chapter. 8.12.060 VIOLATION—PENALTY. It is unlawful for any Person to violate any provision or fail to comply with any of the requirements of this chapter. Any Person violating any provision of this chapter or failing to comply with any of the requirements is deemed guilty of a misdemeanor in accordance with Chapter 1.12 of this code. Section 8.16 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 8.16 SOLID WASTE 8.16.010 DEFINITIONS. As used in this chapter and Chapters 8.12, 8.17, 8.19, 8.80, and 8.81, the following words and phrases are defined and shall be construed as hereinafter set forth, unless it is apparent from the context that a different meaning was intended. If a term or word is not specifically defined herein but is defined in the California Integrated Waste Management Act of 1989 (California Public Resources Code Sections 40000 et seq.) it shall have the meaning prescribed therein. “CalRecycle” means California’s Department of Resources Recycling and Recovery or its successor. “Citation” or “administrative citation” means an administrative citation issued pursuant to Chapter 1 of this code. “City” means the City of Palm Desert, California. “City Council” means the City Council of the City of Palm Desert, California. “City Manager” means the City Manager of the City of Palm Desert, or their Designee. Page 61 ORDINANCE NO. -18- “City-Regulated Recycle Containers,” as used in this chapter and associated thereto, means all Containers provided by the City or the Franchise Waste Hauler(s) of the City for the Collection of Recyclable Materials. "Collect" or "Collection" means the act of Collecting Solid Waste, including Recyclable Materials and Organic Waste, at or near the place of generation by a Franchise Waste Hauler, and the physical possession, transport, and removal of such materials. “Commercial” or “Commercial Business” means any building or site in any zone of the City, other than Residential Premises, from which any business, service, non-profit, governmental, institutional, commercial, or industrial activity is conducted, including, without limitation, motels, hotels, recreational vehicle parks, Restaurants, professional offices, clubhouses, places of entertainment, manufacturing plants, and private schools, or a Multifamily Residential Dwelling, or as otherwise defined in 14 CCR Section 18982(a)(6). A Multi-Family Residential Dwelling that consists of fewer than five (5) units is not a Commercial Business for purposes of implementing this ordinance. “Commercial Edible Food Generator” includes a Tier One or a Tier Two Commercial Edible Food Generator as defined in Chapter 8.16.010 of this ordinance or as otherwise defined in 14 CCR Section 18982(a) (73) and (a) (74). For the purposes of this definition, food recovery organizations and food recovery services are not Commercial Edible Food Generators pursuant to 14 CCR Section 18982(a) (7). “Community Composting” means any activity that composts Organic Material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 CCR Section 17855(a)(4); or, as otherwise defined by 14 CCR Section 18982(a)(8). “Compliance Review” means a review of records by the City to determine compliance with this chapter. “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), which stated, as of the effective date of this ordinance, that “Compost” means the product resulting from the controlled biological decomposition of organic Solid Wastes that are source separated from the municipal Solid Waste stream, or which are separated at a centralized facility. “Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the ASTM D6400 standard required for a material to be compostable, or as otherwise specified by 14 CCR Section 18982(a)(18). “Contaminated” or “Contamination” (or any variation thereof) means a Container containing: Page 62 ORDINANCE NO. -19- A. Discarded materials placed in a Blue Container that are not identified as Recyclable Materials. B. Discarded materials placed in a Green Container that are not identified as Organic Materials. C. Discarded materials placed in a Gray Container that are identified as Recyclable Materials and/or Organic Materials, which are to be separately Collected. D. Excluded Waste placed in any Container. "Container(s)" means a receptacle for temporary storage of Discarded Materials. Containers include, but are not limited to, bins, carts, roll-off boxes, split bins, compactors, cans, buckets, or other storage instruments. “Container Contamination” or “Contaminated Container” means a Container, regardless of color, that contains Prohibited Container Contaminants, or as otherwise defined in 14 CCR Section 18982(a)(55). "Construction and Demolition Debris," C&D Waste,” or “C&D Material” means any combination of inert building materials and Solid Waste resulting from construction, remodeling, repair, cleanup, or demolition operations as defined in 22 CCR Section 66261.3 et seq. This term includes, but is not limited to, asphalt, concrete, Portland cement concrete, brick, lumber, gypsum wallboard, cardboard, and other associated packaging; roofing material, ceramic tile, carpeting, plastic pipe, and steel. The material may be commingled with rock, soil, tree stumps, and other vegetative matter resulting from land clearing and landscaping for construction or land development projects. “County” means Riverside County. “Curbside Programs,” as used in this chapter and associated thereto, means the location where City-owned Discarded Materials shall be placed and picked up by the City, or Franchise Waste Hauler(s) of the City. “Designated Source Separated Organic Waste Facility” shall have the same definition as 14 CCR § 18982(14.5). “Designee” means an entity that the City contracts with or otherwise arranges to carry out any of the City’s responsibilities of this chapter and as authorized in 14 CCR Section 18981.2. A Designee may be a government entity, a waste hauler, a private entity, or a combination of those entities. “Discarded Material” means Recyclable Materials, Organic Materials, and/or other Solid Waste, in all cases where a fee or other compensation, in any form or amount, is directly or indirectly solicited from, or, levied, charged, or otherwise imposed on, or paid by, the Generator in exchange for handling services. As used herein, handling services include, without limitation, the Collection, removal, transportation, delivery, Recycling, Processing and/or Disposal of the material. Discarded materials do not include Edible Food that is recovered for human consumption and is not discarded. Discarded materials include Page 63 ORDINANCE NO. -20- source separated Recyclable Materials, source separated Organic Materials, Food Waste, Solid Waste, bulky items, and C&D debris once the materials have been placed in Containers for Collection or, if not placed in Containers for Collection, placed properly for Collection. “Disposal” or “Disposed” means the ultimate disposition of Discarded Materials at a landfill or otherwise in full regulatory compliance. “Disposal” does not include Recycling or Organic Materials Processing. “Divert” or “Diversion” (or any variation thereof) means to prevent Discarded Materials from being Disposed of at a landfill or transformation facilities, (including facilities using incineration, pyrolysis, distillation, gasification, or biological conversion methods) through source reduction, reuse, Recycling, Composting, anaerobic digestion, or other method of Processing. “Dwelling” means the individual private Premises contained in any building intended, whether occupied or not, as the residence for one household, regardless of the number of individuals in the household. A building may contain more than one Dwelling Unit. A “Dwelling” does not include hospitals, hotels, motels, nursing homes, or convalescent centers. “Edible Food” means food intended for human consumption, or as otherwise defined in 14 CCR Section 18982(a)(18). For the purposes of this ordinance or as otherwise defined in 14 CCR Section 18982(a)(18), “Edible Food” is not Solid Waste if it is recovered and not discarded. “Enforcement Action" means an action of the City to address non-compliance with this ordinance including, but not limited to, issuing Administrative Citations, fines, penalties, or using other remedies. “Excluded Waste” or “Prohibited Waste” means hazardous substances, hazardous waste, infectious waste, designated waste, volatile, corrosive, medical waste, sharps, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the City and its Generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, Processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in the City’s, or its Designee’s, reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose the City, or its Designee, to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in single-family or Multi-Family Solid Waste after implementation of programs for the safe Collection, Processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. Excluded Waste does not include electronic waste, universal waste, used motor oil and filters, or household batteries when such materials are defined as allowable materials for Collection through the City’s Collection programs and the Generator has properly placed Page 64 ORDINANCE NO. -21- the materials for Collection pursuant to instructions provided by the City or its Designee for Collection services. “Food Distributor” means a company that distributes food to entities including, but not limited to, Supermarkets and Grocery Stores, or as otherwise defined in 14 CCR Section 18982(a)(22). “Food Facility” has the same meaning as in Section 113789 of the Health and Safety Code. “Food Recovery” means actions to collect and distribute food for human consumption which otherwise would be disposed of, or as otherwise defined in 14 CCR Section 18982(a)(24). “Food Recovery Organization” means an entity that engages in the collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities, including, but not limited to: A. A food bank as defined in Section 113783 of the Health and Safety Code. B. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code. C. A nonprofit charitable temporary Food Facility as defined in Section 113842 of the Health and Safety Code. “Food Recovery Service” means a Person who or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a food recovery organization or other entities for food recovery, or as otherwise defined in 14 CCR Section 18982(a)(26). “Food Scraps” includes, but is not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, grains, bread, cheese, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps. “Food Service Provider” means an entity primarily engaged in providing food services to institutional, governmental, Commercial, or industrial locations of others based on contractual arrangements with these types of organizations, or as otherwise defined in 14 CCR Section 18982(a)(27). “Food-Soiled Paper” is paper material that has come in contact with food or liquid, such as, but not limited to, paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. Food-Soiled Paper excludes Non-Compostable Paper. “Food Waste” means Food Scraps separated from Solid Waste and offered for Collection by Franchise Waste Hauler, that will decompose and/or putrefy including (i) all kitchen and table Food Waste, and animal or vegetable waste that attends or results from the storage, preparation, cooking, or handling of food stuffs; and (ii) Food-Soiled Paper. Page 65 ORDINANCE NO. -22- “Franchise Agreement” means an agreement made by the City with a Franchise Waste Hauler for the Collection of Recyclable Materials, Organic Material and/or Solid Waste. “Franchise Waste Hauler” shall mean any Person, Persons, firm, or corporation to whom a Franchise Agreement has been granted by the City for the Collection, Processing, Recycling, and Disposal of Discarded Materials. “Generator” means a Person or entity that is responsible for the initial creation of one or more types of Discarded Materials. “Hauler Route” means the designated itinerary or sequence of stops for each segment of the City’s Collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5). "Hazardous Material " is defined to include any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government. The term “Hazardous Material” includes, without limitation, any material or substance which is: (i) petroleum or oil or gas or any direct or derivate product or byproduct thereof; (ii) defined as a “hazardous waste,” “extremely hazardous waste” or “restricted hazardous waste” under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (iii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iv) defined as a “Hazardous Material,” “hazardous substance,” or “hazardous waste” under Sections 25501(j) and (k) and 25501.1 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (v) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (vi) “used oil” as defined under Section 25250.1 of the California Health and Safety Code; (vii) asbestos; (viii) listed under Captor 11 of Division 4.5 of Title 22 of the California Code of Regulations, or defined as hazardous or extremely hazardous pursuant to Chapter 10 of Division 4.5 of Title 22 of the California Code of Regulations; (ix) defined as waste or a hazardous substance pursuant to the Porter-Cologne Act, Section 13050 of the California Water Code; (x) designated as a “toxic pollutant” pursuant to the Federal Water Pollution Control Act, 33 U.S.C. Section 1317; (xi) defined as “ hazardous waste” pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. § 6903); (xii) defined as a “hazardous substance” pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 6901); (xiii) defined as “Hazardous Material” pursuant to the Hazardous Materials Transportation Act 29 U.S.C. Section 5101, et seq.; or (xiv) defined as such or regulated by any “Superfund” or “Superlien” law, or any other federal, State or local law, statute, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials and/or oil wells and/or underground storage tanks and/or pipelines, as now, or at any time hereafter, in effect. Page 66 ORDINANCE NO. -23- "Hazardous Waste" means all substances defined as hazardous waste, acutely hazardous waste, or extremely hazardous waste by the State of California in Health and Safety Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as hazardous waste by the US Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.). “Health Officer” includes the Health Officer or other agent of the Health Department of County, and shall include duly authorized personnel of the State Department of Health Services in the enforcement of applicable State law, City ordinance, or State or County rule or regulation in aid thereof. “High Diversion Organic Waste Processing Facility” means a facility that is in compliance with the reporting requirements of 14 CCR Section 18815.5(d) and meets or exceeds an annual average Mixed Waste organic content Recovery rate of 50 percent between January 1, 2022 and December 31, 2024, and 75 percent after January 1, 2025, as calculated pursuant to 14 CCR Section 18815.5(e) for Organic Waste received from the “Mixed waste organic collection stream” as defined in 14 CCR Section 17402(a)(11.5); or, as otherwise defined in 14 CCR Section 18982(a)(33). “Inspection” means a site visit where a Designee of the City reviews records, Containers, and an entity’s Collection, handling, Recycling, or landfill Disposal of Discarded Materials or Edible Food handling to determine if the entity is complying with requirements set forth in this ordinance, or as otherwise defined in 14 CCR Section 18982(a)(35). “Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a Local Agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, Street system, or other open space when being used for an event. If the definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14 CCR Section 18982(a)(38) shall apply to this ordinance. “Large Venue” means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39) shall apply to this ordinance. Page 67 ORDINANCE NO. -24- “Local Education Agency” means a school district, charter school, or County office of education that is not subject to the control of City or County regulations related to Solid Waste, or as otherwise defined in 14 CCR Section 18982(a)(40). “Multi-Family”, “Multi-Family Residential Dwelling,” or “Multi-Family Premises,” for the purpose of SB 1383 means of, from, or pertaining to Residential Premises with five (5) or more Dwelling Units. Multi-Family Premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses. References to “Multi-Family Dwelling Unit” refer to an individual residential unit of the Multi-Family Premises. “Non-Compostable Paper” includes but is not limited to paper that is coated in a plastic material that will not breakdown in the Composting process, or as otherwise defined in 14 CCR Section 18982(a)(41). “Non-Local Entity” means the following entities that are not subject to the City’s enforcement authority, or as otherwise defined in 14 CCR Section 18982(a)(42): A. Special district(s) located within the boundaries of the City. B. Federal facilities located within the boundaries of the City. C. Public universities (including community colleges) located within the boundaries of the City. D. State agencies located within the boundaries of the City. “Non-Organic Recyclables” means non-putrescible and non-hazardous Recyclable Materials, including but not limited to bottles, cans, metals, plastics, and glass, or as otherwise defined in 14 CCR Section 18982(a)(43). “Notice of Violation” or “(NOV)” means a notice that a violation has occurred that includes a compliance date to avoid an action to seek penalties, or as otherwise defined in 14 CCR Section 18982(a)(45) or further explained in 14 CCR Section 18995.4. “Organic Materials” are defined as Food Waste, Yard Waste, landscape and pruning waste, nonhazardous wood waste, and Food-Soiled Paper waste that is mixed in with Food Waste. No Discarded Material shall be considered to be Organic Materials, however, unless it is separated from Recyclable Materials and Solid Waste. Organic Materials are a subset of Organic Waste. “Organic Materials Container” or “Green Container” means a Container designated for the Collection of Organic Materials. “Organic Waste” means Solid Waste containing material originated from living organisms and their metabolic waste products, including but not limited to Food Waste, Food Scraps, Yard Waste, organic textiles and carpets, lumber, wood, Paper Products, printing and writing paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively. Page 68 ORDINANCE NO. -25- “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51). “Person” means an individual, group of individuals, and/or any legal entity recognized by the laws of the State. “Premises” means and includes any land, building and/or structure, or portion thereof, in the City where Discarded Materials are produced, generated, or accumulated. All structures on the same legal parcel which are owned by the same Person shall be considered as one Premises. “Processing” means the controlled separation, recovery, volume reduction, conversion, or recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section 17402(a)(20). “Prohibited Container Contaminants” means: A. Discarded Materials placed in the Recyclable Materials Container that are not identified as acceptable Source Separated Recyclable Materials for the City’s Recyclable Materials Container. B. Discarded Materials placed in the Organic Materials Container that are not identified as acceptable Source Separated Organic Materials for the City’s Organic Materials Container. C. Discarded Materials placed in the Solid Waste Container that are acceptable Source Separated Recyclable Materials and/or Source Separated Organic Materials to be placed in City’s Organic Materials Container and/or Recyclable Materials Container. D. Excluded Waste placed in any Container. “Record Owner” means the Owner of a parcel whose name and address appear on the last equalized secured property tax assessment roll, or in the case of any public entity, the State of California, or the United States, means the representative of that public entity at the address of that entity known to the Agency. “Recycle” or “Recycling” means the process of Collecting, sorting, cleansing, treating, and reconfiguring Recyclable Materials for the purpose of returning them to the economic mainstream in the form of raw materials for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. Recycling includes processes deemed to constitute a reduction of landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201. The Collection, transportation, or Disposal of Solid Waste not intended for, or capable of, reuse is not Recycling. Page 69 ORDINANCE NO. -26- “Recycling Business,” as used in this chapter and associated thereto, means any Person or Persons, firm, partnership, joint venture, association, or corporation engaged in the Collection and Recycling of Recyclable Materials. "Recyclable Materials" or “Recyclables” means those Discarded Materials that capable of being set out by Generators in Recyclables Containers for Collection for the purpose of Recycling. Recyclable Materials shall include, but not be limited to: A. Newspaper (including inserts, coupons, and store advertisements); B. Mixed paper (including office paper, computer paper, magazines, junk mail, catalogs, brown paper bags, brown paper, paperboard, paper egg cartons, telephone books, colored paper, construction paper, envelopes, legal pad backings, shoe boxes, gable top beverage Containers, cereal and other similar food boxes, yet excluding paper tissues, paper towels, paper with plastic coating, paper Contaminated with food, wax paper, foil-lined paper and cartons, and Tyvex non-tearing paper envelopes); C. Chipboard; D. Corrugated cardboard; E. Glass containers of any color (including brown, clear, and green glass bottles and jars); F. Aluminum (including beverage Containers and small pieces of scrap metal); G. Steel, tin, or bi-metal cans; H. Mixed plastics such as plastic Containers (no. one (1) to seven (7)), except expanded Polystyrene (EPS), and I. Bottles (including bottles made of HDPE, LDPE, or PET). “Recyclable Materials Container,” “Recyclables Container,” Or “Blue Container” means a Container designated for the Collection of Recyclable Materials. “Residential” means any Residential Dwelling. “Residential Complex” refers, without regard to form of ownership, to a parcel of Property with no more than four separate Dwelling Units, each unit intended for occupancy by separate households, that provides on such parcel off street parking for residents of the complex. “Responsible Party” means the Owner, Property Manager, Tenant, lessee, occupant, or their other Designee that subscribes to and pays for Recyclable Materials, Organic Materials, and/or Solid Waste Collection services for a Premises in the City, or, if there is no such subscriber, the Owner or Property Manager of a Single-Family Premises, Multi- Family Premises, or Commercial Premises. In instances of dispute or uncertainty regarding who is the Responsible Party for a Premise, Responsible Party shall mean the Owner of a Single-Family Premises, Multi-Family Premises, or Commercial Premises. Page 70 ORDINANCE NO. -27- “Restaurant” means an establishment primarily engaged in the retail sale of food and drinks for on-premises or immediate consumption, or as otherwise defined in 14 CCR Section 18982(a)(64). “Route Review” means a visual Inspection of Containers along a waste hauler’s route for the purpose of determining Container Contamination and may include mechanical Inspection methods such as the use of cameras, or as otherwise defined in 14 CCR Section 18982(a)(65). “SB 1383” means Senate Bill 1383 (Chapter 395, Statutes of 2016). “SB 1383 Regulations” or “SB 1383 Regulatory” means or refers to the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter 12 and amended portions of regulations of 14 CCR and 27 CCR. “Self-Haul” means to act as a Self-Hauler. “Self-Hauler” means a Person, who hauls Solid Waste, Organic Waste, or Recyclable Material they have generated to another Person. Self-Hauler also includes a landscaper, or a Person who back-hauls waste. Back-haul means generating and transporting Recyclable Materials or Organic Waste to a destination owned and operated by the Generator using the Generator’s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A). “Solid Waste” means all discarded putrescible and non-putrescible solid, semi-solid, and liquid wastes, including refuse, Construction and Demolition Debris, bulky items, Recyclable Materials, and Organic Waste, or any combination there-of which are permitted to be Disposed of in a Class III landfill, and which are included in the definition of “non-hazardous solid waste” set forth in the California Code of Regulations. "Solid Waste" means all Solid Wastes generated by Residential, Commercial, and industrial sources, and all Solid Waste generated at construction and demolition sites, and at treatment works for water and wastewater, which are Collected and transported under the authorization of the City or are Self-Hauled by businesses or contractors. Solid Waste does not include agricultural crop residues, mining waste and fuel extraction waste, forestry wastes, ash from industrial boilers, furnaces and incinerators or Hazardous Material, any waste which is not permitted to be Disposed of at a Class III landfill and which fall within the definition of “nonhazardous solid waste” set forth in Title 23, Chapter 15, Section 2523(a) of the California Code of Regulations as amended or designated Class II wastes. Materials shall be deemed “Solid Waste” consistent with the meaning of California Public Resources Code Section 40191, and for purposes of this municipal code shall be regulated as such, whether or not they may be potentially Recyclable Materials or Organic Materials, in either of the following instances: (a) the material is mixed or commingled with other types of solid waste such that more than 65% of the material consists of solid waste rather than Recyclable Materials or Organic Materials, or (b) the payment of a fee, charge, or other consideration, in any form or amount, is directly or indirectly solicited or received from the Generator by any Person or combination of Page 71 ORDINANCE NO. -28- Persons in exchange for Collection, removal, transportation, storage, Processing, handling, consulting, container rental or Disposal services (“fee for service” Recycling), whether or not arranged by or through a subcontractor, broker, agent, consultant, or affiliate of the provider of such service. “Solid Waste Container” or “Gray Container” shall be used for the purpose of storage and Collection of Solid Waste. “Source Separated” or “Source-Separated Materials” means materials, including commingled Recyclable Materials and Organic Materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or Processing those materials for Recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products, which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the ordinance, Source Separated shall include separation of materials by the Generator, Responsible Party, or Responsible Party’s employee, into different containers for the purpose of Collection such that Source-Separated Materials are separated from other Solid Waste for the purposes of Collection and Processing. “State” means the State of California. “Supermarket” means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more, and which sells a line of dry grocery, canned goods, or nonfood items and some perishable items, or as otherwise defined in 14 CCR Section 18982(a)(71). “Tax roll” means the assessment roll upon which general taxes of the City are collected by the County. “Tax roll billing” means the collection of Discarded Material fees from Single-Family Residential complexes, and any associated penalties and interest, on tax roll. “Three-Container System” means a Collection system in which Generators are required to Source Separate Discarded Materials into three streams: Solid Waste, Source Separated Recyclable Materials and Source Separated Organic Materials for placement in Containers specifically designated for those materials. “Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one or more of the following: A. Supermarket; B. Grocery Store with a total facility size equal to or greater than 10,000 square feet; C. Food Service Provider; D. Food Distributor; or E. Wholesale Food Vendor. Page 72 ORDINANCE NO. -29- If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this ordinance. “Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one or more of the following: A. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet; B. Hotel with an on-site Food Facility and 200 or more rooms; C. Health facility with an on-site Food Facility and 100 or more beds; D. Large venue; E. Large event; or F. A State Agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet. G. A Local Education Agency facility with an on-site Food Facility If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this ordinance. “Waiver Holder” means a Commercial Business that may apply for a waiver under Section 10.10.120. Under these circumstances, the City Manager or their Designee may issue special written permits (waivers) authorizing variations from the provisions of this chapter. Special written permits include de minimis waivers and physical space waivers. “Wholesale Food Vendor” means a business or establishment engaged in the merchant wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination, or as otherwise defined in 14 CCR Section 189852(a)(76). “Yard Waste” means leaves, grass clippings, brush, branches, and other forms of Organic Materials generated from landscapes or gardens, which have been source separated from other Solid Waste. Yard waste is a subset of Organic Materials and excludes Hazardous Materials. 8.16.020 OWNER’S RESPONSIBILITY. Every Person in charge of a residence or residences, whether Single-Family or Multi- Family, shall make arrangements with the Person authorized by law, to have removed, not less than once a week, from the Property upon which the residence or residences are located, all Discarded Materials created or produced or brought upon the Premises. Every Person in charge of a Commercial or industrial building shall not less than twice a week cause to be removed from the Property upon which the building is located all Discarded Materials created or produced or brought upon the Premises; provided, however, that upon written approval of the Health Officer, Discarded Materials created, produced or Page 73 ORDINANCE NO. -30- brought upon the Premises of an industrial or Commercial building may be removed not less than once a week. This latter provision, however, will not apply to food handling establishments from which Discarded Materials shall be caused to be removed not less than twice a week. Those food handling establishments having a self-contained compactor may, with the written approval of the supervising sanitarian, Department of Health, have their Discarded Materials removed once a week. This approval will be on a case-by-case basis. 8.16.030 CONTAINER SPECIFICATIONS. Every Person in charge of a residence, Commercial or industrial business shall deposit or cause to be deposited all Discarded Materials in standard Containers or Commercial Containers as approved by the Health Officer and the Solid Waste supervisor. Containers shall align with specifications in the Franchise Agreement with the Franchise Waste Hauler. No later than January 1, 2036, all Containers will comply with the Discarded Material Container color scheme as determined in Section 1898.4.1 of SB 1383; Solid Waste Containers will be gray or black, Recyclable Materials Containers will be blue, and Organic Waste Containers will be green. Solid Waste shall be Collected and stored as specified in the agreement with Franchise Waste Hauler. No Person shall maintain or place for Collection any Container not in conformance with the standard Container designated in this section and no Person authorized to Collect Discarded Materials shall remove contents of Containers not in conformance with the standard Container No Container shall be placed adjacent to a street or public right-of-way for Collection service more than twelve hours prior to the normal Collection time and shall be removed from the Street or right-of-way location within twelve hours after Collection. 8.16.035 STORAGE OF CONTAINERS IN RESIDENTIAL DISTRICTS. Every Person in charge of a residence shall, upon completion of the normal Collection, as defined in Section 8.16.010, store Containers in such a manner as not to be viewable by the public from a public right-of-way in order to maintain the aesthetic and Property values of surrounding Property. 8.16.040 REMOVAL PROHIBITED WHEN. It is unlawful for any Person other than the Person in charge of a residence, Commercial or industrial business, or the Person authorized by law to remove any Container from the location where the Container was placed by the Person in charge for storage or Collection, or to remove any Discarded Materials from the location in which the Discarded Materials were placed by the Person in charge for storage or Collection, without prior written approval of the Person in charge. It is unlawful to place Solid Waste, including Recyclable Materials and Organic Materials, in any standard Container without prior written approval of the Person in charge of the Container. 8.16.050 NONCOMPACTIBLE SOLID WASTE. Page 74 ORDINANCE NO. -31- No Person shall place noncompactible solid waste adjacent to a Street or public right-of- way for Collection or removal purposes without prior approval and arrangements with the Franchise Waste Hauler. 8.16.060 PERMITTED SELF-HAULER REQUIREMENTS. No Person or resident of the City shall remove, transport, or convey any Solid Waste upon or along any Street, alley, or place within the City, unless they hold a Franchise Agreement or other contract with the City for the Collection and Disposal thereof or are a permitted Self-Hauler or landscaper and gardener as set forth below. Every permitted Self-Hauler shall either: A. Source Separate all Recyclable Materials and Organic Materials (materials that City otherwise Collects in their Organic Materials and Recyclable Materials Collection services) generated on site from Solid Waste in a manner consistent with 14 CCR Sections 18984.1 and 18984.2, and transport Solid Waste to permitted transfer or disposal facility; haul their Source Separated Recyclable Materials to a facility that recovers those materials; and, haul their Source Separated Organic Waste to a facility, operation, activity, or property that processes or Recovers Source Separated Organic Waste. B. Alternatively, Self-Haulers may haul Discarded Materials to a City-approved High Diversion Organic Waste Processing Facility. Self-Haulers that are Responsible Parties of Commercial Businesses or Multi-Family Premises shall keep records of the quantity of Recyclable Materials, Organic Waste, and Solid Waste delivered to each facility, operation, activity, or property that processes or recovers Recyclable Materials and Organic Waste and processes or Disposes of Solid Waste or shall keep records of Solid Waste delivered to High Diversion Organic Waste Processing Facilities. Self-Haulers shall retain all records and data required to be maintained by this Section for no less than five (5) years after the Recyclable Materials, Organic Materials, and/or Solid Waste recorded was first delivered to the entity accepting the material. These records shall be subject to Inspection by the City or its Designee. The records shall include the following information: 1. Delivery receipts and weight tickets from the entity accepting the Recyclable Materials, Organic Materials, and Solid Waste. 2. The amount of material in cubic yards or tons transported by the Generator to each entity. 3. If the material is transported to an entity that does not have scales on-site, or employs scales incapable of weighing the Self-Hauler’s vehicle in a manner that allows it to determine the weight of materials received, the Self-Hauler is not required to record the weight of material but shall keep a record of the entities that received the Recyclable Materials, Organic Materials, and Solid Waste. Records shall include the name, address, City, State, zip code, phone number, and email of the entity. Page 75 ORDINANCE NO. -32- C. The City Manager may require Self-Haulers to obtain a Self-Hauler permit. The City Council may impose and modify fees for such permit by resolution. The City Manager shall adopt and implement administrative policies regarding the application, issuance, and a Self-Hauler may be required to obtain a Self-Hauler permit in accordance with City’s administrative policies as adopted by the City Manager, including, but not limited to, fees and the requirement to provide additional information). D. Only Commercial Businesses or Multi-Family Premises may be permitted to Self- Haul. All Self-Haulers shall provide copies of records required by this Section to City if requested by the City Manager or their Designee and shall provide the records at the frequency requested by the City Manager or their Designee. E. Where Yard Waste Diversion is incidental to landscaping contracts between Commercial Business and their gardening or landscaping service providers: 1. A Commercial Business contracting for gardening or landscaping services shall require written contracts which contain the following provisions: a. All Yard Waste generated at the Premises by the landscaping or gardening service shall be Diverted from Disposal by one or more of the methods in this Chapter 8.16.060. b. A requirement that the landscaper, gardener, or any third party(ies) certify in writing that the requirements set forth in Subsection (E) of this section are being met. c. A requirement that the landscaper, gardener, or any third party(ies) annually certify in writing that it is compliant with this section 8.16.060 by completing and submitting to City a City-provided reporting form. d. Upon request of a Commercial Business, the landscaper, gardener, or any third party(ies), are required to provide copies of weight tickets from the permitted processing facility(ies) where the Yard Waste from Premises within City were delivered by the landscaper or gardener. F. Upon City request, beginning January 1, 2022, Commercial Businesses that contract with a landscaping or gardening service provider shall complete and submit a compliance reporting form as provided by the City with the following items attached: 1. Copies of landscaper, gardener, or any other third party(ies) certification(s) that certify that the requirements set forth in Subsections (E) of this section were met during the preceding twelve (12) months. Upon request by the City, a Commercial Business contracting for gardening or landscaping services shall provide copies of the contracts, receipts, and/or weight tickets from the permitted processing facility(ies) to the City within thirty (30) calendar days of service of the City’s request for such documents. 8.16.070 FRANCHISE WASTE HAULER AND TRUCKS. In accordance with any Franchise Agreement with the City: Page 76 ORDINANCE NO. -33- A. The Franchise Waste Hauler shall provide sufficient Collection equipment to maintain a regular schedule of Collection. B. Trucks used for the Collection or transportation of Discarded Materials shall be leak-proof and equipped with a close-fitting cover which shall be affixed in a manner that will prevent spilling, dropping, or blowing away of any Discarded Materials upon the public right-of-way during Collection or transportation. C. All trucks used for Collection or transportation of Discarded Materials shall be maintained in a clean and sanitary condition, neatly and uniformly painted, and shall carry a shovel, broom, and fire extinguisher of such reasonable type, size, and condition as to be commercially reasonable for the provision of Collection services. D. The Person that owns any trucks used for Collection or transportation of Discarded Materials shall have their name, address, telephone number, and truck number printed on each side of all trucks in letters not less than three inches high and of such a color as to be legible against the color of the surface on which they are printed. E. All Collection trucks, tanks, Containers, and other receptacles used to transport Discarded Materials shall be cleaned and disinfected both on the inside and outside thereof at least once daily, and at all times shall be kept free from any Solid Waste on the outside thereof. F. The Franchise Waste Hauler shall maintain in good repair all Containers furnished to any Person. 8.16.080 HAZARDOUS WASTE. Every Person who collects or hauls hazardous or extremely Hazardous Waste shall immediately notify the Health Officer, in writing, listing the following information: A. The name, address, and telephone number of the collector or hauler. B. The name, address, and telephone number of the facilities from which the hazardous or extremely hazardous waste is collected. C. A description of the type of hazardous or extremely hazardous waste collected, as represented in writing by the administrator of the facility including the amounts collected measured in cubic feet and the frequency of collection. D. The name, address, and telephone number of the waste disposal facility that is used for the final disposal of the hazardous or extremely hazardous waste. 8.16.090 VIOLATION—PENALTY. It is unlawful for any Person to violate any provision or fail to comply with any of the requirements of this chapter. Responsible Parties who are the Owner, Tenant, lessee, or Person in control of Premises in the City, and who, after written Notice of Violation from the City, fails or refuses to correct such violation of this chapter within the time specified in such written notice is deemed to have committed an infraction or a misdemeanor in accordance with Chapter 1.12 of this code. Page 77 ORDINANCE NO. -34- 8.16.100 DEPOSITS OF HAZARDOUS MATERIALS—CLEAN-UP OR ABATEMENT— LIABILITY FOR COSTS. A. The Fire Department and the Public Works Department are authorized to clean up or abate the effects of any Hazardous Material deposited upon or into Property or facilities of the City; and any Person or Persons who intentionally or negligently cause such deposit shall be liable for the payment of all costs incurred by the Fire Department and/or the Public Works Department as a result of such clean-up or abatement activity. The remedy provided in this section shall be in addition to any other remedies provided by law. B. For purposes of this section, costs incurred by the Fire Department and/or the Public Works Department shall include, but shall not necessarily be limited to, the following: actual labor costs of City personnel, including workers’ compensation benefits, fringe benefits, and administrative overhead; cost of equipment operation; cost of materials obtained directly by the City; and cost of any contract labor and materials. C. The authority to recover costs under this section shall not include actual fire suppression services which are normally or usually provided by the Fire Department. 8.16.110 TAX ROLL BILLING. Exclusive Franchise. The City has an exclusive Franchise Agreement with the Franchise Waste Hauler for the Collection and handling of Discarded Materials within the City. All Generators within the City are required to subscribe to the Franchise Waste Hauler’s provided program for the Collection and handling of Discarded Materials, unless explicitly exempted by the City through a waiver as defined in Chapter 8.19.090. A. Record Owner. Effective July 1, 2015, all Collection service accounts for Single- Family Residential Premises shall be established and held in the legal Record Owner’s name. The Record Owner shall be responsible for the payment of collection service fees for their parcel. B. Franchise Waste Hauler Service Fees. The City may use tax roll billing to collect the Collection service fees imposed on the parcel of the Record Owner of a Single-Family Residential Premise. C. Franchise Waste Hauler Service Fees When Due. Collection service fees imposed on Single-Family Residences or Dwellings pursuant to this chapter shall be deemed delinquent if not paid within sixty (60) days of the date they are due to be paid to the County. All other Collection service fees shall be deemed delinquent if not paid within thirty (30) days following the billing statement date. D. Penalty. A penalty in an amount not to exceed ten percent (10%) of the Collection service fees which are delinquent shall be imposed upon the Record Owner or the Generator holding the service account with the City of a parcel as to which Collection service fees are delinquent, if not paid in the time and manner prescribed, and in addition may provide for a penalty not to exceed one and one-half percent (1.5%) per month for nonpayment of the Collection service fees and basic penalty. Page 78 ORDINANCE NO. -35- E. Remedies. Any remedies for the Collection and Enforcement of Collection service fees, rates, or other charges are cumulative, and the City may pursue remedies alternatively or consecutively or authorize the County to undertake action(s). F. Exception—New Developments. These requirements shall not apply to any Residential Premises that are part of new developments (i.e. new construction) until such time as one or more of the newly-constructed Residential Dwelling Units are first occupied. G. Temporary Suspension of Service. The Record Owner of a Single-Family Residential Property may suspend service for a total of four (4) months, split into either one request for a total of four (4) consecutive months or two (2) requests with each request being a maximum of two (2) consecutive months during which Generators are not residing at the Residential Premises. Any Person seeking to avail themself of the exception provided herein shall bear the burden of providing reasonable evidence to the City or its authorized representative, pursuant to such regulations or guidelines as the City Manager is hereby authorized to develop, demonstrating that the Premises was or will be vacant for the period in question. At such time as the Property is reoccupied, a restart fee will apply in addition to any Discarded Material service fees per the City’s Franchise Agreement with the Franchise Waste Hauler. The re-start fee only applies when service has been suspended and re-started at the same location by the same Record Owner, and does not apply to a new Property Owner establishing service at a new address. Section 8.17 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 8.17 RECYCLABLE MATERIALS 8.17.010 DEFINITIONS. Words and phrases defined in Chapter 8.16 of this municipal code shall have the same meanings when used in this chapter. 8.17.020 OWNERSHIP OF RECYCLABLE MATERIALS. A. Recyclable Materials placed in a City-regulated Recyclable Materials Container shall become the Property of the City at the time such Containers are set out for Collection by the Franchise Waste Hauler. Such Recyclable Materials shall be deemed discarded by the owner and shall be subject to any Franchise Agreement of the City. The Franchise Waste Hauler(s) of the City shall have the exclusive duty, right, and privilege to collect, transport, and process such Recyclable Materials. B. Recyclable Materials that are not set out for Collection by the Franchise Waste Hauler remain the Property of the Owner. 8.17.030 Removal of Recyclable Materials. Page 79 ORDINANCE NO. -36- A. No Person other than the City or the Franchise Waste Hauler(s) of the City acting in the scope of their Agency or employment shall remove any Recyclable Materials from a City-regulated Recyclable Materials Container. B. It is unlawful for any Person to do the following to any Recyclable Materials Container: C. Tamper or meddle with such a Container. 1. Tamper or meddle with the contents of any such Container. 2. Remove any such Container, its contents, or Recyclable Material lawfully placed alongside the Container from the location where the Container or such Recyclable Material has been placed for pick up by the City, the Franchise Waste Hauler(s) of the City, or a licensed Recycling Business. 8.17.040 OPERATION OF RECYCLING BUSINESS. A. No Person shall operate a Recycling Business in the City without first obtaining a business license pursuant to the provisions established in Chapter 5.04 of this code. B. Any Recycling Business operating in the City shall, at all times of doing business, maintain insurance in an amount specified by the business license agreement. The insurance shall include, but shall not be limited to, worker’s compensation, vehicle and comprehensive general liability insurance. The Recycling Business shall provide the City with copies of the insurance policies and certificates of insurance at the following times: C. Proof of insurance shall be provided to the City at the time a business license is sought. 1. Proof of insurance shall be provided to the City at the time the renewal of a business license is sought. 2. Proof of insurance shall be provided to the City within ten business days of receiving a written request from the City. 3. Any Recycling Business operating in the City shall be responsible for removing debris and materials which it has caused to fall in the public right- of-way during Collection and transportation. D. Any Recycling Business operating vehicles in the City shall have the name of the licensed Recycling Business, address, telephone number, and truck number printed on each side of the vehicle, in letters not less than three inches high. E. Any Recycling Business operating in the City shall maintain a record of its waste Diversion. The record shall include, but not be limited to the total tonnage of Recyclable Materials Collected, the types of Recyclable Materials Collected, the location where the Recyclable Materials are Diverted and the type of Recycling program utilized. F. Any Recycling Business operating in the City shall deliver, or cause to be delivered, to the City quarterly reports concerning its waste Diversion. The reports shall be on forms provided by the City, and shall provide the City with information including, but not limited to the information required to be maintained in accordance with Section 8.17.040(E) of this code. The reports shall be submitted within forty-five days after the end of each calendar quarter. Page 80 ORDINANCE NO. -37- 8.17.050 VIOLATION—PENALTIES. It is unlawful for any Person to violate any provision or fail to comply with any of the requirements of this chapter. 8.17.060 Other remedies. A. After giving written notice of noncompliance and holding a hearing, the City Manager or director of code compliance, as appropriate, may suspend or revoke any business license issued under this chapter. B. After giving written notice of noncompliance and holding a hearing, the City Manager or director of code compliance, as appropriate, may impound any vehicle that is not maintained in accordance with the provisions established in Section 8.17.040(D) of this chapter. C. If a Person has violated or failed to comply with any provision of this chapter, the City Manager or director of code compliance, as appropriate, may seek all other civil remedies including, but not limited to, injunctive relief. 8.17.070 ENFORCEMENT—COSTS RECOVERABLE. The City Attorney, on behalf of the City, may take appropriate legal action against a Person to recover the costs associated with enforcement of this chapter against such a Person. Such costs shall include, but are not limited to, administrative costs, court costs, attorneys’ fees, and other expenses related to enforcing the provisions of this chapter. Section 8.19 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 8.19 REQUIREMENTS FOR COLLECTION OF SOLID WASTE, RECYCLABLE MATERIAL, AND ORGANIC MATERIAL FOR ALL RESIDENTS 8.19.010 PURPOSE AND STATUTORY AUTHORITY. The purpose of this chapter is to regulate the storage, Collection, Processing, and Disposal of Solid Waste, Recyclable Material and organic Material in the City. The ordinance codified in this chapter is adopted pursuant to the authority contained in general statutes governing powers of municipalities and various Federal and State statutes specifically regulating Solid Waste, recyclable Materials, and Organic Material. 8.19.020 DEFINITIONS. Words and phrases defined in Chapter 8.16 of this municipal code shall have the same meanings when used in this chapter. 8.19.030 City to provide Collection and Disposal. A. The Franchise Waste Hauler shall provide for Collection, Processing, and Disposal of Discarded Materials, in a three-Container system, including Solid Waste, Page 81 ORDINANCE NO. -38- Recyclable Material, and Organic Material Collection service when placed for Collection pursuant to this chapter. B. Compliance with the requirements of this chapter is necessary to procure the Collection and removal of all Solid Waste, Recyclable Material, and Organic Material from Residential and Commercial Generators, and such compliance shall be a defense to any prosecution for failure to remove or Dispose thereof. 8.19.040 CONTAINERS—GENERAL REQUIREMENTS. A. Every Person having charge or control of Residential or Commercial Premises in the City where Discarded Material accumulates shall Source Separate and keep the Solid Waste, Recyclable Material, and Organic Material in the designated Containers obtained exclusively through the Franchise Waste Hauler for use in the Franchise Waste Hauler’s Collection program. Containers assigned by or obtained from the Franchise Waste Hauler shall remain at all times Property of the Franchise Waste Hauler. At no time and under no circumstances shall the Container(s) be removed from the Property to which it was assigned. Ordinary wear and tear to Containers will be repaired and maintained by the Franchise Waste Hauler at no additional cost; damage caused by Generator abuse or negligence shall be charged to the Generator, or as otherwise provided in the Franchise Agreement. B. Persons served by the Collection program shall only use the approved Containers to be obtained exclusively through the Franchise Waste Hauler. No other Containers are allowed. C. The Franchise Waste Hauler shall replace existing Containers with Containers that meet State mandated color requirements, pursuant to 14 CCR Section 18984.9(b), if not already compliant, at the end of the useful life of those Containers, or prior to January 1, 2036, whichever occurs first. D. Solid Waste Containers shall be gray or black. 1. Recyclable Material Containers shall be blue. 2. Organic Material Containers shall be green. 3. If applicable, Source Separated Food Waste containers shall be brown. 8.19.050 CONTAINERS – PLACEMENT, CAPACITY, AND PICKUP. A. Containers shall be placed at or as near to the curb or edge of road as possible, so as to be accessible to Collection crews. Placement must be such that there is no interference with Collection (e.g., too close to vehicles, other refuse Containers, poles, fences, mailboxes, and other obstacles). Containers must be placed at the designated pickup area by five-thirty (5:30) a.m. on the scheduled day of Collection. No Container shall be placed curbside or adjacent to a Street more than twelve (12) hours prior to the normal Collection time and shall be removed from curb or Street location within twelve (12) hours after Collection. B. Toxic or Hazardous Materials, dead animals, building materials, large Yard Waste, and bulky items such as household furnishings or appliances are prohibited from being placed in Containers. Page 82 ORDINANCE NO. -39- C. Use of paper or plastic bags for Solid Waste Disposal is allowed. Bags are to be used in accordance with the Franchise Waste Hauler’s Franchise Agreement with the City. D. Exceptions to proper Container placement due to terrain, disabilities, complexes with centralized Disposal setups (e.g., apartments and condos with four or more units, two-story Residential units) may be considered when such conditions exist that prevent automated service. Exemptions shall be made on a case-by-case basis by the City. 8.19.060 GENERATOR REQUIREMENTS – SINGLE-FAMILY GENERATORS. Responsible parties of Single-Family Premises shall comply with the following requirements: A. Subscribe to and pay for the Franchise Waste Hauler’s three-Container system Collection services for weekly Collection of Recyclable Materials, Organic Materials, and Solid Waste generated by the Single-Family Premises and comply with requirements of those services as described below in Section 8.19.060(B). City shall have the right to review the number and size of a Generator’s Containers to evaluate adequacy of capacity provided for each type of Collection service for proper Source Separation of materials and containment of materials. The responsible parties for Single-Family Premises shall adjust their service level for the Collection services as requested by the City. The responsible parties for Single-Family Premises shall participate in the Franchise Waste Hauler’s Discarded Materials Collection service(s) by placing Source Separated Discarded Materials in their appropriate Containers. B. Participate in the Franchise Waste Hauler’s three-Container system service(s) (Recyclable Materials Container, Organic Materials Container, and Solid Waste Container) in the manner described below. C. Place and/or direct its Generators to place Source Separated Organic Materials, including Food Waste, in the Organic Materials Container; Source Separated Recyclable Materials in the Recyclable Materials Container; and Solid Waste in the Solid Waste Container. 1. Refrain from placing and/or directing its Generators to place Prohibited Container Contaminants in Collection Containers, and shall not place materials designated for the Organic Materials Container or Recyclable Materials Container in the Solid Waste Container. 2. City Manager, or their Designee, shall have the right to review the number and size of a Generator’s Containers to evaluate adequacy of capacity provided for each type of Collection service, and for proper Source Separation and containment of Discarded Materials. D. If approved or directed by City, the Franchise Waste Hauler shall have the right to assess a Contamination processing fee and/or a Contamination penalty when Prohibited Container Contaminants is/are found in any Containers. E. Nothing in this Section prohibits a Responsible Party or Generator of a Single- Family Premises from preventing or reducing Discarded Materials generation, Page 83 ORDINANCE NO. -40- managing Organic Waste on-site, and/or using a Community Composting site pursuant to 14 CCR Section 18984.9(c). F. It shall be the duty of every Person occupying a Residential Dwelling within the City to keep the Premises in their control in a “sanitary condition,” which is hereby defined to mean that all parts thereof are free and clean of any accumulation of Discarded Materials. 8.19.070 GENERATOR REQUIREMENTS – MULTI-FAMILY GENERATORS. Responsible parties of Multi-Family Premises (except responsible parties of Multi-Family Premises that meet the Self-Hauler requirements in Section 8.16.060 of this chapter) shall: A. Subscribe to the Franchise Waste Hauler’s three- or three-plus-Container system for all Discarded Materials generated. City Manager or their Designee shall have the right to review the number and size of a Generator’s Containers and frequency of Collection to evaluate adequacy of capacity provided for each type of Collection service; and Multi-Family Premises shall adjust their service level for their Collection services as requested by the City, if City determines that inappropriate level of service results in Generators’ non-compliance with this Chapter 8.19.070. B. Except Multi-Family Premises that meet the Self-Hauler requirements in Chapter 8.16.060 of this ordinance, participate in the three- or three-plus-Container system, dependent on the available program offered by the Franchise Waste Hauler, for at least weekly Collection of Recyclable Materials, Organic Materials, and Solid Waste in the manner described below. 1. Shall subscribe to the three- or three-plus-Container Collection service (Recyclable Materials Container, Organic Materials Container, and Solid Waste Container, and if applicable, source Separated Food Waste Container) i. Three-Container: Place and/or direct its Generators to place Source Separated Organic Materials, including Food Waste, in the Organic Materials Container; Source Separated Recyclable Materials in the Recyclable Materials Container; and Solid Waste in the Solid Waste Container. ii. Three-plus-Container: Place and/or direct its Generators to place Source Separated Organic Materials, except Food Waste, in the Organic Materials Container; Source Separated Food Waste in the Source Separated Food Waste Container; Source Separated Recyclable Materials in the Recyclable Materials Container; and Solid Waste in the Solid Waste Container. 2. Shall not place or direct its Generators place Prohibited Container Contaminants in Collection Containers, and shall not place Organic Materials or Recyclable Materials in the Solid Waste Container. 3. If approved or directed by the City, the Franchise Waste Hauler shall have the right to assess a Contamination processing fee and/or a Contamination penalty when Prohibited Container Contaminants are found in any Containers. Page 84 ORDINANCE NO. -41- C. Participate in the Franchise Waste Hauler’s Discarded Materials Collection service(s) by Source Separated Discarded Materials into their respective Containers. D. Supply and allow access to adequate number, size, and location of Collection Containers for employees, contractors, Tenants, and customers, consistent with City’s approved Container Collection service. E. Annually provide to employees, contractors, Tenants, and Generators educational information about Organic Waste Recovery requirements and about proper sorting of Source Separated Organic Material, Source Separated Recyclable Materials, and Source Separated Food Waste into their respective Containers. F. The Responsible Party of a Multi-Family Premises shall provide educational information to new Tenants before or within fourteen (14) days of their inhabitation of the Multi-Family Dwelling Unit. Educational information will describe requirements to keep Source Separated Organic Material and Source Separated Recyclable Materials separate from Solid Waste and the location of Containers and the rules governing their use at each Property. G. Provide or arrange access for City or its Designee to their properties during all Inspections conducted in accordance with Chapter 8.19.120 to confirm compliance with the requirements of this chapter. H. Nothing in this section prohibits a Generator from preventing or reducing Organic Waste generation, managing Organic Material on site, or using a Community Composting site pursuant to 14 CCR Section 18984.9(c). I. It shall be the duty of every Person in possession, charge, or control of any Multi- Family Premises within the City to keep the Premises in their control in a “sanitary condition”, which is hereby defined to mean that all parts thereof are free and clean of any accumulation of Discarded Material outside of a lawful Container. J. Multi-Family Premises that generate two (2) cubic yards or more of total Solid Waste, Recyclable Materials, or Organic Materials per week (or other threshold defined by the State) that arrange for gardening or landscaping services shall require that the contract or work agreement between the Owner, Occupant, or operator of a Multi-Family Premises and a gardening or landscaping service specifies that the designated Organic Materials generated by those services be managed in compliance with this chapter. K. If the Responsible Party of a Multi-Family Premises wants to Self-Haul, they must meet the Self-Hauler requirements of Chapter 8.16.060 of this ordinance. 8.19.080 GENERATOR REQUIREMENTS – COMMERCIAL BUSINESSES. Responsible parties of Commercial Businesses (which does not include Multi-Family Premises) shall: A. Subscribe to the Franchise Waste Hauler’s three-Container system for all Discarded Materials generated. City or its Designee shall have the right to review the number and size of a Generator’s Containers and frequency of Collection to evaluate adequacy of capacity provided for each type of Collection service; and Page 85 ORDINANCE NO. -42- Commercial Businesses shall adjust their service level for their Collection services as requested by the City. B. Participate in the Franchise Waste Hauler’s Discarded Materials Collection service(s) by placing Source Separated Discarded Materials into their respective Containers. C. Supply and allow access to adequate number, size, and location of Collection Containers with sufficient labels or colors (conforming with Chapters 8.19.080(E)(1) and (E)(2) below) for employees, contractors, Tenants, and Generators, consistent with City’s Discarded Materials Collection service. D. Except Commercial Businesses that meet the Self-Hauler requirements of Chapter 8.16.060, participate in the City’s three- or three-plus-Container system, dependent on which program is currently available by Franchise Waste Hauler, for at least weekly Collection of Recyclable Materials, Organic Materials, and Solid Waste in the manner described below: 1. Shall subscribe to the three- or three-plus-Container Collection service. a. Three-Container: Place and/or direct its generators to place source separated Organic Materials, including Food Waste, in the Organic Materials Container; source separated Recyclable Materials in the Recyclable Materials Container; and Solid Waste in the Solid Waste Container. b. Three-plus-Container: Place and/or direct its Generators to place Source Separated Organic Materials, except Food Waste, in the Organic Materials Container; Source Separated Food Waste in the Source Separated Food Waste Container, Source Separated Recyclable Materials in the Recyclable Materials Container; and Solid Waste, in the Solid Waste Container. 2. Shall not place or direct its Generators place Prohibited Container Contaminants in Collection Containers, and shall not place Organic Materials or Recyclable Materials in the Solid Waste Container. 3. If approved or directed by the City, the Franchise Waste Hauler shall have the right to assess a Contamination processing fee and/or a Contamination penalty when Prohibited Container Contaminants are found in any Container. E. Provide Containers for the Collection of Discarded Materials in all indoor and outdoor areas where Containers are provided for Generators for all Discarded Materials generated by that business. Such Containers do not need to be provided in restrooms. If a Commercial Business does not generate any of the materials that would be collected in any one type of Container, then that business does not have to provide that particular Container in all areas where Disposal Containers are provided for Generators. Pursuant to 14 CCR Section 18984.9(b), the Containers provided by the business shall have either: 1. A body or lid that conforms with the Container colors provided through the Collection service provided by City, with either lids conforming to the color requirements or bodies conforming to the color requirements or both lids and bodies conforming to color requirements as detailed in Chapter 8.19.040. A Commercial Business is not required to replace functional Page 86 ORDINANCE NO. -43- Containers, including Containers purchased prior to January 1, 2022, that do not comply with the requirements of this subsection to the end of the useful life of those Containers, or prior to January 1, 2036, whichever comes first. 2. Container labels that include language or graphic images, or both indicating the primary material accepted and the primary materials prohibited in that Container, or Containers with imprinted text or graphic images that indicate the primary materials accepted and primary materials prohibited in the Container. Pursuant 14 CCR Section 18984.8, the Container labeling requirements are required on new Containers commencing January 1, 2022. F. Prohibit employees from placing materials in a Container not designated for those materials to the extent practical through education, training, Inspection, and/or other measures. G. Annually inspect Recyclable Material, Organic Material, and Solid Waste Containers for Contamination and inform employees if Containers are Contaminated and of the requirements to keep contaminants out of those Containers pursuant to 14 CCR Section 18984.9(b)(3). H. Annually provide information to employees, contractors, Tenants, and Generators about Organic Material Recovery requirements and about proper sorting of Source Separated Organic Material and Source Separated Recyclable Materials into their respective Containers. I. Provide educational information before or within fourteen (14) days of occupation of the Premises to new Tenants that describes requirements to keep Source Separated Organic Material and Source Separated Recyclable Materials separate from Solid Waste and the location of Containers and the rules governing their use on the Premise. J. Provide or arrange access for City or its Designee to their properties during all Inspections conducted in accordance with Chapter 8.19.120 to confirm compliance with the requirements of this ordinance. K. Meet the Self-Hauler requirements in Chapter 8.16.060 if a Commercial Business wants to Self-Haul. L. Not prohibit a Generator from preventing or reducing Organic Waste generation, managing Organic Material on-site, or using a Community Composting site pursuant to 14 CCR Section 18984.9(c). M. It is the duty of every Person in possession, charge, or control of any boarding home, Restaurant, hotel, apartment, commercial occupancy, industrial occupancy, eating house, or vacant lot within the City to keep the Premises in their control in a “sanitary condition,” which is hereby defined to mean that all parts thereof are free and clean of any accumulation of Discarded Material outside of a lawful Container. N. If approved or directed by City, the Franchise Waste Hauler shall have the right to assess a Contamination processing fee and/or a Contamination penalty when Prohibited Container Contaminants are found in any of the Discarded Material Containers. O. If a Commercial Business is a Tier One or Tier Two Commercial Edible Food Generators, with Food Recovery Requirements pursuant to Chapter 8.19.100. Page 87 ORDINANCE NO. -44- 8.19.090 GENERATOR REQUIREMENTS – WAIVERS FOR COMMERCIAL BUSINESSES. Commercial Businesses, including Multi-Family Premises, may apply for waivers where practical difficulties make it impossible or extremely difficult to carry out the strict letter of this chapter with respect to any particular Premises. Under these circumstances, the City Manager or their Designee may issue special written permits (waivers) authorizing variations from the provisions of this chapter, subject to such terms and conditions as may deemed necessary to protect the public health and safety of the City. Special written permits only include de minimis waivers and physical space waivers, as described below. A. De Minimis Waivers: The City may waive a Commercial Business’s obligation (including Multi-Family Premises’ obligations) to comply with some or all of the Organic Material requirements of this ordinance if the Commercial Business provides documentation, or if the City has enough evidence demonstrating, that the business generates below a certain amount of Organic Material as described in this chapter. If the City has sufficient evidence demonstrating that a Commercial Business generates below a certain amount of Organic Waste as described in Chapter 8.19.090(A)(2), it may verify that the Commercial Businesses’ Organic Waste generation complies with the threshold without the receipt of a waiver application as described in Chapter 8.19.090(A)(1). As part of the Organic Waste generation verification process, the City shall request documentation from the Commercial Business as described below. Commercial Businesses requesting a de minimis waiver shall: 1. Submit an application specifying the services that they are requesting a waiver from and provide documentation as noted below. 2. Provide documentation that either: a. The Commercial Business’s total Collection of Discarded Materials is two (2) cubic yards or more per week and Recyclable Materials and Organic Materials subject to Collection in Recyclable Materials Container(s) or Organic Materials Container(s) comprises less than twenty (20) gallons per week per applicable Container of the Commercial Business’s total waste (i.e., Recyclable Materials in the Recyclable Materials stream are less than twenty (20) gallons per week or Organic Materials in the Organic Materials stream are less than twenty (20) gallons per week); or, b. The Commercial Business’s total Collection of Discarded Materials is less than two (2) cubic yards per week and Recyclable Materials and Organic Materials subject to Collection in a Recyclable Materials Container(s) or Organic Materials Container(s) comprises less than ten (10) gallons per week per applicable Container of the business’s total waste (i.e., Recyclable Materials in the Recyclable Materials stream are less than ten (10) gallons per week or Organic Materials in the Organic Materials stream are less than ten (10) gallons per week). Page 88 ORDINANCE NO. -45- c. For the purposes of subsections (a) and (b) above, total Collection of Discarded Materials shall be the sum of weekly Container capacity measured in cubic yards for Solid Waste, Recyclable Materials, and Organic Materials Collection service excluding Discarded Materials managed on- site, such as on-site composters and Self-Hauled Discarded Materials in accordance with Chapter 8.16.060. 3. Notify City if circumstances change such that Commercial Business’s Organic Material exceeds threshold required for waiver, in which case waiver will be rescinded. 4. Provide written verification of eligibility for de minimis waiver every five (5) years, when there is a change in business or Tenant, or when a conditional use permit is issued, whichever is sooner, if City has approved the de minimis waiver. B. Physical Space Waivers: City may waive a Commercial Business’s or Property Owner’s obligations to comply with some or all of the Organic Material Collection service requirements if the City has evidence from its own staff, the Franchise Waste Hauler, a licensed architect, or a licensed engineer that the Premises lacks adequate space for compliance with the Organic Material Collection requirements below. A physical space waiver may also be requested if a Commercial Business or Property Owner documents that the Premises lacks adequate space for Organic Material Container and Recyclable Material Containers. The Responsible Party of a Commercial Business may request a physical space waiver through the following process: 1. Submit an application form specifying the type(s) of Collection services for which they are requesting a compliance waiver. 2. Provide documentation that the Premises lacks adequate space for Recyclable Material Containers and/or Organic Material Containers including documentation from its Franchise Waste Hauler, licensed architect, or licensed engineer. 3. Provide written verification to City that it is still eligible for physical space waiver every five (5) years or when a Conditional Use Permit is issued, whichever is sooner, if City has approved application for a physical space waiver. C. Review and Approval of Waivers by City: Commercial Businesses or property Owners shall: 1. Apply to City for a de minimis or physical space waiver if one is required or desired. Waivers are valid for five (5) years. 2. Any Waiver Holder must cooperate with the City, its Designee, and/or the Franchise Waste Hauler for compliance Inspections and enforcement as stated in Chapter 8.19.120. 3. Waiver holder must reapply to the City Manager or their Designee for a waiver upon the expiration of the waiver period, and shall submit any required documentation and/or fees/payments as required by the City. Failure to submit a completed application shall equate to an automatic denial of said application. 4. City Manager or their Designee may revoke a waiver upon a determination that any of the circumstances justifying a waiver are no longer applicable. Page 89 ORDINANCE NO. -46- 8.19.100 EDIBLE FOOD RECOVERY – REQUIREMENTS FOR COMMERCIAL EDIBLE FOOD GENERATORS. Tier One Commercial Edible Food Generators must comply with the requirements of this chapter commencing January 1, 2022, And Tier Two Commercial Edible Food Generators must comply commencing January 1, 2024, pursuant to 14 CCR Section 18991.3 or as specified in other applicable law. A. Commercial Edible Food Generators shall comply with the following requirements: 1. Arrange to recover the maximum amount of Edible Food that would otherwise be Collected as Organic Waste 2. Contract or enter into a written agreement with Food Recovery Organizations and/or Food Recovery Services either for: a. The Collection of Edible Food for Food Recovery. b. Acceptance of the Edible Food that the Commercial Edible Food Generator Self-Hauls to the Food Recovery Organization or Food Recovery Service for Food Recovery. c. Shall not intentionally spoil Edible Food capable of being recovered by a Food Recovery Organization or Food Recovery Service. 3. Keep records that include the following information, or as otherwise specified in 14 CCR Section 18991.4: a. A list of each Food Recovery Service or Organization that collects or receives its Edible Food pursuant to a contract or written agreement established under 14 CCR § 18991.3(b). b. A copy of all contracts or written agreements established under 14 CCR § 18991.3(b). c. A record of the following information for each of those Food Recovery Services or Food Recovery Organizations: i. The name, address, and contact information of the Food Recovery Service or Food Recovery Organization. ii. The types of Edible Food that will be collected by or Self-Hauled to the Food Recovery Service or Food Recovery Organization. iii. The established frequency that Edible Food will be collected or Self- Hauled. iv. The quantity of Edible Food, measured in pounds recovered per month, collected or Self-Hauled to a Food Recovery Service or Food Recovery Organization for Food Recovery. B. Large Venues or Large Event operators not providing food service, but allowing for food to be provided by others, shall require food facilities operating at the Large Venue or Large Event to comply with the requirements of this section, commencing January 1, 2024. Nothing in this section shall be construed to limit or conflict with the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act or requirements contained in food share donation regulations for schools pursuant to Senate Bill 557 of 2017 (approved by the Governor of the State of California Page 90 ORDINANCE NO. -47- on September 25, 2017, which added Article 13 (commencing with Section 49580) to Chapter 9 of Part 27 of Division 4 of Title 2 of the Education Code, and to amend Section 114079 of the Health and Safety Code, relating to food safety, as amended, supplemented, superseded, and replaced from time to time). 8.19.110 EDIBLE FOOD RECOVERY – REQUIREMENTS FOR FOOD RECOVERY ORGANIZATIONS AND SERVICES. A. Food Recovery Services collecting or receiving Edible Food directly from Commercial Edible Food Generators via a contract or written agreement shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(1): 1. The name, address, phone number, email, and contact information of each Commercial Edible Food Generator that from which the service collects Edible Food. 2. The quantity in pounds of Edible Food collected from each Commercial Edible Food Generator per month. 3. The quantity in pounds of Edible Food transported to each Food Recovery Organization per month. 4. The name, address, phone number, email, and other contact information for each Food Recovery Organization for which the Food Recovery Service transports Edible Food for Food Recovery. B. Food Recovery Organizations collecting or receiving Edible Food directly from Commercial Edible Food Generators or Food Recovery Services via a contract or written agreement, shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(2): 1. The name, address, phone number, email, and other contact information for each Commercial Edible Food Generator from which the organization receives Edible Food. 2. The quantity in pounds of Edible Food received from each Commercial Edible Food Generator per month. 3. The name, address, phone number, email, and other contact information for each Food Recovery Service from which the organization received Edible Food for Food Recovery. C. Food Recovery Organizations and Food Recovery Services that have their primary address physically located in the City and contract with or have written agreements with Commercial Edible Food Generators shall maintain records as detailed in Subsections 8.919.110(A) and (B), respectively, and shall provide such records to the City upon request. D. Food Recovery Organizations and Food Recovery Services shall inform Generators about California and Federal Good Samaritan Food Donation Act protection in written communications, such as in their contract or agreement with them. E. When the City, its Franchise Waste Hauler, or Designee performs Food Recovery outreach they will include information on the Good Samaritan Food Donation Act. F. City shall provide a list of Food Recovery Organizations located within the City to County upon request. Page 91 ORDINANCE NO. -48- 8.19.120 INSPECTIONS AND INVESTIGATIONS BY CITY. A. Authority - City Manager, environmental services manager, or their Designee are authorized to conduct Inspections and investigations, at random or otherwise, of any Collection Container; Collection vehicle loads; or transfer, Processing, or disposal facility for materials collected from Generators, to confirm compliance with this chapter by Organic Material Generators, Commercial Businesses’ Property owners, Multi- Family Dwelling Unit Owners, Single Family Dwelling Owners, Commercial Edible Food Generators, permitted Self-Haulers, and Food Recovery Services and Food Recovery Organizations, subject to applicable laws. 1. Per Chapter 1.08.010 and Chapter 8.80 of the Municipal Code, these powers include the power to issue notices of violation, the power to assess and collect civil fines and penalties or file criminal complaints as provided in this chapter, and the power to enter and inspect public and private property as permitted by law. This chapter does not allow City to enter the interior of a private Residential Dwelling for Inspection. B. Regulated entities shall provide or arrange for access during all Inspections (with the exception of Residential property interiors) and shall cooperate with the City or its Designee during such Inspections and investigations. As per Chapter 1.08.010 and in accordance with the requirements of this chapter, the City Manager or their Designee is authorized to enter upon any non-Residential Property or Premises to ascertain whether there are violations of this code, and to make any Inspections and investigations that may include confirmation of proper placement of materials in Containers, Edible Food Recovery activities, records, or any other requirement of this chapter described herein as may be necessary in the performance of their duties. 1. City reserves the right to implement and use a remote monitoring system to monitor Prohibited Container Contaminants. 2. Failure to provide or arrange for: access to an entity’s Premises; or (ii) access to records for any Inspection or investigation is a violation of this chapter and may result in a determination that the Generator is out of compliance with one or more requirements of this chapter. 3. If the Property Owner or other Responsible Party refuses permission to enter or inspect, the City Manager or their Designee may seek an administrative Inspection warrant pursuant to the California Code of Civil Procedure or as otherwise authorized by law. Following the obtaining of Owner permission to inspect or a lawful Inspection warrant, the City Manager or their Designee is authorized to conduct examinations and surveys that may include, but are not limited to, the taking of photographs or video recordings and the taking of samples or other physical evidence or recordings. All Inspections, entries, examinations and surveys shall be done in a reasonable manner and shall at all times comply with constitutional and statutory requirements. C. Any records obtained by a City during its Inspections, and other reviews shall be subject to the requirements and applicable disclosure exemptions of the Public Records Act as set forth in Government Code Section 6250 et seq. Page 92 ORDINANCE NO. -49- D. City representatives and/or its Designee are authorized to conduct any Inspections, or other investigations as reasonably necessary to further the goals of this ordinance, subject to applicable laws. E. City shall receive written complaints from Persons regarding an entity that may be potentially non-compliant with SB 1383 regulations, including receipt of anonymous complaints. The Franchise Waste Hauler shall relay to City in writing all written complaints it receives concerning acts or omissions of itself or another entity that is potentially non-compliant with SB 1383 Regulations, including anonymous complaints. F. Any Person who violates any provisions of this code, as amended from time to time, or any Person who owns Property upon which a violation exists, irrespective of whether that Person caused the violation, shall be subject to an administrative fine or penalty up to the maximum amounts set forth in Chapter 1.12 of the City’s Municipal Code and Section 8.19.130. 8.19.130 CITATIONS FOR ENFORCEMENT. Pursuant to 14 CCR Section 18995.4(a)(1) the City shall begin issuing Citations for enforcement of this Chapter 8.19 on or before January 1, 2024. If the City determines that a Generator, Responsible Party, Self-Hauler, hauler, Tier One or Tier Two Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance with this Chapter 8.19, it shall document the noncompliance or violation and, with the exception of violations of the Prohibited Container Contaminants provisions of this Municipal Code, take Enforcement Action, including but not limited to the issuance of administrative Citations and fines, pursuant to Chapters 1 and 8 of the City’s Municipal Code. This chapter shall only apply to Non-Local Entities to the extent permitted by applicable law. Section 8.80 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 8.80 ADMINISTRATIVE REMEDIES 8.80.010 APPLICABILITY. A. This chapter provides for administrative remedies, which are in addition to all other legal remedies, criminal or civil, which may be pursued by the City to address any violation of this code. B. Use of this chapter shall be at the sole discretion of the City. 8.80.020 DEFINITIONS. Words and phrases defined in Chapter 8.16 of this Municipal Code shall have the same meanings when used in this chapter. Page 93 ORDINANCE NO. -50- For purposes of this chapter, “director” means the head of any City Department or their Designee, which is charged with responsibility for enforcement of any provision of this code. 8.80.025 APPEALS HEARING BOARD. A. There is established within the City an appeals hearing board which shall hear all matters pertaining to this chapter. B. The appeals hearing board shall consist of three regular members appointed by the City Manager and serving at the pleasure of the City. The members appointed to the board shall be citizens of the City or may be employees of the City, during their term of service. C. Regular members of the board shall serve a term of two years, at the end of which he/she may be considered for reappointment. D. The board shall establish the time and place of its hearings consistent with Section 8.80.060(B). E. The board shall keep a record of its proceedings, which shall be open for inspection by any member of the public. F. The City Manager shall designate an employee who shall serve as the secretary of the board. The City clerk shall be responsible for the maintenance of all its permanent records. G. Two members of the board shall constitute a quorum. Two affirmative votes are required for a decision including all motions, orders, and findings of the board. 8.80.030 NOTICE OF VIOLATION OR COMPLIANCE ORDER. A. Whenever the director or their designee determines that a violation of any provision of this code within the director’s responsibility is occurring or exists, the director or their designee may issue a written Notice Of Violation (NOV) or compliance order to any Person responsible for the violation. 1. A NOV or compliance order issued pursuant to this chapter shall contain the following information: a. The date and location of the violation. b. The section of this code violated and a description of the violation. c. The actions required to correct the violation. d. The time period after which administrative penalties will begin to accrue if compliance with the order has not been achieved. e. Either a copy of this chapter or an explanation of the consequences of noncompliance with this chapter and a description of the hearing procedure and appeal process. 8.80.040 METHOD OF SERVICE. B. All notices required by this chapter shall be served as provided in this Section 8.80.040. Page 94 ORDINANCE NO. -51- C. Where Real Property is involved, written notice shall be mailed to the Property Owner at the address as shown on the last equalized County assessment roll. D. Where personal service or service by mail upon the Property Owner is unsuccessful, a copy of the order shall be conspicuously posted at the Property which is the subject of the order. E. The failure of any Person to receive any notice required under this chapter shall not affect the validity of any proceedings taken under this chapter. 8.80.050 HEARING. A. If the director determines that all violations have been corrected within the time specified in the NOV or compliance order, no further action shall be taken. B. If full compliance is not achieved within the time specified in the compliance order, the director shall advise the secretary to the appeals board to set a hearing before the board. C. The secretary to the appeals hearing board shall cause a written notice of hearing to be served on the violator and, where Real Property is involved, a notice of hearing shall be served on the Property Owner at the address as it appears on the last equalized County assessment roll available on the date the notice is prepared. 8.80.060 NOTICE OF HEARING. A. Every notice of hearing on a compliance order, and NOV shall contain the date, time and place at which the hearing shall be conducted by the appeals hearing board. B. Each hearing shall be set for a date not less than fifteen days nor more than sixty days from the date of the notice of hearing unless the director determines that the matter is urgent or that good cause exists for an extension of time. C. This hearing serves to provide the full opportunity of a Person subject to a compliance order to object to the determination that a violation has occurred and/or that the violation has continued to exist. The failure of any Person subject to a compliance order, pursuant to this chapter, to appear at the hearing shall constitute a failure to exhaust administrative remedies. 8.80.070 HEARING—FINDINGS AND ORDER. A. At the place and time set forth in the NOV or notice of hearing, the appeals hearing board shall conduct a hearing on the NOV or compliance order issued pursuant to Section 8.80.030. B. The board shall consider any written or oral evidence consistent with its rules and procedures regarding the violation and compliance by the violator or by the Real Property Owner. C. Within a reasonable time following the conclusion of the hearing, the board shall make findings and issue its determination regarding: D. The existence of the violation. 1. The failure of the violator or Owner to take required corrective action within the required time period. Page 95 ORDINANCE NO. -52- 2. The board shall issue written findings on each violation. The findings shall be supported by evidence received at the hearing. E. If the board finds by a preponderance of the evidence that a violation has occurred and that the violation was not corrected within the time period specified in the compliance order, the Board shall issue an administrative order. F. If the board finds that no violation has occurred or that the violation was corrected within the time period specified in the NOV or compliance order, the board shall issue a finding of those facts. 8.80.080 ADMINISTRATIVE ORDER. If the appeals hearing board determines that a violation occurred which was not corrected within the time period specified in the compliance order, the board shall issue an administrative order as described in this Section 8.80.080 which imposes any or all of the following: A. An order to correct, including a schedule for correction where appropriate. B. Administrative penalties as provided in Section 8.80.090. C. Administrative costs as provided in Section 8.80.100. 8.80.090 ADMINISTRATIVE PENALTIES. A. The appeals hearing board may impose administrative penalties for the violation of any provision of this code in an amount not to exceed a maximum of two thousand five hundred dollars ($2,500) per day for each ongoing violation, except that the total administrative penalty shall not exceed one hundred thousand dollars ($100,000), exclusive of administrative costs, interest, and restitution for compliance Inspections, for any related series of violations. B. In determining the amount of the administrative penalty, the board may take any or all of the following factors into consideration: 1. The duration of the violation. 2. The frequency, recurrence and number of violations, related or unrelated, by the same violator. 3. The seriousness of the violation. 4. The good faith efforts of the violator to come into compliance. 5. The economic impact of the penalty on the violator. 6. The impact of the violation on the community. 7. Such other factors as justice may require. C. Administrative penalties imposed by the board shall accrue from the date specified in the compliance order and shall cease to accrue on the date the violation is corrected as determined by the director or the board. D. The board, in its discretion, may suspend the imposition of applicable penalties for any period of time during which: 1. The violator has filed for necessary permits. 2. Such permits are required to achieve compliance. 3. Such permit applications are actively pending before the City, State or other appropriate governmental Agency. Page 96 ORDINANCE NO. -53- 4. Administrative penalties assessed by the board shall be due by the date specified in the administrative order. E. Administrative penalties assessed by the board are a debt owed to the City and, in addition to all other means of enforcement, if the violation is located on Real Property, may be enforced by means of a lien against the Real Property on which the violation occurred. F. If the violation is not corrected as specified in the board’s order to correct, administrative penalties shall continue to accrue on a daily basis until the violation is corrected, subject to the maximum amount set forth in Section 8.80.090(A) above. G. If the violator gives written notice to the director that the violation has been corrected and if the director finds that compliance has been achieved, the director shall deem the date the written notice was postmarked or personally delivered to the director or the date of the final Inspection, whichever first occurred, to be the date the violation was corrected. If no written notice is provided to the director, the violation will be deemed corrected on the date of the final Inspection. 8.80.100 ADMINISTRATIVE COSTS. A. The appeals hearing board shall assess administrative costs against the violator when it finds that a violation has occurred, and that compliance has not been achieved within the time specified in the compliance order or NOV. B. The administrative costs may include any and all costs incurred by the City in connection with the matter before the appeals hearing board including, but not limited to, costs of investigation, staffing costs incurred in preparation for the hearing and for the hearing itself, and costs for all further Inspections necessary to enforce the compliance order. 8.80.110 FAILURE TO COMPLY WITH ADMINISTRATIVE COMPLIANCE ORDER. Failure to pay the assessed administrative penalties and administrative costs specified in the administrative order of the appeal hearing board may be enforced as: A. A personal obligation of the violator. B. If the violation is in connection with Real Property, a lien upon the Real Property. The lien shall remain in effect until all of the administrative penalties, interest, and administrative costs are paid in full. 8.80.120 RIGHT OF JUDICIAL REVIEW. Any Person aggrieved by an administrative order of the appeals hearing board may obtain review of the administrative order in the superior court by filing with the court a petition for writ of mandate pursuant to Section 1.04.090 of this code. 8.80.130 RECOVERY OF ADMINISTRATIVE CIVIL PENALTIES. Page 97 ORDINANCE NO. -54- The City may collect the assessed administrative penalties and administrative costs by use of all available legal means, including recordation of a lien pursuant to Section 8.80.160. 8.80.140 REPORT OF COMPLIANCE AFTER ADMINISTRATIVE ORDER. If the director determines that compliance has been achieved after a NOV or compliance order has been sustained by the appeals hearing board, the director shall file a report indicating that compliance has been achieved. 8.80.150 COMPLIANCE DISPUTE. A. If the director does not file a report pursuant to Section 8.80.140 above, a violator who believes that compliance has been achieved may request a compliance hearing before the appeals hearing board by filing a request for a hearing with the secretary to the board. B. The hearing shall be noticed and conducted in the same manner as a hearing on a NOV or compliance order provided in Sections 8.80.060 through 8.80.070 of this chapter. C. The board shall determine if compliance has been achieved and, if so, when it was achieved. 8.80.160 LIEN PROCEDURE. A. Whenever the amount of any administrative penalty and/or administrative cost imposed by the appeals hearing board pursuant to this chapter in connection with Real Property has not been satisfied in full within ninety days and/or has not been successfully challenged by a timely writ of mandate, this obligation may constitute a lien against the Real Property on which the violation occurred. B. The lien provided herein shall have no force and effect until recorded with the office of the County recorder. Once recorded, the administrative order shall have the force and effect and priority of a judgment lien governed by the provisions of Sections 697.340 of the Code of Civil Procedure and may be extended as provided in Sections 683.110 to 683.220, inclusive, of the Code of Civil Procedure. C. Interest shall accrue on the principal amount of the judgment remaining unsatisfied pursuant to law. D. Prior to recording any such lien, the director of finance shall prepare and file with the City clerk a report stating the amounts due and owing. E. The City clerk shall fix a time, date and place for hearing such report, and any protests or objections thereto, before the City Council. F. The director of finance shall cause written notice to be served on the Property Owner not less than ten days prior to the time set for the hearing. Such notice shall be served as provided in Section 8.80.040 of this title. 8.80.170 PUBLIC HEARING AND PROTESTS. Page 98 ORDINANCE NO. -55- A. Any Person whose Real Property is subject to a lien pursuant to Section 8.80.160 may file a written protest with the City clerk and/or may protest orally at the City Council meeting. B. Each written protest or objection must contain a description of the Property in which the protesting party is interested and the grounds of such protest or objection. 8.80.180 RECORDATION OF LIEN. Thirty days following the adoption of a resolution by the City Council imposing a lien the City Clerk shall file the same as a judgment lien in the office of the County recorder of Riverside County, California. The lien may carry such additional administrative charges as set forth by resolution of the City Council. 8.80.190 SATISFACTION OF LIEN. Once payment in full is received by the City for outstanding penalties and costs, the director of finance shall either record a notice of satisfaction or provide the Property Owner or financial institution with a notice of satisfaction so they may record this notice with the Office of the County Recorder. Such notice of satisfaction shall cancel the City’s lien. Section 8.81 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 8.81 ADMINISTRATIVE CITATIONS 8.81.010 APPLICABILITY. A. This chapter provides for Administrative Citations which are in addition to all other legal remedies, criminal or civil, which may be pursued by the City to address any violation of this code. B. Use of this chapter shall be at the sole discretion of the City. 8.81.020 ENFORCEMENT OFFICER—DEFINED. For purposes of this chapter, “Enforcement Officer” shall mean any City employee or agent of the City with the authority to enforce any provision of this code. The City reserves the right to change the Enforcement Officer or establish a new enforcement officer at any time. 8.81.030 Administrative Citation. A. Whenever an Enforcement Officer charged with the enforcement of any provision of this code determines that a violation of that provision has occurred, the Enforcement Officer shall have the authority to issue an Administrative Citation to any Person responsible for the violation. B. Each Administrative Citation shall contain the following information: Page 99 ORDINANCE NO. -56- 1. The date of the violation. 2. The address or a definite description of the location where the violation occurred. 3. The section of this code violated and a description of the violation. 4. The amount of the fine for the code violation. 5. A description of the fine payment process, including a description of the time within which and the place to which the fine shall be paid. 6. An order prohibiting the continuation or repeated occurrence of the code violation described in the Administrative Citation. 7. A description of the Administrative Citation review process, including the time within which the Administrative Citation may be contested and the place from which a request for hearing form to contest the Administrative Citation may be obtained. 8. The name and signature of the citing enforcement officer. (Ord. 865 § 1, 1998) 8.81.040 AMOUNT OF FINES. A. The amounts of the fines for code violations imposed pursuant to this chapter shall be set forth in the schedule of fines established by resolution of the City Council and otherwise permitted by applicable law, including 14 California Code of Regulations Section 18997.2. B. The schedule of fines shall specify any increased fines for repeat violations of the same code provision by the same Person within thirty-six months from the date of an Administrative Citation. C. The schedule of fines shall specify the amount of any late payment charges imposed for the payment of a fine after its due date. 8.81.050 PAYMENT OF THE FINE. A. The fine shall be paid to the City within thirty days from the date of the Administrative Citation. B. Any Administrative Citation fine paid pursuant to subsection A. shall be refunded in accordance with Section 8.81.100 if it is determined, after hearing, that the Person charged in the Administrative Citation was not responsible for the violation or that there was no violation as charged in the Administrative Citation. C. Payment of a fine under this chapter shall not excuse or discharge any continuation or repeated occurrence of the code violation that is the subject of the Administrative Citation. 8.81.060 HEARING REQUEST. A. Any recipient of an Administrative Citation may contest that there was a violation of the code or that he or she is the Responsible Party by completing a request for hearing form and returning it to the City within thirty days from the date of the Administrative Citation, together with an advance deposit of the fine or notice that a request for an advance hardship waiver has been filed pursuant to Section 8.81.070. Page 100 ORDINANCE NO. -57- B. A request for hearing form may be obtained from the Department specified on the Administrative Citation. C. The Person requesting the hearing shall be notified of the time and place set for the hearing at least ten days prior to the date of the hearing. D. If the enforcement officer submits an additional written report concerning the Administrative Citation to the hearing officer for consideration at the hearing, a copy of this additional report shall be served on the Person requesting the hearing at least five days prior to the date of the hearing. 8.81.070 ADVANCE DEPOSIT HARDSHIP WAIVER. A. Any Person who intends to request a hearing to contest that there was a violation of the code or that he or she is the Responsible Party and who is financially unable to make the advance deposit of the fine as required in Section 8.81.060(A) may file a request for an advance deposit hardship waiver. B. The request shall be filed with the Department of Finance on an advance deposit hardship waiver application form, available from the Department of Finance, within ten days of the date of the Administrative Citation. C. The requirement of depositing the full amount of the fine as described in Section 8.81.060(A) shall be stayed unless or until the director of finance makes a determination not to issue the advance deposit hardship waiver. D. The director may waive the requirement of an advance deposit set forth in Section 8.81.060(A) and issue the advance deposit hardship waiver only if the cited party submits to the director a sworn affidavit, together with any supporting documents or materials, demonstrating to the satisfaction of the director the Person’s actual financial inability to deposit with the City the full amount of the fine in advance of the hearing. E. The Administrative Citation and any additional report submitted by the enforcement officer shall constitute prima facie evidence of the facts contained in those respective documents. F. The hearing officer may continue the hearing and request additional information from the enforcement officer or the recipient of the Administrative Citation prior to issuing a written decision. 8.81.080 HEARING OFFICER. The City Manager shall designate the hearing officer for the Administrative Citation hearing. 8.81.090 HEARING PROCEDURE. A. No hearing to contest an Administrative Citation before a hearing officer shall be held unless the fine has been deposited in advance in accordance with Section 8.81.060 or an advance deposit hardship waiver has been issued in accordance with Section 8.81.070. Page 101 ORDINANCE NO. -58- B. A hearing before the hearing officer shall be set for a date that is not less than fifteen days and not more than sixty days from the date that the request for hearing is filed in accordance with the provisions of this chapter. C. At the hearing, the party contesting the Administrative Citation shall be given the opportunity to testify and to present evidence concerning the administrative citation. D. The failure of any recipient of an Administrative Citation to appear at the administrative citation hearing shall constitute a forfeiture of the fine and a failure to exhaust their administrative remedies. E. The Administrative Citation and any additional report submitted by the code enforcement officer shall constitute prima facie evidence of the facts contained in those respective documents. F. The hearing officer may continue the hearing and request additional information from the enforcement officer or the recipient of the Administrative Citation prior to issuing a written decision. 8.81.100 HEARING OFFICER’S DECISION. A. After considering all of the testimony and evidence submitted at the hearing, the hearing officer shall issue a written decision to either uphold or cancel the Administrative Citation and shall list in the decision the reasons for that decision. The decision of the hearing officer shall be final. B. If the hearing officer determines that the Administrative Citation should be upheld, the fine amount on deposit with the City shall be retained by the City. C. If the hearing officer determines that the Administrative Citation should be upheld and the fine has not been deposited pursuant to an advance deposit hardship waiver, the hearing officer shall set forth in the decision a payment schedule for the fine imposed. D. If the hearing officer determines that the Administrative Citation should be canceled and the fine was deposited with the City, the City shall promptly refund the amount of the deposited fine, together with interest at the average rate earned on the City’s portfolio for the period of time the fine amount was held by the City. E. The recipient of the Administrative Citation shall be served with a copy of the hearing officer’s written decision. F. The employment, performance evaluation, compensation and benefits of the hearing officer shall not be directly or indirectly conditioned upon the amount of Administrative Citation fines upheld by the hearing officer. 8.81.110 LATE PAYMENT CHARGES. Any Person who fails to pay to the City any fine imposed pursuant to the provisions of this chapter on or before the date that fine is due shall also be liable for the payment of any applicable late payment charges as set forth in the schedule of fines. 8.81.120 RECOVERY OF ADMINISTRATIVE CITATION FINES AND COSTS. Page 102 ORDINANCE NO. -59- The City may collect any past due Administrative Citation fine or late payment charge by use of all available legal means. The City also may recover its Collection costs pursuant to Section 1.04.090. 8.81.130 RIGHT TO JUDICIAL REVIEW. Any Person aggrieved by an administrative decision of a hearing officer or an Administrative Citation may obtain review of the administrative decision by filing a petition for review with the municipal court of Riverside County in accordance with the time lines and provisions set forth in California Government Code Section 53069.4. 8.81.140 NOTICES. A. The Administrative Citation and all notices required to be given by this chapter shall be served on the Responsible Party in accordance with the provisions of Section 8.80.040 of this title. B. Failure to receive any notice specified in this chapter does not affect the validity of proceedings conducted hereunder. Section 15 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 15 BUILDING AND CONSTRUCTION 15.18.010 ADOPTION OF THE CALIFORNIA GREEN BUILDING STANDARDS CODE. That certain document in book form entitled California Green Building Standards Code, Title 23 Part 11, Chapters 4 and 5, known as CALGreen, as amended, (CGBSC), copyrighted by the “California Building Standards Commission,” 2525 Natomas Park Drive, Suite 130, Sacramento, California, 95833-2936, prescribing regulating public health, safety and general welfare by enhancing the design and construction of buildings through the use of building concepts having a reduced negative impact, or positive environmental impact and encouraging sustainable construction practice within the City, are hereby adopted by reference as the “Green Building Code” of the City of Palm Desert, and from the date on which the ordinance codified in this chapter shall take effect, the provisions thereof shall be controlling within the corporate limits of the City of Palm Desert. The California Green Building Standards Code will be on file for public examination in the office of the building official. 15.30.010 CONSTRUCTION SITE SECURITY. A. The owner, contractor or responsible party constructing a new building, addition, alteration, or demolition to an existing building shall maintain security measures as deemed necessary or as required by the building official to control vandalism, fires, blowing dust, sand or debris. B. Perimeter security fencing is required along all property lines. Fencing shall be a minimum six feet high with a minimum ninety-four percent blackout heavy-duty Page 103 ORDINANCE NO. -60- plastic screening. The number of access points onto the site shall be minimized, and where feasible, situated in locations that are highly visible from an adjacent Street. Vehicle and pedestrian gates and openings shall have gates secured after hours of operation. Locking gates shall be secured with minimum 3/8-inch thick, 30-grade coil chain, or minimum 5/16-inch cable. The perimeter security fencing shall be maintained and remain in place through the duration of the project or until a permanent wall/fencing is installed. C. The Owner, contractor or responsible party constructing a new building, addition, alteration, or demolition to an existing building shall keep the construction site clean by having adequately sized Discarded Materials Containers placed on the site for the depositing of Discarded Materials. For the purpose of this section, Discarded Materials shall have the same meaning as in Chapter 8.16., and shall include those substances that may be accumulated as a result of construction activities. D. In accordance with Chapter 15.18.010 the Owner, contractor or responsible party will meet diversion requirements as specified in Chapters 4 and 5 of the California Green Building Code, 23 CCR, Part 11. a. Containers, as defined in Chapter 8.16 of this municipal code, shall remain on the construction site until the building inspector has completed the final Inspection or has approved the removal of the Container. Said Container shall be emptied of its contents on a regular schedule or as ordered by the building inspector in order to avoid blowing debris or other public nuisances. E. Disposal shall be by transportation to a legally established recovery, Processing, or disposal site by the City’s Franchise Waste Hauler or other Person authorized by law to remove any Container from the location where the Person in charge for storage and Collection placed the Container. F. Refusal to comply with the provisions of this section shall be deemed a misdemeanor or infraction and is punishable as stipulated in Chapter 1.12 of this code. The noncompliance can be sufficient cause for the revocation of the issued building permit. 15.30.020 NEW CONSTRUCTION. Persons applying for a permit from the City for new construction and building additions and alternations shall comply with the adequate Container space requirements of Chapter 8.12.030 and applicable required components of the California Green Building Standards Code, 24 CCR, Part 11, known as CALGreen, as amended, if its project is covered by the scope of CALGreen. If the requirements of CALGreen are more stringent than the Container enclosure requirements of Chapter 8.12.030, the CALGreen requirements shall apply. 15.30.030 REQUIREMENTS TO RECEIVE A BUILDING PERMIT. Prior to the issuance of a building permit for all new projects requiring a building permit, the proponent of the project shall obtain the review and approval of the City Manager or their designee of a plan depicting the Recyclable Materials and/or Organic Materials Page 104 ORDINANCE NO. -61- Collection area or areas for the project. The plan shall comply with the following provisions: A. Location. Recyclable Materials and/or Organic Materials Collection areas may be located either indoors or outdoors and may be included as part of the same enclosure where Solid Waste is collected. In no case shall any Recyclable Materials and/or Organic Materials Collection area be farther from a dwelling unit or structure than the Solid Waste Collection area which serves the same dwelling unit or structure. B. Signage. Collection areas and Containers shall be clearly labeled to indicate the type and condition of Discarded Materials accepted. C. Space Allocation Based on an Approved Recycling Plan. In lieu of having specific Collection area space allocation tables or formulas, and to allow maximum flexibility, a Recycling plan may be submitted by the applicant which details the Recyclable Materials and/or Organic Materials Collection system from the individual workstations to the final Collection area and/or the size of interim and final Collection areas (which must be minimum of one hundred twenty-eight square feet) and type of materials collected. Section 24.04 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 24.04 WATER-EFFICIENT LANDSCAPE 24.04.010 PURPOSE AND INTENT. The purpose of this chapter is to establish minimum water-efficient landscape requirements for newly installed and rehabilitated landscapes. It is also the purpose of this chapter to implement these minimum requirements to meet the State of California Code of Regulations Title 23, Water Division 2, Department of Water Resources Chapter 2.7, Sections 492.6(a)(3)(B), (C), (D), and (G) of the Model Water Efficient Landscape Ordinance and the State of California Water Conservation in Landscaping Act, Reference: Sections 65591, 65593, 65596 Government Code. A. The Coachella Valley Water District (CVWD) has created a water-efficient landscape ordinance in compliance with the Department of Water Resources Model Water Efficient Landscape Ordinance; Attachment A of Ordinance 1302.1 Landscape and Irrigation System Design Criteria (“CVWD Ordinance”). The City hereby adopts by reference CVWD Ordinance No. 1302 (in its most current edition as of the date of plan submittal) as the City’s water-efficient landscape criteria. It is the intent of the City Council to defer technical irrigation review and approval process to CVWD consistent with the CVWD ordinance. The City will have full authority over aesthetic (plant choice, spacing, and design) review. B. It is the intent of the City Council to promote water conservation through the planning, design, installation, and maintenance of landscapes by the use of climate- appropriate plant material and efficient irrigation as well as to create a Palm Desert landscape theme through enhancing and improving the physical and natural environment. Page 105 ORDINANCE NO. -62- The application of mulch and compost to landscaping projects enhances soil water retention and creates demand for recycled-organic content products. C. These provisions are supplementary and additional to the subdivision and zoning regulation of this code and shall be read and construed as an integral part of the regulations and controls established thereby. D. Refer to Ordinance No. 1302.1, an Ordinance of the Coachella Valley Water District establishing landscape and irrigation system design criteria. As Ordinance No. 1302.1 is amended and/or revised, so is Chapter 24.04, Water-Efficient Landscape, so that it reflects the currently adopted version of the CVWD ordinance. 24.04.020 APPLICABILITY. This chapter applies to: A. All new and rehabilitated landscaping for Public Agency projects and private development projects including, but not limited to, industrial, commercial, and recreational projects. B. Developer installed and rehabilitated landscaping in single-family tracts, five or more infill lots, and multifamily projects, per CVWD Ordinance 1302.1. C. New construction landscapes that are homeowner-provided and/or homeowner- hired in single and multifamily residential projects with a cumulative total Property/project landscape area equal to or greater than five thousand square feet. D. Existing landscapes are subject only to Sections 24.04.120, 24.04.130, 24.04.150, and 24.04.160. 24.04.030 APPLICABILITY—EXEMPTIONS. The following are exempt from the provisions of this chapter: A. Homeowner-provided or rehabilitated landscaping at single-family and multifamily projects having a cumulative total Property/project landscape area of less than five thousand square feet. B. Cemeteries. C. Registered historical sites as determined by the City Council. D. Ecological restoration projects that do not require a permanent irrigation system. E. Plant collections, excluding typical landscaped areas, as part of botanical gardens and arboretums open to the public. 24.04.040 LANDSCAPE DOCUMENTATION PACKAGE. A. Two copies of a landscape documentation package conforming to this chapter shall be submitted to the City of Palm Desert and CVWD per Ordinance 1302.1. Preliminary approval of the project, specifically the landscape design plan as outlined in Section 24.04.050, and defined within CVWD Ordinance 1302.1, shall be obtained from the architectural review commission prior to submittal of the landscape documentation package to the director of public works. No Person, either as Property Owner, contractor, landscape architect or otherwise subject to Page 106 ORDINANCE NO. -63- the provisions of this chapter shall cause landscape construction work to begin without having an approved landscape documentation package approved by CVWD per Ordinance 1302.1, and from the director of public works. B. All requirements for the landscape documentation package are found within CVWD Ordinance 1302.1. C. Landscapes shall be maintained per the approved landscape documentation package. D. All Property Owners, Persons, firms, corporations, agents, employees or contractors of regulated projects shall complete and submit the landscape project application and comply with the approved landscape documentation package as required pursuant to this chapter and CVWD Ordinance No. 1302.1. E. An approved landscape documentation package will run with the Property and the installed landscape will be maintained into perpetuity per the approved landscape documentation package. A current or new Property Owner may request amendments to an approved landscape documentation package provided they are consistent with the original intent, design quality, and water efficiency of the original approved landscape documentation package. Any request shall be subject to the current City approval process. 24.04.050 LANDSCAPE DESIGN PLAN. A. For efficient use of water, a landscape design plan shall be carefully designed and planned for the intended function of the project. B. The landscape design plan shall be submitted as part of the landscape documentation package and include all components, contents, and items required by CVWD Ordinance 1302.1. C. The landscape design plan shall incorporate design criteria found in the current edition of the City’s “Desert Flora Design Guide” publication. 24.04.060 INVASIVE PLANT SPECIES. Noxious weeds are any weed designated by the weed control regulations in the Weed Control Act and identified on a regional district noxious weed control list. Lists of invasive plants are maintained at the California Invasive Plant Inventory and USDA invasive noxious weeds database and are prohibited in a landscape design. 24.04.070 LANDSCAPE AND IRRIGATION MAINTENANCE. A. A regular maintenance schedule containing the following conditions shall be submitted with the certificate of completion for all projects: 1. Landscapes shall be maintained to ensure water efficiency. The regular maintenance schedule shall include but not be limited to routine inspection, adjusting and repairing irrigation equipment; aerating and dethatching turf areas; replenishing decomposed granite ground cover; fertilizing; pruning, weeding, and removing any obstruction to emission devices in all landscaped areas. Page 107 ORDINANCE NO. -64- 2. Whenever possible, repair of irrigation equipment shall be done with the originally specified materials or their equivalents. 3. Operation of irrigation systems outside the normal watering window is allowed for auditing and system maintenance. 4. Landscape and irrigation maintenance activities shall be pursuant to those described in the current edition of the City’s “Desert Flora Maintenance” publication. 24.04.080 LANDSCAPE IRRIGATION AUDITS. Landscape irrigation audits shall be completed for new developments and existing landscape pursuant to CVWD Ordinance 1302.1. 24.04.090 GRADING DESIGN PLAN. Grading design plans per Title 27 of the Palm Desert Municipal Code shall be submitted as part of the landscape documentation package. For the purpose of this section, the grading design plan shall meet and shall be submitted pursuant to CVWD Ordinance 1302.1. 24.04.100 CERTIFICATE OF COMPLETION. Certificates of completion shall be certified by a license architect or designer of record per CVWD Ordinance 1302.1 and submitted to the City of Palm Desert for all projects. 24.04.110 PROVISIONS FOR EXISTING LANDSCAPES. Existing landscapes in excess of one acre in size shall be subject to a landscape audit, irrigation survey, and water use analysis pursuant to CVWD Ordinance No. 1302.1, Landscape and Irrigation System Design Criteria. 24.04.120 NUISANCE AND WASTE WATER PREVENTION. A. Public Nuisance Declaration. Any landscaping or landscaping irrigation system installed or maintained in violation of this chapter, including those failing to conform to approved landscaping plans, is declared to be a public nuisance under Section 8.70.010 and 8.70.030 and is subject to abatement pursuant to Chapter 8.20. B. Nuisance Water. The operation of a landscape irrigation system that creates overspray and/or runoff onto impervious surfaces (such as Sidewalks, driveways, ditches, gutters, and roadways) in the public right-of-way shall be deemed to create nuisance water when such condition is observed to exist on any three days within a seven-day period. Nuisance water is a public nuisance under Section 8.20.020(T)(8) and subject to abatement pursuant to Chapter 8.20. C. Variances. The City Manager or their designee may, in writing, grant variances to Persons who apply in writing for water uses prohibited by this chapter if it is found that a variance is necessary to prevent an emergency condition relating to health and safety, and if the Person seeking a variance has demonstrated that he or she Page 108 ORDINANCE NO. -65- has implemented measures in some other manner that achieves the objectives of the chapter. 24.04.130 FEES FOR INITIAL REVIEW AND PROGRAM MONITORING. A. For the purposes of meeting its obligations under this chapter, the following fees are deemed necessary to review landscape documentation packages and monitor landscape irrigation audits and shall be imposed on the subject applicant, Property Owner or designee. 1. A landscape documentation package review fee will be due at time of initial project application submission to the Public Works Department. 2. The water purveyor may require every five years the project owner/developer to cause a landscape irrigation audit to be completed by a certified landscape irrigation auditor. No City fee will be due for the review of the audit by the director of public works. 3. If a landscape documentation package is not submitted prior to the start of landscape construction work by those Persons required to submit a package, a late submittal fee of twice the review fee shall be charged. 4. The City Council, by resolution, shall establish the amount of the above fees in this section in accordance with applicable law. 24.04.140 ENFORCEMENT AND PENALTIES. A. For the purposes of ensuring that Persons comply with the provisions of this chapter, the City Manager or their designee may, following written notice to subject Property Owner(s), initiate enforcement action(s) against such Property Owner(s) or designee(s), which enforcement action may include, but not be limited to, the following: 1. Revocation of a landscape documentation package. 2. Revocation of an approved conditional use permit. 3. Withholding issuance of a certificate of use, certificate of occupancy, or building permit. 4. Issuance of a stop work order. 5. Public nuisance abatement pursuant to Chapter 8.20. 6. Issuance of a citation. 7. Any landscaping that is installed, constructed, altered, enlarged, converted, moved, or maintained contrary to the provisions of this chapter and/or CVWD Ordinance No. 1302.1, or failure to comply with any of the conditions of an approved landscape documentation package, permit, precise plan, conditional use permit or variance granted by the architectural review commission, planning commission, and City Council under this chapter or CVWD Ordinance No. 1302.1, is declared to be unlawful. Any Property Owner, Person, firm, corporation, agent, employee or contractor, otherwise violating any provision of this chapter or CVWD Ordinance No. 1302.1 shall be guilty of an infraction and shall be punishable as provided herein. 24.04.150 APPEALS. Page 109 ORDINANCE NO. -66- Decisions made by the director of public works may be appealed by an applicant, Property Owner(s) or designee(s) of any applicable project to the City Manager in writing, within fifteen days from the date of notification of decision. The City Manager’s decision may be appealed to the City Council by an application in writing to the City clerk of the City Council within fifteen days from the date of notification of decision. Section 25.10 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 25.10 RESIDENTIAL DISTRICTS 25.10.040 SPECIFIC USE STANDARDS. The following provisions apply as indicated to the uses listed in Table 25.10-1 (Use Matrix for Residential Districts): A. Multifamily. Multifamily dwelling units are permitted within the R-2 district up to a maximum of 10 dwelling units per acre, or as indicated on the zoning map. Multifamily dwelling units are permitted within the R-3 district at densities between 7 and 40 dwelling units per acre, or as indicated on the zoning map. B. Group Home. When permitted according to Table 25.10-1 (Use Matrix for Residential Districts), group homes are limited to 6 or fewer residents. C. Planned Residential. Cluster development and/or condominiums are permitted as part of a planned development. D. Kennel. Excluding domestic pets, all boarding for animals or fowl must be at least 100 feet away from any neighboring residential home. E. Stables. The stabling of horses (or mules) is permitted with an administrative use permit in the residential estate district subject to the following provisions: 1. Two standard horses (or mules) over 14.2 hands, 58 inches shall be permitted on a lot of 40,000 square feet minimum area with a total number of horses all sizes not exceeding three. (This would allow one additional pony or the temporary keeping of one foal). 2. Horses must be kept within a corral and/or enclosed stable of the following minimum dimensions: a. Corral. 288 square feet per horse; minimum dimensions of 12 by 24 feet, and one-third shaded. b. Stable. 144 square feet, minimum dimension 12 feet by 12 feet per horse. Stable shall be ventilated for the desert environment. c. Construction. Corrals and stables shall be constructed of material and in such a manner to adequately contain the horses. 3. Barns, corrals or stables constructed to maintain horses shall be located not less than 35 feet from any residence or habitable structure on the same lot and not less than 50 feet from any residence or habitable structure on adjacent lots. Barns, corrals, or stables may be located within 50 feet of a front property line if the finding can be made that the design and appearance of such structures are compatible with surrounding properties. No horses shall be permitted within 100 feet of an adjacent Property not zoned RE (i.e., R1, O.P., PR). Page 110 ORDINANCE NO. -67- 4. Definitions for Organic Material, and Diverted from Chapter 8.16 shall apply to this subsection. Animal manure shall be stored in appropriate receptacles and composted or otherwise properly Diverted as an Organic Material, according to Chapter 8.19, not less than once per week. 5. Barns, corrals, or stables shall be cleaned and maintained such that dust, flies, and odors shall not create a nuisance for adjacent properties and not less than once per day. F. Large Family Day Care. Large family day care facilities require the issuance of a large family day care use permit in accordance with Section 25.64.020, and are permitted subject to the following requirements: 1. Space and Concentration. Properties proposed for use as large family day care homes shall be located no closer than 300 feet in all directions from another large family day care home. An adjustment may be granted according to Chapter 25.64.030 (Adjustments) of this ordinance to reduce this distance to no more than 100 feet. 2. Traffic Control. A traffic circulation plan shall be designed to diminish traffic safety problems. Residences located on major arterial Streets (as shown on the General Plan circulation map) must provide a drop-off/pick-up area designed to prevent vehicles from backing onto the arterial roadway. The applicant may be required to submit a plan of staggered drop-off and pick-up time ranges to reduce congestion in neighborhoods already identified as having traffic congestion problems. 3. Parking. All homes used for large family day care facilities shall provide at least three automobile parking spaces, no more than one of which may be provided in a garage or carport. Parking may be on-street if contiguous to Property. These may include spaces already provided to fulfill residential parking requirements. 4. Noise Control. Operation of the facility shall comply with all provisions of Chapter 9.24 (Noise Control) of the Palm Desert Municipal Code. Additional conditions may be placed on use permits to reduce noise impact if ongoing problems exist. 5. Signage. No signs or other exterior markings identifying a large family day care operation shall be allowed on the applicant’s home. 6. Residency. The applicant must be a primary resident of the home that is proposed as a large family day care home. 7. Contact Person. The current name(s) and telephone number(s) of the applicant, and all other operators if different from the applicant, of the family day care home shall be on file with the city at all times. 8. State Licensing. All appropriate licensing from the California Department of Social Services shall be obtained prior to commencing operation of any large family day care home in the City. 9. Building and Fire Code Compliance. Consistent with Section 1597.46 of the Health and Safety Code, the proposed large family day care home must comply with all building and fire code provisions applicable to single-family residences, and with such additional standards as the State Fire Marshal, from time to time, adopts pursuant to Section 1597.46(d) of the Health and Safety Code to promote the fire Page 111 ORDINANCE NO. -68- and life safety of children in large family day care homes. (See Title 22 of the California Code of Regulations.) 10. Smoking Restricted. Consistent with Section 1596.795 of the Health and Safety Code, smoking of tobacco and other substances—whether in pipe, cigar, or cigarette form—shall not be allowed in the applicant’s home during its hours of operation as a large family day care home with respect to those areas of the home where children are present. 11. Proof of Control. No use permit shall be issued unless the applicant can demonstrate legal authority and control over the Real Property proposed to be used as a large family day care home. G. Recreational Use, Commercial. Commercial recreation uses are limited to the PR zone only with the issuance of a conditional use permit when not directly related to a permitted residential development. H. Recreation Facility, Incidental. Limited commercial uses are authorized as part of this use classification which are commonly associated with and directly related to the primary use. I. Commercial Parking Lot. Parking lots that service commercial establishments are permitted within 300 feet of the related commercial establishment. J. Hotel and Resort Hotel. In the R-3 zoning district, these uses are permitted up to a maximum of 40 units per gross acre with the issuance of a conditional use permit. In the PR zoning district, the maximum density shall be approved by the Commission or Council. K. Government Office Building. Small neighborhood government office buildings are permitted up to 5,000 square feet in size. L. Office Parking Lot. Parking lots that serve office developments are permitted when located directly adjacent to the office professional zone and consistent with recommendations of the General Plan. M. Professional Office within Residential District. These uses are permitted with the issuance of a conditional use permit, provided Property to be developed is abutting or across the Street, or across an alley from commercially zoned Property. Residential development standards are to be used to ensure compatibility. 25.10.050 DEVELOPMENT STANDARDS. The development standards on Table 25.10-3 (Residential Zoning District Development Standards) are applicable to the residential zoning districts. These standards, along with other development standards (e.g., landscaping requirements, signs, and parking standards) in this title, are intended to assist Property Owners and project designers in understanding the city’s minimum requirements and expectations for high-quality development. A. Hillside Planned Residential Development Standards. The following standards must be met prior to the approval of a hillside development plan as described in Section 25.78.020: 1. Density. Each lot shall be limited to a maximum of one unit per 5 acres. All lots will be entitled to at least one unit. Page 112 ORDINANCE NO. -69- 2. Grading. Location of building pads and access roads shall be evaluated, approved, or adjusted based on consistency with the following: 3. Preserved natural contours of the land to avoid extensive cut and fill slopes to reduce the need for a staircase effect within developments. b. Architecture and landscape design which blends with the natural terrain to the greatest practical extent. c. Retention and protection of undisturbed viewsheds, natural landmarks, and features including vistas and the natural skyline as integral elements. d. Building Pad Area. The maximum area permanently disturbed by grading shall not exceed 10,000 square feet. e. Access Road or Driveway. Maximum permanent grading disturbance of natural terrain for development of access to the approved building pad shall be 3,000 square feet. Roads shall be located and designed to blend with the natural terrain to the greatest practical extent consistent with the grading provisions listed in this subsection A.2. f. Renaturalization. All cuts, fills, or other areas temporarily disturbed by grading shall be re-naturalized, colored, and landscaped to blend with the adjacent undisturbed natural terrain to the satisfaction of the city council. g. Maximum Dwelling Unit Size. Total dwelling unit, garage and accessory building size on any one lot shall not exceed 4,000 square feet. 4. Exception. The standards of subsections A.1 through A.3 of this section shall be required unless modified by one of the following: 5. Precise Plan. The commission and council may approve a precise plan of design through public hearing process that modifies the standards in subsection A.1 through A.3. Said precise plan shall take into consideration any and all circumstances, including, but not limited to, viewshed, topography, color, texture, and profile of any structure that the commission or council may determine to be in conformity with the purposes set forth in this section. b. Previously Approved Existing Building Pads. If a Property Owner can demonstrate that a previous building pad was approved by the city or county before incorporation, a home and accessory structure(s) may be built on a previously approved building pad without a public hearing. The building size shall be limited to 35 percent of the lot, which may be increased up to 50 percent with ARC approval. Enlarging a previously approved existing building pad shall require a new public hearing subject to the provisions of this chapter. c. Previously approved existing building pads shall be subject to the standard coverage limitations of 35 percent, which may be increased up to 50 percent with ARC approval. Any change to an existing approved building pad shall require a new public hearing subject to the provisions of this chapter. 6. Development on or across ridges is prohibited. 7. Building pads and architecture shall be designed to eliminate or minimize any visual impact on the city to the maximum extent feasible. 8. All common open space shall be preserved for that purpose as shown in the development plan. The developer shall choose one or a combination of the following 3 methods of administering common open space: Page 113 ORDINANCE NO. -70- 9. Dedication of common open space to the city, which is subject to formal acceptance. b. Establishment of an association or nonprofit corporation of all Property Owners or corporations within the project area to ensure perpetual maintenance of all common open space. c. Retention of ownership, control, and maintenance of all common open space by the developer; all privately owned common open space shall continue as such and shall only be used in accordance with the development plan; appropriate land use restrictions shall be contained in all deeds to ensure that the common open space is permanently preserved according to the development plan; said deed restrictions shall run with the land and be for the benefit of present as well as future Property Owners, and shall contain a prohibition against partition of common open space. d. Design Criteria. The following design criteria are established: a. The overall plan shall achieve an integrated land and building relationship. b. Open spaces, pedestrian and vehicular circulation facilities, parking facilities, and other pertinent amenities shall be an integral part of the landscape and particular attention shall be given to the retention of natural landscape features of the site. c. The layout of structures and other facilities shall affect a conservation in Street and utility improvements. d. Recreational areas, active and passive, shall be generally dispersed throughout the development and shall be easily accessible from all dwelling units. e. Architectural unity and harmony within the development and with the surrounding properties shall be attained. f. Planned Residential District Standards. 1. Purpose. It is the purpose of the PR district to provide for flexibility in development, creative and imaginative design, and the development of parcels of land as coordinated projects involving a mixture of residential densities and housing types, and community facilities. The PR district is further intended to provide for the optimum integration of urban and natural amenities within developments. The PR district is also established to give a land developer assurance that innovative and unique land development techniques will be given reasonable consideration for approval and to provide the city with assurances that the completed project will contain the character envisioned at the time of approval. 2. Filing Procedure. To initiate the review process, the applicant shall file applications for a change of zone (if needed) to a PR district along with a precise plan, tentative tract/parcel map and supporting environmental documentation. 3. Maximum Project Densities. The maximum project density shall be as expressed in dwelling units per gross acre of not more than the number following the zoning symbol PR. The council shall determine the densities to be allowed within each PR district at the time the involved properties are rezoned and as designated on the zoning map within the following range: one to 40 dwelling units maximum per average gross acre. The density designation shall mean dwelling units per average gross acre. For example, PR-7 means a planned residential development with seven units per gross acre. Page 114 ORDINANCE NO. -71- 4. Maximum Density for “Affordable Projects.” For projects containing at least 20 percent units affordable to low-income households as defined by the Riverside County Housing Authority, a maximum density of 55 dwelling units per acre may be allowed by precise plan. To be eligible for this program, the developer must enter into a development agreement which will tie the zoning designation and the precise plan approval to affordable housing performance standards. 5. Development Standards Applicable. All areas within the project site shall be subject to the following: 6. The standards for development of PR districts set forth in this chapter and any supplemental standards for the planned community designated in the precise plan. b. Off street parking and loading requirements. All parking and loading shall comply with the provisions of Chapter 25.46. c. Utilities. For provisions regarding utilities, see Section 25.40.120. d. Signs. All signs shall be in compliance with Chapter 25.56. e. Outside Storage. No outside storage shall exceed the height of actual perimeter screening. f. Screening. All screening requirements for developments within the PR district shall be determined by the ARC during review of the precise plan. g. Discarded Material Handling. Discarded material holds the same definition and regulations as provided in Chapter 8.16.Enclosures for handling Discarded Materials shall be provided for all developments within the PR district with the exception of single-family detached dwelling units. An enclosure for Discarded Materials will be provided and follow the regulations as established in Chapter 8.12. The freestanding Discarded Materials enclosure shall be constructed of masonry block. No Discarded Materials shall be allowed to extend above or beyond the enclosure. h. Site Plan Review. Review of a site plan by Planning Department staff shall be required before a building permit is issued for any development in the PR district. 7. Special Standards. In addition to requiring all development plans to comply with the following special standards the council and/or commission may impose such other conditions to the development plan as it deems necessary or desirable in carrying out the general purpose and intent of this chapter. 8. Minimum Project Area. Projects of less than 7 dwelling units per acre shall have a minimum area of 5 acres. Projects of 7 to 18 dwelling units per acre shall have a minimum area of 10 acres. Projects with 18+ dwelling units per acre shall have a minimum area greater than 10 acres. b. Minimum Project Width. Projects of less than 7 dwelling units per acre shall have a minimum width of 200 feet. Projects of 7 to 18 dwelling units per acre shall have a minimum width of 250 feet. Projects with 18+ dwelling units per acre shall have a minimum width greater than 300 feet. c. Minimum Project Perimeter Setback. The minimum perimeter setback shall be 20 feet from all Property lines adjacent to existing or proposed public Streets. d. Minimum Project Building Coverage. Projects of less than 7 dwelling units per acre shall have a maximum building coverage of 40 percent. Projects Page 115 ORDINANCE NO. -72- of 7 to 18 dwelling units per acre shall have a maximum building coverage of 50 percent. Projects with 18+ dwelling units per acre shall have a maximum building coverage of 80 percent. e. Minimum Lot Area. For single-family detached, the minimum lot area shall be as approved by the development plan. For single-family attached, the minimum lot area shall be 2,500 square feet. For a two-story dwelling, the minimum lot area shall be 3,000 square feet. For multiple-family buildings, the minimum lot area shall be as approved on the tract map. f. Minimum Yards—Development Standards. For single-family attached, two- story family dwellings and multiple-family buildings, the minimum front, side, and rear yards shall be as approved on the tract map. 9. Minimum Separation Between Sides of Buildings. For single-story, single-family detached buildings there shall be a minimum of 7 feet between sides. For two- story, single-family detached buildings there shall be a minimum of 10 feet between two-story elements. 10. Minimum Common Open Space. 11. Projects of less than 7 dwelling units per acre shall have a minimum common open space of 30 percent of the net area. b. Projects of 7 to 18 dwelling units per acre shall have a minimum common open space of 20 percent of the net area. c. At least 50 percent of all required common open space shall be approximately level, defined as not more than 13.5 percent grade. d. The common open space shall be land within the total development site used for recreational, including buildings used for recreation purposes, parks or environmental purposes for enjoyment by Occupants of the development and their guests, or dedicated to the city for public parks. e. Common open space shall not include public or private streets, driveways, private yards, or patios and parking areas. f. Building Height. The maximum building height in a PR district shall be 40 feet or three-story, whichever is less, or as approved by the Planning Commission. 12. Maximum Dwelling Units per Building. The maximum number of dwelling units per building shall be as approved by the Planning Commission. 13. Required Width of Private Roads. With no parking, the private roads shall be 20 feet wide. With parking on one side, 32 feet wide. With parking on two sides, 40 feet wide. The roadways shall be a minimum of asphaltic concrete with concrete curbs and gutters as approved by the Director. Standards of design and construction of roadways, both public and private, within the project may be modified as is deemed appropriate by the city, especially where it is found that the development plan provides for the separation of vehicular and pedestrian circulation patterns and provides for adequate off street parking facilities. 14. RV Park Standards. The following standards apply to recreational vehicle parks: 15. Minimum project size of 5 acres. b. Maximum density of 12 spaces per acre. c. Minimum space area of 1,500 square feet, minimum dimension 30 feet by 50 feet. Page 116 ORDINANCE NO. -73- d. Minimum 40 percent common open space/recreation area. e. Front project setback adjacent to public street of 25 feet with combination of 6-foot masonry wall and landscaping to screen all recreation vehicles. f. Interior property lines to be bounded by 6-foot masonry wall and at least 10 feet of landscaping. g. Projects may be single-use or developed as part of a larger resort or residential development. h. RV parks shall be taxed as a transient occupancy use. i. Permitted Accessory Uses. Private recreational facilities and limited commercial directly associated with primary use as approved by commission. j. Building Setbacks from the Planned Street Line. The minimum setback in all residential developments within the PR district shall be the designated distances from the ultimate right-of-way line of the Streets specified in this title unless otherwise provided in this section: Table 25.10-2: Setbacks from Planned Street Lines Street Type Setback Distance Freeway 50 feet Major 32 feet Arterial 32 feet Collector 25 feet Local 25 feet 16. Two-story, single-family detached building setbacks from project perimeter: Page 117 ORDINANCE NO. -74- a. The minimum setback shall be 100 feet or one lot depth, whichever is more. b. The commission may waive interior setback requirements when adjacent developments are planned simultaneously. c. Development standards within the PR districts may be modified through the precise plan process as specified in Section 25.72.030. b. Approval Criteria. The commission and/or council may approve a precise plan only after finding that the requirements of this title and other ordinances affecting the Property have been satisfied. In granting such approval, the commission/council may impose and enforce such specific conditions as to site development, phasing and building construction, and maintenance and operation as it deems necessary to carry out the purposes of this title and the General Plan. All development within the PR district shall comply with the development plan as approved and adopted by the commission/council. Table 25.10-3: Residential Zoning District Development Standards Measurement/Z oning District RE3 R-13 R-2 R-3 R- 1M1 HPR 4 P.R .5 ≥1 ac ≥15,0 00 sf ≥10,0 00 sf, but ≤15,0 00 sf <10,0 00 sf Residential Density Density (du/ac), min – max 1 - 2 2 - 3 3 - 4 5 - 8 3 - 10 7 – 40 7 1/5 ac 4 - 40 Page 118 ORDINANCE NO. -75- Lot Dimensions Lot size, min 40,0 00 sf 15,00 0 sf 10,00 0 sf 8,000 sf 3,50 0 sf 3,00 0 sf 20 ac / 5,00 0 sf – – Lot size, max 1 ac No max 14,99 9 sf 9,999 sf No max No max No max – – Lot width, min 150′ 90′ 90′ 70′ 50′ 40′ 500′ – – Lot depth, min 200′ 125′ 100′ – - - – – – Setbacks Front yard, min 30′ 25′ 20′ 20′ 12′ 10′ 20′ / 5′ – – Side yard, min 15′ 15′ 8′ 5′ 6 5′ 8′ 10′ / 5′ – – Combined both sides, min 30′ 30′ 20′ 10′ 6 10′ 10′ – – – Street side yard, min 30′ 15′ 10′ 10′ 10′ 10′ 20′ / – – – Rear yard, min 50′ 20′ 20′ 15′ 15′ 10′ 10′ / 5′ – – Residential accessory structures See Section 25.40.050 (Accessory Buildings and Structures) Coverage Lot coverage, max percentage of lot area 30% 35%2 35%2 35%2 60 % 75 % – 10% 50 % Building Measurements Page 119 ORDINANCE NO. -76- Height, max 15′ (18′ ARC )7 15′ (18′ ARC)7 15′ (18′ ARC)7 15′ (18′ ARC) 30′ 40′ 18′ _ 40′ Number of Stories, max. 1 1 1 2 2.5 3 1 1 3 Dwelling unit size, min 1,50 0 sf 1,250 sf 1,000 sf 1,000 sf 600 sf 450 sf – – – Dwelling unit size, max – – – – 4,00 0 sf 4,00 0 sf – 4,00 0 sf – Site area per dwelling unit, min – – – – 4,00 0 sf 2,50 0 sf – – – Building pad area, max – – – – – – – 10,0 00 sf – Open Space Group usable open space per dwelling unit, min – – – – – 300 sf – – – Notes 1. The dimension requirements included in this column apply to a manufactured home park project sites as well as individual sites within the park. The first dimension is for the larger project site. 2. Lot coverage may be increased to as much as 50 percent pending ARC approval, through the design review process. 3. All development standards are based on the square footage shown on the zoning map and not necessarily the physical lot size of a Property. Properties only zoned R-1 without a square footage allocation shall comply with standards for < 10,000 square feet. Confirm standards with Planning Division staff for correct zoning designation and lot size development standards. Page 120 ORDINANCE NO. -77- 4. Hillside Development Plan approval process in Section 25.78.020 5. The standards and guidelines presented in this section provide design criteria for the achievement of functional and attractive developments that fit within the context of the city of Palm Desert. Exceptions to the criteria contained within the Development Plan may be appropriate with the application of innovative and unique design techniques in keeping with the character envisioned at the time of approval. 6. Setbacks within the Palm Desert Country Club in R-1 and R-2 have a 5 feet sideyard setback (See Figure 25.10-1 Palm Desert Country Club Setbacks) and a combined setback of 10 feet. 7. Allowable maximum building height is 18 feet with approval by the Architectural Review Commission (ARC). Figure 25.10-1 Palm Desert Country Club Setbacks Page 121 ORDINANCE NO. -78- PASSED, APPROVED, ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 13th day of January, 2022, by the following vote, to wit: Page 122 ORDINANCE NO. -79- AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 123 [This page has intentionally been left blank.] Page 124 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - Clerk's Office - 2022-0127\Rivco Investment Pool Signers Update\1 - SR Rivco Pooled Investment Fund Signers 1-27-22.doc CITY OF PALM DESERT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY JOINT CONSIDERATION STAFF REPORT MEETING DATE: January 27, 2022 SUBMITTED BY: Veronica Chavez, Finance Manager REQUEST: ADOPT RESOLUTION NOS. 2022-___ (CITY) AND SARDA ____ AUTHORIZING NEW ACCOUNT SIGNERS FOR THE RIVERSIDE COUNTY TREASURER’S POOLED INVESTMENT FUND Recommendation That the City Council and Successor Agency Board waive further reading and adopt Resolution No. 2022-____ and SARDA____ authorizing new account signers for the Riverside County Treasurer’s Pooled Investment Fund. Discussion The City of Palm Desert and the Successor Agency to the Palm Desert Redevelopment Agency have individual investment accounts with the Riverside County Treasurer’s Pooled Investment Fund. With the recent changes in staff, it is necessary to update and execute a new resolution so that the Riverside County Treasurer’s Office will acknowledge the new signing authority(ies). Account signers are authorized to make deposits to and withdrawals from accounts in the Pooled Investment Fund. Fiscal Analysis There is no fiscal impact associated with this action. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert Hargraeves City Attorney Janet M. Moore Janet M. Moore Director of Finance Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager L. Todd Hileman City Manager/Executive Director: L. Todd Hileman ATTACHMENTS: Resolution No’s. 2022-____ and SARDA____ Page 125 Staff Report LMIHAF REPORT RELATIVE TO SB341 December 8, 2016 Page 2 of 2 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - Clerk's Office - 2022-0127\Rivco Investment Pool Signers Update\1 - SR Rivco Pooled Investment Fund Signers 1-27- 22.doc Page 126 RESOLUTION NO. 2022 -___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE INVESTMENT OF MONIES IN THE RIVERSIDE COUNTY TREASURER'S POOLED INVESTMENT FUND WHEREAS, pursuant to California Government Code Sections 27000.1 and 27000.1 (b), the Riverside County Treasurer is authorized to invest or reinvest the monies of local agencies in the county treasury, and to hold such monies in trust; WHEREAS, the City Council does hereby find that the deposit and withdrawal of monies in the Riverside County Treasurer's Pooled Investment Fund for the purpose of investment, is in the best interests of the City of Palm Desert. NOW THEREFORE, BE IT RESOLVED, that the City Council does hereby authorize the deposit and withdrawal of monies in the Riverside County Treasurer's Pooled Investment Fund for the purpose of investment, and verification by the Riverside County Treasurer's Office of all banking information provided in that regard. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, that the following City of Palm Desert officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Riverside County Treasurer's Pooled Investment Fund: Janet M. Moore Director of Finance & City Treasurer Jose Luis Espinoza Deputy Director of Finance Anthony Hernandez Accounting Manager Veronica Chavez Finance Manager Kalaina Perez Management Analyst Page 127 RESOLUTION NO. 2022-____ PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Palm Desert, County of Riverside, State of California, at its regular meeting held on this 27th day of January, 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN HARNIK, MAYOR ATTEST: NIAMH ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP Page 128 RESOLUTION NO. SARDA __ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AUTHORIZING THE INVESTMENT OF MONIES IN THE RIVERSIDE COUNTY TREASURER'S POOLED INVESTMENT FUND WHEREAS, pursuant to California Government Code Sections 27000.1 and 27000.1 (b), the Riverside County Treasurer is authorized to invest or reinvest the monies of local agencies in the county treasury, and to hold such monies in trust; WHEREAS, the Board of Directors does hereby find that the deposit and withdrawal of monies in the Riverside County Treasurer's Pooled Investment Fund for the purpose of investment, is in the best interests of the Successor Agency to the Palm Desert Redevelopment Agency ("Successor Agency"). NOW THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby authorize the deposit and withdrawal of monies in the Riverside County Treasurer's Pooled Investment Fund for the purpose of investment, and verification by the Riverside County Treasurer's Office of all banking information provided in that regard. BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, that the following Successor Agency officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Riverside County Treasurer's Pooled Investment Fund: Janet M. Moore Director of Finance & City Treasurer Jose Luis Espinoza Deputy Director of Finance Anthony Hernandez Accounting Manager Veronica Chavez Finance Manager Kalaina Perez Management Analyst Page 129 RESOLUTION NO. SARDA-____ PASSED, APPROVED, AND ADOPTED, by the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency, in the City of Palm Desert, County of Riverside, State of California, at its regular meeting held on this 27th day of January, 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN HARNIK, CHAIR ATTEST: NIAMH ORTEGA, SECRETARY TO THE SUCCESSOR AGENCY OF PALM DESERT REDEDEVELOPMENT AGENCY APPROVED AS TO FORM: ROBERT HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP Page 130 STAFF REPORT CITY OF PALM DESERT PUBLIC AFFAIRS DIVISION MEETING DATE: January 27, 2022 PREPARED BY: Thomas Soule, Public Affairs Manager REQUEST: Approve Resolution No. 2022 - establishing the Civic Engagement Committee Bylaws. Recommendation By minute motion approve Resolution No. 2022 - establishing the Civic Engagement Committee Bylaws. Background The City Council has been committed to promoting civic education and engagement, and to helping residents better understand local government. To further these goals, the City formed an ad hoc Civic Engagement Committee in 2018. At the recommendation of the Commission & Committee subcommittee, this Committee is now coming to Council for authorization as a regular City Committee, with the attached bylaws submitted for approval. Fiscal Analysis There is no fiscal impact associated with this action. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Thomas Soule Thomas Soule Public Affairs Manager N/A Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman ATTACHMENT A. Resolution 2022 - _____ B. Exhibit A – Civic Engagement Committee Bylaws Page 131 -1- RESOLUTION NO. 2022-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING A CIVIC ENGAGEMENT COMMITTEE WHEREAS, the City Council has been committed to promoting civic education and engagement, to helping residents better understand local government, to fostering a positive sense of community, and to preparing the next generation of local government leaders; and WHEREAS, the City established an ad hoc Civic Engagement Committee to assist this City with these goals; and WHEREAS, the City now desires to make this Committee permanent; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: Section 1. That a Civic Engagement Committee be established in accordance with the bylaws approved by City Council. PASSED, APPROVED, AND ADOPTED this 27th day of January 2022, by the City Council of the City of Palm Desert, California by the following vote, to wit: AYES: NOES: ABSTAIN: ABSENT: ________________________________ JAN C. HARNIK, MAYOR ATTEST: CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 132 City of Palm Desert Civic Engagement Committee Bylaws Article I – Name. Civic Engagement Committee Article II – Purpose. Members of the Civic Engagement Committee shall promote civic education and engagement, to help residents better understand local government, to foster a positive sense of community, and to prepare the next generation of local government leaders. The committee shall not serve as an adjudicatory body making findings about any specific grievance. Article III – Members. This Committee shall comprise no more than twelve (12) members and should represent a cross section of the community. Two City Council members shall serve as the Committee liaisons and the Public Affairs Manager shall serve as the staff liaison to the Committee. The City Manager may assign other staff to attend meetings as helpful resources. Article IV – Terms of Membership. Members shall serve four-year terms as appointed by and at the pleasure of the City Council. Members will be permitted two unexcused absences per calendar year; the third unexcused absence shall constitute automatic resignation. Palm Desert residency is required, but the Committee itself may invite someone who is not a resident to attend and provide particular expertise. Member terms shall be staggered to provide continuity of membership. Article V – Officers. The Committee elects two officers: the chair and the vice-chair. The chair conducts all meetings. If the chair is absent, then the vice-chair acts as chair. If the chair and vice- chair are absent, then the Homelessness Taskforce appoints a member to act as the provisional chair. Article VI – Meetings. The Committee will meet quarterly unless it determines that a different frequency is warranted. The Civic Engagement Committee meetings are held at Palm Desert City Hall. A quorum is established if a simple majority of members are present. Article VII – Meeting Notice. Regular meetings are noticed by posting an agenda at least 72 hours (three business days) before meetings (Cal. Gov't Code section 54954.2(a)). Special meetings are noticed by posting an agenda at least 24 hours (one business day) before meetings (Cal. Gov't Code section 54956). Emergency meetings may be called if dire circumstances threaten public health or safety, as long as one-hour notice is given to media if requested (Cal. Gov't Code section 54956.5). Article VIII – Voting. All member motions are approved by majority vote. If there is a tie vote with no abstentions, then the vote is recorded as a tie (no action). A subsequent motion may be offered and acted upon before finalizing the consideration of the item. Article IX – Record Keeping. Written records of actions taken or recommendations made by the Civic Engagement Committee shall be kept by an official recording secretary of the City department assigned to act as liaison to the Committee. Article XI – Responsibilities. 1. Research and explore civic engagement programs and/or resources that fully engage our entire community in the civic process and make suggestions to the City Council; Page 133 2. Recommend events and educational programs to increase good will throughout the community and enhance appreciation of diversity, participating in implementation of those programs as requested by the City Council; 3. Promote volunteer opportunities available in Palm Desert, both at the City and with community partner organizations; 4. Provide input to the City Council or City Manager when requested on issues pertaining to inclusion and engagement of all residents. Article X – Bylaws Amendment. The City Council can amend the Civic Engagement Committee bylaws by majority vote. Page 134 RESOLUTION NO. 2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, SETTING FORTH ITS FINDINGS AND AUTHORIZING THE DESTRUCTION OF PAPER RECORDS THAT HAVE BEEN DIGITALLY IMAGED FROM THE DEVELOPMENT SERVICES DEPARTMENT (PLANNING/LAND DEVELOPMENT DIVISION), TO RELY ON THE ELECTRONIC RECORD AS THE OFFICIAL RECORD WHEREAS, the Development Services Department of the City of Palm Desert, California, has imaged, in compliance with applicable state laws, official files, records, exhibits, permits, and other documents of said department; and WHEREAS, the images have been quality checked, and contain all significant details from the original and are an adequate substitute for the original document for all purposes for which the document was created or maintained; and WHEREAS, indexing has been verified/quality checked; and WHEREAS, the images have been placed on optical media that cannot be altered or changed (DVD-r, CD-R, or WORM), microfilm or microfiche; and WHEREAS, the optical media that cannot be altered or changed (DVD-r, CD-R, or WORM), microfilm or microfiche, has been stored in a safe and separate location. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: Section 1. That the above recitations are true and correct and constitute the findings of the Coty Council in this matter. Section 2. That it does hereby approve the destruction of the paper version of the documents, records or files as set forth in Exhibit “A” and “B,” attached hereto, to rely on the images as the “Official Record” and will be retained for the applicable retention period. Section 3. That paper files dated 1982 to 2013 containing change of zones, conditional use permits, color changes, general plan amendments, landscape plans, miscellaneous, parcel maps, parcel map waivers, precise plans, sign applications, temporary use permits, tentative parcel maps, and tentative tract maps have exceeded its retention period (Exhibit “A”). Section 4. That parcel map waivers dated 1998-2005 have exceeded its retention period (Exhibit “B”). Page 135 RESOLUTION NO. 2022-____ 2 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council held on this 27th day of January 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN HARNIK, MAYOR ATTEST: NIAMH ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 136 RESOLUTION NO. 2022-____ 3 EXHIBIT “A” DESTRUCTION OF FILES FROM THE DEVELOPMENT SERVICES DEPARTMENT (PLANNING/LAND DEVELOPMENT DIVISION) THAT HAVE EXCEEDED ITS RETENTION PERIOD RETENTION NO. CONDITIONAL USE PERMITS, DEVELOPMENT PLANS, COLOR CHANGES, PARCEL MAPS, PRECISE PLANS, SIGN PERMITS, AND TENTATIVE TRACT MAPS (1982-2002) BOX NO. D-PL-32 PL-018 77000 Country Club Drive - ABD Palm Desert, TT 29468 2001 PL-018 75375 Country Club Drive-Sunrise Company DP 02-81 DP 03-81 PM 17474 TT 15633 TT 15640 1982 PL-018 75375 Country Club Drive - The Lakes Golf Course, PP 88-1, PM 23287 1988 PL-018 74950 Country Club Drive - Gila Bar and Grill, PP 92-6 1997 PL-018 77500 Country Club Drive - Freedom Park, PP/CUP 02-05 2002 PL-017 77564 Country Club Drive - Avondale Country Club, 382 C 1994 PL-018 75005 Country Club Drive - US Filter, DP 03-81 1999 PL-017 75005 Country Club Drive - US Filter 97-17 C 1998 PL-017 77333 Country Club Drive, Suite B - Palm Desert Resort, SA 02-56 2002 PL-017 75375 Country Club Drive - The Lakes Country Club, SA 01 2001 RETENTION NO. CONDITIONAL USE PERMITS, CHANGE OF ZONES, COLOR CHANGES, MISCELLANEOUS, PRECISE PLANS, SIGN PERMITS, TENTATIVE PARCEL MAPS, TENTATIVE TRACT MAPS, AND TEMPORARY USE PERMITS (1992-2006) BOX NO. D-PL-33 PL-017 74950 Country Club Drive - Del Rios Grill, SA 01-81, 2001 PL-017 74950 Country Club Drive - GILA STEAKS AND SEAFOOD, 4885SA 1997 PL-017 74970 - Country Club Drive - CITY WOK, 4582SA 1996 PL-017 74970 - Country Club Drive - CITY WOK PATIO LTR 2000 PL-017 74990 BLD K - Country Club Drive - DESERT URGENT CARE, 4807SA 1997 PL-017 74998 SUITE 210 Country Club Drive - JUST FOR MEE HAIR SALON, 4351SA 1996 PL-017 74998 SUITE 20 - Country Club Drive - PET SPA, SA 06-85 2006 PL-017 74998 #220 Country Club Drive - CANYON NATIONAL BANK, SA 00-70, SA 00-72 2000 PL-017 74998 Country Club Drive - JASON DAVID HAIR STUDIO, SA 06-39 2006 PL-018 77564 #320 Country Club Drive PREVENTATIVE MEDICINE CLINIC OF DESERT CUP 99-11 1999 PL-018 77564 Country Club Drive - PARC CENTER DR JOINT VENTURE, CUP 00-17 2000 PL-017 77564 SUITE 380 Country Club Drive - PALMS SALON, SA 05-138 2005 PL-017 77622 Country Club Drive The Patio Place SA 02-61 SA 02-80 SA 04-20 SA 05-79 SA 05-144 2005 PL-017 77564 Country Club Drive - MAX BURGESS DDS 4576SA 1995 PL-017 77570 SUITE D Country Club Drive - FARRELL INSURANCE SA 03-37 2005 PL-017 76222 Country Club Drive - H2O LANDSCAPE SA 06-28 2006 PL-017 77622 Country Club Drive - DIMUNDO SA 06-05 2005 PL-017 77622 SUITE S Country Club Drive - SPENCER FLOORS SA 05-01 2005 PL-017 77622 Country Club Drive - PD PHYSICAL THERAPY SA 05-151 2005 PL-017 77622 SUITE T Country Club Drive - PARAGON SIGNS 4150SA 1993 PL-017 77622 Country Club Drive - DESERT DESK SA 1993 PL-017 77622 SUITE 5 Country Club Drive - SPENCER FLOORS SA 05-01 2005 PL-017 77622 SUITE K Country Club Drive - KLCXFM MIRAGE BROADCASTING 391C 1994 PL-017 77682 SUITE A-13 Country Club Drive - RODGER DUNN GOLF 3035SA 1992 PL-017 77682 Country Club Drive - STONE BOUTIQUE SA 05-152 2005 PL-017 77682 A-B Country Club Drive - LENNAR SA 05-10 2005 PL-017 77682 SUITE D Country Club Drive - DESERT FURNITURE SA 02-24 2002 PL-017 77734 Country Club Drive - LASER TEC SA 02-79 SA 02-73 2002 PL-017 77734 SUITE B - Country Club Drive - BUUS FURNITURE GALARY SA 04-37 2004 Page 137 RESOLUTION NO. 2022-____ 4 PL-017 77734 SUITE B - Country Club Drive - PEACE LUTHERAN CHURCH 4149 SA 1993 PL-017 77734 SUITE F - Country Club Drive - ELECTRIC CAR DIST 4072SA 1992 PL-018 77734 SUITE F-3 - Country Club Drive - PEACE LUTHERAN CHURCH CUP 92-6 1992 PL-017 77750 SUITE A Country Club Drive - CALIFORNIA PATIO TUP 05-46 TUP 06-45 TUP 06-12 2005 PL-017 77750 SUITE A & B - Country Club Drive - CALIFORNIA Patio SA 04-171 2005 PL-017 77760 SUITE C - Country Club Drive - BANK NINE GREENS SA 05-78 2005 PL-017 77760 SUITE A B F - Country Club Drive - INLAND TILE SA 05-41 2005 PL-017 77770 SUITE D - Country Club Drive - DESERT CONCEPTS SA 05-89 2005 PL-017 77770 SUITE C - Country Club Drive - SWISSTRAX SA 05-139 2005 PL-017 77770 SUITE H - Country Club Drive - DESERT FABRIC UPHOLSTERY SA 05-42 2005 PL-017 77770 Country Club Drive - PILATIS SA 05-58 2005 PL-017 77777 Country Club Drive - DESERT OASIS APARTMENTS 4803SA 1997 PL-018 77777 Country Club Drive - DESERT OASIS APARTMENTS TT 27370 1999 PL-017 77777 Country Club Drive - DESERT OASIS APARTMENTS SA 02-84 2002 PL-017 77757 Country Club Drive - MISC 99-17 1999 PL-017 77780 SUITE A - Country Club Drive - LA MIASON JOLIE SA 05-64 2005 PL-017 77780 SUITE B - Country Club Drive - MAGSAMS SA 05-40 2005 PL-017 77780 SUITE A - Country Club Drive - HARRIETS YARNS SA 05-74 2005 PL-018/PL-025 77880 Country Club Select Properties PP/CUP 98-19 TPM 29068 CZ 98-9 2001 PL-017 77880 Signs 2001 PL-017 77840 Country Club Drive - LINDORA SA 03-74 2005 PL-018 77850 Country Club Drive - VERIZON/02 WIRELESS CUP 01-03 2001 PL-025 77850 Country Club Drive - SELECT PROPERTIES CZ 98-9 1999 PL-018 77850 Country Club Drive - NEXTEL COMMUNICATIONS INC CUP 00-6 2000 PL-018 77850 Country Club Drive - EXECUTIVE CARWASH PP 99-12 2000 PL-017 43135 Delaware Street - Link Fence - MISC 99-13 - 1999 PL-018/PL-025 77850 Country Club Drive - SELECT PROPERTIES PP/CUP 98-19 TPM 29068 CZ 98-9 2001 RETENTION NO. LANDSCAPE PLAN, MISCELLANEOUS, PARCEL MAP WAIVERS, PRECISE PLANS, AND SIGN PERMITS (2000-2006) BOX NO. D-PL-34 PL-018 77850 Country Club Drive - PICK PARTNER SELF STORAGE PP 99-14 2000 PL-017 74855 Country Club Drive - MARRIOTT MISC 06-17 2006 PL-018 77870 Country Club Drive - SIXTH ST PARTNER PMW 03-18 2003 PL-018 77870 Country Club Drive - MCDONALD'S PP-01-09 2001 PL-018 77880 Country Club Drive - SIXTH ST PARTNER PP 00-12 2001 PL-018 77880 Country Club Drive - DESERT COUNTRY PLAZA LANDSCAPE 2001 PL-017 77880 SUITE 5-3 Country Club Drive - ALL AMERICAN CUTS SA 01-127 2001 RETENTION NO. COLOR CHANGES, CONDITONAL USE PERMITS, PARCEL MAP WAIVERS, PRECISE PLANS, AND SIGN PERMITS (1999-2006) BOX NO. D-PL-35 PL-018 77880 Country Club Drive - DESERT COUNTRY PLAZA PP-10 1999 PL-018 77880 Country Club Drive - DESERT COUNTRY PLAZA PP-/CUP 98-19 AMENDMENT # 1 2003 PL-017 77898 SUITE 9-5 Country Club Drive - EMBROID ME SA 05-11 2005 PL-017 77898 SUITE 9-4 Country Club Drive - ECLIPSES SA 06-96 2006 PL-017 77898 SUITE C Country Club Drive - BAREFOOT BLISS SA 05-106 2005 PL-017 77898 SUITE 9-4 9-3 Country Club Drive - WIRELESS TOYZ SA 05-68 2005 PL-017 77898 Country Club Drive - ECLIPES DÉCOR SA 06-96 2006 PL-018 77900 77920 Country Club Drive - PRICES MASSAGE THERAPY CUP 01-09 2001 PL-017 77900 Country Club Drive - DOMINO'S PIZZA SA 01-122 2001 PL-018 77900 Country Club Drive - SIXTH ST PARTNER PMW 00-6 2000 Page 138 RESOLUTION NO. 2022-____ 5 PL-017 77900 Country Club Drive - ABBAS AROMAS AND HERBS SA 01-24 2001 PL-017 77900 SUITE 5-C Country Club Drive - ALL AMERICAN CUTS SA 00-116 2000 PL-017 77900 Country Club Drive - CHINA WOK SA 01-03 2003 PL-017 77912 Country Club Drive - SA 05-149 2005 PL-018 77912 Country Club Drive - SIXTH ST PARTNER PMW 03-18 2004 PL-017 77912 SUITE 3-4 Country Club Drive - TOGOS/BASKIN ROBINS SA 01-61 2001 PL-017 77912 SUITE 3-1 Country Club Drive - CHINA WOK SA 01-62 2001 PL-017 77912 Country Club Drive - LA CASITA RESTAURANT SA 05-149 2005 PL-017 77912 Country Club Drive - LA CASITA RESTAURANT SA 04-148 PL-017 77920 SUITE 6-2 Country Club Drive - HEALTH EXPRESS PLUS SA 04-173 2004 PL-017 77920 SUITE 6-1 Country Club Drive - LOWE CARBZ SA 03-131 2003 PL-017 77920 SUITE 6-1 Country Club Drive - SA 03-139 2003 PL-018 77920 SUITE 607 & 608 Country Club Drive - DR WENDY ROBERTS CUP 03-05 2003 PL-017 77920 Country Club Drive - SKIN AND BODY BOUTIQUE SA 03-01 2003 PL-017 77920 Country Club Drive - ABBAS AROMAS SA 01-66 2001 PL-017 77920 SUITE E Country Club Drive - ACTION GYMNASTICS SA 01-23 2001 PL-017 77920 SUITE 6-D Country Club Drive - LEE NAIL SA 01-59 2001 PL-017 77920 Country Club Drive - BLENDS COFFEE SA 01-82 2001 PL-017 77920 SUITE6-5 Country Club Drive - VACATION RENTAL REALTY SA 02-07 2002 PL-017 77932 Country Club Drive - CLUBS CARS OF THE DESERT SA 02-214 SA 03-03 2003 PL-017 77932 Country Club Drive - WOLFGANG BISTRO SA 03-120 2003 PL-017 77932 SUITE 2-2 Country Club Drive - WELLS FARGO SA 03-93 2003 PL-017 77932 SUITE 2-3 Country Club Drive - GALLERY SCREEN SA 04-46 2004 PL-018 77932 Country Club Drive - SIXTH ST PARTNER PMW 03-18 2003 PL-017 77940 Country Club Drive - MIKES ONE HOUR PHOTO SA 02-119 2002 PL-017 77940 Country Club Drive - LEXI FORAL AND GIFTS SA 02-185 SA 02-186 2002 PL-017 77940 SUITE 7-1 Country Club Drive - BALI CLEANERS SA 02-136 SA 02-206 2002 PL-017 77940 Country Club Drive - SA 04-151 2002 PL-017 77950 Country Club Drive - WELLS FARGO C 02-03 2002 PL-017 77960 Country Club Drive - EXECUTIVE CARWASH SA 01-202 2001 PL-017 77950 Country Club Drive - WOLFGANG BISTRO SA 03-111 2003 RETENTION NO. CHANGE OF ZONES, GENERAL PLAN AMENDMENTS, MISCELLANEOUS, TENTATIVE TRACT MAPS (2010-2013) BOX NO. D-PL-357 PL-012/PL- 018/PL-025 76000 FRANK SINATRA DRIVE-SPANISH WALK - TT 33838 PP 05-12 CZ/GPA 05-02 FILE 1 2013 PL-018 76000 FRANK SINATRA DRIVE-SPANISH WALK - TT 33838 PP 05-12 CZ/GPA 05-02 FILE 2 2013 PL-018 76000 FRANK SINATRA DRIVE-SPANISH WALK - TT 33838 PP 05-12 C/Z/GPA 05-02 FILE 3 2010 PL-018 76000 FRANK SINATRA DRIVE-SPANISH WALK - TT 33838 PP 05-12 C/Z/GPA 05-02 FILE 4 2011 PL-018 GERALD FORD DRIVE-SPANISH WALK/SONRISA/ESPERANZA - TT 33837-1 MISC 13-218 2013 Page 139 RESOLUTION NO. 2022-____ 5 EXHIBIT “B” DESTRUCTION OF FILES FROM THE DEVELOPMENT SERVICES DEPARTMENT (PLANNING/LAND DEVELOPMENT DIVISION) THAT HAVE EXCEEDED ITS RETENTION PERIOD PARCEL MAP WAIVERS 1991-2004 BOX NO. D-PW-1 (ENGINEERING) RETENTION NO. TYPE CASE NO. STREET NAME YEAR PW-032/PW-033 PARCEL MAP WAIVER PMW 90-08 VISTA DEL MONTANAS 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 90-16 FRANK SINATRA COOK PORTOLA 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-01 KOVENISH TAMIT PALOWET KIVA HIGHWAY 74 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-02 EL CORTEZ 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-03 DESERT FALLS COUNTRY CLUB 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-04 CREST LAKE 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-08 CHALAKA KIVA CAHUILLA 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-09 CHALAKA KIVA CAHUILLA 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-05 SAN BENITO 1991 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-10 SAN RAFAEL 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-11 KIVA CHALAKA PALOWET TAMIT MENIL 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 91-12 WANISH SIVAT 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 92-01 FRED WARING 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 92-02 MOSS ROSE DAYLILY 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 92-03 DAYLILY CORAL BELLS 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 92-04 CORAL BELLS 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 92-06 SAN PASCUAL SAN JUAN 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 92-13 WANISH TEKIS 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 92-15 CATALINA SAN PASCUAL 1992 PW-032/PW-033 PARCEL MAP WAIVER PMW 92-17 MEDITERRANEAN BOARDWALK 1994 PW-032/PW-033 PARCEL MAP WAIVER PMW 93-05 SAN MARINO 1993 PW-032/PW-033 PARCEL MAP WAIVER PMW 93-09 RUYEN INTERNATIONAL H MELBY 1993 PW-032/PW-033 PARCEL MAP WAIVER PMW 93-10 YUCCA TREE 1993 PW-032/PW-033 PARCEL MAP WAIVER PMW 93-13 PMW 93-14 VARNER 1993 PW-032/PW-033 PARCEL MAP WAIVER PMW 93-17 ABRONIA PANORAMA 1994 PW-032/PW-033 PARCEL MAP WAIVER PMW 94-01 VARNER 1994 PW-032/PW-033 PARCEL MAP WAIVER PMW 94-05 HIGHWAY 74 1994 PW-032/PW-033 PARCEL MAP WAIVER PMW 94-06 TURQUERIES TURENDOT MOROCCO ASCALON 1994 PW-032/PW-033 PARCEL MAP WAIVER PMW 94-11 VARNER 1994 PW-032/PW-033 PARCEL MAP WAIVER PMW 94-08 COOK BELMONTE 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 94-09 DESERT HOLLY ARROWHEAD 1994 PW-032/PW-033 PARCEL MAP WAIVER PMW 94-10 VARNER 1994 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-01 PAINTER'S PATH 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-02 HAWK HILL 1995 Page 140 RESOLUTION NO. 2022-____ 6 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-03 PMW 93-04 VILLAS AT DESERT FALLS II 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-05 PMW 95-06 FRED WARING SAN ANSELMO 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-07 DINAH SHORE 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-09 ARMOUR HOVLEY EAST HARRISON 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-08 INDIAN RIDGE COUNTRY CLUB EAGLE DANCE 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-10 AVENIDA ANDRA 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-11 ABRONIA TR CANDLEWOOD ST PANORAMA DR 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-12 BLUE BERRY LANE/WILDFLOWER 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-13 BOUGAINVILLEA 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-14 TAMIT KIVA 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-16 MARRAKESH 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-17 MARRAKESH 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-18 MARRAKESH 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-19 KASBAH 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-20 KASBAH 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-22 KASBAH 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-24 SAN MARINO 1995 PW-032/PW-033 PARCEL MAP WAIVER PMW 95-21 MARRAKESH 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-01 METATE 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-09 COOK FRANK SINATRA PORTOLA 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-14 ELDORADO WHITE HORSE 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-17 HIGHWAY 111 DEEP CANYON 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-18 RITTER MERLE 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-19 ZANZIBAR TEMPLE 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-20 ROYAL CANYON GRAND CANYON 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-21 CORTE SAN MARCO 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-22 CORTE SAN MARCO 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-23 SARAZEN 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-24 EL PASEO PORTOLA LARREA PRICKLY PEAR 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-26 NAVTEM WIKIL NETAS 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-27 KIVA 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-27 KIVA CAHUILLA CHALAKA 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-39 GERALD FORD COOK INTERSTATE 10 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-40 HIGHWAY 111 DEEP CANYON 1996 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-41 MARRAKESH 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-42 DESERT MIRAGE 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 96-43 SARI MARESH LIOLIOS 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-01 KIVA DRIVE KIVA COURT 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-03 DESERT WILLOW 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-06 MERILL LUCERNE 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-09 BOARDWALK, ST. CHARLES PLACE 2004 Page 141 RESOLUTION NO. 2022-____ 7 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-10 PMW 97-11 METATE 2004 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-12 HARRIS COUNTRY CLUB WASHINGTON 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-14 TOWN CENTER 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-15 LIOLIOS MINARET SALADIN EDESSA 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-18 EL PASEO 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-22 CARRIAGE TRAIL 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-23 KERN 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-24 PMW 97-25 CENTURY CROWELL 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-28 BIGHORN 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-26 WANISH TEKIS 1997 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-31 ASHBERRY COURT 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-32 GERALD FORD DRIVE 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-33 PMW 97-34 SHADOW HILLS ROAD 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 97-36 BEAVERTAIL STREET 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-02 EDESSA LIOLIOS DRIVE 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-06 EDESSA LIOLIOS DRIVE 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-07 GERALD FORD DRIVE 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-09 HIGHWAY 111 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-10 OCOTILLO DRIVE & SERVICE ROAD 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-13 TURQUERIES AVENUE 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-14 WANISH PLACE 2000 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-15 METATE 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-21 PMW 98-22 METATE 1998 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-29 COUNTRY CLUB & WASHINGTON STREET 1999 PW-032/PW-033 PARCEL MAP WAIVER PMW 98-30 MELANIE PLACE 1999 PW-032/PW-033 PARCEL MAP WAIVER PMW 99-02 FRED WARING DRIVE AND SAN PASCAL AVENUE 2005 PW-032/PW-033 PARCEL MAP WAIVER PMW 99-03 TAMIT PLACE 1999 PW-032/PW-033 PARCEL MAP WAIVER PMW 99-06 FRED WARING DR & FAIRHAVEN DRIVE 2000 PW-032/PW-033 PARCEL MAP WAIVER PMW 99-08 PORTOLA AVE & HIGHWAY 111 1999 PW-032/PW-033 PARCEL MAP WAIVER PMW 99-11 GERALD FORD, PORTOLA, FRANK SINATRA 1999 PW-032/PW-033 PARCEL MAP WAIVER PMW 99-15 MONTEREY AVENUE 1999 PW-032/PW-033 PARCEL MAP WAIVER PMW 99-16 HORIZON LAND & ANDREAS CANYON DRIVE 2001 PW-032/PW-033 PARCEL MAP WAIVER PMW 99-17 PORTOLA AVE & GOLETA AVE 2001 Page 142 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: January 27, 2022 PREPARED BY: Amy Lawrence, Special Programs Manager REQUEST: Consideration to approve Contract No. with Romo Studios, LLC, in the amount of $188,390 for replacement of the bronze boy of For Our Freedom located at Freedom Park Recommendation By Minute Motion: 1. Approve a Contract No. with Romo Studios, LLC, in the amount of $188,390 for replacement of the bronze boy of For Our Freedom located at Freedom Park; and 2. Authorize the Mayor to execute said Contract and allow the City Attorney to make non-substantive changes. Commission Recommendation At its regular meeting of December 8, 2021, the Cultural Arts Committee recommended the City Council approve a contract with Romo Studios, LLC, in an amount not to exceed $190,000 for replacement of the bronze boy of For Our Freedom located at Freedom Park with a vote of 5-0-2 with Adney, Boren, Flint, Hauer, and Myrland voting AYE with Darby and Higgins ABSENT. Strategic Plan Objective The replacement of artwork at Freedom Park is in line with the Arts & Culture Mini- Vision contained in the Strategic Plan, which states: “Arts and culture give a community its soul. Palm Desert is the cultural core of the Coachella Valley. Cultural tourism drives economic growth in Palm Desert. The community is host to internationally recognized cultural events that bring significant economic benefits to the City. Palm Desert is a leader in arts education, ensuring a well-rounded population that possesses high levels of creativity and critical thinking skills.” Page 143 January 27, 2022 - Staff Report Contract with Romo Studios, LLC for Replacement of Artwork at Freedom Park Page 2 of 2 Discussion In 2007, For Our Freedom by Romo Studios, LLC was installed in Freedom Park. The artwork consists of a bronze sculpture of a mother kneeling holding an American flag with a young boy looking back at her with an airplane. Depicted in the artwork is a shadow of the son in a military uniform. On May 6, 2021, staff received notification from the Public Works Department that the boy of For Our Freedom had been stolen sometime that morning. Staff filed a police report and a claim with the insurance company for the theft. Staff also contacted the artist to obtain a quote to replace the stolen sculpture. Included in the artist’s quote is a theft preventative measure in the form of a rod inside the sculpture to make it more secure and difficult to remove from the site. Fiscal Analysis Upon contact with the original artist, Romo Studios, LLC, the cost to replace the bronze statue of the boy is $188,390. Additionally, the City received an insurance check in the amount of $164,790. The difference between the cost to replace and the amount received from the insurance company is roughly $23,600. As such, staff is seeking approval to contract with Romo Studios in the amount of $188,390 to replace the stolen artwork, with the balance of approximately $23,600 to be paid from the Public Art Fund. Funds are available in the Public Art budget and no General Fund monies will be expended. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez Director of Development Services Janet M. Moore For Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman ATTACHMENTS: Draft Agreement (Contract No. ) Photo of For Our Freedom Romo Studios Estimate Page 144 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 1 of 17 CITY OF PALM DESERT AGREEMENT FOR COMMISSION OF PUBLIC ARTWORK This Agreement for Commission of Public Artwork (“Agreement”) is entered into this 27th day of January, 2022, by and between the City of Palm Desert, a public agency organized and operating under the laws of the State of California (“City”), and Romo Studios, LLC (“Artist”). City and Artist are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. RECITALS WHEREAS, City is implementing a public art program pursuant to: Chapter 4.10 of Palm Desert Municipal Code, establishing an art in public places program and related development fee in City; pursuant to Ordinances 900 and 936, Ordinances of the City Council of the City, establishing the organization, objectives, and responsibilities of the Palm Desert Art In Public Places Commission (the “Commission”); and pursuant to the City’s “Art In Public Places” guidelines; and WHEREAS, Artist is a recognized professional artist, and the City acknowledges sufficient familiarity with the style and quality of the Artist’s work; and WHEREAS, the City commissioned the Artist in 2007 to fabricate an original work of art entitled “For Our Freedom” (the “Artwork”) at Freedom Park (the “Site”). WHEREAS, the City desires for Artist to replace the bronze boy portion of the original Artwork. Artist’s budget (the “Proposal”), which is attached hereto as Exhibit “A”, has been reviewed and approved by City and is hereby made a part of this Agreement. NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises set forth herein, the Parties agree to the following: Section 1. SCOPE OF WORK; SCHEDULE. A. Artist shall provide all machinery, equipment, supplies, items, parts, materials, labor or other services, including design and engineering services, necessary to prepare and submit plans and specifications for installation of the Artwork, including, but not limited to the design, fabrication, transportation, and oversight of the installation of the Artwork (the “Work”). The Work is more particularly described in Exhibit "B" attached hereto and incorporated herein by reference. The Work shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. B. The Artist shall complete the Fabrication/Installation work within ____ calendar days. The Fabrication/Installation tasks shall include, but are not limited to, the following: Page 145 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 2 of 17 • Procurement of materials and fabrication of the Artwork. • Delivery of the Artwork to the Site. • Oversight of installation of the Artwork. C. Artist agrees that if the Work is not completed within the aforementioned timeframes and/or pursuant to any such performance milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage, unless agreed upon by both Parties in writing. Section 2. DELIVERY A. The time of Artist’s performance is of the essence for this Agreement. The Artwork will be delivered to the site at a date and time agreed upon by the City and Artist. Artist must immediately notify City in writing any time delivery is behind schedule or may not be completed on schedule. Prior to delivery of the Artwork, the Artist shall notify the City in writing when fabrication of the Artwork is complete and Artist is ready for delivery of the Artwork to the Site. Damage to City or public facilities or private property caused by the Artist or by its subcontractors during delivery shall be repaired and/or replaced in kind at no cost to the City. Section 3. INSTALLATION A. The City is responsible for preparation of the Site and installation of the Artwork as required by the Artist’s plans and specification for the installation of the Artwork. B. The Artist shall be available at all times during installation of the Artwork at the Site for consultation with the City. C. Artist shall advise City in writing when the Work required under this Agreement has been completed in conformity with this Agreement. The City shall notify Artist in writing of the final acceptance (or non-acceptance) of the Work. Section 4. COMPENSATION A. The City shall pay Artist One-Hundred Eighty-Eight Thousand, Three- Hundred and Ninety Dollars ($188,390), which will constitute full compensation and payment for all Work to be performed under this Agreement. No extra charges of any kind will be allowed unless specifically agreed to in writing by City’s authorized representative. The total price shall include all federal, state and local sales, use, excise, privilege, payroll, occupational and other taxes applicable to the Artwork furnished to City hereunder. Page 146 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 3 of 17 Section 5. CHANGES A. City, at any time, by a written order, may make changes to the Work, including but not limited to, City’s requirements and specifications. If such changes affect the cost of the Work or time required for its performance, an equitable adjustment will be made in the price or time for performance or both. Any change in the price necessitated by such change will be agreed upon between City and Artist and such change will be authorized by a change order document signed by City and accepted by Artist. B. After approval of the final design of the Work by the City, Artist shall not make changes to the Work without the written consent of the City. Section 6. PAYMENT A. All requests for payment shall be submitted to the Special Programs Manager in writing for review and approval and must be accompanied with a detailed invoice and other documentation as required by the Special Programs Manager supporting the Work completed. B. Terms of payment are net thirty (30) days, less any applicable retention, after receipt of invoice, or completion of applicable progress milestones. Final payment shall be made by City after Artist has satisfied all contractual requirements. Payment of invoices shall not constitute acceptance of the Work. C. Payment shall be made in accordance with the following schedule: 1. Commencement of Project/Fabrication (45%) - ($84,775.50) 2. Completion and Delivery of Artwork (45%) – ($84,775.50) 3. Final Acceptance (10%) – ($18,839) D. Payments otherwise due may be withheld by City on account of defective Artwork not remedied, liens or other claims filed, reasonable evidence indicating probable filing of liens or other claims, failure of Artist to make payments properly to its subcontractors or for material or labor, the failure of Artist to perform any of its other obligations under the Agreement, or to protect City against any liability arising out of Artist’s failure to pay or discharge taxes or other obligations. If the causes for which payment is withheld are removed, the withheld payments will be made promptly. If the said causes are not removed within a reasonable period after written notice, City may remove them at Artist’s expense. E. Payment of the Final Acceptance payment will be made by City upon: 1. Submission of an invoice for satisfactory completion of final acceptance and in the amount associated with the Final Acceptance payment; Page 147 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 4 of 17 2. Written acceptance of the Work by City; 3. Delivery of all drawings and specifications, if required by City; 4. Delivery of executed full releases of any and all liens arising out of this Agreement; and 5. Delivery of an affidavit listing all persons who might otherwise be entitled to file, claim, or maintain a lien of any kind or character, and containing an averment that all of the said persons have been paid in full. If any person refuses to furnish an actual release or receipt in full, Artist may furnish a bond satisfactory to City to indemnify City against any claim or lien at no cost to City. F. Acceptance by Artist of payment of the Final Acceptance payment will constitute a waiver, release and discharge of any and all claims and demands of any kind or character which Artist then has, or can subsequently acquire against City, its successors and assigns, for or on account of any matter or thing arising out of, or in any manner connected with, the performance of this Agreement. However, payment for Final Acceptance by City will not constitute a waiver, release or discharge of any claims or demands which City then has, or can subsequently acquire, against Artist, its successors and assigns, for or on account of any matter or thing arising out of, or in any manner connected with, the performance of this Agreement. Section 7. WARRANTY. A. Artist represents and warrants that (a) the Artwork is solely the result of artistic effort of Artist and its representatives; (b) the Artwork is unique and original and does not infringe upon any copyright; (c) the Artwork, or a duplicate thereof, has not been accepted for sale elsewhere; and (d) the Artwork is free and clear of any liens from any source whatsoever. B. Artist warrants that the Artwork will be free from defects in design, engineering, material, and workmanship for a period of two (2) years, or such longer period as agreed to by Artist and City, from the date of final written acceptance of the Artwork by City as required for final payment under this Agreement. For any breach of the warranties contained in this Section, Artist will, immediately after receiving notice from City, and at Artist’s own expense and without cost to City repair the defective Artwork. All such defective Artwork that is so remedied will be similarly warranted as stated above. In addition, Artist will repair or replace other items of the Artwork which may have been damaged by such defects or the repairing of the same, all at its own expense and without cost to City. C. Artist agrees to indemnify, defend, and hold City harmless against any and all third party claims resulting from the breach or inaccuracy of any of the foregoing warranties. Page 148 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 5 of 17 D. In the event of a breach by Artist of its obligations under this Section, City will not be limited to the remedies set forth in this Section, but will have all the rights and remedies permitted by applicable law. Section 8. COPYRIGHT; REPRODUCTION RIGHTS A. Copyright of the Artwork and related design, drawings, sketches, and models will be owned by the Artist until acceptance of Artist’s Work by the City or termination of the Agreement. Notwithstanding the foregoing, Artist agrees not to make use of such copyright in the Artwork for any purpose other than the performance by Artist of Artist’s obligations under this Agreement of public artwork, without the written consent of City. Upon acceptance of Artist’s Work, copyright of the Artwork will be owned jointly by the City and the Artist and no further use of the copyright will be made by the Artist and the City without the written consent of the other, which consent will not be unreasonably withheld. Artist certifies that the Artwork is a unique work of art especially designed for the City and shall not duplicate or reproduce the Artwork nor shall the Artist permit others to do so except with the written permission by the City. The City has the right to reproduce and distribute in printed form and on commercial documents and/or brochures or any other literature of the City describing or dealing with its real estate holdings, photographs, realistic renderings, videotapes, or films of the Artwork. Such reproductions and use of the images of the Work for promotional purposes shall not constitute a breach of copyright and no royalty shall be due and payable by the City to the Artist for such use. B. All reproductions of the Artwork by the City shall contain a credit to the Artist. C. City agrees that the Artist shall have the right to reproduce and distribute in printed form and on non-commercial educational materials and brochures advertising or promoting Artist and Artist’s career, two-dimensional images such as photos, slides or realistic renderings, video tapes, or films of the Artwork as installed and formally accepted by the City. Such reproductions and use of the images of the Artwork for promotional and educational purposes shall be deemed to not constitute a breach of copyright in any way and no royalty fee shall be due and payable to the Artist for such use. Such reproduction and images of the Artwork for publicity, promotion, and educational purposes shall, to the extent reasonably possible and appropriate, give reference to the City. D. Artist shall use his/her best effort to give a credit in any public showing under Artist’s control of illustrations of the Art Work as follows: “An original work owned and commissioned by the City of Palm Desert, California.” Section 9. STANDARD OF CARE; INDEPENDENT CONTRACTOR. A. Artist shall perform all Work under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Page 149 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 6 of 17 B. Artist enters into this Agreement as an independent contractor and not as an employee of City. Artist shall have no power or authority by this Agreement to bind City in any respect. Nothing in this Agreement shall be construed to be inconsistent with this relationship or status. All employees, agents, contractors or subcontractors hired or retained by the Artist are employees, agents, contractors or subcontractors of the Artist and not of City. City shall not be obligated in any way to pay any wage claims or other claims made against Artist by any such employees, agents, contractors or subcontractors or any other person resulting from performance of this Agreement. Section 10. COMPLIANCE WITH LAWS A. Artist shall comply with all applicable laws and regulations of the federal, state and local government. B. Artist is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and "maintenance" projects. If any work performed by Artist under this Agreement is 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 $25,000 or more, Artist agrees to fully comply with such Prevailing Wage Laws. Artist shall defend, indemnify and hold 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. Any stop orders issued by the Department of Industrial Relations against Artist or any subcontractor that affect Artist’s performance of any part of this Agreement, including any delay, shall be Artist’s sole responsibility and Artist shall indemnify City from liability arising out of the same. It shall be mandatory upon the Artist 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), contractor registration (Labor Code Sections 1725.5 and 1771.1) and debarment of contractors and subcontractors (Labor Code Sections 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 and to be registered with the Department of Industrial Relations shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1771.4, 1725.5 and 1771.1. Section 11. SUBCONTRACTS. A. Unless otherwise specified, Artist must obtain City’s written permission before subcontracting any portion of the Work. Except for the insurance requirements in this Agreement, all subcontracts and orders for the purchase or rental of supplies, materials or equipment, or any other part of the Artwork, will require that the subcontractor be bound by and subject to all of the terms and conditions of the Page 150 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 7 of 17 Agreement. No subcontract or order will relieve Artist from its obligations to City, including, but not limited to Artist’s insurance and indemnification obligations. No subcontract or order will bind City. Section 12. TITLE; RISK OF LOSS. A. Title to the Work shall pass to City upon final acceptance. Artist hereby assigns the right to collect the royalty payment provided by Civil Code Section 986 to City and to City’s assigns. B. Except as expressly provided in this Agreement, City shall not intentionally damage, alter, modify, or change the Artwork without the prior written consent of Artist, which will not be unreasonably withheld. Artist acknowledges and agrees that City may require the Site for purposes other than the display of the Artwork. City agrees that it will notify Artist of any proposed alteration of the Site that would require the removal or relocation of the Artwork or affect the intended character and appearance of the Work and will consult with Artist in the planning and execution of any such removal, relocation, or alteration and will make a reasonable effort to maintain the integrity of the Art Work. Notwithstanding the foregoing, the City may remove the Artwork at any time at its sole and complete discretion. C. The risk of loss or damage to the Artwork shall be borne by Artist until written notice of final acceptance, and Artist shall take such measures as are necessary to protect the Art Work from loss or damages until final acceptance. Section 13. INDEMNIFICATION. A. Artist shall defend, indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence or willful misconduct of Artist, its officials, officers, employees, agents, subcontractors and subconsultants arising out of or in connection with the Goods or the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys’ fees and other related costs and expenses except such loss or damage which was caused by the sole negligence or willful misconduct of the City. B. Artist’s defense obligation for any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, employees, agents, or volunteers shall be at Artist’s own cost, expense, and risk. Artist shall pay and satisfy any judgment, award, or decree that may be rendered against City or its officials, officers, employees, agents, or volunteers, in any such suit, action, or other legal proceeding. Artist shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Page 151 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 8 of 17 C. Artist’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees, agents or volunteers. Section 14. INSURANCE. A. Minimum Requirements. Without limiting Artist’s indemnification of City, and prior to commencement of the Services, Artist shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. 1. General Liability Insurance. Artist shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 2. Automobile Liability Insurance. Artist shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Artist arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Artist will not be utilizing a vehicle in the performance of his/her duties under this Agreement. 3. Workers’ Compensation Insurance. Artist shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Artist shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers and representatives. 4. Umbrella or Excess Liability Insurance. Artist may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Artist shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: (a) A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (b) Pay on behalf of wording as opposed to reimbursement; Page 152 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 9 of 17 (c) Concurrency of effective dates with primary policies; and (d) Policies shall “follow form” to the underlying primary policies. (e) Insureds under primary policies shall also be insureds under the umbrella or excess policies. B. Other Provisions or Requirements. 1. Proof of Insurance. Artist shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 2. Duration of Coverage. Artist shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Artist, his/her agents, representatives, employees or subconsultants. 3. Primary/Non-Contributing. Coverage provided by Artist shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. 4. City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Artist, or City will withhold amounts sufficient to pay premium from Artist payments. In the alternative, City may terminate this Agreement. 5. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. Page 153 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 10 of 17 6. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Artist or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Artist hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants. 7. Enforcement of Contract Provisions (non estoppel). Artist acknowledges and agrees that any actual or alleged failure on the part of the City to inform Artist of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 8. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. 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 all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Artist maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Artist. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 9. Notice of Cancellation. Artist agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. 10. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. 11. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 12. Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Artist’s insurance shall apply Page 154 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 11 of 17 separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 13. Pass Through Clause. Artist agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Artist, provide the same minimum insurance coverage and endorsements required of Artist. Artist 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. Artist agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review. 14. City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Artist ninety (90) days advance written notice of such change. If such change results in additional cost to the Artist, the City and Artist may renegotiate Artist’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 15. Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. 16. Timely Notice of Claims. Artist shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Artist’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. 17. Additional Insurance. Artist shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. Section 15. LIENS. A. Artist, subcontractors and suppliers will not make, file or maintain a mechanic’s or other lien or claim of any kind or character against the Art Work, for or on account of any labor, materials, fixtures, tools, machinery, equipment, or any other things furnished, or any other work done or performance given under, arising out of, or in any manner connected with the Agreement (such liens or claims referred to as “Claims”); and Artist, subcontractor and suppliers expressly waive and relinquish any and all rights which they now have, or may subsequently acquire, to file or maintain any Claim and Artist, subcontractor and suppliers agree that this provision waiving the right of Claims will be an independent covenant. Page 155 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 12 of 17 B. Artist will save and hold City harmless from and against any and all Claims that may be filed by a subcontractor, supplier or any other person or entity and Artist will, at its own expense, defend any and all actions based upon such Claims and will pay all charges of attorneys and all costs and other expenses arising from such Claims. Section 16. TERMINATION OF AGREEMENT BY CITY. A. Should Artist at any time refuse or fail to deliver the Artwork with promptness and diligence, or to perform any of its other obligations under the Agreement, City may terminate Artist’s right to proceed with the delivery of the Art Work by written notice to Artist. In such event City may obtain the Artwork by whatever method it may deem expedient, including the hiring of another artist and, for that purpose, may take possession of all materials, machinery, equipment, tools and appliances and exercise all rights, options and privileges of Artist. In such case Artist will not be entitled to receive any further payments until the Artwork is delivered and installed. If City’s cost of obtaining the Artwork, including compensation for additional managerial and administrative services, will exceed the unpaid balance of the Agreement, Artist will be liable for and will pay the difference to City. B. City may, for its own convenience, terminate Artist’s right to proceed with the Work by written notice to Artist. Such termination will be effective in the manner specified in such notice, will be without prejudice to any claims which City may have against Artist, and will not affect the obligations and duties of Artist under the Agreement. Upon termination, Artist shall be compensated only for that Work which has been adequately rendered to City, and Artist shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. C. If this Agreement is terminated as provided herein, City may require Artist to provide all finished or unfinished documents and data and other information of any kind prepared by Artist in connection with the performance of the Work under this Agreement. Artist shall be required to provide such document and other information within fifteen (15) days of the request. Section 17. MISCELLANEOUS PROVISIONS. A. Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address or at such other address as the respective parties may provide in writing for this purpose: CITY ARTIST City of Palm Desert Romo Studios, LLC 73510 Fred Waring Drive XXX Palm Desert, California 92260 XXX Attn: Amy Lawrence Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and Page 156 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 13 of 17 addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. B. Assignment or Transfer. Artist shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of the City, which will not be unreasonably withheld. Provided, however, that claims for money due or to become due Artist from the City under this Agreement may be assigned to a financial institution or to a trustee in bankruptcy, without such approval. Notice of any assignment or transfer, whether voluntary or involuntary, shall be furnished promptly to the City. C. Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. D. Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. E. Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise. F. Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. G. Interpretation. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. H. No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. I. Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement and bind each respective Party. J. Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. K. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. L. City’s Right to Employ Other Artists. City reserves its right to employ other contractors in connection with the Goods. Page 157 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 14 of 17 M. Entire Agreement. This Agreement constitutes the entire agreement between the Parties relative to the Goods specified herein. There are no understandings, agreements, conditions, representations, warranties or promises with respect to this Agreement, except those contained in or referred to in the writing. [SIGNATURES ON FOLLOWING PAGE] Page 158 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 15 of 17 SIGNATURE PAGE FOR AGREEMENT OF COMMISSION OF PUBLIC ARTWORK BETWEEN THE CITY OF PALM DESERT AND ROMO STUDIOS, LLC IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF PALM DESERT Approved By: Jan C. Harnik, MAYOR Date Attested By: CITY CLERK Approved As To Form: CITY ATTORNEY ROMO STUDIOS, LLC Signature Name Title Date Page 159 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 16 of 17 EXHIBIT “A” PROPOSAL [Attached Behind Page] Page 160 72500.00001\34237908.1 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - DRAFT Page 17 of 17 EXHIBIT “B” SCOPE OF WORK The Artist shall complete the Fabrication/Installation work within ____ calendar days. The Fabrication/Installation tasks shall include, but are not limited to, the following: • Procurement of materials and fabrication of the Artwork. • Delivery of the Artwork to the Site. • Oversight of installation of the Artwork. Page 161 Page 162 Romo Studios LLC City of Palm Desert Veteran’s Memorial Bronze Boy Itemized Budget Fees & Expenses: Artist Fees-Jesus/Adan 45,000 Studios Expenses 14,900 Rental Equipment 2,600 Subcontractors 11,800 Travel (2 visits Romo Studios Team). 5,500 Storage 1,500 Insurance & Professional Fees: Engineering Fees 800 Artwork Insurance 1,500 General Liability 1,500 Automotive Liability 1,400 Legal Fees 1,500 Photography & Documentation: Photography of work in progress 0 On-site documentation of work 0 Fabrication: Digital Scan\Enlargement 15,000 Mold 12,400 Wax Cast 13,000 Bronze Cast 22,500 Welding and Patina 10,500 Installation: Transport Art to Palm Desert 2,000 Travel Expenses for Install Team. 3,800 Site Prep/Installation 4,000 Contingency:(10%) 17,190 ____________ Total $188,390 Page 163 [This page has intentionally been left blank.] Page 164 STAFF REPORT CITY OF PALM DESERT PUBLIC AFFAIRS DEPARTMENT MEETING DATE: January 27, 2022 PREPARED BY: Thomas Soule, Public Affairs Manager REQUEST: Approve a Contract between the City of Palm Desert and FG Creative, to provide advertising services for the El Paseo Parking & Business Improvement District, Merchant Outreach and advertising services for the Palm Desert Aquatic Center, to recognize the reassignment of work due to the separation of FG Creative from CV Strategies ________________________________________________________________________ Recommendation By Minute Motion that the City Council: 1. Approve Contract No. ___________ to FG Creative, Inc. to provide advertising services and Merchant Outreach services for the El Paseo Parking & Business Improvement District (EPPBID), and advertising services for the Palm Desert Aquatic Center (PDAC). 2. Authorize the City Attorney to make non-substantive changes to the contract and the Mayor to execute the agreement on behalf of the City. 3. Terminate contracts No. C37060, A39220 and A__________ Executive Summary The City currently has three open contracts with CV Strategies for Marketing and Merchant Outreach for the EPPBID, and advertising services for PDAC. On December 23, 2021, Staff was informed that CV Strategies was ending its business arrangement with Stephanie Greene and FG Creative, Inc. and that both parties desired that these existing contracts be reassigned to FG Creative, Inc. The EPPBID and PDAC contracts had been with FG Creative, Inc. previously, and in July 2021 had been reassigned to CV Strategies when they acquired the FG Creative, Inc. staff, including Stephanie Greene. Background Analysis When notified of the change in business relationship with CV Strategies, Inc. and FG Creative, Inc. and the desire to transfer existing contracts to the new reconstituted FG Page 165 January 27, 2022 – Staff Report Transfer EPPBID Marketing Contract from CV Strategies to FG Creative Page 2 of 2 Creative, staff evaluated the most effective method for recognizing and formalizing the desired changes. Because two of these contracts had already been reassigned once, staff felt that it was simpler for record keeping purposes to create a new contract, which would also capture all the services to be provided by FG Creative into one contract. Fiscal Analysis Creation of this contract represents a transfer of previously approved and allocated expenses to the new vendor. Compensation for FG Creative will only be authorized as the balance of the terminated CV Strategies contracts. There are no new fiscal impacts. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert W. Hargreaves Robert W. Hargreaves City Attorney Thomas Soule Thomas Soule Public Affairs Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman VENDOR: Stephanie D. Greene FG CREATIVE, INC. 19725 Driscoll Rd. Desert Hot Springs, CA 92241 ATTACHMENT: Contract ____________ Page 166 Revised 11-2-20 BBK 72500.00001\32374915.1 Contract No. ______________ CITY OF PALM DESERT SHORT-FORM SERVICES AGREEMENT 1. Parties and Date. This Agreement is made and entered into this _____ day of ________, 2022, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, California (“City”) and FG Creative, Inc., a corporation in California, with its principal place of business at 19725 Driscoll Rd., Desert Hot Springs, CA 92241. The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Terms and Conditions. The Parties shall comply with the Terms and Conditions attached hereto as Exhibit “A” and incorporated herein by this reference. 3. Scope of Services; Schedule. The Vendor shall be solely responsible for providing all materials, labor, tools, equipment, water, light, power, transportation, and superintendence of every nature and all other services and all facilities necessary to execute, complete, and deliver the services as particularly described in the Scope of Services (“Services”) attached hereto as Exhibit “B” and incorporated herein by this reference. The Services shall be completed timely and in accordance with the Schedule of Services set forth in Exhibit “B”. 4. Term. The term of this Agreement shall be from January 1, 2022, to June 30, 2022, unless earlier terminated as provided herein. 5. Compensation. Vendor shall receive compensation for Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by this reference. The total compensation shall not exceed Two Hundred Eighty-Five Thousand Dollars ($285,000) per fiscal year (“Agreement Price”). Vendor’s invoices shall include a detailed description of the Services performed. Invoices shall be submitted to the City on a monthly basis. The City shall review and pay all non-disputed and approved charges on such invoices in a timely manner. Vendor shall submit its final invoice to the City within thirty (30) days from the last date of Services performed and failure to do so shall result in a waiver of payment from the City. 6. Insurance. In accordance with Exhibit A, Section C of the Terms and Conditions, Vendor shall, at its expense, procure and maintain for the duration of the Agreement such insurance policies as checked below and provide proof of such insurance policies in a form satisfactory to the City. Commercial General Liability Insurance: $1,000,000 per occurrence/$2,000,000 aggregate. Automobile Liability: $1,000,000 combined single limit for bodily injury and property damage. Workers’ Compensation: Statutory Limits / Employer’s Liability $1,000,000 per accident or disease and a waiver of subrogation in favor of the City and their respective officers, agents, employees, volunteers, and representatives. [SIGNATURES ON THE NEXT PAGE] Page 167 Contract No. ______________ 2 Revised 11-2-20 BBK 72500.00001\32374915.1 IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF PALM DESERT FG CREATIVE, INC By: __________________________ By: _________________________ L. Todd Hileman Stephanie Greene, CEO Its: _________________________ Its: _________________________ City Manager Chief Executive Officer Attest: __________________________ Norma Alley, City Clerk Approved as to Form: __________________________ Robert Hargreaves Best Best & Krieger LLP City Attorney QC PlanetBids ID: _____________ __________ __________ Page 168 Contract No. ______________ Ex. A-1 Revised 11-2-20 BBK 72500.00001\32374915.1 EXHIBIT “A” TERMS AND CONDITIONS FOR SERVICES 1. Compliance with Law. Vendor shall comply with all applicable laws and regulations of the federal, state and local government. Vendor certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. By its signature hereunder, Vendor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. Vendor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment in violation of state or federal law. Vendor is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and "maintenance" projects. If the work is 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, Vendor agrees to fully comply with such Prevailing Wage Laws, including, along with subcontractors, being registered with the Department of Industrial Relations (Labor Code §§ 1725.1; 1771.1). It shall be mandatory upon the Vendor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code §§ 1771; 1774; 1775), employment of apprentices (Labor Code § 1777.5), certified payroll records (Labor Code §§ 1771.4; 1776), hours of labor (Labor Code §§ 1813; 1815) and debarment of contractors and subcontractors (Labor Code § 1777.1). This Agreement may be subject to compliance monitoring and enforcement. 2. Standard of Care. The Vendor shall perform the Services in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession practicing under similar conditions. 3. Insurance. If required by Section 6 of this Agreement, the Vendor shall take out and maintain during this Agreement: A. Commercial General Liability Insurance for bodily injury, personal injury and property damage, at least as broad as Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001). The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted; B. Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned, rented, and hired vehicles, at least as broad as Insurance Services Office Form Number CA 0001 (ed. 10/13) covering automobile liability, Code 1 (any auto); C. Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance; and if applicable, as determined by the City’s Risk Manager, D. Professional Liability (Errors and Omissions) that covers the Services to be performed in connection with this Agreement. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Vendor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, and their elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Vendor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Vendor hereby waives its own right of recovery against the City of Palm Desert or their elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subcontractors. Workers compensation coverage shall have an endorsement in favor of the City of Palm Desert, and their respective officers, agents, employees, volunteers and representatives. Insurance carriers shall be licensed and authorized to do business in California. Such insurance carrier shall have not less than an "A-:VII" rating according to the latest Best Key Rating unless otherwise approved by City’s Risk Manager. Vendor shall add the City, and their respective officers, officials, employees, agents, volunteers and representatives as additional insureds on Vendor’s Commercial General Liability, Automobile Liability, and if applicable, Pollution Liability and Cyber Liability policies. Coverage provided by Vendor shall be primary and any insurance or self-insurance procured or maintained by the City shall not be required to contribute with it. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance (i.e. pollution, cyber, and fidelity coverages) required by giving the Vendor advance written notice of such change. If such change results in substantial additional cost to the Vendor, the City and Vendor may renegotiate Vendor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 4. Indemnification. To the fullest extent permitted by law, Vendor shall defend (with counsel of City’s choosing), indemnify and hold the City, and their respective officials, officers, employees, volunteers, agents and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death (collectively, “Claims”), in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Vendor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Vendor’s Services, the project, or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Vendor’s obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant or the City, or their respective officials, officers, employees, agents, volunteers or representatives. If Vendor’s obligation to defend, indemnify, and/or hold harmless arises out of Vendor’s performance as a “design professional” (as that term is defined under Civil Code § 2782.8), then, and only to the extent required by Civil Code § 2782.8, which is fully incorporated herein, Vendor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Vendor, and, upon Vendor obtaining a final adjudication by a court of competent jurisdiction, Vendor’s liability for such claim, including the cost to defend, shall not exceed the Vendor’s proportionate percentage of fault. 5. Laws; Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Riverside, State of California. 6. Termination. The City may terminate the whole or any part of this Agreement for any or no reason by giving three (3) calendar days written notice to Vendor. In such event, the City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for the work. The City shall pay Vendor the reasonable value as determined by the City of any portion of the Services completed prior to termination. The City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Vendor shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation for termination of the Services. Vendor may terminate its obligation to provide further work under this Agreement upon thirty (30) calendar day’s written notice to the City only in the event of the City’s failure to perform in accordance with the terms of this Agreement through no fault of Vendor. 7. Changes. By written notice, the City may from time to time, make changes to the Services furnished to the City by Vendor. If such change causes an increase or decrease in the Agreement Price or in the time required for performance, Vendor or the City shall promptly notify the other party thereof and assert its claim for adjustment within fifteen (15) days after the change is ordered, and an equitable adjustment shall be made. However, nothing in this clause shall excuse the Vendor from proceeding immediately with the Agreement as changed. 8. Miscellaneous Terms. Vendor shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City. This Agreement may not be modified or altered except in writing signed by the Parties. There are no intended third party beneficiaries of any right or obligation of the Parties. This is an integrated Agreement representing the entire understanding of the Parties as to those matters contained Page 169 Contract No. ______________ Ex. A-2 Revised 11-2-20 BBK 72500.00001\32374915.1 herein, and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. The captions of the various paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal. Notice may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the Parties to the addresses set forth in this Agreement. Vendor is retained as an independent contractor and is not an employee of the City. No employee or agent of Vendor shall become an employee of the City. Vendor warrants that the individual who has signed this Agreement has the legal power, right and authority to make this Agreement and bind the Vendor hereto. Page 170 Contract No. ______________ Ex. B-1 Revised 11-2-20 BBK 72500.00001\32374915.1 EXHIBIT “B” SCOPE OF SERVICES; SCHEDULE OF SERVICES Consultant shall provide services in three areas of responsibility: EL PASEO PARKING & BUSINESS IMPROVEMENT DISTRICT (EPPBID): • Develop an annual budget that includes a comprehensive, strategic and diversified media plan and account management that promotes El Paseo to its target audience, in accordance with direction provided by the Board. This media plan should demonstrate maximum efficiency of spend and a clear ability to measure return on investment (ROI). • Negotiate, schedule and maintain media buys in accordance with the approved media plan. Please note that all buys performed on behalf of the EPPBID must be billed at net amounts. • Provide media administrative services including, but not limited to, record keeping; flowcharts; budget recaps; billing; processing payment; maintaining media buy schedules; buy confirmations; tracking make goods and credits; trafficking of creative materials. • Develop and implement a monthly merchant outreach program. • Attend and present pertinent updates at the monthly EPPBID Board meetings. • Evaluate all media proposals submitted to the Board and issue recommendations based on cost, validity, and perceived benefits to the marketing/advertising objectives of the Board. • Provide monthly and quarterly reports summarizing project activities and achievements of all services outlined in this scope of work. • Submit detailed invoices to include the projects and services worked on or completed with supporting documentation for the previous month's activities. • Develop an annual branding campaign and create all graphic assets as needed to fulfill the media plan and all outbound marketing. To include but not limited to: digital, print, radio and collateral material, and other elements, as mandated by the media plan. • Create a strategic Social Media Plan and manage all aspects of the EPPBID social media channels, including but not limited to Facebook, lnstagram and Twitter. • Organize and manage two Merchant meetings per year if viable (Pre-Season and Post- Season). • Manage Public Relations efforts as needed on behalf of the EPPBID. • Agency shall represent EPPBID's voice and vision when working with media partners, in the best interest of the “El Paseo” brand. Page 171 Contract No. ______________ Ex. B-2 Revised 11-2-20 BBK 72500.00001\32374915.1 EPPBID – Supplemental Merchant Outreach (through April 30, 2022) • In tandem with Consultant’s ongoing merchant relations efforts for the EPPBID through the marketing contract, this additional scope of work will become a second layer of efforts in outreach when visiting and communicating with the businesses on El Pasco. The points of communication will include: • Advising businesses via a new brochure about the details of operating within the District. Encouraging participation in the 2021 Business Survey (online). • Assessing the businesses overall mindset regarding doing business in and with the City of Palm Desert. • Advising businesses to contact designated City Staff with any further questions. • Monthly Recap Report • Prepare a monthly recap of efforts that lists the businesses visited, a brief overview of comments received, and tasks accomplished. • Update Brochure – Details of Being Located in a BID • Provide design services to update the prior EPPBID brochure PALM DESERT AQUATIC CENTER (PDAC): • Develop an annual budget that includes a comprehensive, strategic and diversified media plan and account management that promotes Palm Desert Aquatic Center to its target audience, in accordance with direction provided by the City. This media plan should demonstrate maximum efficiency of spend and a clear ability to measure return on investment (ROI). • Negotiate, schedule, and maintain media buys in accordance with the approved media plan. Please note that all buys performed on behalf of the PDAC must be billed at net amounts. • Provide media administrative services including, but not limited to, record keeping; flowcharts; budget recaps; billing; processing payment; maintaining media buy schedules; buy confirmations; tracking make goods and credits; trafficking of creative materials. • Submit detailed invoices to include the projects and services worked on or completed with supporting documentation for the previous month's activities. • Develop an annual branding campaign and create all graphic assets as needed to fulfill the media plan and all outbound marketing. To include but not limited to: digital, print, radio and collateral material, and other elements, as mandated by the media plan. Page 172 Contract No. ______________ Ex. C-1 Revised 11-2-20 BBK 72500.00001\32374915.1 EXHIBIT “C” COMPENSATION Compensation for the three areas of responsibility is allocated as follows: EL PASEO PARKING & BUSINESS IMPROVEMENT DISTRICT (EPPBID): • The CITY's budget for advertising and publicizing the EPBID's facilities, services and events is established as part of the CITY's fiscal year budget for the period of July 1, 2021 - June 30, 2022, at $250,000 (less amounts previously paid to CV Strategies under contract C37060). The CITY's liability for advertising materials and services under this Contract shall not exceed the contracted amount of $250,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows: • The CITY will pay FG CREATIVE a flat fee of $2,500 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical. • FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions. • FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this Section 4 will be made in due course by the City of Palm Desert. • FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract. EPPBID – Supplemental Merchant Outreach (through April 30, 2022): • Retainer - $1,500 per month, through April 30, 2022 (4 months) • Brochure Design (excludes printing) - $1,000 Page 173 Contract No. ______________ Ex. C-2 Revised 11-2-20 BBK 72500.00001\32374915.1 PALM DESERT AQUATIC CENTER (PDAC): Services per Scope of work – Not to exceed $25,000, including $750 per month account management fee, and less any amounts previsouly paid to CV Strategies under contract number A39220. Any and all compensation paid Page 174 1 Thomas Soule From:Jude Johnson <jude@cvstrat.com> Sent:Thursday, December 23, 2021 10:36 AM To:Thomas Soule Cc:Stephanie Greene Subject:CV Strategies / FG Good Morning Thomas,    This email is to confirm the separation of Stephanie Greene/FG Creative and CV Strategies effective 12.31.2021.  The  below contracts have agreed to be transferred to FG Creative, effective 1.1.2022.  CV Strategies will ensure there is no  break in service or impact to client deliverables during the transition.    Contracts:  - El Paseo Parking and Business Improvement District: Contract through June 30, 2022  - City of Palm Desert/Merchant Relations: Contract through May 31, 2022  - Palm Desert Aquatic Center: Contract through June 30, 2022    Happy to help if there is anything needed.    Thank you and have a great holiday,    ‐‐   Jude Johnson CV Strategies | 760.776.1766 jude@cvstrat.com | cell 760.702.5833 Page 175 1 Thomas Soule From:Stephanie Greene <stephanie@fgcreative.com> Sent:Thursday, December 23, 2021 10:35 AM To:Thomas Soule; Jude Johnson Subject:Transfer of Contracts Attachments:FGC Relaunch PR.docx TO: Thomas Soule, City of Palm Desert RE: Transfer of contracts from CV Strategies to FG Creative, Inc. This email is to verify that I have left the employ of CV Strategies as of December 31, 2021 and will be relaunching my firm, FG Creative, Inc as of January 1, 2022. With the approval of CV Strategies, we are asking that the contracts referenced below be transferred to FG Creative as of January 1, 2022, for the remainder of the contract as noted. I am happy to announce that FG Creative, founded in 2002, will launch with the former staff and that no break in service or completion of projects will occur. See below for our official announcement. Please let me know if you have any questions or concerns. Contracts: - El Paseo Parking and Business Improvement District: Contract through June 30, 2022 - City of Palm Desert/Merchant Relations: Contract through May 31, 2022 - Palm Desert Aquatic Center: Contract through June 30, 2022 Sincerely, Stephanie D. Greene  To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.  stephanie@fgcreative.com  m | 760-449-0803  FGCreative.com  Authentic Branding • Classic Advertising • Digital Solutions • Websites • Social Media • Public Relations • Media Services      Page 176 STAFF REPORT CITY OF PALM DESERT PUBLIC AFFAIRS DIVISION MEETING DATE: January 27, 2022 PREPARED BY: Vanessa Mager, Management Analyst REQUEST: Approval of the 2022 Palm Desert Half Marathon and 5K Event Recommendation By Minute Motion: 1) Approve the 2022 Palm Desert Half Marathon and 5K scheduled for Sunday, February 13, 2022; 2) Approve the proposed event route and road closures; 3) Temporarily waive the Palm Desert Municipal Code (PDMC) Section 11.01.140 (Amplified Sound); 4) Temporarily waive the Palm Desert Municipal Code (PDMC) Section 11.01.080 W (Possession/Consumption of Alcohol in City Parks) pursuant to PDMC 9.58.040; and 5) Temporarily waive the Palm Desert Municipal Code (PDMC) Section 11.01.080 (Prohibited Conduct Generally in City Parks, Item Q – Vendor Sales). Strategic Plan Objective Approval of the 2022 Palm Desert Half Marathon and 5K would impact the following priorities outlined in the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together: - Parks and Recreation Priority 3: Make recreational and exercise opportunities available in all public spaces. - Economic Development Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle. - Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination. Background Analysis Southland Events, LLC is requesting to hold the 7th annual Palm Desert Half Marathon and 5K on Sunday, February 13, 2022. Last year’s event did not take place due to COVID restrictions. However, in 2020, this event was very successful in drawing over 1,000 participants and raising funds for Martha’s Village & Kitchen and several other organizations that provided volunteers assistance with the event. This event will continue to coincide with the Tour de Palm Springs, which is scheduled to take place the day before. The producer of Page 177 January 27, 2022- Staff Report Approval of the 2022 Palm Desert Half Marathon and 5K Event Page 2 of 3 the event saw an increase in participation from the year prior as many Tour de Palm Springs participants also opted to participate in the Palm Desert Half Marathon or 5K. The event will start and end at the Palm Desert Civic Center Park where pre and post activities will take place. Such activities include DJ/prerecorded music, an award ceremony (both of which require amplified sound), and a lifestyle expo focusing on recreation and fitness (vendor sales). In addition, the event producer is requesting permission to have a gated beer garden which, if approved, will require a permit from the Department of Alcohol and Beverage Control (ABC) for the sale of alcohol. Provided below are pertinent details relative to the courses, public safety, and traffic control for the event: • Half Marathon Course: The half marathon course will begin and end at the Palm Desert Civic Center Park and will require full closure of Magnesia Falls Drive from Portola Avenue to Monterey Avenue. The course will also require closure of the lane adjacent to the curb at the following locations: northbound Monterey Avenue from Magnesia Falls to Gerald Ford Drive, eastbound Gerald Ford Drive to Gateway, northbound Gateway to Dick Kelly Drive, eastbound Dick Kelly Drive to Dinah Shore Drive, southeast bound Dinah Shore Drive to Portola Avenue, and southbound Portola Avenue to Magnesia Falls Drive. • 5K Course: The 5K course will begin and end at the Palm Desert Civic Center Park and will include use of Magnesia Falls Drive between the entrance to the Palm Desert Aquatic Center to Monterey Avenue and San Pablo Avenue from Magnesia Falls Drive to Fred Waring Drive. • Public Safety: Extensive police services are required for this event to ensure public safety on the road. In previous years, the Palm Desert Citizens on Patrol (COPS) volunteers were utilized along the course to help offset the cost of public safety services. Upon approval of the 2022 event, staff will work with the event producer and the police and fire departments to ensure that an appropriate level of traffic control and public safety services are planned for the event. • Traffic Control/Impacts: Upon approval of the 2022 event, staff will work with the event producer and appropriate City departments to ensure approval of a finalized traffic control plan. Additionally, staff will ensure that arrangements are made with the College of the Desert and SunLine Transit Agency due to respective impacts of the event. Businesses and residents along the half marathon course will experience short periods of delays as runners pass through the area. However, where possible, the road closures/barricades setup along the course will allow residents/drivers to proceed through with the assistance of a designated public safety officer/COPS volunteer. In addition, traffic control cleanup will follow the last runner to ensure that roads open in a timely manner. CV Link on Magnesia Falls will continue to remain open to the public, as runners will utilize the vehicle lane for this event. Page 178 January 27, 2022- Staff Report Approval of the 2022 Palm Desert Half Marathon and 5K Event Page 3 of 3 Fiscal Analysis An in-kind sponsorship to cover the cost of portable restrooms and trash services for this event was previously approved by the City Council as part of the City-Produced and City- Sponsored events budgets at the meeting on June 24, 2021. This in-kind sponsorship comes at no cost to the City because it can be included in our contract with Burrtec. APPLICANT: Southland Events, LLC Mr. Matt Sills 27762 Antonio Parkway, Ste. L-1 #210 Ladera Ranch, California 92694 ATTACHMENTS: Half Marathon and 5K Course maps LEGAL REVIEW DEPT. REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Not Applicable Robert W. Hargreaves City Attorney Thomas Soule Thomas Soule Public Affairs Manager Andy Ramirez Deputy Director of Public Works Janet M. Moore Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman L. Todd Hileman Page 179 New Balance Palm Desert Half Marathon & 5K City of Palm Desert Tops N Barricades, Inc. (800)852-TOPS 1 of 5 XX 1/18/22 Ron Fifield Pending Matt 949-444-2365 Page 180 PARKVIEW � � c:;;> ei::: C >­w ei:::w1-z0 :::i!: MATCH TO SHEET 2 � . I W13-1 ADDITIONAL PARKING PLAN AT 6:00 AM MAGNESIA FALLS WILL BE CLOS E DAT 7:00 AM SAN PABLO WILL BE CLOS E D !WATER FILLED K-RAIU i:���i ���1i��;;:�1�t g�iiiET::F��ET 1 • T O E ACH LOT. AS EACH ONE FILLS, T RAFFIC ___ )STING WILL BE DIRECTED T O TH E NEXT ONE . MAGNESIA FALLS � l1 POST 1 WEEK IN ADVANCE SPECIAL EVENT IN PROGRESS POST 1 WEEK IN ADVANCE Tl811k:Clllmcl l'lan tar Dali! EXISTING R11·2 ROAD CLOSED COD PARKING LOT ciiiiii ... --­IAIITOHM POST 1 WEEK IN ADVANCE PemflNllllller Pending New Balance Palm Desert Half Marathon & SK Pltne Ccn1radcr Southland Events Contod Matt 949-444-2365 Trafflcc;c..tnl Delfgn by Pnlpa8d By a,ec:l(al By Tops N Barricades, Inc. Ron Fifield Speed I.int Dal& Sheet tilrber (800)852-TOPS XX 1Aof5 0 ...J ca z <( Cl) � Ul11C- OST 1 WEEK EXISTING DOUILE SIOED ULTRA UTE CL IN ADVANCE PA[ DESERT •-,­AQUAT IC PARK R1-1 NO EVENT PARKING 1ST EVEN PARKI G PALM DESERT CIV IC PARK l:'IIITIMIIIIG-+ EVENT (/ PARKING AFTER7A +-l:'IIITPMIIING FRE D WARING DR. NOT ES ON SHEET 2 1� � �5KRUN -+ HALF ROUTE-+ Page 181 New Balance Palm Desert Half Marathon & 5K City of Palm Desert Tops N Barricades, Inc. 2 of 5 (800)852-TOPS XX Ron Fifield Pending Matt 949-444-2365 Page 182 fr, ��:r=:=::::===9 (/); LANE � CLOSE AHEAD 1r 1rf MONTEREY AVE_ .. __ ____. j MATCH TO SHEET 2 POST 1 WEEK IN ADVANCE [CJ IG 1111M1 IIIIIIIIIGII SAGEWOOD � � z ...J C 0::: w :::c 0.. w :::c Cl) ------5All101UII IIIPIC'IIIEUYI POST 1 WEEK IN ADVANC SIGNAL POST 1 WEEK INADV MATCH TO SHEET 4 ¢ � FRANK SINATRA DR. RED F ri,==<? =s�bb-�� 1.aa,,--•----� SAGEWOOD NOTES ON SHEET 2 Tl1lfllc Ccrad Plan b' SK RUN __. HALF ROUTE_. Dale Pending New Balance Palm Desert Half Marathon & 5K MMCorbcla­Southland Events Cll1lilcl Matt 949-444-2365 Trallo Codrol lleeb'I br f'IIJ)alld By OwJdrad By Tops N Barricades, Inc. Ron Fifield (800)852-TOPS XX 3 of 5 LEAVE IN PILE AND THE POLICE OFFICER WILL CO UNTRY CLUB DR. SET UP WHEN NECESSARY � � PORTOLA DR. MATCH TO SHEET 2 Page 183 W4-2 W�S(ITT� � 600' SIGNALS IN RED FLASHJ---- MONTEREY AVE LOWES MATCH TO SHEET 3 MATCH TO SHEET 5 w u z � _, STATION �8 ;j EXISTING NOTES ON SHEET 2 5KRUN � HALF ROUTE� z ...J C 0:::: LU :c a. LU :c Penn�tmber Cl) Pending 1l8ftlc eontn,1 Plan flll' New Balance Palm Desert Half Marathon & 5K Prine CCotractor Southland Events CaTlld Matt 949-444-2365 TIBfflc Contnl Deov, by � By Cll8ck9d lly Tops N Barricades, Inc. Ron Fifield .... Speed i..mij Dal& Sheet tffllber (800)852-TOPS XX 4 of 5 MATCH TO SHEET 5 -111-fYBff .... _.. Hlll01UII EIPKrDEIAYI POST 1 WEEK IN ADVANCE 500' � W20-3 � L L � � � �.u SIGNALS IN RED FLASH � � 1r ]' PORTOLA AVE. �---·-· MATCH TO SHEET 3 Page 184 DICK KELLY DR -­IUII.V111/21 Ull'IOIUII IXP£CtllELAYI POST 1 WEEK IN ADVANCE NOTES ON SHEET 2 ReviewedBy T nifflc Cootrol F'len l'or SK RUN __. HALF ROUTE_. oa. P8mfl N1111btr Pending New Balance Palm Desert Half Marathon & 5K Prima Ccntrador Southland Events -r.. Contlll l:lllqn Ill' Tops N Barricades, Inc. (800)852-TOPS SIGNALS IN RED FLASH �I.mt xx Ccnact Matt 949-444-2365 P!Qparedlly Ron Fifield D8le Sheet tlmler 5 of 5 ,q­i­I.LI I.LI :::J:: en e :::J:: (.) � :::E Page 185 [This page has intentionally been left blank.] Page 186 STAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: January 19, 2022 PREPARED BY: Andrew Firestine, Assistant City Manager REQUEST: Authorize the City Manager to Purchase a Patrol BMW Motorcycle for the Palm Desert Police Department from BMW Motorcycles of Riverside, California pursuant to PDMC Chapter 3.30.160 (E) and (I). ______________________________________________________________________ Recommendation Authorize the City Manager to Purchase a Patrol BMW Motorcycle for the Palm Desert Police Department from BMW Motorcycles of Riverside, California pursuant to PDMC Chapter 3.30.160(E) and (I). Background Analysis In October 2020, the City Council authorized the purchase of three (3) patrol BMW motorcycles (R 1250RT-P) from BMW Motorcycles of Riverside, California, consistent with the terms and conditions of the County of Orange Contract PO-060-20010474 and pursuant to the Palm Desert Municipal Code Section 3.30.130(E) that allows the City to piggyback on contracts that have already been bid. The Council authorization further approved a motor replacement schedule that called for the replacement of one (1) motor unit each fiscal year through FY 24/25 and to then replace motor units older than 5 years from FY 25/26. The purchase of the three (3) motorcycles in FY 20/21 was completed in 2021. Whereas the County of Orange contract was for a 2019 model year motorcycle, the City purchased 2020 model year motorcycles with the same specifications at the same price. Staff has engaged with BMW Motorcycles of Riverside for the purchase of a patrol BMW motorcycle pursuant to the adopted motor replacement schedule for FY 21/22. BMW Motorcycles of Riverside, California was not able to hold the same price as the City’s purchase in 2021 as the 2021 model year motorcycle has updates from the prior model year that have affected its pricing, including a new TFT screen, suspension, and electronics. The price increase is approximately $1,500 for a total purchase price of approximately $30,571.54. BMW Motorcycles of Riverside has not been awarded any recent contracts for patrol motorcycles with the same specifications that the City could alternatively piggyback. The purchase price is within the authority of the city manager and the City’s purchasing code allows for an exception for those circumstances where the competitive bidding has already been completed (the exception granted with the initial Council approval in October 2020) and where it is in the best interest of the city. Page 187 January 19, 2022 - Staff Report Purchase of a Patrol BMW Motorcycle for the Palm Desert Police Department from BMW Motorcycles of Riverside, California Page 2 of 2 In this case, staff finds that the purchase of a 2021 model year patrol BMW motorcycle from BMW Motorcycles of Riverside at a purchase price of up to $30,571.54, a $1,500 from the prior model year, is in the best interest of the City in lieu of purchasing a motorcycle from another dealer outside of Riverside County or conducting a separate procurement process. Fiscal Analysis The purchase price of a patrol motorcycle is approximately $30,571.54 and has been anticipated in the FY 21/22 public safety budget. No additional appropriation is needed. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman Page 188 PALM DESERT HOUSING AUTHORITY STAFF REPORT MEETING DATE: January 27, 2022 SUBMITTED BY: Veronica Chavez, Finance Manager REQUEST: RECEIVE AND FILE THE ANNUAL LOW AND MODERATE INCOME HOUSING ASSET FUND REPORT RELATIVE TO SB341 Recommendation Receive and file the annual Low and Moderate Income Housing Asset Fund report relative to SB341 for the 2020-21 fiscal year. Discussion SB 341 provides that as the housing successor, the Palm Desert Housing Authority must conduct and provide to its governing body, an independent financial audit and annual report relative to the Low and Moderate Income Housing Asset Fund (“LMIHAF”) within six months, after the end of each fiscal year. Such audit may be included in the independent financial audit of the city. The audit and annual report must also be posted on the housing successor’s website. The attached annual report provides the information as required pursuant to SB 341. The report has been reviewed and verified by the City’s auditors, with the LMIHAF included as a major fund in the City’s Financial Report. The reviewed SB 341 annual report is now being presented to the Housing Authority Board to receive and file. Fiscal Analysis There is no impact to the General Fund. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A - RWG Robert Hargraeves City Attorney Janet M. Moore Janet M. Moore Director of Finance Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager L. Todd Hileman Executive Director: L. Todd Hileman ATTACHMENTS: SB 341 Report Page 189 1)2020-2021 SERAF DEPOSIT (A/R)- - 2)2019-2020 Deposits to LMIHAF Interest 62,795 Rents - ROPS Related Deposits 1,523,109 Loan Payoff's/Hovley Payment 1,039,467 Sales Proceeds - Total Deposits to LMIHAF 2,625,370 Less: Amounts Deposited Pursuant to ROPS Total Effective Deposits to LMIHAF 2,625,370 3)2019-2020 LMIHAF Balance LMIHAF Cash Balance @ June30, 2020 43,386,684 Less: Amounts Deposited for ROPS CY Less: Amounts Deposited for ROPS PY 14,677,235 Total Available Cash Balance 28,709,450 4)2019-2020 LMIHAF Expenditures by Category a) Monitor/Preserve Affordability Covenants 116,156 b)Administrative Expenditures 73,948 c) Homeless Prevention - d) Development of Affordable Housing 30%- 50%- 80%- - 2019-2020 Expenditures Related to Bonds - Total Expenditures 190,104 5)Administrative Costs - Annual Cap Calculation 71,359,909 Statutory Value of Real Property (Asset List and 2014) 15,052,759 Statutory Value of Loans/Grants Receivable (Asset List thru 20 - Plus: Real Property Purchased 100,000 Plus: New Loans Receivable - Less: Real Property Sales (1,159,022) Less: Loan Payoff's 85,353,646 Total Combined Value 0.05 5% Max 4,267,682 Max Annual Administrative Cost 6)Transfers Made to Other Housing Successors N/A LOW MODERATE INCOME HOUSING ASSET FUND ANNUAL REPORT 2020/2021 1/7/2022 9:24 AM 341 Annual Report 2020-21 8.26.21 draft.xlsx Page 190 7)Property Tax Revenue Held for ROPS Related Projects 8)a) Status of Vacant Property Acquired Prior to February 1, 2012 "Sagecrest II". An extension was requested in 2018. b) Status of Vacant Property Acquired After February 1, 2012 N/A 9)Oustanding Obligations Related to Replacement/Inclusionsary/Production Requirements N/A 10)Compliance with Extremely Low Income Targeting (INCOME TEST) N/A 11)Breakdown of Deed Restricted Rental Units Developed last 10 Years. (SENIOR RENTAL HOUSING TEST) - Senior Rental Housing 0% 52 Multi Family Rental Housing 100% 52 All Affordable Rental Housing 100% 12)Excess Surplus Calculation (EXCESS SURPLUS TEST) Fund Balance As of 6-30-21 48,595,523 Less: Receivables (6,726,814) Less: Land held for resale (61,516) Less: Amounts deposited for ROPS Items (14,677,235) Total Unavailable Funds (21,465,564) Unencumbered Fund Balance as of 6-30-21 27,129,959 Deposits for the preceding four years: Fiscal year 2020-21 2,625,370 Fiscal year 2019-20 2,442,063 Fiscal year 2018-19 5,006,356 Fiscal year 2017-18 5,717,050 Total Deposits 15,790,839 Base Limit 1,000,000 Greater of Aggregate Deposited or $1,000,000 15,790,839 Computed Excess Surplus 11,339,120 Any amounts determined to be excess surplus will be budgeted to preserve affordability covenants in the upcoming fiscal year. Projects Currenlty under Consideration: 128 Acre Site Development - Committed to $6.03 Million Loan for 269 rental unit restriction at Vitalia 10 Acre Site Development - Requested/Reviewing $14.5 Million Loan for 240 units restriction Chambers Project - Terms to be determined San Pascual Development - RFP's will go out in 21/22, anticipating a minimum of $7M Const Costs Sands Affordability Covenant - Anticipating $300,000+ Subsidy Self Help Silent Second Loans - anticipating $800,000 HBA Loans for 13 units for sale housing 13)Inventory of Homeownership Units Assembly Bill 1793 (“AB 1793") requires the annual reporting of any homeownership units assisted by the Housing Authority that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies. An inventory of these properties has been included as Appendix 1. **Transfer of SARDA bond funds restricted for affordable housing projects. $9,157,393 has been deposited from ROPS to be used for improvements related to requirements of Stipulated Judgment No. 51124. $4,938,998 remains deposited pursuant to BPFA for ROPS Approved bond related expenditures. Vacant properties included on the Housing Asset List approved 8/13/12 by the DOF include: 1/7/2022 9:24 AM 341 Annual Report 2020-21 8.26.21 draft.xlsx Page 191 Description Permitted Aggregate Exp % of Total < or = to 30% 623,996 35% 31-59%953,007 14% 60-80%208,524 3% Total Expenditures 1,785,527 51% 1 Allowable annual admin for 2019 totaled $4,319,119 COMPLIANT 2 Costs associated with pre-existing covenants on for-sale and rental affordable housing are reflected here based on the pre-dissolution requirements. Five Year Expenditure Reporting (in Aggregate) thru 2019 New Construction, Acquisition and Rehab, Substantial Rehab Page 192 Appendix 1 286 Total LOT ADDRESS BR SIZE ACQUISITION DATE AFFORDABILITY PERIOD COVENANT EXPIRATION SELF-HELP HOUSING PROGRAM: 189 73411 San Nicholas 4 1992 30 2022 228 73082 Catalina Way 3 1992 30 2022 90 73135 Santa Rosa Way 4 1992 30 2022 269 73439 Catalina Way 4 1992 30 2022 163 73085 San Nicholas 3 1992 30 2022 303 73110 Guadalupe 4 1992 30 2022 122 73342 San Nicholas 3 1992 30 2022 113 73435 Santa Rosa Way 4 1992 30 2022 145 73140 San Nicholas Ave 3 1992 30 2022 202 73400 Catalina Way 3 1992 30 2022 244 73115 Catalina Way 4 1992 30 2022 HOME IMPROVEMENT PROGRAM LOANS* 77270 Michigan Drive 2 2010 45 2055 77290 Michigan Drive 2 2009 45 2054 74210 Goleta Avenue 3 2011 45 2056 75316 Kelsey Circle 4 2009 45 2054 75376 Kelsey Circle North 3 2011 45 2056 72723 Beavertail Street 3 2011 45 2056 74451 DeAnza Way 3 2009 45 2054 HABITAT FOR HUMANITY 43101 Virginia Ave 4 2009 45 2054 73371 Catalina Way 4 2000 30 2030 74065 Goleta Ave 4 2010 45 2055 44180 Cercado Street 3 1994 30 2024 74490 Goleta Ave 4 2004 30 2034 43935 Buena Circle 4 1998 30 2028 74470 Goleta Ave 4 2004 30 2034 74016 El Cortez Way 4 2010 45 2055 74030 Goleta Ave 4 2002 30 2032 44879 San Benito Circle 3 2017 45 2062 44885 San Benito Circle 3 2017 45 2062 ACQUISITION, REHAB, RESALE: 42662 Rebecca Road 3 2000 30 2030 73386 Royal Palm 3 2002 30 2032 74047 San Marino 2 2006 30 2036 42740 Rebecca Road 3 2001 30 2031 73378 Royal Palm 3 1998 30 2028 PORTOLA PALMS: 126 43155 Portola Avenue 2 1994 30 2024 8 43155 Portola Avenue 2 1994 30 2024 62 43155 Portola Avenue 2 1996 30 2026 11 43155 Portola Avenue 2 1994 30 2024 137 43155 Portola Avenue 2 1995 30 2025 135 43155 Portola Avenue 2 1994 30 2024 25 43155 Portola Avenue 2 1996 30 2026 34 43155 Portola Avenue 2 1994 30 2024 15 43155 Portola Avenue 2 1994 30 2024 DESERT ROSE: HOMEOWNERSHIP INVENTORY AS OF 6/30/2021 *The former Agency/Housing Successor granted funds to EL, VL, L homeowners for home improvements. A deed of trust is NOT recorded. Those grants are forgiven over a period of time and are not included in this list. Page 4 Page 193 LOT ADDRESS BR SIZE ACQUISITION DATE AFFORDABILITY PERIOD COVENANT EXPIRATION 1 75-379 SOUTH KELSEY CIRCLE 3 2002 30 2032 2 75-369 SOUTH KELSEY CIRCLE 3 1996 30 2026 3 75-367 SOUTH KELSEY CIRCLE 3 1996 30 2026 4 75-359 SOUTH KELSEY CIRCLE 3 1996 30 2026 5 75-357 sOUTH KELSEY CIRCLE 3 2009 30 2039 6 75-349 SOUTH KELSEY CIRCLE 3 2002 30 2032 7 75-347 SOUTH KELSEY CIRCLE 3 2000 30 2030 8 75-339 SOUTH KELSEY CIRCLE 3 2003 30 2033 9 75-337 SOUTH KELSEY CIRCLE 3 1996 30 2026 10 75-329 SOUTH KELSEY CIRCLE 3 1998 30 2028 11 43-940 ROCKROSE COURT 3 1996 30 2026 12 43-960 ROCKROSE COURT 4 1996 30 2026 13 43-980 ROCKROSE COURT 4 1996 30 2026 14 43-995 ROCKROSE COURT 4 1998 30 2028 15 43-975 ROCKROSE COURT 4 1996 30 2026 16 43-955 ROCKROSE COURT 3 1996 30 2026 18 43-915 ROCKROSE COURT 3 2004 30 2034 19 43-905 ROCKROSE COURT 3 1996 30 2026 20 75-319 SOUTH KELSEY CIRCLE 3 2002 30 2032 21 75-309 SOUTH KELSEY CIRCLE 3 2002 30 2032 22 75-307 SOUTH KELSEY CIRCLE 3 1997 30 2027 23 75-299 SOUTH KELSEY CIRCLE 3 2009 30 2039 24 75-297 SOUTH KELSEY CIRCLE 3 2000 30 2030 25 75-294 NORTH KELSEY CIRCLE 3 2001 30 2031 26 75-296 NORTH KELSEY CIRCLE 3 1996 30 2026 27 75-304 NORTH KELSEY CIRCLE 4 2015 30 2045 28 75-306 NORTH KELSEY CIRCLE 4 1997 30 2027 29 75-314 NORTH KELSEY CIRCLE 4 1997 30 2027 30 75-316 NORTH KELSEY CIRCLE 4 1996 30 2026 31 75-326 NORTH KELSEY CIRCLE 3 2014 30 2044 32 43-795 KELSEY COURT 3 2005 30 2035 33 43-775 KELSEY COURT 4 2004 30 2034 34 73-755 KELSEY COURT 4 2016 30 2046 35 43-735 KELSEY COURT 4 1996 30 2026 36 43-715 KELSEY COURT 3 2003 30 2033 37 43-705 KELSEY COURT 3 2018 30 2048 38 43-685 KELSEY COURT 4 2006 30 2036 39 43-675 KELSEY COURT 4 1997 30 2027 40 43-680 KELSEY COURT 4 2005 30 2035 41 43-690 KELSEY COURT 4 2007 30 2037 42 43-710 KELSEY COURT 4 2015 45 2060 43 43-720 KELSEY COURT 4 2001 30 2031 44 43-740 KELSEY COURT 4 2003 30 2033 45 43-760 KELSEY COURT 4 1998 30 2028 46 43-780 KELSEY COURT 3 1999 30 2029 47 75-334 NORTH KELSEY CIRCLE 3 1997 30 2027 48 75-344 NORTH KELSEY CIRCLE 4 1997 30 2027 49 75-346 NORTH KELSEY CIRCLE 4 1997 30 2027 50 75-354 NORTH KELSEY CIRCLE 4 1997 30 2027 51 75-356 NORTH KELSEY CIRCLE 4 1998 30 2028 52 75-364 NORTH KELSEY CIRCLE 3 1997 30 2027 53 75-366 NORTH KELSEY CIRCLE 3 1997 30 2027 55 75-376 NORTH KELSEY CIRCLE 3 1997 30 2027 56 75-406 WILDFLOWER LANE 3 1997 30 2027 57 75-414 WILDFLOWER LANE 3 2004 30 2034 59 75-424 WILDFLOWER LANE 3 2007 30 2037 60 75-426 WILDFLOWER LANE 3 2021 30 2051 62 75-436 WILDFLOWER LANE 3 2016 30 2046 63 75-444 WILDFLOWER LANE 3 1997 30 2027 Page 5 Page 194 LOT ADDRESS BR SIZE ACQUISITION DATE AFFORDABILITY PERIOD COVENANT EXPIRATION 64 75-446 WILDFLOWER LANE 3 2008 30 2038 65 75-454 WILDFLOWER LANE 3 2006 30 2036 66 75-456 WILDFLOWER LAND 3 1997 30 2027 67 75-464 WILDFLOWER LANE 3 2009 30 2039 68 75-466 WILDFLOWER LANE 3 1997 30 2027 69 75-474 WILDFLOWER LANE 3 1997 30 2027 70 75-476 WILDFLOWER LANE 3 2012 30 2042 71 43-820 BLUEBERRY LANE 4 2015 30 2045 72 43-840 BLUEBERRY LANE 4 2013 45 2058 73 43-860 BLUEBERRY LANE 3 2006 30 2036 74 43-880 BLUEBERRY LANE 3 2008 30 2038 75 43-910 BLUEBERRY LANE 3 1998 30 2028 76 43-920 BLUEBERRY LANE 4 1997 30 2027 77 43-930 BLUEBERRY LANE 4 2014 45 2059 78 43-940 BLUEBERRY LANE 4 1998 30 2028 79 43-960 BLUEBERRY LANE 3 2005 30 2035 80 43-980 BLUEBERRY LANE 3 2010 45 2055 82 75-485 ORANGE BLOSSOM LANE 3 1997 30 2027 83 75-475 ORANGE BLOSSOM LANE 3 2014 30 2044 84 75-473 ORANGE BLOSSOM LANE 3 2015 30 2045 85 75-465 ORANGE BLOSSOM LANE 3 1997 30 2027 86 75-463 ORANGE BLOSSOM LANE 3 2004 30 2034 87 43-925 BLUEBERRY LANE 3 1997 30 2027 88 75-464 ORANGE BLOSSOM LANE 3 2016 30 2046 89 75-456 ORANGE BLOSSOM LANE 3 1997 30 2027 90 75-454 ORANGE BLOSSOM LANE 3 2006 30 2036 91 75-446 ORANGE BLOSSOM LANE 3 2003 30 2033 92 75-444 ORANGE BLOSSOM LANE 3 2000 30 2030 93 75-436 ORANGE BLOSSOM LANE 3 2006 30 2036 94 75-434 ORNAGE BLOSSOM LANE 3 1998 30 2028 95 75-426 ORANGE BLOSSOM LANE 4 1998 30 2028 96 75-424 ORANGE BLOSSOM LANE 4 2002 30 2032 97 75-416 ORANGE BLOSSOM LANE 4 2005 30 2035 98 75-414 ORANGE BLOSSOM LANE 4 1998 30 2028 99 75-406 ORANGE BLOSSOM LANE 3 2021 30 2051 100 43-880 YELLOW SAGE DRIVE 3 2005 30 2035 101 43-860 YELLOW SAGE DRIVE 4 1998 30 2028 102 43-850 YELLOW SAGE DRIVE 4 1997 30 2027 103 43-830 YELLOW SAGE DRIVE 3 2004 30 2034 104 43-820 YELLOW SAGE DRIVE 3 1997 30 2027 105 43-800 YELLOW SAGE DRIVE 3 2001 30 2031 106 75-405 WILDFLOWER LANE 3 2005 30 2035 107 75-423 WILDFLOWER LANE 4 1998 30 2028 108 75-425 WILDFLOWER LANE 4 2000 30 2030 109 75-433 WILDFLOWER LANE 3 1997 30 2027 110 75-435 WILDFLOWER LANE 3 2011 45 2056 111 75-443 WILDFLOWER LANE 3 1997 30 2027 112 75-445 WILDFLOWER LANE 3 1997 30 2027 113 75-453 WILDFLOWER LANE 3 1997 30 2027 114 75-455 WILDFLOWER LANE 3 2013 45 2058 115 75-463 WILDFLOWER LANE 3 1997 30 2027 116 75-465 WILDFLOWER LANE 3 1997 30 2027 118 75-475 WILDFLOWER LANE 3 2006 30 2036 119 43-905 BLUEBERRY LANE 3 2004 30 2034 120 43-895 YELLOW SAGE DRIVE 3 1996 30 2026 121 75-370 SOUTH KELSEY CIRCLE 3 1996 30 2026 122 75-360 SOUTH KELSEY CIRCLE 3 1997 30 2027 123 75-358 SOUTH KELSEY CIRCLE 3 1996 30 2026 124 75-350 SOUTH KELSEY CIRCLE 3 1996 30 2026 Page 6 Page 195 LOT ADDRESS BR SIZE ACQUISITION DATE AFFORDABILITY PERIOD COVENANT EXPIRATION 125 75-348 SOUTH KELSEY CIRCLE 3 2005 30 2035 126 75-340 SOUTH KELSEY CIRCLE 3 2011 30 2041 127 75-338 SOUTH KELSEY CIRCLE 3 1996 30 2026 128 75-330 SOUTH KELSEY CIRCLE 3 1996 30 2026 129 75-328 SOUTH KELSEY CIRCLE 3 1996 30 2026 130 75-320 SOUTH KELSEY CIRCLE 3 1996 30 2026 131 75-318 SOUTH KELSEY CIRCLE 3 1998 30 2028 132 75-310 SOUTH KELSEY CIRCLE 3 1996 30 2026 133 75-308 SOUTH KELSEY CIRCLE 3 1997 30 2027 134 75-313 NORTH KELSEY CIRCLE 3 2012 30 2042 135 75-315 NORTH KELSEY CIRCLE 3 2019 30 2049 136 75-323 NORTH KELSEY CIRCLE 3 1996 30 2026 137 75-325 NORTH KELSEY CIRCLE 3 1997 30 2027 138 75-333 NORTH KELSEY CIRCLE 3 2015 45 2060 139 75-335 NORTH KELSEY CIRCLE 3 1998 30 2028 140 75-343 NORTH KELSEY CIRCLE 3 2021 30 2051 141 75-345 NORTH KELSEY CIRCLE 3 1998 30 2028 142 75-353 NORTH KELSEY CIRCLE 3 2003 30 2033 143 75-355 NORTH KELSEY CIRCLE 3 1998 30 2028 144 75-363 NORTH KELSEY CIRCLE 3 1997 30 2027 145 75-365 NORTH KELSEY CIRCLE 3 1997 30 2027 146 43-815 YELLOW SAGE DRIVE 3 2013 30 2043 147 43-825 YELLOW SAGE DRIVE 3 2000 30 2030 148 75-360 YELLOW SAGE COURT 3 1996 30 2026 149 75-356 YELLOW SAGE COURT 3 2005 30 2035 150 75-354 YELLOW SAGE COURT 3 1996 30 2026 151 75-346 YELLOW SAGE COURT 3 1996 30 2026 152 75-344 YELLOW SAGE COURT 3 2003 30 2033 153 75-336 YELLOW SAGE COURT 3 2000 30 2030 154 75-334 YELLOW SAGE COURT 3 2006 30 2036 155 75-343 YELLOW SAGE COURT 3 1997 30 2027 156 75-345 YELLOW SAGE COURT 3 1996 30 2026 157 75-353 YELLOW SAGE COURT 3 1996 30 2026 158 75-355 YELLOW SAGE COURT 3 1996 30 2026 159 43-875 YELLOW SAGE DRIVE 3 1998 30 2028 160 43-865 YELLOW SAGE DRIVE 3 1997 30 2027 161 75-365 YELLOW SAGE COURT 3 2008 30 2038 FALCON CREST 1 42025 Hovley Gardens Drive 3 2008 45 2053 2 42035 Hovley Gardens Drive 4 2008 45 2053 3 42045 Hovley Gardens Drive 3 2008 45 2053 4 42055 Hovley Gardens Drive 3 2008 45 2053 5 42065 Hovley Gardens Drive 4 2015 45 2060 6 42075 Hovley Gardens Drive 4 2020 45 2065 7 42085 Hovley Gardens Drive 4 2008 45 2053 8 42095 Hovley Gardens Drive 3 2008 45 2053 11 74576 Falcon Lane 3 2008 45 2053 12 74562 Falcon Lane 3 2008 45 2053 13 74548 Falcon Lane 3 2007 45 2052 14 74534 Falcon Lane 3 2007 45 2052 15 74520 Falcon Lane 3 2007 45 2052 17 74492 Falcon Lane 3 2007 45 2052 18 74478 Falcon Lane 3 2013 45 2058 19 74464 Falcon Lane 3 2007 45 2052 20 74450 Falcon Lane 3 2008 45 2053 21 42050 Golden Eagle Lane 4 2015 45 2060 23 42078 Golden Eagle Lane 3 2007 45 2052 24 42092 Golden Eagle Lane 4 2007 45 2052 Page 7 Page 196 LOT ADDRESS BR SIZE ACQUISITION DATE AFFORDABILITY PERIOD COVENANT EXPIRATION 25 42106 Golden Eagle Lane 3 2007 45 2052 26 42120 Golden Eagle Lane 4 2007 45 2052 27 42134 Golden Eagle Lane 3 2008 45 2053 28 42148 Golden Eagle Lane 4 2008 45 2053 29 42162 Golden Eagle Lane 3 2007 45 2052 30 42176 Golden Eagle Lane 4 2007 45 2052 31 42190 Golden Eagle Lane 3 2014 45 2059 32 42204 Golden Eagle Lane 3 2015 45 2060 33 42218 Golden Eagle Lane 4 2007 45 2052 34 42232 Golden Eagle Lane 3 2007 45 2052 35 42246 Golden Eagle Lane 4 2007 45 2052 36 42253 Verdin Lane 3 2014 45 2059 37 42239 Verdin Lane 4 2015 45 2060 38 42225 Verdin Lane 3 2007 45 2052 39 42211 Verdin Lane 3 2007 45 2052 40 42197 Verdin Lane 4 2015 45 2060 41 42183 Verdin Lane 3 2007 45 2052 42 42169 Verdin Lane 4 2007 45 2052 43 42155 Verdin Lane 3 2007 45 2052 44 42141 Verdin Lane 3 2007 45 2052 45 42127 Verdin Lane 4 2007 45 2052 46 42113 Verdin Lane 3 2007 45 2052 49 42071 Verdin Lane 3 2014 45 2059 50 42057 Verdin Lane 3 2007 45 2052 51 42090 Hovley Gardens Drive 3 2007 45 2052 52 42100 Hovley Gardens Drive 3 2017 45 2062 54 42162 Verdin Lane 3 2007 45 2052 56 42190 Verdin Lane 3 2014 45 2059 57 42204 Verdin Lane 4 2016 45 2061 58 42218 Verdin Lane 3 2017 45 2062 59 74530 King Fisher Circle 3 2010 45 2055 61 74558 King Fisher Circle 4 2007 45 2052 62 74572 King Fisher Circle 3 2014 45 2059 63 74586 King Fisher Circle 3 2007 45 2052 64 74600 King Fisher Circle 4 2017 45 2062 65 74614 King Fisher Circle 3 2007 45 2052 66 74628 King Fisher Circle 3 2007 45 2052 67 42099 Verdin Lane 4 2015 45 2060 68 74656 King Fisher Circle 3 2007 45 2052 69 74670 King Fisher Circle 3 2014 45 2059 70 74684 King Fisher Circle 4 2007 45 2052 71 74698 King Fisher Circle 3 2007 45 2052 72 74712 King Fisher Circle 3 2007 45 2052 73 74726 King Fisher Circle 3 2007 45 2052 75 74747 King Fisher Circle 3 2007 45 2052 76 74733 King Fisher Circle 3 2007 45 2052 79 74691 King Fisher Circle 4 2007 45 2052 80 74677 King Fisher Circle 3 2007 45 2052 81 74663 King Fisher Circle 3 2007 45 2052 82 74621 King Fisher Circle 3 2007 45 2052 83 74607 King Fisher Circle 3 2007 45 2052 84 74593 King Fisher Circle 3 2007 45 2052 85 74579 King Fisher Circle 3 2007 45 2052 86 74565 King Fisher Circle 3 2007 45 2052 87 74551 King Fisher Circle 3 2007 45 2052 88 74537 King Fisher Circle 4 2013 45 2058 89 74523 King Fisher Circle 3 2007 45 2052 90 74509 King Fisher Circle 3 2007 45 2052 91 74495 King Fisher Circle 3 2008 45 2053 Page 8 Page 197 LOT ADDRESS BR SIZE ACQUISITION DATE AFFORDABILITY PERIOD COVENANT EXPIRATION 92 74481 King Fisher Circle 3 2007 45 2052 93 74453 King Fisher Circle 3 2007 45 2052 94 74481 King Fisher Circle 3 2007 45 2052 Page 9 Page 198 From:Kathleen Kelly To:SUSAN MYRLAND Cc:Todd Hileman; Heather Horning; Niamh Ortega Subject:Re: Resigning from Cultural Arts Committee Date:Monday, November 29, 2021 2:01:46 PM I am sorry to hear this, Susan. I hope all is well with you. Thank you so much for your service and for featuring the good work of staff. Best to you, Kathleen Kelly From: SUSAN MYRLAND <susan@silvergate.us> Sent: Monday, November 29, 2021 1:57 PM To: Kathleen Kelly <kkelly@cityofpalmdesert.org>; Karina Quintanilla <kquintanilla@cityofpalmdesert.org> Cc: Amy Lawrence <alawrence@cityofpalmdesert.org>; Martin Alvarez <malvarez@cityofpalmdesert.org>; Debbie Thompson <dthompson@cityofpalmdesert.org> Subject: Resigning from Cultural Arts Committee Dear Mayor Kelly and Councilwoman Quintanilla, please consider this my letter of resignation from the Cultural Arts Committee, effective Dec. 31, 2021. At that time I will have fulfilled my commitment to serve as this year’s chair. For multiple reasons, I am unable to continue as a regular member through the rest of my appointed term. It’s been an honor to serve on the commission. I’m proud of the contributions I made to Palm Desert and look forward to seeing future developments from the expanded scope and mission, particularly along San Pablo, El Paseo, and in the north sphere. Over the past few years I’ve had the pleasure of working with several dedicated, smart, talented individuals. Two who deserve special recognition are Amy Lawrence and Debbie Thompson. They made the volunteer experience meaningful while handling countless details so that it was not onerous, and always with grace and professionalism. They are what makes Palm Desert an effective, energetic, well-run city, and a place that I’m proud to call home. Thank you for this opportunity. I appreciate all you do for Palm Desert and wish you the best. Sincerely, Susan __________________ Silvergate Projects www.silvergate.us 619 . 316 . 6022 Page 199 Page 200 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: January 27, 2022 PREPARED BY: Trisha Stull, Management Analyst REQUEST: Adopt Resolution No. 2022-____ approving signature authority for all California Department of Resources Recycling and Recovery (CalRecycle) grants for which the City of Palm Desert is eligible ____________________________________________________________________ Recommendation Waive further reading and adopt Resolution No. 2022-____ approving a signature authority for all CalRecycle grants for which the City of Palm Desert is eligible. Strategic Plan The proposed action has no impact on the Strategic Plan. Background Analysis CalRecycle administers various grant programs to further the State of California’s efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment. In order to be eligible to receive these funds the City is required to submit funding requests signed by a signature authority. Staff is requesting that the City Council approve the attached Resolution designating the City Manager or his/her designee, as the City’s signature authority for all CalRecycle grants for which the City of Palm Desert is eligible. Fiscal Analysis The City may receive funds from CalRecycle’s various grant programs which would be used to implement approved grant projects. Page 201 January 27, 2022 - Staff Report CalRecycle Signature Authority Page 2 of 2 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez Director of Development Services Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman Attachments: Resolution No. 2022-____ Page 202 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING SUBMITTAL FOR ALL CALRECYCLE GRANTS FOR WHICH THE CITY OF PALM DESERT IS ELIGIBLE WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, award, and management of the grants; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: 1. City staff are authorized to submit application(s) to CalRecycle for all grants for which the City of Palm Desert is eligible; and 2. The City Manager, or his/her designee is hereby authorized and empowered to execute in the name of the City of Palm Desert all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement approved grant project; and 3. These authorizations are effective for five (5) years from the date of adoption of this resolution. PASSED, APPROVED, AND ADOPTED on this 27th day of January, 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: __________________________ JAN C. HARNIK, MAYOR ATTEST: ________________________________ NORMA I. ALLEY, MMC, CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 203 [This page has intentionally been left blank.] Page 204 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: January 27, 2022 PREPARED BY: Martin Alvarez, Director of Development Services REQUEST: Authorize the City Manager to Negotiate a Contract with Kemper Sports for the Management and Operations of the Desert Willow Golf Resort. _______________________________________________________________________ Recommendation By Minute Motion, authorize the City Manager to negotiate a contract with Kemper Sports Management (“Kemper”) for the management and operations of the Desert Willow Golf Resort and return to the City Council for consideration. Strategic Plan Authorization to negotiate a contract to manage the operate the Desert Willow Golf Resort aligns with the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together: Parks and Recreation Priority 2. • Make recreational and exercise opportunities pervasive in all public spaces events to enhance and expand the Palm Desert economy and lifestyle. The continued development and operation of Desert Willow Golf Resort aligns with multiple objectives of the City’s Strategic Plan. Desert Willow’s golf courses and hospitality components provide Palm Desert residents and guests a premier resort-recreational experience within an environmentally responsible and sustainable environment. Background On April 13, 2017, the City Council approved a management agreement with Kemper Sports Management (Kemper) to operate the Desert Willow Golf Resort with a term of three years, including the option of two- or one-year extensions. On May 23, 2019, the City Council exercised its option to extend the golf course management agreement with Kemper for two years, July 1, 2020–June 30, 2022. The City Council also directed City staff to prepare a Request for Proposals (RFP) in the Fall of 2021 to seek golf course operators for Desert Willow beyond June 30, 2022. On September 30, 2021, the City Council authorized staff to issue the RFP for the management and operations of the City-owned Desert Willow Golf Resort. Per the City Council approval, the RFP was released on October 11, 2022, and included the following key criteria and components. Page 205 January 27, 2022 - Staff Report Desert Willow Mangement RFP Page 2 of 3 DESERT WILLOW MANAGEMENT RFP KEY COMPONENTS RFQ/RFP COMPONENTS 5-year, with a City Option extension of up to 5 Additional Years (Approval by City Council) Fixed Management Fee - Cap at $25K/month, $300K annually Performance Incentive - Cap of $200K/Negotiated based on including, but not limited to agreed-upon criteria for: • Course/Property Condition while containing costs– up to $150K • Consumer Ratings - (ORCA Report)/USGA Ranking up to $50K Subjected to 1.5% adjustment annually No Management of golf courses within City limits or comparable Coachella Valley resort/Municipal Course Below is the timelime that was followed to issue and review the Desert Willow RFP. RFP Advertisement and Solicitation October 11, 2021 Voluntary Pre-Proposal/Site Visit Meeting October 29, 2021 RFP Submittal Due Date November 12, 2021 Firm Interviews January 12, 2022 On November 12, 2021, staff received two proposals in response to the RFP. The two firms that submitted proposals are: 1. Golf Automation, Las Vegas, NV 2. Kemper Sports Management, Northbrook, IL Discussion As directed by the City Council, staff formed an RFP Evaluation Committee (“Committee”) to provide a fair and comprehensive evaluation of the firms submitting proposals. Due to the broad requirements and multiple complexities of Desert Willow’s operation, the Committee was assembled with the following members: • City Council liaison to the Desert Willow Presidents Committee - Councilmember Sabby Jonathan • Councilmember Kathleen Kelly • One member from the Palm Desert Recreational Facilities Corporation Board - Philip Smith II • Key staff from various City Departments (City Manager, Finance, Economic Development, Public Works) • At large, members of the community with expertise in golf course management, maintenance, and hospitality o Jim Moran, General Manager, Marriott Shadow Ridge o Bob Leo, Resident and member of the City’s Finance Committee Page 206 January 27, 2022 - Staff Report Desert Willow Mangement RFP Page 3 of 3 On January 12, 2022, the Committee met via Zoom to interview the two firms that submitted proposals to manage and operate Desert Willow. Staff provided the Committee copies of the written proposals, along with the evaluation criteria (see attached). The evaluation criteria included the following components and scoring format: CRITERIA POINTS Clarity and Conformance of the Proposal 0-25 Content of the Proposal – Work Plan/Approach 0-30 Key Personell Experience/Qualifications 0-30 Fixed Fee Proposal 0-15 Total 100 After the proposal evaluations and interviews, the Committee unanimsouly agreed that Kemper Sports Management was the most qualified firm with the highest average evaluation score of 97. If this item is approved, staff will work with the City Manager and the City’s legal counsel to draft and negotiate a contract with Kemper and return it to the City Council for consideration. Fiscal Analysis Authorization to proceed with negotiation of a contract with Kemper Sports Management to manage and operate Desert Willow Golf Resort does not have a fiscal impact. Once the management contract is finalized, staff will return to the City Council for consideration, which will include a full evaluation of its fiscal impact. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A William L. Strausz Legal Counsel Martin Alvarez Martin Alvarez, Dir. of Development Services Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman ATTACHMENTS: 1. Evaluation Criteria Form Page 207 RFQ/RFP FOR MAINTENANCE AND OPERATIONS OF THE DESERT WILLOW GOLF RESORT CONTRACT NO. C35730 EVALUATION SUMMARY SCORE SECTION EVALUATION OF PROPOSAL A. Qualifications and Experience 1 Provide sufficient information to demonstrate that the Firm posseses the right knowledge and experience to perform the required Scope of Services at Desert Willow Golf Resort and maintain its standard as a premier golf resort? 2 Demonstrate a well developed organizational plan of properly experienced and qualified Individuals that will be assigned to Desert Willow Golf Resort and, that they are capable of performing the Scope of Services in accordance with the high standards required by the City? SCORE (0-25)_____________________ B. Understanding of DWGR and Management/Maintenance Operations Plan 1 Describe a well delineated and comprehensive Operational Plan to perform the required Scope of Services at DWGR?Does it address potential future needs at DWGR? 2 Demonstrate;their understanding of the City's standards, goals and objectives for DWGR and, their knowledge and ability to manage/maintain a premier desert golf resort and, their knowledge of operating municipally owned golf resorts? 3 Demonstrate the Firm's ability to be creative with programs,agile and responsive to trends in the industry and, responsive to client needs? SCORE (0-25)_____________________ Does the Proposer's Marketing Understanding and Approach: 1 Demonstrate the Firm's knowledge and experience in marketing and promoting premier seasonal desert golf resorts?Demonstrate an appreciation for the unique challenges of our desert region? 2 Demonstrate creative ideas to market the appeal of golf to broader demographics? Demononstrate programs that appeal to City resident needs? SCORE (0-25)_____________________ D. Overall Proposal ? Qualification of the Firm ? Attentiveness to their responses? From the Proposals reviewed, was there a 'shinning star' response? If so, was this the one? C. Marketing and Promotion NAME OF FIRM: ________________________________________________________________________________ COMMENTS AND SCORE Comments: YES NO DIDN'T ANSWER Comments: YES NO DIDN'T ANSWER Does the Proposer: Does the Proposer's Understanding of DWGR and "Operational Services Approach": 1. What is your overall satisfaction with the: Excellent - Good - Complete - Incomplete Comments: YES NO DIDN'T ANSWER Comments: YES NO DIDN'T ANSWER Comments: YES NO DIDN'T ANSWER Comments: YES NO DIDN'T ANSWER Comments: YES NO DIDN'T ANSWER Excellent - Good - Qualified - Not-Qualified Clear, Comprehensive, Confident or Somewhat Incomplete or Completely Unsatisfacory 2. Answer this question after all Proposals are reviewed: Response Reviewer: _________________________________________________ Date: _______________ Page 208 EVALUATION SCORING GUIDE Quality of Response Description Strengths Relative to Requirements Weaknesses Confidence in Proposed Approach Excellent (20-25 Points) The proposal addresses the requirements completely, exhibits outstanding knowledge, creativity, innovation or other factors to justify this rating. Meets requirements - numerous strengths in key areas.None Very High Good (11-19 Points) The proposal addresses the requirements completely and addresses some elements of the requirements in an outstanding manner. Meets requirements - some strengths in key areas. Minor - not in key areas High Moderate (6-10 Points) The proposal addresses most elements of the requirements. Meets most requirements - minimal strengths provided in their response. Moderate - does not outweigh strengths Moderate Marginal (6-10 Points) The proposal meets some of the RFP requirements. Meets some of the requirements with some clear strengths. Exist in key areas - outweighs strengths Low Unacceptable (0 Points) The proposal meets a few to none of the RFP requirements. Meets a few to none of the requirements with few or no clear strengths. Significant and numerous No Confidence Page 209 [This page has intentionally been left blank.] Page 210 STAFF REPORT CITY OF PALM DESERT FINANCE DEPARTMENT MEETING DATE: January 27, 2022 PREPARED BY: Lori Carney, Administrative Services REQUEST: Create an Ad Hoc Sub-Committee for Fourth Fire Station Design/Build ________________________________________________________________________ Recommendation By Minute Motion that the City Council: 1. Create an Ad Hoc Sub-Committee for the Fourth Fire Station Design/Build; 2. Appoint two members of City Council to serve on said committee; Background Analysis On December 16, 2021, the City Council participated in a Study Session on Fire and EMS Services and the need to move forward on the design and building of the City’s fourth fire station to be located in the University Park area. The next step for this project is the formation of an Ad Hoc Sub-Committee to plan the design and build process. Staff recommends the following members: • City Council o 2 members to be appointed by Council • Fire Department o Division Chief Mike Beverlin o Battalion Chief as needed • City Staff o Fire Contract Liaison – Lori Carney o Finance Department – Veronica Chavez o Public Works Capital Improvement Projects – Randy Bowman o Other support staff as needed Once the committee is created staff will schedule the first meeting. Page 211 January 27, 2022 – Staff Report Form Fourth Fire Station Sub-Committee Page 2 of 2 Fiscal Impact There is no fiscal impact associated with the creation of the sub-committee. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Lori Carney Lori Carney Administrative Services LC for – Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman Page 212 STAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: January 27, 2022 PREPARED BY: Heather Horning, Assistant to the City Manager REQUEST: Request for direction on the consideration of a possible Council- initiated five district ballot measure for the 2022 ballot. Recommendation By Minute Motion, provide City staff feedback and direction on the consideration of a possible Council-initiated five district ballot measure for the 2022 ballot. Background At the September 9, 2021, City Council meeting former Mayor Kelly made a request for action to include an item on a future agenda to discuss if the City Council would like to call for a ballot measure on five districts to be included on the 2022 ballot. Former Mayor Pro Tem Harnik and Councilmember Quintanilla seconded this. On October 28, 2021, the City Council had a study session to study the process of a Council-initiated ballot measure regarding five district voting. At the December 16, 2021, City Council meeting, former Mayor Kelly followed up on her request for action and asked that an item be added to an upcoming City Council meeting agenda to discuss this issue. In response to this, staff is requesting feedback and direction on the consideration of a possible Council-initiated five district ballot measure for the 2022 ballot. In order to get a Council-initiated ballot measure on the ballot, the City Council would need to adopt a resolution calling for a ballot measure prior to June 2022. The City Attorney wrote a memo documenting the process for how to get a City Council-initiated ballot measure on the ballot. A copy is attached to this staff report for reference. Page 213 January 27, 2022 Consideration of Council-initiated Five District Ballot Measure Page 2 of 2 Fiscal Analysis There is no fiscal impact associated with this action. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert W. Hargreaves City Attorney N/A L. Todd Hileman City Manager N/A Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman ATTACHMENT: BBK Memo – City Council Initiated Ballot Measure Process Page 214 Memorandum To: Honorable Mayor and City Councilmembers From: Best Best & Krieger, LLP Date: January 18, 2022 Re: City Council Initiated Ballot Measure Process QUESTIONS PRESENTED What is the process for getting a City Council-initiated ballot measure on the ballot? ANALYSIS The City Council may submit a ballot measure directly to the voters to enact, amend, or repeal any ordinance at any general or special election. (Elec. Code, § 9222.) Unlike citizen-initiated ballot measures, there is no petition process. The Council does not need to gather signatures or further engage the community prior to submitting the ballot measure. The process is much less complex than the citizen-initiated ballot measure petition process. The Council will be able to review and approve the final measure and ordinance language. The ballot measure must be submitted at least 88 day before the election. (Ibid.) The City Council must adopt three resolutions in order to properly submit a ballot measure: (1) a resolution calling the election (includes the actual ordinance language as an attachment); (2) a resolution requesting that the election be consolidated with the statewide general election (tells the County to take over the election process for this ballot measure at the November 2022 general election); (3) a resolution setting important deadlines (lists Elections Code deadlines that the County has set). The City Clerk, who is the City’s Elections Official, forwards the adopted resolutions to the County no later than 88 days before the election, which would occur in August 2022. It is highly recommended to review and adopt the three resolutions early to allow time for unexpected delays. The County usually publishes their deadlines during the first two months of the election year. The remainder of the process mirrors the process for citizen-initiated ballot measures. In their resolution calling the election, the City Council directs the city attorney to prepare an impartial analysis of an initiative. (Elec. Code, §9280.) The third resolution described above sets deadlines for filing primary and rebuttal arguments with the City Clerk. (Elec. Code, § 9285(a)(4).) The City Council may authorize one or more of its members to write arguments in favor and/or against the ballot measure. (Elec. Code, § 9282.) Since drafting and submitting the arguments is considered advocacy, Council Members would have to work on these during their own time and using their own resources as citizens. No City resources may be used. Typically, city councils appoint a one or two-member subcommittee to author and file the argument on behalf of “the City Council”. The argument does not come back to the Council as a whole and should stay at the subcommittee level. Arguments authored on behalf of the Council and/or by Page 215 - 2 - Council Member(s) will get priority in placement on the ballot over arguments submitted by individual voters or citizen associations. (Elections Code, § 9287). After the arguments are submitted, the City Clerk provides a 10 calendar day public examination period for arguments and for the impartial analysis. (Elec. Code, § 9295.) The City Clerk selects arguments and prepares sample ballot and ballot language to submit to the County for publication. A majority vote in favor of the ballot measure is needed for its adoption. (Ibid.) Page 216 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: January 27, 2022 PREPARED BY: Randy Bowman, Deputy Director of Public Works Andy Firestine, Assistant City Manager REQUEST: Request for direction regarding Portola Avenue / I-10 Interchange Improvements (Project No. 637-02). ___________________________________________________________________________ Recommendation By Minute Motion: 1. Direct the City Manager or designee to work with Coachella Valley Association of Governments to return the remaining City bond funds on deposit for the Portola Avenue / I-10 Interchange Improvements project; 2. Direct the City Manager or designee to work with Riverside County Transportation Commission on repurposing the Measure A set aside for the Portola Avenue / I-10 Interchange Improvements project; 3. Direct staff to the City Manager or designee to work with County of Riverside to remove the aesthetic treatments from the design until such time that there is construction funding for the project; and 4. City Council re-affirms its commitment to the Portola/I-10 interchange project and directs staff to continue pursuing funding opportunities for the project. Strategic Plan This Project is not reflected in any specific item in the City’s Strategic Plan. Background Analysis Through the FY 21/22 budget development process, Council received an update on the Portola interchange project, including the most recent cost estimates for its construction. Conceptualized in the early 2000s, the project had an approximate $72 million budget in 2008, including plans, specifications, and engineering (PS&E); right-of-way (ROW) acquisition; and construction. The City had entered into a reimbursement agreement with the Coachella Valley Association of Governments (CVAG) that established CVAG as the primary funding source for the project, contributing a total of 75 percent of the project cost up to $54.075 million (the “Reimbursement Agreement”). The City of Palm Desert was responsible for Page 217 January 27, 2022 - Staff Report Portola Interchange Informational Update Page 2 of 4 the balance of the funding and had committed $15 million in bond funding from the former Palm Desert Redevelopment Agency to the project, together with $5 million in Measure A funding. Based on the cost estimates at the time, these commitments would have sufficiently funded the project. The cost estimates for all phases of the project have increased substantially from 2008: Phase 2008 2020 PS&E $2.8M $7.5M ROW Acquisition / Utilities $12.1M $28.8M Construction $57.1M $78.2M Total $72.0M $114.5M The Reimbursement Agreement was amended on two occasions, once to add Riverside County as a party to the agreement for project management (no funding) and a second time to limit the effect of the agreement to the PS&E and ROW acquisition phases. Detailed more particularly in an April 21, 2021, memorandum from CVAG to the City and as presented to Council in the FY 21/22 CIP budget workshop, CVAG cannot commit any longer to 75 percent of the project cost. CVAG’s justification was that the project is not competitive in the CVAG Transportation Project Prioritization System (TPPS), particularly among other interchange projects, while CVAG is contending with funding challenges not only for this project but other regionally significant projects. At the time, CVAG represented that they expect to only realize $4.4 million in State Transportation Improvement Program (STIP) funds from FY 20/21 through FY 24/25 while their 2016 Regional Arterial Cost Estimate (RACE) identified $3.4 billion of transportation projects. Their cash flow analysis resulted in a $370 million negative fund balance at the end of 10- years. The Portola interchange project currently has $41 million of local funding committed, which constitutes approximately 35 percent of the total projected cost. A breakdown of the local funds is included in the table below: Source Committed Funding City of Palm Desert (SARDA) $15,000,000 Measure A (City of Palm Desert) $5,000,000 CVAG $19,420,500 STIP Funding $1,275,000 Total Funding $40,695,500 Since the FY 21/22 CIP budget workshop, various funding sources have been sought to Page 218 January 27, 2022 - Staff Report Portola Interchange Informational Update Page 3 of 4 close the funding gap for the Portola interchange, including earmarks through Congress and grant programs through the U.S. Department of Transportation such as the Surface Transportation Block Program (STBG), the Rebuilding American Infrastructure with Sustainability and Equity (RAISE), and the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA). The $1.2 trillion federal infrastructure bill signed by President Biden in November 2021 is expected to generate $40 billion in transportation funding for the State of California, of which Riverside County anticipates that it will receive roughly 0.6 percent. While there are transportation funds available, the Portola interchange project is neither competitive nor would the funds sufficiently close the funding gap such that the project was fully funded. The Portola interchange project does not solve an existing capacity issue or address safety, as are its peer projects, and it is not a maintenance project. Even as the funding rules are being developed for the $1.2 trillion in the federal infrastructure bill, the Portola interchange project stands out as a new interstate interchange when much of the recent focus has been on developing multi-modal projects, reinvesting in existing infrastructure, and making roads and bridges safer. This works against the project in terms of its competitiveness for state and federal funding. As well, the nearly $74 million funding gap between the committed project funding and the 2020 cost estimates requires a substantial commitment from any funding source to fully fund the project, one that would likely also require the development of a new local revenue source. Based on the current funding circumstances, staff is recommending that the remaining and unspent $15 million in bond funding and the $5 million in Measure A funding be reprogrammed for other purposes once the PS&E process has been completed. This will protect the investment in the project to date and leave the project as “shovel ready” in the event that the funding outlook changes significantly and in an unexpected way. No additional ROW acquisition. Staff recommends that the ROW acquisition remain suspended until there is construction funding for the project. ROW from three properties remain to be acquired, together with ROW from Union Pacific Railroad. The City Council selected the design of a backlit lettering community identification feature for the on- and off-ramp retaining walls on the south side of I-10. The Federal Highway Administration (FHWA) rejected the placement of the aesthetic treatments over concerns of motorist safety. Despite the prior support of Caltrans staff involved with the project, FHWA will not approve the plans with the aesthetic treatment as proposed. In the interest of finalizing the project design at this point in a timely manner with minimal additional design costs, staff recommends that the aesthetic treatments be removed from the design until such time that there is construction funding for the project. Page 219 January 27, 2022 - Staff Report Portola Interchange Informational Update Page 4 of 4 Fiscal Analysis The City deposited $15,000,000 in capital project bond funds with CVAG for this project, of which CVAG has invoiced $1,201,977.65, leaving a current balance on deposit of $13,798,022.35. The City has also reserved $5M of Measure A funds in the approved Capital Improvement Project (CIP) List for this project. Any change to the amount of the Measure A funds reserved for the project can be requested to RCTC within the next Measure 5-Year CIP that is due to RCTC in May. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman ATTACHMENTS: Vicinity Map CVAG memo, dated April 21, 2021 Page 220 Page 222 Page 223 Page 224 Page 225 [This page has intentionally been left blank.] Page 226 Page 227 [This page has intentionally been left blank.] Page 228 Page 229 [This page has intentionally been left blank.] Page 230 W:\Staff Reports - Shared 2\Staff Reports 2022-0127\5 - Clerk's Office - 2022-0127\Revised Ord 1375 ZOA 21-0002 - Community Engagement\01 Staff Report - Community Engagement ZOA CC.Docx CITY OF PALM DESERT DEPARTMENT OF DEVELOPMENT SERVICES CITY COUNCIL STAFF REPORT MEETING DATE: January 27, 2022 PREPARED BY: Rosie Lua, Principal Planner REQUEST: Continued item for consideration of approval to the City Council for Zoning Ordinance Amendment 21-0002 to amend the Palm Desert Municipal Code, Chapter 25, modifying Section 25.60.60 (Public Hearing and Public Notice), adding Section 25.60.160 “Community Engagement,” and Chapter 5, Section 5.11 “Disclosures Upon Transfer of Residential Property” regulating the public engagement process. Recommendation Waive further reading and pass to second reading City Council Ordinance No. ____, approving Zoning Ordinance Amendment 21-0002 to amend the Palm Desert Municipal Code, Chapter 25, modifying Section 25.60.60 (Public Hearing and Public Notice), adding Section 25.60.160 “Community Engagement,” and Chapter 5, Section 5.11 “Disclosures Upon Transfer of Residential Property” regulating the public engagement process. Planning Commission Recommendation On December 21, 2021, the Planning Commission considered the Zoning Ordinance Amendment (ZOA) 21-0002 to modify the Palm Desert Municipal Code (PDMC) Section 25.60.60 and adding Section 25.60.160 “Community Engagement” for projects of 5 acres or more regulating the public engagement process and adding Section 5.11 “Disclosures Upon Transfer of Residential Property.” Planning Commission approved Resolution No. 2803 recommending to the City Council approval by vote 4-0, 1 absent with the recommendation to clarify Section 5.11 to require only new developments to include the requirement of transfer disclosures instead of “any single-family residential property” as stated in the draft ordinance. City Council Recommendation On January 13, 2022, the City Council considered the ZOA 21-0002 in a duly noticed public hearing. The staff report was presented, and the public hearing was opened for public comments. After discourse of the item, Council members expressed concern of the ZOA’s intent of the proposed Section 25.60.160 (C)(5) (Community Engagement), “The Director of Development Services may require the developer to provide additional plans or studies including, but not limited to, line of sights, photometric plans, massing studies, three- dimensional plans, and any other studies that may be deemed relevant for the project’s Page 231 January 13, 2022 –Staff Report Case No. ZOA 21-0002 Community Engagement Page 2 of 6 engagement with the public.” The City Manager agreed that the intent of the ordinance was to implement procedures to require engagement with the public and not provide staff with the ability to request exhaustive plans/studies from a developer, which may or may not be a request of the Planning Commission vetting process. The consensus of the City Council was to continue the public hearing to the regularly scheduled City Council meeting of January 27, 2022. Strategic Plan • Land Use, Housing & Open Space – Priority 2: “Facilitate development of high-quality housing for people of all income levels.” • Land Use, Housing & Open Space – Priority 5: “Utilize progressive land use policies and standards to support ongoing and future needs.” Background Analysis On July 8, 2021, City Council adopted Resolution No. 2021-50 by unanimous vote, acknowledging that public participation early in the planning and development process leads to better outcomes in addressing community concerns. In the passing of the resolution, the Council directed staff to proceed with a ZOA to provide regulations increasing public notification beyond the City’s typical 300-feet as required by the current PDMC to 1,000 feet radius for new projects of five (5) acres or more. In addition, developments of five (5) acres or more are required to submit a Community Engagement Plan, detailing the developer’s engagement with the public as a requirement of the entitlement application. Finally, a requirement for any single family residential property transfer of property disclosures of long- range planning efforts and potential future development identified in the City’s General Plan, Zoning, and Housing Element. The Community Engagement’s intended purpose is to provide the following: • City staff and developers to engage the surrounding community early in the process to ensure potential community concerns are heard and addressed. • City support to increase the public mailing notification of certain development projects to a broader audience. • Larger development projects, particularly those that are five (5) acres or more, benefit from greater public participation and community support. • Public notification for projects that are five (5) acres or more to be increased from 300 feet to 1,000 feet to achieve the above-referenced statements. • As part of the planning application and review process, developers to submit a “community engagement plan” to be reviewed and approved by City staff to ensure adequate community engagement efforts are achieved. Page 232 January 13, 2022 –Staff Report Case No. ZOA 21-0002 Community Engagement Page 3 of 6 • Homebuyers should receive sufficient notification through closing documents of long- range planning efforts and potential future development identified in the City’s General Plan, Zoning, and Housing Element. Discussion To implement the various standards and regulations as listed above, the following are the proposed ordinances recommended to City Council: 1) Modify Section 25.60.060 (Public Hearing and Public Notice) of Title 25 of the PDMC as follows: Section 25.60.060 (2)(a): Projects of five (5) acres or more in size shall notify property owners within 1,000 feet of the exterior boundaries of the property involved in the application to ensure adequate community engagement efforts are achieved pursuant to requirements in Section 25.60.160. 2) Add Section 25.60.160 (Community Engagement) of Title 25 of the PDMC as follows: 25.60.160 Community Engagement Intent and purpose. It is the intent of this chapter to relate the provisions of this title and all other applicable projects to the appropriate City provisions that have been adopted to comply with the Community Engagement Plan’s intended purpose of requiring developers to present and engage in a public outreach meeting early in the entitlement process of new projects of 5 acres or more and address concerns of the public prior to an approval. Scope of regulations. This chapter shall be applied to establish policies related to Community Engagement. Requirements related to Community Engagement for new projects are as follow: A. Developers shall prepare and submit a Community Engagement Plan to the Planning/Land Development Division at the time of entitlement application. B. Meet the public notification requirements of Section 25.60.060. C. The Community Engagement Plan must contain the following: 1. Developer shall provide method(s) of communication with the public, including proposed location(s) where public outreach will take place. 2. Submit any written publications distributed to the public including any informational items of the project. 3. A minimum of one (1) meeting with the public is required, follow-up meetings may be required as requested by the Director of Development Services. Page 233 January 13, 2022 –Staff Report Case No. ZOA 21-0002 Community Engagement Page 4 of 6 4. Developer shall provide written responses addressing each public concern to be submitted to staff and documented for the public record. 5. The Director of Development Services may require the developer to provide additional plans or studies including, but not limited to, line of sights, photometric plans, massing studies, three-dimensional plans, and any other studies that may be deemed relevant for the project’s engagement with the public. D. The developer shall coordinate with staff for the notification of community meetings with property owners within 1,000 feet of the proposed project. E. Staff is to be present at the meeting(s) to observe and summarize concerns and developer’s responses in the final staff report(s). F. The entitlements will include a condition of approval on any single-family residential property, the developer will disclose, as part of any closing documents, the City’s General Plan Land Use, Circulation, and Housing Elements adjacent to their project. Refer to PDMC Section 5.11.010 “Disclosures Upon Transfer of Residential Property” for requirements. Staff initially included Section 25.60.160 (C)(5) (Community Engagement) to help adjudicate the community engagement process and require developers (when warranted) to provide illustrative plans/studies to show the neighbors when there is an expressed concern. For example, when a neighbor has a concern on a height of the new building, then a line-of-sight study provides the visual to help demonstrate visibility from the adjoining property. It was not staff’s intent to provide unlimited allowances to request plans/studies from developers that would encumber a project. However, after the City Council meeting, staff met with the City Manager to discuss the intent of the community engagement process as proposed in the City Council meeting of July 8, 2021 which included discussions on increasing public notifications to 1,000 feet, the planning application to include a community engagement plan, and homebuyers to receive sufficient notification of long-term planning efforts. The proposed requirements of Section 25.60.160 (C)(5) as stated above did not meet the council’s original intent. Staff’s role is to facilitate the community engagement process by ensuring that the expansion of public notification is achieved, that there are adequate engagement efforts by developers, staff participation is to attend the meetings and record the public’s concerns and the developer’s response in meeting those concerns, as well as implementing an ordinance that requires disclosures of the General Plan, Zoning Ordinance, and Housing Element. Therefore, Section 25.60.160 (C)(5) has been removed from the ordinance. Instead, it will be the responsibility of the developer to provide the illustrative plans/studies needed to address the public’s concerns. 3) Add Section 5.11 (Disclosures Upon Transfer of Residential Property) in Title 5 of the PDMC The Planning Commission’s motion recommends requiring only new developments to include the requirement of transfer disclosures instead of “any single-family residential property” as stated in the draft ordinance. The draft ordinance proposal under consideration today differs Page 234 January 13, 2022 –Staff Report Case No. ZOA 21-0002 Community Engagement Page 5 of 6 due to limitations identified by the City Attorney’s Office (i.e. difficult to enforce and define). Thus, by expanding the disclosure requirement resale of homes in older subdivisions may benefit from awareness of likely development in the vicinity. Therefore, the ordinance as drafted in this recommendation of Section 5.11 (Disclosures Upon Transfer of Residential Property) states that a seller of any single-family residential property located within the City to deliver to the prospective buyer a real estate transfer disclosure statement pursuant to Civil Code Section 1102.6a. General Plan The General Plan promotes goals and policies to ensure new projects are compatible with the surrounding developments, as well as encourages public participation in this process. Land Use and Community Character Policy 1.1 (Scale of development) promotes the City’s corridors to use design techniques to a moderate height and use and ensure compatible fit with surrounding development. If approved, this ZOA, which requires certain new developments (five acres or more) to allow the public to express concerns early in the inception of the project. In addition, providing disclosures upon the transfer of a residential property allows the property owner to be informed of future potential development adjacent to their property. Therefore, this civic engagement and disclosures will support the City’s goal in meeting the intent of the General Plan. Public Input Public noticing was conducted in accordance with State law. A public hearing notice was published on January 2, 2022, in The Desert Sun. To date, the Development Services Department has received no letters in opposition to or in favor of the proposed ordinance amendment. Environmental Review The proposal to amend the Zoning Ordinance is not a project as defined in the California Environmental Quality Act (CEQA) Public Resource Code (Pub. Resources Code, § 21000 et seq.) and the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) that this action will not have an impact on the environment. Page 235 January 13, 2022 –Staff Report Case No. ZOA 21-0002 Community Engagement Page 6 of 6 Findings of Approval Findings can be made in support of the amendment and in accordance with the City’s Municipal Code. Findings in support of this ZOA are contained in the Ordinance No. ___, attached to this staff report. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER RH Robert W. Hargreaves City Attorney Martin Alvarez Dir. of Development Services N/A Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman ATTACHMENTS: 1. Draft City Council Ordinance No. _____ 2. Planning Commission Resolution No. 2803 3. Planning Commission Draft Minutes of December 21, 2021 4. City Council Public Hearing Notice 5. City Council Adopted Resolution No. 2021-50 Page 236 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING PALM DESERT MUNICIPAL CODE, CHAPTER 25, MODIFYING SECTION 25.60.60 (PUBLIC HEARING AND PUBLIC NOTICE), ADDING SECTION 25.60.160 “COMMUNITY ENGAGEMENT,” AND CHAPTER 5, SECTION 5.11 “DISCLOSURES UPON TRANSFER OF RESIDENTIAL PROPERTY” REGULATING THE PUBLIC ENGAGEMENT PROCESS AND APPLY SAID REGULATIONS CASE NO: ZOA 21-0002 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 21st day of December 2021, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted, and adopted Resolution No. 2803, recommending that the City Council adopt the Zoning Ordinance Amendment (ZOA) for said projects regulating the public engagement process; and WHEREAS, the ZOA expands public notification for projects five (5) acres or more to 1,000 feet radius by modifying Palm Desert Municipal Code (PDMC) Section 25.60.60 (Public Hearing and Public Notice) and implements a Community Engagement Plan requirement for developers by adding Section 25.60.160 (Community Engagement), and adding Section 5.11 (Disclosures Upon Transfer of Residential Property) requirement for any single-family residential property to include disclosures of long-range planning efforts and potential future development identified in the City’s General Plan, Zoning, and Housing Element; and WHEREAS, the City Council of the City of Palm Desert, did on the 13th day of January 2022, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of a ZOA. The staff report was presented, and the public hearing was opened for public comments. After discourse of the item, City Council continued the item to January 27, 2022; and WHEREAS, the City Council of the City of Palm Desert, did on the 27th day of January 2022, a continued public hearing to consider the request by the City of Palm Desert for approval of a ZOA, and has determined that the public engagement process is consistent with the City’s General Plan; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons exist to approve said request: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations are beneficial and appropriate to protect the health, safety, and welfare of the residents and businesses of Palm Desert within the City limits. A. The City of Palm Desert, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and Page 237 ORDINANCE NO. _____ 2 B. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. SECTION 2. Amendment. The City Council of the City of Palm Desert, California, approve, and adopt the PDMC amendment to Section 25.60.60 (Public Hearing and Public Notice), adding Section 25.60.160 “Community Engagement,” and adding Section 5.11 (Disclosures Upon Transfer of Residential Property), as shown in Exhibit A, which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and in effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 27th day of January 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 238 ORDINANCE NO. ___ EXHIBIT A Zoning Ordinance Amendments 1. Amend Section 25.60.060 (Public Hearing and Public Notice) Title 25 (Zoning) as follows (red indicates changes/additions): B. Notice of hearing. Pursuant to California Government Code Sections 65090 to 65094, not less than 10 days before the scheduled date of a hearing, public notice shall be given of such hearing in the manner listed below. The notice shall state the date, time, and place of hearing, identify the hearing body, and provide a general description of the matter to be considered and the real property which is the subject of the hearing. 1. Notice of public hearing shall be published in at least one newspaper of general circulation in the City. 2. Except as otherwise provided herein, notice of the public hearing shall be mailed, postage prepaid, to the owners of property within a radius of 300 feet of the exterior boundaries of the property involved in the application, using for this purpose the last known name and address of such owners as shown upon the current tax assessor’s records. The radius may be increased as determined to be necessary and desirable by the Director based on the nature of the proposed project. If the number of owners exceeds 1,000, the City may, in lieu of mailed notice, provide notice by placing notice of at least one-eighth (1/8) page in one newspaper of general circulation within the City. a. Public notification for projects 5 acres or more projects shall be 1,000 feet for public notifications related to development projects and to ensure adequate community engagement efforts are achieved pursuant to requirements in Section 25.60.160. 2. Add Section 25.60.160 (Community Engagement) to Title 25 (Zoning) as follows: 25.60.160 Community Engagement Intent and purpose. It is the intent of this chapter to relate the provisions of this title and all other applicable projects to the appropriate City provisions that have been adopted to comply with the Community Engagement Plan’s intended purpose of requiring developers to present and engage in a public outreach meeting early in the entitlement process of new projects and address concerns of the public prior to an action of the approving body. Scope of regulations. This chapter shall be applied pursuant to the adopted “Resolution of the City Council of the City of Palm Desert Establishing Policies related to Community Engagement (Resolution No. 2021-50). Requirements related to Community Engagement for new projects are as follow: a) Developers to prepare and submit a Community Engagement Plan to the Planning/Land Development Division at the time of entitlement application. b) Meet the public notification requirements of Section 25.60.060. c) The Community Engagement Plan must contain the following: Page 239 ORDINANCE NO. ___ 1. Developer’s method (s) of communication with the public. Proposed location (s) of public outreach shall be provided; 2. Submit written publications distributed to the public that includes any informational items of the project; 3. A minimum of one (1) meeting with the public is required, follow up meetings may be required as requested by the Director of Development Services; 4. Developer shall provide written responses to staff on how each public concern will be addressed; d) The developer to coordinate with staff for the notification of community meetings with property owners within 1,000 feet of the proposed project. e) Staff is to be present at the meeting(s) as observers and summarize concerns and developer’s responses in the final staff report (s). f) The entitlements will include a condition of approval on residential and/or owner- occupied projects, the developer will disclose, as part of any closing documents, the City’s General Plan and Housing Elements adjacent to the project. 3. Add Section 5.11 “Disclosures Upon Transfer of Residential Property” to Title 5 (BUSINESS TAXES, LICENSES AND REGULATIONS) subsequently as follows: 5.11.010 Statement Required. A. Pursuant to Civil Code section 1102.6a, in addition to those disclosures required by Civil Code section 1102.6, the seller of any single-family residential property located within the City shall deliver to the prospective buyer a real estate transfer disclosure statement containing the following statement: “Know Your Neighborhood: The City of Palm Desert maintains a website that provides important information on potential development throughout the City. The City recommends that you visit the website as part of your consideration in buying a home in the City. The website can be accessed at https://www.cityofpalmdesert.org/departments/planning. Alternatively, you can call the City’s Development Services Department at (760) 346-0611, ext. 483.” B. The real estate transfer disclosure statement required by this chapter shall be delivered at the same time as those disclosures required by Civil Code section 1102.6 or as soon as practicable thereafter. C. For purposes of this section, 1. “City” means the City of Palm Desert, California. 2. “Single-family residential property” means either of the following: (a) real property improved with one to four dwelling units, including any leasehold exceeding one year's duration of such, (b) a unit in a residential stock cooperative, condominium, or planned unit development, or (c) a mobile home or manufactured home when offered for sale or sold through a real estate broker pursuant to Business and Professions Code section 10131.6. 3. “Seller” means a transferor in a real property transaction, and includes an owner who lists real property with a licensee, whether or not a transfer results, or who Page 240 ORDINANCE NO. ___ receives an offer to purchase real property of which he or she is the owner from a licensee on behalf of another. “Seller” includes both a vendor and lessor of real property. 4. “Buyer” means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through a licensee, whether or not a transfer results, or who seeks the services of a licensee in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. “Buyer” includes a purchaser, vendee, or lessee of real property 5.11.020 Form of Statement. The real estate transfer disclosure statement required by this chapter shall be in the following form in accordance with Civil Code section 1102.6a: LOCAL OPTION REAL ESTATE TRANSFER DISCLOSURE STATEMENT THIS DISCLOSURE STATEMENT CONCERNS THE REAL PROPERTY SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS _________________________________________. THIS STATEMENT IS A DISCLOSURE OF THE CONDITION OF THE ABOVE-DESCRIBED PROPERTY IN COMPLIANCE WITH ORDINANCE NO. _________ OF THE PALM DESERT CITY CODE AS OF ___________, 20___. IT IS NOT A WARRANTY OF ANY KIND BY THE SELLER(S) OR REAL ESTATE LICENSEE(S) REPRESENTING ANY PRINCIPAL(S) IN THIS TRANSACTION, AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PRINCIPAL(S) MAY WISH TO OBTAIN. I SELLER’S INFORMATION The Seller discloses the following information with the knowledge that even though this is not a warranty, prospective Buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any real estate licensee(s) representing any principal(s) in this transaction to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER(S) AS REQUIRED BY THE CITY OF PALM DESERT, AND ARE NOT THE REPRESENTATIONS OF THE REAL ESTATE LICENSEE(S), IF ANY. THIS INFORMATION IS A DISCLOSURE AND IS NOT INTENDED TO BE PART OF ANY CONTRACT BETWEEN THE BUYER AND SELLER. 1. Know Your Neighborhood: The City of Palm Desert maintains a website that provides important information on potential development throughout the City. The City recommends that you visit the website as part of your consideration in buying a home in the City. The website can be accessed at https://www.cityofpalmdesert.org/departments/planning. Alternatively, you can call the City’s Development Services Department at (760) 346-0611, ext. 483. Page 241 ORDINANCE NO. ___ Seller certifies that the information herein is true and correct to the best of the Seller's knowledge as of the date signed by the Seller. Seller ___________________________ Date ___________________________ Seller ___________________________ Date ___________________________ II BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN BUYER AND SELLER(S) WITH RESPECT TO ANY ADVICE/INSPECTIONS/DEFECTS. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS STATEMENT. Buyer __________________ Date ___________________________ Buyer __________________ Date ___________________________ A REAL ESTATE BROKER IS QUALIFIED TO ADVISE ON REAL ESTATE. IF YOU DESIRE LEGAL ADVICE, CONSULT YOUR ATTORNEY.” Page 242 PLANNING COMMISSION RESOLUTION NO. 2803 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO MODIFY PALM DESERT MUNICIPAL CODE SECTION 25.60. 60 (PUBLIC HEARING AND PUBLIC NOTICE), ADD SECTION 25.60.160 "COMMUNITY ENGAGEMENT," AND ADD SECTION 5.11 DISCLOSURES UPON TRANSFER OF RESIDENTIAL PROPERTY" FOR SAID PROJECTS REGULATING THE PUBLIC ENGAGEMENT PROCESS, AND APPLY SAID REGULATIONS CASE NO: ZOA 21-0002 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 21 st day of December 2021, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted; and WHEREAS, the Zoning Ordinance Amendment (ZOA) expands public notification for projects five (5) acres or more to 1,000 feet radius by modifying Palm Desert Municipal Code PDMC) Section 25.60. 60 (Public Hearing and Public Notice) and implements a Community Engagement Plan requirement for developers by adding Section 25.60.160 (Community Engagement) for projects five (5) acres or more, and adding Section 5.11 (Disclosures Upon Transfer of Residential Property) requirement for any single-family residential developers of five 5) acres or more to include disclosures of long-term planning efforts and potential future development identified in the City's General Plan, Zoning, and Housing Element; and WHEREAS, the Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given, adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings.The Planning Commission of the City of Palm Desert hereby finds that: 1. The City of Palm Desert, California ("City") is a municipal corporation, duly organized under the constitution and laws of the State of California. 2. The City desires to amend its local regulatory scheme to implement an ordinance with specific requirement to increase public notification to 1,000 feet radius for projects five (5) acres or more and Community Engagement requirements for those projects. 3. The ZOA is consistent with the General Plan, which promotes goals and policies to ensure new projects are compatible with the surrounding developments as well as encourages public participation in this process. Pursuant to Land Use and Community Character Policy 1.1 (Scale of development), it promotes the City's corridors to use design techniques to a moderate height and use and ensure compatible fit with surrounding development. This ZOA allows public participation early in the inception of the project. Therefore, the civic engagement will support the City's goal in meeting the intent of the General Plan. Page 243 PLANNING COMMISSION RESOLUTION NO. 2803 4. The Planning Commission of the City of Palm Desert finds that the adoption of this ordinance has been analyzed for compliance with the California Environmental Quality Act (CEQA) pursuant to CEQA (Pub. Resources Code, § 21000 et seq.) CEQA") and the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) it has been determined that the amendments do not meet the definition of a project because the amendments do not have the potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. The amendments prohibit types of allows for public engagement, which is consistent with the General Plan goals of ensuring the quality of life for the community. Because the amendments are not a project under CEQA, they are not subject to further environmental review. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the PDMC amendment to Section 25.60.60 (Public Hearing and Public Notice), add Section 25.60.160 "Community Engagement," and add Section 5.11 (Disclosures Upon Transfer of Residential Property), as shown in Exhibit A, which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. NOW,THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings for approval of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval to the City Council of ZOA 21-0002. 2 Page 244 PLANNING COMMISSION RESOLUTION NO. 2803 PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 2111 day of December 2021, by the following vote, to wit: AYES: DE LUNA, GREENWOOD, HOLT, and PRADETTO NOES: NONE ABSENT: GREGORY ABSTAIN: NONE JC&N RE OOD, ATTEST: MARTIN ALVAREZ, SECRETARY PALM DESERT PLANNING COMMISSION 3 Page 245 PLANNING COMMISSION RESOLUTION NO. 2803 EXHIBIT A ZONING ORDINANCE AMENDMENTS 1. Amend Section 25.60.060 (Public Hearing and Public Notice) Title 25 (Zoning) as follows: A. Notice of hearing. Pursuant to California Government Code Sections 65090 to 65094, not less than 10 days before the scheduled date of a hearing, public notice shall be given of such hearing in the manner listed below. The notice shall state the date, time, and place of hearing, identify the hearing body, and provide a general description of the matter to be considered and the real property which is the subject of the hearing. 1. Notice of public hearing shall be published in at least one newspaper of general circulation in the City. 2. Except as otherwise provided herein, notice of the public hearing shall be mailed, postage prepaid, to the owners of property within a radius of 300 feet of the exterior boundaries of the property involved in the application, using for this purpose the last known name and address of such owners as shown upon the current tax assessor's records. The radius may be increased as determined to be necessary and desirable by the Director based on the nature of the proposed project. If the number of owners exceeds 1,000, the City may, in lieu of mailed notice, provide notice by placing notice of of least ono-eighth (1 fit) page in one newspaper of general circulation within the City. a. Public notification for projects five (5) acres or more projects shall be 1,000 feet for public notifications related to development projects and to ensure adequate community engagement efforts are achieved pursuant to requirements in Section 25. 60.160. 2. Add Section 25.60.160(Community Engagement) to Title 25(Zoning)as follows: 25.60.160 Community Engagement Intent and purpose. It is the intent of this chapter to relate the provisions of this title and all other applicable projects to the appropriate City provisions that have been adopted to comply with the Community Engagement Plan's intended purpose of requiring developers to present and engage in a public outreach meeting early in the entitlement process of new projects of five (5) acres or more and address concerns of the public prior to an approval. Scope of regulations. This chapter shall be applied to establish policies related to Community Engagement. Requirements related to Community Engagement for new projects are as follow: a) Developers shall prepare and submit a Community Engagement Plan to the Planning/Land Development Division at the time of entitlement application. b) Meet the public notification requirements of Section 25. 60.060. 4 Page 246 PLANNING COMMISSION RESOLUTION NO. 2803 c) The Community Engagement Plan must contain the following: 1. Developer shall provide method(s) of communication with the public, including proposed location(s) where public outreach will take place. 2. Submit any written publications distributed to the public including any informational items of the project. 3. A minimum of one (1) meeting with the public is required, follow-up meetings may be required as requested by the Director of Development Services. 4. Developer shall provide written responses addressing each public concern to be submitted to staff and documented for the public record. 5. The Director of Development Services may require the developer to provide additional plans or studies including, but not limited to, line of sights, photometric plans, massing studies, three-dimensional plans, and any other studies that may be deemed relevant for the project's engagement with the public. d) The developer shall coordinate with staff for the notification of community meetings with property owners within 1,000 feet of the proposed project. e) Staff is to be present at the meeting(s) to observe and summarize concerns and developer's responses in the final staff report(s). f) The entitlements will include a condition of approval on any new single-family residential developments of five (5) acres or more, the developer will disclose, as part of any closing documents, the City's General Plan Land Use, Circulation, and Housing Elements adjacent to their project. Refer to PDMC Section 5.11.010"Disclosures Upon Transfer of Residential Property"for requirements. 3. Add Section 5.11 "Disclosures Upon Transfer of Residential Property" to Title 5 BUSINESS TAXES, LICENSES AND REGULATIONS) subsequently as follows: 5.11.010 Statement Required. A. Pursuant to Civil Code section 1102. 6a, in addition to those disclosures required by Civil Code section 1102.6, the seller of any new single-family residential developments of five 5) acres or more located within the City shall deliver to the prospective buyer a real estate transfer disclosure statement containing the following statement: Know Your Neighborhood: The City of Palm Desert maintains a website that provides important information on potential development throughout the City. The City recommends that you visit the website as part of your consideration in buying a home in the City. The website can be accessed at www.cityofpalmdesert.org/departments/planning. Alternatively, you can call the City's Development Services Department at (760) 346-0611, Extension 483." 5 Page 247 PLANNING COMMISSION RESOLUTION NO. 2803 B. The real estate transfer disclosure statement required by this chapter shall be delivered at the same time as those disclosures required by Civil Code section 1102.6 or as soon as practicable thereafter. C. For purposes of this section, 1. "City" means the City of Palm Desert, California. 2. "Single-family residential property" means either of the following: (a) real property improved with one to four dwelling units, including any leasehold exceeding one year's duration of such, (b) a unit in a residential stock cooperative, condominium, or planned unit development, or (c) a mobile home or manufactured home when offered for sale or sold through a real estate broker pursuant to Business and Professions Code section 10131.6. 3. "Seller" means a transferor in a real property transaction, and includes an owner who lists real property with a licensee, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from a licensee on behalf of another. "Seller" includes both a vendor and lessor of real property. 4. "Buyer" means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through a licensee, whether or not a transfer results, or who seeks the services of a licensee in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. "Buyer" includes a purchaser, vendee, or lessee of real property. 5.11.020 Form of Statement. The real estate transfer disclosure statement required by this chapter shall be in the following form in accordance with Civil Code section 1102.6a: LOCAL OPTION REAL ESTATE TRANSFER DISCLOSURE STATEMENT THIS DISCLOSURE STATEMENT CONCERNS THE REAL PROPERTY SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS THIS STATEMENT IS A DISCLOSURE OF THE CONDITION OF THE ABOVE-DESCRIBED PROPERTY IN COMPLIANCE WITH ORDINANCE NO. OF THE PALM DESERT CITY CODE AS OF 20 . IT IS NOT A WARRANTY OF ANY KIND BY THE SELLER(S) OR REAL ESTATE LICENSEE(S) REPRESENTING ANY PRINCIPAL(S) IN THIS TRANSACTION, AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PRINCIPAL(S) MAY WISH TO OBTAIN. 6 Page 248 PLANNING COMMISSION RESOLUTION NO. 2803 1 SELLER'S INFORMATION The Seller discloses the following information with the knowledge that even though this is not a warranty, prospective Buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any real estate licensee(s) representing any principal(s) in this transaction to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER(S) AS REQUIRED BY THE CITY OF PALM DESERT, AND ARE NOT THE REPRESENTATIONS OF THE REAL ESTATE LICENSEE(S), IF ANY. THIS INFORMATION IS A DISCLOSURE AND IS NOT INTENDED TO BE PART OF ANY CONTRACT BETWEEN THE BUYER AND SELLER. 1. Know Your Neighborhood: The City of Palm Desert maintains a website that provides important information on potential development throughout the City. The City recommends that you visit the website as part of your consideration in buying a home in the City. The website can be accessed at https://www.cityofpalmdesert.org/departments/planning. Alternatively, you can call the City's Development Services Department at (760) 346-0611, Extension 483. Seller certifies that the information herein is true and correct to the best of the Seller's knowledge as of the date signed by the Seller. Seller Date Seller Date I I BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN BUYER AND SELLER(S) WITH RESPECT TO ANY ADVICE/INSPECTIONS/DEFECTS. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS STATEMENT. Buyer Date Buyer Date A REAL ESTATE BROKER IS QUALIFIED TO ADVISE ON REAL ESTATE. IF YOU DESIRE LEGAL ADVICE, CONSULT YOUR ATTORNEY. 7 Page 249 CITY OF PALM DESERT PALM DESERT PLANNING COMMISSION PRELIMINARY MINUTES TUESDAY, DECEMBER 21, 2021 – 6:00 P.M. ZOOM VIRTUAL MEETING I. CALL TO ORDER Chair John Greenwood called the meeting to order at 6:00 p.m. II. ROLL CALL Present: Chair John Greenwood Vice-Chair Nancy DeLuna Commissioner Ron Gregory Commissioner Lindsay Holt Commissioner Joseph Pradetto Also Present: Craig Hayes, Assistant City Attorney Martín Alvarez, Director of Development Services Rosie Lua, Principal Planner Nick Melloni, Associate Planner Kevin Swartz, Associate Planner Monica O’Reilly, Management Specialist II III. PLEDGE OF ALLEGIANCE Commissioner Joseph Pradetto led the Pledge of Allegiance. IV. SUMMARY OF COUNCIL ACTIONS Director of Development Services Martín Alvarez summarized pertinent City Council actions from the meeting of December 16, 2021. V. ORAL COMMUNICATIONS None Page 250 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 21, 2021 2 VI. CONSENT CALENDAR A. MINUTES of the Regular Planning Commission meeting of November 2, 2021. Rec: Approve as presented. B. REQUEST FOR CONSIDERATION to approve a Parcel Map Waiver application to adjust two parcels at 890 and 892 Crescent Falls (APNs 652-310-017 and 652-310- 018). Case No. PMW 21-0008 (PAR Development, Palm Desert, California). Rec: By Minute Motion, approve Case No. PMW 21-0008. Upon a motion by Commissioner Pradetto, seconded by Vice-Chair DeLuna, and a 5- 0 vote of the Planning Commission, the Consent Calendar was approved as presented (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). VII. CONSENT ITEMS HELD OVER None VIII. NEW BUSINESS None IX. CONTINUED BUSINESS None X. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION to adopt a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approval of a Precise Plan (PP) and a Conditional Use Permit (CUP) to demolish the former Pizza Hut building and construct a new 7,500-square-foot retail and restaurant building located at 72310 Highway 111. Case No. PP/CUP 20-0002 (Nadel Architects, Inc, Los Angeles, California, Applicant). Note, the staff report(s) and Zoom video of the meeting are available on the City’s website. Click on the following link to access: www.planning-commission- information-center. Associate Planner Kevin Swartz presented the staff report and offered to answer any questions. The Commission had no questions for staff. Chair Greenwood declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. Page 251 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 21, 2021 3 Mr. Ralph Deppisch, the applicant’s representative, Los Angeles, California, stated that they worked with City staff and the Architectural Review Commission to improve the project. He hoped that the Planning Commission would support the recommendation and offered to answer any questions. Mr. David Anderson, the architect, commented that he did not have anything to add. He also offered to answer questions. Commissioner Ron Gregory listed his concerns and recommendations regarding the landscape plan. With no further testimony offered, Chair Greenwood declared the public hearing closed. Commissioner Pradetto moved for approval and then withdrew his motion to let Commissioner Gregory craft the motion with the recommendations to the landscape plan. Commissioner Gregory moved to waive further reading and adopt Planning Commission Resolution No. 2801, adopting a Notice of Exemption and approving Case No. PP/CUP 20- 0002, subject to the findings and conditions of approval. Following are additional conditions added to the landscape plan: 1) The San Diego Red Bougainvillea should not be planted as a shrub. The La Jolla Bougainvillea should be considered for a larger shrub, and the Oo-La- La Bougainvillea should be considered for a smaller shrub; 2) The Bougainvilleas should be a minimum size of five gallons; 3) Replace the Bear Grass with Desert Spoon or Giant Hesperaloe; 4) Replace the Aloe Variegata with a different Aloe or plant; and 5) For a commercial setting, change the Dalea Capitata and Lantana to five gallons. The motion was seconded by Vice-Chair DeLuna and carried by a 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). B. REQUEST FOR CONSIDERATION of a recommendation to the City Council for approval of Amendment No. 1 to the Specific Plan (SP 18-0002), Precise Plan (PP 18- 0009), and Tentative Tract Map 36379 for DSRT SURF inclusive of a surf lagoon and surf center, a four-story hotel, and residential units on a 17.69-acre site located within Desert Willow Golf Resort. Case Nos. SP 18-0002/PP 18-0009/TTM 37639 Amendments No. 1 (Desert Wave Ventures, LLC, California, Applicant). Chair Greenwood disclosed that he works for Prest Vuksic Architects, and the firm has provided consulting services for this project; therefore, he recused himself from this item. He asked Vice-Chair DeLuna to proceed with the meeting. Commissioner Gregory also disclosed that he works for MSA Consulting, and the firm has provided consulting services for this project and recused himself. Principle Planner Rosie Lua gave a PowerPoint presentation reviewing the staff report in detail. She recommended approval to the City Council and noted that the applicant also has a PowerPoint presentation. Page 252 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 21, 2021 4 Vice-Chair DeLuna declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. Mr. Doug Sheres, the applicant, Solana Beach, California, said they have been working on this project for nearly five years and believed it is better and more compelling than ever. Mr. Bruce Greenfield, the architect, Orange, California, provided a PowerPoint presentation on the project’s architecture. Mr. John O, Palm Desert, California, supported the project. He is a lifetime surfer and the thought to ride waves in his zip code is a dream come true. With no further testimony offered, Vice-Chair DeLuna declared the public hearing closed. Commissioner Lindsay Holt stated that it is a great project and appreciated the work done on the revised specific plan and had no concerns. She thanked the staff and applicant for the presentations. Commissioner Pradetto moved to waive further reading and adopt Planning Commission Resolution No. 2802, recommending approval to the City Council for Case Nos. SP 18-0002/PP 18-0009/TTM 37639 Amendments No. 1, subject to findings and conditions of approval. The motion was seconded by Commissioner Holt and carried by a 3-0 vote (AYES: DeLuna, Holt, and Pradetto; NOES: None; ABSENT: Greenwood and Gregory). C. REQUEST FOR CONSIDERATION of a recommendation to the City Council for a Zoning Ordinance Amendment to modify Palm Desert Municipal Code Section 25.60.60 (Public Hearing and Public Notice), add Section 25.60.160 “Community Engagement,” and adding Section 5.11 “Disclosures Upon Transfer of Residential Property” for said project regulating the public engagement process, and apply said regulations. Case No. ZOA 21-0002 (City of Palm Desert, Palm Desert, California, Applicant). Chair Greenwood proceeded with the meeting. Ms. Lua reviewed the staff report and recommended approval of the Zoning Ordinance Amendment. Commissioner Greenwood suggested that it is of value to have public participation meetings digitally and recorded. Chair Greenwood declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no testimony offered, Vice-Chair DeLuna declared the public hearing closed. Page 253 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 21, 2021 5 Commissioner Pradetto moved to waive further reading and adopt Planning Commission Resolution No. 2803, recommending approval to the City Council for Case No. 21-0002, with added language to clarify Title 5 in which the new language only applies to new developments. Motion carried by a 4-0 vote (AYES: DeLuna, Greenwood, Holt, and Pradetto; NOES: None; ABSENT: Gregory). XI. MISCELLANEOUS None XII. COMMITTEE MEETING UPDATES A. CULTURAL ARTS COMMITTEE Commissioner Holt reported that the Committee discussed the San Pablo Corridor Art Plan and the Public Art budget. B. PARKS & RECREATION COMMISSION None XIII. REPORTS AND REMARKS City staff thanked the Planning Commission for their time and dedication to the City of Palm Desert. XIV. ADJOURNMENT With the Planning Commission concurrence, Chair Greenwood adjourned the meeting at 7:49 p.m. JOHN GREENWOOD, CHAIR ATTEST: MARTĺN ALVAREZ, SECRETARY MONICA O’REILLY, RECORDING SECRETARY Page 254 CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 21-0002 NOTICE OF A PUBLIC HEARING BEFORE THE CITY OF PALM DESERT CITY COUNCIL TO CONSIDER APPROVAL OF AMENDING MUNICIPAL CODE CHAPTER 25, SECTION 25.60.60 (PUBLIC HEARING AND PUBLIC NOTICE) AND ADDING SECTION 25.60.160 “COMMUNITY ENGAGEMENT,” AND ADDING SECTION 5.11 “DISCLOSURES UPON TRANSFER OF RESIDENTIAL PROPERTY” FOR SAID PROJECT REGULATING THE PUBLIC ENGAGEMENT PROCESS AND APPLY SAID REGULATIONS. The City of Palm Desert (City) in its capacity as a lead agency has preliminarily determined the proposal to amend the Zoning Ordinance is not a project as defined in the California Environmental Quality Act (CEQA) Public Resource Code (Pub. Resources Code, § 21000 et seq.) and the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) that this action will not have an impact on the environment. Project Location/Description: Project Location: New proposed developments of 5 acres or more within the City limits. Project Description: Zoning Ordinance Amendment (ZOA) increasing public notification beyond the City’s typical 300-feet as required by the current Palm Desert Municipal Code (PDMC) to 1,000 feet radius for new projects of five (5) acres or more; requiring developments of five (5) acres or more to submit a Community Engagement Plan, detailing the developer’s engagement with the public as a requirement of the entitlement application; and requirement for developers of residential developments of 5 acres or more to include disclosures of long-range planning efforts and potential future development identified in the City’s General Plan, Zoning, and Housing Element. Recommendation: Staff is recommending that the City Council approve the first reading of the Regulating the Public Engagement Process and pass to second reading. Public Hearing: The public hearing will be held before the City Council on January 13, 2022 at 4:00 p.m. via Zoom. The hearing will be conducted in accordance with the City’s emergency protocols for social distancing. Options for remote participation will be listed on the Posted Agenda for the meeting at: https://www.cityofpalmdesert.org/our-city/mayor-and-city-council- /city-council-meeting-information-center. Comment Period: The public comment period for this project is from January 3, 2022, to January 13, 2022. Public Review: The draft ordinance and any related documents are available for public review Monday through Friday from 8:00 a.m. to 5:00 p.m. by contacting the project planner, Rosie Lua. Please submit written comments to the City Council via the City Clerk’s Office. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at or prior to the City Council hearing. All comments and any questions should be directed to: Rosie Lua, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611, Extension 480 rlua@cityofpalmdesert.org PUBLISH: DESERT SUN NORMA I. ALLEY, MMC, CITY CLERK December 28, 2021 PALM DESERT CITY COUNCIL Page 255 1 RESOLUTION NO. 2021-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INCREASING PUBLIC NOTIFICATION REQUIREMENTS FOR CERTAIN DEVELOPMENT PROJECTS, ESTABLISHING POLICIES RELATED TO COMMUNITY ENGAGEMENT FOR SAID PROJECTS, AND DIRECTING STAFF TO INITIATE A ZONING ORDINANCE AMENDMENT (ZOA) RELATED TO CHANGES TO CHAPTER 25. 60.060 PUBLIC HEARING AND PUBLIC NOTICE WHEREAS, the City acknowledges the importance of public participation in the planning and development of the community and that public participation in this process leads to better outcomes in addressing community concerns and requests; and WHEREAS, City staff and developers should engage the surrounding community early in the process to ensure potential community concerns are heard and addressed; and WHEREAS, the City supports increasing the public mailing notification of certain development projects to a broader audience; and WHEREAS, larger development projects, particularly those that are non-exempt from the California Environmental Quality Act (CEQA), benefit from greater public participation and community support; and WHEREAS, public notification for non-exempt CEQA projects should be increased from 300 feet to 1,000 feet to achieve the above -referenced statements; and WHEREAS, as part of the planning application and review process, developers will submit a "community engagement plan" to be reviewed and approved by City staff to ensure adequate community engagement efforts are achieved; and WHEREAS, homebuyers should receive sufficient notification through closing documents of long-term planning efforts and potential future development identified in the City's General Plan; and WHEREAS, these acknowledgments should be codified by an ordinance, and the City Counci is supportive of amending Palm Desert Municipal Code Chapter 25.60.060 Public Hearing and Public Notices, and directs staff to initiate a ZOA in support of the statement above to be brought back at a later date; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: SECTION 1. Recitals. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. Page 256 RESOLUTION NO. 2021-50 SECTION 2. Custodian of Records. The documents and materials that constitute the record of proceedings in which these findings are based are located at the City's office at 73- 510 Fred Waring Drive, Palm Desert, California 92260. Gloria Sanchez, the Acting City Clerk, is the custodian of the record of proceedings. SECTION 3. Execution of Resolution. The Mayor of the City Council signs this Resolution and the City Clerk shall attest, and certify to the passage and adoption thereof. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 8th day of July 2021, by the following vote, to wit: AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE curb yr KATHLEE KELLY, ivIAYOR ATTEST: M. GLORIA ANCHEZ, AC N CITY CLERK CITY OF PALM DESERT, CALI ORNIA 2 Page 257 [This page has intentionally been left blank.] Page 258 STAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: January 27, 2022 PREPARED BY: Andrew Firestine, Assistant City Manager Heather Horning, Assistant to the City Manager REQUEST: Conduct Public Hearing on the Redrawing of Council Member District Boundaries Recommendation By Minute Motion: 1. Receive a report from staff and the City’s redistricting consultant on the redistricting process and permissible criteria to be considered to redraw district boundaries; and 2. Conduct a public hearing to receive public input on district boundaries. Background Pursuant to Election Code section 21621, charter cities with by-district election systems are required to redraw their district boundary maps to ensure compliance with the California and federal Voting Rights Acts. The process to complete the redistricting requires a minimum of four public hearings and dedicated public outreach to ensure minority populations and communities of interest are aware of the redistricting effort and are provided with options to participate. The City held its first public hearing on January 13, 2022. Discussion Every 10 years, cities with by-district election systems must use new census data to review and, if needed, redraw district lines to reflect how local populations have changed. This process, called redistricting, ensures all districts have a nearly equal population. The redistricting process for the City of Palm Desert must be completed by April 17, 2022. The City adopted its current district boundaries in 2020. The approved boundary map was drawn based on 2010 census data as required by law. The districts must now be redrawn using the 2020 census data and in compliance with the Fair Maps Act (the “Act”), which was adopted by the California legislature as AB 849 and took effect January 1, 2020. Page 259 January 27, 2022 Public Hearing – Redrawing of Council Member District Boundaries Page 2 of 9 Under the Act, the City Council shall draw and adopt boundaries using the following criteria in the listed order of priority (Elections Code 21621(c)): 1. Comply with the federal requirements of equal population and the Voting Rights Act. 2. Be geographically contiguous. 3. Undivided neighborhoods and “communities of interest” (socio-economic geographic areas that should be kept together). 4. Display easily identifiable boundaries. 5. Be compact (do not bypass one group of people to get to a more distant group of people). 6. Shall not favor or discriminate against a political party. Once the prioritized criteria are met, other traditional districting principles can be considered, such as: 1. Minimize the number of voters delayed from voting in 2022 to 2024. 2. Respect voters’ choices/continuity in office. 3. Future population growth. By law, the City must hold at least four public hearings that enable community members to provide input on the drawing of district maps: • At least one hearing must occur before the city or county draws draft maps. • At least two hearings must happen after the drawing of draft maps. • The fourth hearing can happen either before or after the drawing of draft maps. • City or county staff or consultants may hold a public workshop instead of one of the required public redistricting hearings. To increase the accessibility of these hearings, cities and counties must take the following steps: • At least one hearing must occur on a Saturday, Sunday, or after 6:00 p.m. on a weekday. • If a redistricting hearing is consolidated with another local government meeting, the redistricting hearing must begin at a pre-designated time. • Local public redistricting hearings must be made accessible with people with disabilities. Determining population balance is typically done by measuring the spread, or deviation, between the least populated district and the greatest populated district. Deviations of 10% or less are generally considered acceptable under U.S. Supreme Court rulings on equal protection. In the City’s case, two districts were created and the population balance established under the terms of a redistricting settlement agreement. District 1 is identified as Page 260 January 27, 2022 Public Hearing – Redrawing of Council Member District Boundaries Page 3 of 9 a majority/minority voting district with an acceptable population representing 18.4 – 21.6% of the City’s total population. One Council Member is elected from District 1. District 2 represents the remaining areas of the City and is permitted a population range of 78.4 – 81.6% of the City’s total population. Four Council Members are elected from District 2. Analysis of the City’s current district boundaries, adjusted for the 2020 Census data, shows the districts are no longer population balanced. The City’s population is 51,317. The allowable population for District 1 is 9,443 – 11,083. The current population for District 1 is 9,280, or 18.1%. The resulting population for District 2 is 42,037, or 81.9%, slightly above the permitted range under the terms of the settlement agreement. Another consideration in the drawing of district boundaries is the distribution of minority voters throughout the City and whether there is a possibility of creating a majority/minority voting district as required under the federal Voting Rights Act. As District 1 was created to specifically to represent a majority/minority Hispanic voting district, it is important that the analysis of the 2020 Census Data review the ethnicity demographics, specifically voting age populations (VAP). Upon review of the City’s VAP data, preserving District 1 as a majority/minority voting district (a district in which an identified minority comprises the majority of voting age population) is possible while remaining in compliance with the other mapping requirements noted above and the terms of the settlement agreement. Purpose of Public Hearing The purpose of this public hearing is to review the initial draft maps prepared by the City’s consultant, inform the public about the districting process, and to hear from the community on factors to be taken into consideration for district boundaries. The public is requested to provide input regarding communities of interest and other local factors that should be considered for district maps. A community of interest under the relevant Elections Code for cities (Section 21621(c) is, “a population that shares common social or economic interests that should be included within a single district for purposes of its effective and fair representation.” Maps The map and accompanying demographic information of the City’s current districts is attached to this report (Attachment 1) current district boundary map is highlighted below: Page 261 January 27, 2022 Public Hearing – Redrawing of Council Member District Boundaries Page 4 of 9 The City’s Redistricting consultant has prepared two draft map options for Council’s consideration. Each map is summarized below and accompanying demographic information may be found attached to this report (Attachment 2). In addition, an online tool for closely examining the boundaries, with zoom and search capabilities, may be found here: https://www.google.com/maps/d/u/0/viewer?mid=1JQIU0u_oPXTZxFvSus2XidWv- OhnOUuG&ll=33.72500667071419%2C-116.36707827727082&z=14 Page 262 January 27, 2022 Public Hearing – Redrawing of Council Member District Boundaries Page 5 of 9 Map Option 1 Map Option 1 creates a two district plan that exhibits a 0% deviation from the ideal 80/20% population balance. District 1 is preserved as a majority/minority Hispanic voting district with 20% of the City’s population, and the map otherwise complies with the Fair Map Act requirements of contiguity, communities of interest, and recognizable district boundaries. Because the population and majority/minority voting district requirements are established by a settlement agreement, significant shift in the configuration of the districts is not possible. Option 1 greatly follows the boundaries of the current districts, with the addition of areas south of Highway 111 and west of Monterey Avenue being incorporated into District 1. It should be noted, however, that certain neighborhoods, while forming a community of interest, are comprised of multiple census blocks. These census blocks include populations that vary in terms of their ethnic background, and in order to preserve the majority/minority Hispanic voting district in District 1, neighborhoods that may have been drawn together in the initial transition to districts, have been split, albeit slightly, in the proposed map. Every effort was made to keep communities of interest and neighborhoods together, if possible. The complete demographic analysis of Option 1 may be found as an attachment to this report (Attachment 2). Page 263 January 27, 2022 Public Hearing – Redrawing of Council Member District Boundaries Page 6 of 9 Map Option 2 Map Option 2 also creates a two district plan and largely resembles the boundaries of the current district map. Option 2 moves District 1 less significantly to the west along Highway 111 and south of Highway 111 than Option 1. Option 2 reflects a deviation of 777 people from the ideal 80/20% population balance. District 1 represents 18.49% of the population while District 2 represents 81.51% of the population, bringing both within the permitted range under the settlement agreement. As with Option 1, certain neighborhoods that had been previously drawn together in a single district may have been divided to preserve the majority/minority Hispanic voting district population. The complete demographic analysis of Option 2 may be found as an attachment to this report (Attachment 2). Next Steps Following this public hearing and continued demographic review of the recently released 2020 Census data, the City’s redistricting consultant will revise any maps as directed by the Council, as well as evaluate any maps submitted by the public. The City has launched an online mapping tool which allows the public to draw and submit their own district maps for consideration. Any maps submitted by the public by February 11, 2022, will be evaluated and included with any revised maps considered at the third public hearing scheduled for February 24, 2022. If at the third public hearing the Council requests additional revisions, those revisions will be presented at the fourth public hearing, scheduled for March 10, 2022. The Council may, at the third public hearing, narrow their focus and identify a preferred map. In that instance, staff will also include an introduction of an Ordinance approving a final map at the fourth public hearing. Should additional public hearings be necessary to identify and select a preferred Page 264 January 27, 2022 Public Hearing – Redrawing of Council Member District Boundaries Page 7 of 9 map, they will be scheduled accordingly. As noted above, the deadline for the City of Palm Desert to complete the redistricting process is April 17, 2022. A complete schedule is identified in the table below: Schedule January 13, 2022 1st public hearing Held prior to the release of draft maps January 20, 2022 1st public workshop at 6:00 p.m. to 7:00 p.m. at the Palm Desert Community Center on San Pablo January 27, 2022 2nd public hearing at 4:30 p.m. Initial draft map(s) will be reviewed January 27 - February 4 BB&K to revise draft maps using 2020 Census data, if directed at 2nd Public Hearing February 11, 2022 Deadline for the public to submit draft maps for consideration at 3rd public hearing February 17, 2022 Publish revised draft map(s) February 22, 2022 2nd public workshop at 5 p.m. to 6 p.m. via Zoom webinar Review of draft maps February 24, 2022 3rd public hearing at 4:30 p.m. Consideration and input on proposed draft maps February 25 - March 2 BB&K to prepare proposed final map(s) March 3, 2022 Publication of proposed final map(s) March 10, 2022 4th public hearing at 4:30 p.m. Council to introduce ordinance approving final maps April 17, 2022 City deadline to adopt ordinance after 2nd reading (effective immediately) and submit map to Registrar November 8, 2022 2022 election Page 265 January 27, 2022 Public Hearing – Redrawing of Council Member District Boundaries Page 8 of 9 Community Outreach A website has been created to coordinate all the redistricting information, including the list of public meetings and agendas, mapping tools, and draft maps upon their release. It also provides answers to frequently asked questions and links to additional resources. The website is available in both English and Spanish and is available both through Engage Palm Desert and mappalmdesert.org. In addition to the four public hearings, two public workshops have been scheduled. The public workshops will be advertised through the website, social media, radio advertisements, and flyers will be provided to community organizations including schools and homeowner’s associations. The purpose of the first workshop is to explain the redistricting process; to provide an overview of the mapping tools; and to solicit input on communities of interest. This workshop will be conducted in-person and livestreamed via Zoom to allow virtual participation. It will also be videorecorded and made available through the website following the meeting. A Spanish translator will be available to provide simultaneous translation through headsets at the meeting. The purpose of the second workshop is to view draft maps that have been prepared by the City’s consultant prior to third public hearing and before the deadline for the public to submit draft maps for consideration. The second workshop is scheduled for February 22, 2022. This meeting will be conducted virtually through a Zoom webinar. A live Spanish translation of the webinar will be accessible through a Zoom Translation Room. It will also be recorded and made available through the website after the meeting. The Palm Desert Civic Center will be open to those members of the public who would like to participate in the webinar at a City facility. Fiscal Analysis There is no fiscal impact associated with the recommended action. Page 266 January 27, 2022 Public Hearing – Redrawing of Council Member District Boundaries Page 9 of 9 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER RWH Robert W. Hargreaves City Attorney N/A L. Todd Hileman City Manager N/A Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman ATTACHMENTS: 1. Demographic Analysis of Map Option 1 and 2 2. Demographic Analysis of Current Districts 3. Public Hearing Notice Page 267 1 Page 268 Map Option 1 Page 269 Map Option 1 Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native District Total_Pop ulation Raw Deviation % Deviation % of Total Pop Latino NL White Alone NL Black Alone NL AIAN Alone NL Asian Alone NL Hawaiian Alone NL Other Alone NL 2+ Races 1 10,263 (0) 0.00%20.00% 5,629 3,682 210 25 381 5 48 283 2 41,054 0 0.00% 80.00% 7,747 28,902 759 98 1,983 52 177 1,336 Total 51,317 Ideal 10,263 Total VAP Latino VAP NL White Alone VAP NL Black Alone VAP NL AIAN Alone VAP NL Asian Alone VAP NL Hawaiian Alone VAP NL Other Race Alone VAP NL 2+ Races VAP Ideal Pop for 4 seats 41,054 Distri ct 1 7,972 4,005 3,237 169 17 303 5 35 201 District 2 36,322 5,777 26,928 648 88 1,696 31 145 1,009 18.4% of total 9,442 44,294 9,782 30,165 817 105 1,999 36 180 1,210 21.6% of total 11,084 Page 270 Map Option 2 Page 271 Map Option 2 Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native District Total Population Raw Deviation % Deviation % of Total Pop Latino NL White Alone NL Black Alone NL AIAN Alone NL Asian Alone NL Hawaiian Alone NL Other Alone NL 2+ Races 1 9,486 -777 -7.57%18.49% 5,347 3,278 183 22 353 5 47 251 2 41,831 777 1.89% 81.51% 8,029 29,306 786 101 2,011 52 178 1,368 Total 51,317 13,376 32,584 969 123 2,364 57 225 1,619 Ideal 10,263 Ideal Pop for 4 seats 41,054 Total VAP Latino VAP NL White Alone VAP NL Black Alone VAP NL AIAN Alone VAP NL Asian Alone VAP NL Hawaiian Alone VAP NL Other Race Alone VAP NL 2+ Races VAP District 1 7,327 3,791 2,881 147 15 278 5 34 176 18.4% of total 9,442 District 2 36,967 5,991 27,284 670 90 1,721 31 146 1,034 21.6% of total 11,084 44,294 9,782 30,165 817 105 1,999 36 180 1,210 Page 272 Attachment 2 Demographic Analysis of Current Districts Page 273 Current Districts District Total_Popu lation % of Population Permitted Range Permitted Range of Movement Raw Deviation % Deviation CVAP19 Total CVAP19 NL White CVAP19 NL Black CVAP Hispanic CVAP19 Not Hispanic CVAP19 NL AIAN CVAP19 NL ASIAN CVAP19 NL Hawaiian CVAP19 NL Other 1 9280 18.10% 18.4% - 21.6% 163 - 1803 -983.4 -9.58%6531 3252 169 2529 3804 17 220 11 17 2 42037 81.90% 78.4% - 81.6% (163) - (1803) 983.4 2.40% 34343 27167 1085 4429 30057 25 1228 27 73 Page 274 CITY OF PALM DESERT NOTICE OF PUBLIC HEARING TO RECEIVE PUBLIC INPUT AND PROPOSALS REGARDING CITY COUNCIL DISTRICT BOUNDARIES NOTICE IS HEREBY GIVEN that, pursuant to California Elections Code Section EC 21627.1, the City Council of the City of Palm Desert will hold a public hearing to receive input regarding potential redistricting of Council Member districts. NOTICE IS FURTHER GIVEN that on Thursday, January 27, 2022, at 4:30 p.m., the City will hold a virtual public hearing (Public Hearing No. 2) at cityofpalmdesert.org/zoom in order to receive public comments, hear and consider all testimony. Instructions for remote participation will be listed on the posted agenda for the meeting at: https://www.cityofpalmdesert.org/our-city/mayor-and-city-council-/city-council-meeting- information-center. The public is invited to attend and/or submit information regarding their Communities of Interest, and proposed division boundaries for the 2022 redistricting process. Draft maps will not be available until census-block level 2020 U.S. census data is released and analyzed, at Public Hearing #2. Input may also be emailed to councilmeetingcomments@cityofpalmdesert.org. NOTICE IS FURTHER GIVEN that additional virtual public hearings and workshops are scheduled as follows: • Public Workshop No. 2: Tuesday, February 22, 2022 at 5:00 p.m. • Public Hearing No. 3: Thursday, February 24, 2022 at 4:30 p.m. • Public Hearing No. 4: Thursday, March 10, 2022 at 4:30 p.m. Complete redistricting information, including a schedule of upcoming public hearings and workshops can be found at https://mappalmdesert.org/. NIAMH M. ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA POSTED: January 20, 2022 Page 275 [This page has intentionally been left blank.] Page 276 CITY OF PALM DESERT DEPARTMENT OF DEVELOPMENT SERVICES CITY COUNCIL STAFF REPORT DATE: January 27, 2022 PREPARED BY: Eric Ceja, Deputy Director of Development Services Rosie Lua, Planning Manager REQUEST: Consideration of an amendment to the Specific Plan, Precise Plan, Tentative Tract Map, and a Disposition and Development Agreement for DSRT SURF, a resort development inclusive of a 5.5-acre surf lagoon and surf center facility, a four-story 92-room hotel, and 83 residential units on a vacant 17.69-acre site; and an addendum of the Environmental Impact Report for the DSRT SURF Project located on the west side of Desert Willow Drive. Recommendation Waive further reading and adopt the following City Council Resolution in support of the DSRT SURF Project: 1.Adopt City Council Resolution No. 2022-____ approving Case Nos. Amendment No. 1 to SP 18-0002, PP 18-0009, TTM 37639, and an addendum to the EIR for the DSRT SURF Project, subject to the conditions of approval. By Minute Motion: 1.Approval of a Revised and Restated Disposition and Development Agreement (DDA) between the City of Palm Desert and Desert Wave Ventures, LLC. 2.Approval of a Transient Occupancy Tax (TOT) Agreement as-to-form with Desert Wave Ventures, LLC, in an amount not to exceed $16.1 million for the operation of a 92-room AAA four-diamond hotel located on Parcel B within the Desert Willow Golf Resort. 3.Authorize the Mayor to execute said Agreements. 4.Authorize the City Manager to make non-substantive changes to the DDA and TOT Agreement as needed prior to execution by the Mayor. 5.Authorize the City Manager to draft, negotiate, and execute other supporting agreements that may be required by the DDA, including an Acquisition Agreement as to form and the attached City Cost Reimbursement Agreement as to form. Page 277 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 2 of 21 6. Authorize the City Manager to execute said agreements. 7. Appropriate $20 million to Fund 451 for costs associated with the public improvements at identified sites of the Project. These funds are reimbursable from the associated residual bond proceeds and controlled by the attached Acquisition Agreement as-to-form. Architectural Review Commission On April 27, 2021, the Architectural Review Commission (ARC) approved by Minute Motion a recommendation of approval to the Planning Commission for the proposed architecture, landscape, and site plan for the DSRT SURF Project (“Project”), subject to the following: 1) Consider comments made by the ARC Commission; 2) Applicant should refrain from the use of composite wood material that appears monochromatic and sensitive to extreme weather; 3) Considering its large scale development, the material for the stone veneer located on the south elevation should be balanced appropriately; 4) The hotel service utility doors should be screened; 5) Applicant should be mindful of the surf wall surrounding the lagoon and its proximity to the walkway and consider providing an additional illustration which better demonstrates what is being proposed for this area; 6) Consider variation for the garages on the stacked flats; 7) Applicant should be conscientious about the scale of the exterior material for the Surf Center; and 8) Applicant should consider roof-top A/C units for the condos. The motion carried by a 5-0 vote with Commission Vuksic absent. Planning Commission The Planning Commission (PC) reviewed the amendments for the Specific Plan (SP), Precise Plan (PP), and Tentative Tract Map (TTM) including the addendum to the Environmental Impact Report (EIR) on December 21, 2021, and the motion carried by a vote 3-0 (Chair Greenwood and Commissioner Gregory abstained) vote to recommend approval to the City Council. There were no public comments provided for the Project. Strategic Plan The DSRT SURF resort and surf lagoon accomplish the following priorities outlined in the Envision Palm Desert → Forward Together 2013-2033 Strategic Plan: Economic Development Priority 1: Expand job and business creation opportunities. Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle. Land Use, Housing & Open Space Priority 1: Enhance Palm Desert as a first-class destination for premier shopping and national retail business. Page 278 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 3 of 21 Priority 5: Utilize progressive land use policies and standards to support ongoing and future needs. Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination. Priority 3: Attract new and developing travel/tourism markets. Executive Summary On November 14, 2019, the City Council approved the DSRT SURF Specific Plan (SP), Precise Plan (PP), and Tentative Tract Map (TTM) by Resolution 2019-82 and adopted Resolution No. 2019-83 certifying an EIR, SCH No. 2019011044, Mitigated Monitoring and Reporting Program, and adopted a Statement of Overriding Consideration in evaluating potentially adverse environmental impacts. The land use allowances in the Specific Plan included a six-acre surf lagoon, up to 350 hotel rooms, and 88 residential villas. On February 4, 2021, Desert Wave Ventures, LLC, applied for amendments to the approved SP, PP, and TTM, including an addendum to the EIR for the development of a 5.5-acre surf lagoon and surf center facilities, 92 hotel rooms, 83 residential units, circulation, parking, and landscaping constructed on 17.69 acres within the Desert Willow Golf Resort, and an off-site parking location in close proximity. In addition to the land use approvals for the Project, a Revised and Restated Disposition and Development Agreement (DDA) is also under consideration. The DDA is revised to address changes in the Project scope and outlines salient points for the Project, including the timing of Project improvements, financial support for a Transient Occupancy Tax (TOT) reimbursement, use of bond funds for public improvements, and sale of property from the Successor Agency to Desert Wave Ventures, LLC. Background Analysis A. Property Description: The Project site is approximately 17.69 acres, located on the west side of Desert Willow Drive, north of Country Club Drive, and south of the Desert Willow Clubhouse. The lot is irregularly shaped and is bounded by the Desert Willow golf course on the west, south, and east of the proposed Project. The existing Desert Willow Clubhouse parking lot borders the northern property line. Approximately three (3) acres at the northeast corner of the site are developed with parking lot improvements for the Desert Willow Clubhouse, and the remaining 14 acres of the site were mass graded as part of the Desert Willow development but remain undeveloped. B. Zoning and General Plan Designation: Zone: PR-5 – Planned Residential (5 du/ac)/PC-2 - Planned District Commercial General Plan: Resort and Entertainment/Suburban Retail C. Adjacent Zoning and Land Use: Page 279 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 4 of 21 North: PR - 5 – Desert Willow Clubhouse/parking and golf course (Hole 18) South: PR - 5 – Desert Willow golf course (Hole 15) East: PR - 5 – Desert Willow golf course (Hole 7) West: PR - 5 – The Westin Desert Willow Villas Project Description The amendment to the DSRT SURF SP includes operation functions and development standard changes; however, the land use allowances remain as originally approved. The Project as amended is a single-phased Project including a surf lagoon and surf center facility (including support facilities), a four-story 92-room hotel, and 83 residential units including villas and stacked flats (ownership units), a perimeter roadway, landscape, and infrastructure improvements within Desert Willow on the 17.69-acre site. The land uses in the proposed Project are within the allowances approved in the DSRT SURF Specific Plan on November 14, 2019. The Project includes the subdivision of the site into five (5) parcels for its respective uses. The Project also incorporates an off-site parking location (Lot E) near the Project site to provide valet services to the hotel and facilities. Specific Plan: The proposed amendments to the DSRT SURF Specific Plan are detailed below: Land Uses The SP amendment consolidates the uses previously established in two (2) phases into a single Project with no proposals to change the density and intensity of the land uses as approved by the original DSRT SURF SP. Table 1 (Land Uses) shows the combined land uses as proposed in the amendment: TABLE 1 DSRT SURF SPECIFIC PLAN LAND USES Land Use Max/Min Allowed Surf Lagoon Max 6 acres Surf Center Max 35,000 SF Hotel(s) Max 350 rooms Villas 15 units per acre/88 villas max. Villa Clubhouse Max 3,125 SF Maintenance and Equipment Buildings Max 15,000 SF Landscaping/OS/Pool /Recreational Space Minimum 20% Planning Area Table 1 shows the land uses with the maximum allowed intensities, none of which are higher than the originally approved DSRT SURF Specific Plan. For example, the surf center has removed the breakdown of the ancillary uses and combined the square footages as a maximum. In addition, the land use for landscaping/Open Space (OS)/Pool/Recreational Space previously included 25 percent per planning area, which have been amended to 20 Page 280 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 5 of 21 percent overall. The reduction of the landscape requirement is due to the reconfiguration of the site plan, which places residential units at the perimeter of the lagoon. The proposed landscaping requirement from 25 percent to 20 percent is acceptable since it does not decrease the aesthetics nor increase water usage. The Site Program and Recreational Amenities of the approved SP included an event lawn and art gallery, which no longer are proposed. Alternately, the replacements include a kids’ play area, pump track, pickleball, and flex space. Since these replacements promote recreational uses, it is deemed compatible with the DSRT SURF Specific Plan. Other modifications to the SP include the surf lagoon’s hours of operation related to music events and surf lagoon capacity. The original SP allowed outdoor music events Friday through Sunday to end at midnight and indoor music events to end at 2:00 a.m. The proposed revision allows music events seven (7) days a week and the hours of operation remaining as approved. This revision does not change the originally approved allowance of 12 special events per year. The surf lagoon capacity is proposed to reduce from an average of 75 occupants to 70 occupants (maximum) and continue to accommodate 95 surfers for special events as originally proposed. In addition, the circulation of this Project has also changed since the gates and guard access to the residential areas have been removed; therefore, all internal roads are accessible to the public. Development Standards The Specific Plan amendment proposes changes to the originally approved development standard see Pages 14 to 16 of the DSRT SURF Specific Plan amendment. Table 2 shows the proposed development standards as compared to the development standards of the underlying zoning district. TABLE 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF Density Villa Density [PR: Density (du/ac), min – max] 4 – 40 15 du/ac max Hotel Density -- 350 rooms max Building Measurements PR: Height / Number of Stories, max 40’ / 3 50’/ 41 PC-4: Height / Number of Stories, max 55’/ 4 Villa size, max bedrooms per villa -- 4 bedrooms Hotel Room/Suite size, (min SF/ avg. SF per room) 330 SF / 375 SF 330 SF, 375 SF Page 281 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 6 of 21 TABLE 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF Coverage PR: Building Coverage, max % of Planning Area 50% 50% PC-4: Floor Area Ratio 0.10 Recreational/Lagoon Coverage, min % of Planning Area -- 40% (Currently 50%) Surf Center Setbacks Setback from golf course -- 25’ PR: Front Yard, min -- -- PR: Side Yard, min -- -- PR: Street Side Yard, min -- -- PR: Rear Yard, min -- -- PC-4: Front Yard, min 30’ -- PC-4: Side Yard, min 15’ -- PC-4: Street Side Yard, min -- -- PC-4: Rear Yard, min 20’ -- Hotel Setbacks Setback from golf course -- 25’ PC-4: Front Yard, min 30’ 20’ PC-4: Side Yard, min 15’ 15’ PC-4: Street Side Yard, min -- -- PC-4: Rear Yard, min 20’ 20’ Villa Setbacks Setback from golf course, min -- 5’ PR/PC-4: Front Yard, min -- 5’ PR: Side Yard combined both sides, min -- 5’ PR: Street Side Yard, min -- 5’ PR: Rear Yard, min -- 5’ Stacked Flats Setbacks Setback from golf course, min -- 20’ PR/PC-4: Front Yard, min -- 5’ Page 282 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 7 of 21 TABLE 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF PR: Side Yard, min -- 0’ PR: Street Side Yard, min -- 5’ PR: Rear Yard, min -- 10’ Landscaping/Open Space/Recreation PR: Planning Area Coverage, pervious surface, min 25% (total Res lot area) NA PR: Front Yard Coverage, non-pervious surface, max 40% (front yard) NA PC-4: Commercial Landscaping (other) coverage, min 20% 20% Landscaping, Specific Plan Perimeter, min -- 5’ Source: Palm Desert Municipal Code; Zoning. 1. Parapets, towers, and similar elements may exceed the 50’ building heigh by no more than 10’. Roof stairwells and elevators may exceed the 50’ building heigh by no more than 15’. PR = Planned Residential (planning area existing zoning/land use) PC-4 = Planned Commercial: Resort and Entertainment. Reference for comparable land use standards proposed under DSRT SURF. PR Development Standards, PDMC Ch. 25.10.050 and/or Residential Landscaping PDMC Ch. 25.52.030 PC-4 Development Standards PDMC Ch. 25.16.050. Special Use Provisions: Hotels Minimum room size PDMC Ch. 25.34.070 Table 2 shows the Project in a single area, combining the two (2) Planning Areas originally approved. The maximum density continues as 15 dwelling units per acre (du/acre), providing a maximum of 88 residential units as originally approved and a maximum hotel room capacity of 350 rooms. The amendment to the revised height requirement allows buildings to exceed the 50-foot building height maximum originally approved to include 10 additional feet in height, specifically for architectural features related to parapets, towers, and similar elements. Also, where required, allows 15 feet in height allowance above the 50 feet for roof stairwells and elevators. All elements increasing above the 50-foot height maximum should incorporate proper architectural screening. In addition, the revision to the SP includes setback standards as shown in Table 2 for the newly proposed residential type described as Stack Flats condominiums for the front, side, rear, street, and golf course setback requirements. The originally approved Design Guidelines for building architecture, landscape, lighting, and signage that primarily focuses on the “Desert Mid-Century Modern,” sustainable building materials, and desert plant materials and inert materials remain unchanged. Parking Page 283 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 8 of 21 Table 4 shows the Parking and Loading Standards unchanged from the originally approved standards with the exception that parking stall dimensions have been included stating a minimum of nine (9) feet wide by 18 feet long, which differs from the City’s Municipal Code requirements. The City Engineer has reviewed the proposed dimensions and has deemed it acceptable to reduce the length of the required parking stall by six inches. TABLE 3 PARKING AND LOADING STANDARDS1 Measurement/Standard Existing DSRT SURF Commercial/Recreational Parking Restaurants/Bars/Lounges 8 per 1,000 SF 8 per 1,000 SF Surf Lagoon -- 1.5 per surfer (70 max. surfers) Off-site/Special Events -- 500 stalls Villa Parking Studio and one bedroom 2 stalls per unit 2 per unit Two or more bedrooms 2.5 stalls per unit Hotel Parking Hotels 1 stall per guest unit 1 stall per guest unit Resort Hotels 1.1 stalls per guest unit Stall Dimensions Off-Street Parking Stalls, min. 9’ wide by 18’6” long 9’ wide by 18’ long Off-Street Loading Loading Berth, min L x W 45’ x 12’ 45’ x 12’ Setback to residential, min 50’ 10’ 1 Project to also provide parking for golf clubhouse per separate agreement with City. 130 total spaces. Source: Palm Desert Municipal Code; Zoning, PDMC CH. 25.46.040 Parking Requirements. The amendment to the SP allows the hotel to include podium parking at the second level, completely screened by the building’s architectural features. The parking located on this site will include a shared parking agreement; therefore, it is not restricted to a certain use. In addition, Lot E is an off-site location for overflow parking including, approximately 2.74 acres of vacant land located at the southeast corner of Desert Willow Drive and Market Place Drive. This off-site parking location is anticipated to have 288 parking spaces. The Project includes Lot E, a City-owned property adjacent to the Ralph’s shopping center, approximately ½ mile south of the Project site. The applicant will be required to enter into a parking management Page 284 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 9 of 21 plan with the City for off-site parking locations and implement valet service to the site. Once improved, a portion of the parking area is intended to remain as public parking. In addition, the City Council approved an incentive to reduce the total number of parking spaces required for the Project at the approval of the originally approved DSRT SURF SP. No further parking reductions have been requested as part of this amendment. Landscaping The amendment to the SP removed references to phasing the installation of the landscaping since it will be constructed as a single phase. All landscape is to remain as low to medium water usage desert landscape including the proposed residential housing types will be required to maintain a compatible landscape. Turf Reduction Program The Turf Reduction Program encompasses the removal of over one (1) million square feet of turf within the Desert Willow Golf Courses (Firecliff and Mountain View courses) and requires replacing it with drought-tolerant planting materials (desert landscaping) and low water usage irrigation systems in the efforts to offset water demand for the proposed Project. In 2019, a Water Supply Assessment (WSA) was prepared to analyze the project-specific water demands and potential impacts on the local and regional water supply. The variables for the analysis considered the highest intensive land uses including, the 5.5-acre surf lagoon, surf center and amenities, 350-room hotel and 88 residential units, on-site pools/spas, and landscaping. The WSA resulted in a gross water demand of 165.21 acre-feet per year (AFY) and net water demand of 58.46 AFY, total savings of 106.75 with the turf removal and Page 285 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 10 of 21 replacement of desert landscaping. In 2021, with the consideration of this application, the Project variables changed to include a 5.5-acre surf lagoon, surf center and amenities, a 92- room hotel and 83 residential units, on-site pools/spas, and landscaping. The WSA for the buildout of this change in uses resulted in a gross water demand of 114.35 acre-feet per year (AFY) and net water demand of 7.6 AFY after accounting for the turf removal and replacement. In perspective, the “7.6 AFY is equivalent to the annual water demands of 58 residential units.” (See Attachment 5). Precise Plan: The PP provides a detailed site plan, building architecture, and landscaping plan for the entire Project, inclusive of a surf lagoon, surf center, hotel, residential units, and all support facilities. The total building lot coverage is 19.9 percent of the Project site. Here are the Project’s proposed land uses in relation to the proposed heights to be constructed. LAND USE DESCRIPTION DEVELOPMENT INTENSITY HEIGHTS Surf Lagoon 5.5-acre surf lagoon, Control/Lifeguard Tower (429 square feet), beach area, boardwalk/pier, and support facilities. 26 feet & 7 inches (Tower) 15 feet (Maintenance Building) Amenities Surf Center (7,263 square feet) Clubhouse (approximately 1,494 square feet) Kids Play area Pickle Ball Court/Crane Pad Pump Track Pools/Spas 26 feet (Surf Center) 24 feet & 6 inches (Clubhouse) Hotel One (1) Hotel operator with 92 rooms 55 feet Residential 83 Residential units with two (2) housing types (50 stacked flats and 33 villas) 37 feet & 9 inches (stacked flats) 26 feet & 6 inches to 33 feet & 6 inches (villas) Hotel The 92-room hotel is four (4) stories (55 feet in height), with a building area of 68,689 square feet with a deck of 15,674 square feet. The first level includes a restaurant, stand-alone bar, café, meeting and banquet rooms, and parking structure of 81 stalls. The second level is an enclosed parking-only area with 69 stalls. The third level is a fitness center, spa, flex space, bar and kitchen, outdoor amenity deck, and guest rooms. The fourth level will be entirely guest rooms. The total podium parking space within the hotel includes 151 stalls. The Desert Mid-Century Modern architecture theme is proposed for the hotel site with open breezeways, ample glazing, angular construction, light facades, and outdoor space. The hotel building materials include stacked stone, composite wood siding/ceiling, roof overhangs consisting of Page 286 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 11 of 21 ocotillo (natural plant), and a wave roof element providing a prominent entry feature to the Project. The proposed architecture meets the architecture characteristics are required by the DSRT SURF Specific Plan that blends various natural material elements, shading, irregular rooflines with unique design. Surf Center and Support Facilities The surf center (Center) is located immediately south of the Desert Willow Clubhouse. The Center is a single-story, 26 feet in height with a total of 7,263 square feet, which contains a reception and lounge area, equipment storage and rental area, retail shop, flex space, office, locker rooms, restrooms, and outdoor showers and changing area. The architecture is a Desert Mid-Century Modern architectural style with indoor and outdoor spaces. The proposed architecture meets the architecture characteristics are required by the DSRT SURF Specific Plan compatible with the hotel. Surf Lagoon The 5.5-acre surf lagoon remains as originally designed at the center of the site, which includes a perimeter pathway bordering the lagoon, beach areas, a two-story 429 square feet (26 feet and 7 inches in height) control room, and lifeguard tower, which provides restrooms and the lagoon support operations, a 4,909 square feet maintenance building and yard located at the south end of the lagoon. The architecture of the building is designed to match the maintenance building and the materials like the Center including, masonry block, stucco, and composite wood siding and ceiling, which is compatible with the Center. Residential The residential component of this Project includes two (2) housing types, stacked units (condominiums) and villas (single-family homes), all ownership units. The residential units and the clubhouse are designed with Desert Mid-Century Modern architectural characteristics that include façade articulation and the use of a variety of materials similar to the Hotel and Center. The 50 units, referred to as stacked flats, are three stories in height (37 feet and 9 inches) with seven (7) floor plans ranging from 1,398 square feet to 2,275 square feet, each with outdoor deck space and garages. From the total stacked flats, 20 units are designed with a lock-off option to accommodate the rental of the units. Page 287 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 12 of 21 The 33 villas (single-family homes) include floor plans ranging from 2,352 square feet to 2,622 square feet with outdoor deck spaces (optional features include backyard cabana, roof deck), with transparent balconies facing the lagoon, and each home includes a two-car garage. The heights range from 26 feet and 6 inches to 33 feet and 6 inches to the height points of the roof deck overhead element. These homes are designed with a lock-off option to accommodate the rental of the units. The lot widths range from 31 feet to 40 feet widths and 65 feet to 99 feet depths lot sizes. The clubhouse is approximately 1,494 square feet (24 feet 6 inches in height) includes a kitchen, great room, extended patios, and restrooms. Additional HOA amenities: • Pickle Ball Court • Shaded Spaces • Lawn Area • Pools and Spa • BBQ Area and Seating • Tot Lot • Public restrooms Page 288 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 13 of 21 Parking The on-site parking includes 151 spaces in the podium parking and 126 surface parking spaces for the site (Surf Center & Lagoon). The parking structure will be available for public parking. In addition, Lot E will be improved to include approximately 288 parking spaces, which will have valet services to the Project. The table below provides a breakdown of the total required on-site parking spaces pursuant to the DSRT SURF Specific Plan and the off-site parking for Lot E: USE PARKING REQUIRED PARKING PROVIDED Hotel 92 92 Surf Center & Lagoon 105 277 Residential (83 units) 166 166 On-site Site (total) 443 443 Off-site Parking (Lot E) 288+/- Landscape The amended Project proposes all landscape remain as desert landscape for the entirety of the Project. The landscape plan and the planting materials proposed for the perimeter, Hotel, and Center meet the requirements of the amended SP. The landscape character at the villa, stacked flats, and clubhouse sites have turf block, decomposed granite, or similar material to be used for additional parking, seating areas, and other gathering spaces. The clubhouse will include a large lawn space for gatherings and events, recreational areas, cabanas, and lounge space. Tentative Tract Map 37639 A TTM 37639 was approved by City Council on November 19, 2019, by Resolution No. 2019- 82, subdividing the 17.69-acre Project site into five (5) separate parcels including, conditions of approval to effectuate the development of the Project. The TTM 37639 amendment proposes to change the parcel sizes for condominium purposes of the originally approved parcels to accommodate the respective uses as summarized below: PARCEL SIZE USE Parcel 1 9.27 acres Surf Lagoon Parcel 2 2.54 acres Hotel/Surf Center Parcel 3 2.95 acres Stack Flats Parcel 4 0.74 acres Villas Parcel 5 2.19 acres Stack Flats Total 17.69 acres Analysis Page 289 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 14 of 21 A. Land Use Compatibility: The DSRT SURF SP, as proposed, is consistent with the goals and policies of the Palm Desert General Plan, including that the Project provides a unique resort destination and sports facility consistent with the intent of the Resort and Entertainment District. The General Plan land use designation of Resort and Entertainment District allows development for entertainment and resort destination uses, drawing visitors to the site. The amendment to the SP includes operational function changes and revisions to the development standards, none of which increases the density or intensity of the Project. The compatibility of the General Plan established in the original approval of the Project remains unchanged. B. Zoning Conformity: A specific plan is required to be consistent with the General Plan pursuant to California Government Code Section 65454 and PDMC Section 25.78.080 (Specific Plans). The approved DSRT SURF SP has been previously analyzed and determined that the Project was consistent with the goals and policies of the General Plan. The DSRT SURF SP has land use allowances inclusive of a maximum of a six-acre lagoon, 35,000-square-foot surf center, 350 rooms for a hotel, 88 residential units, a clubhouse of 3,125 square feet, and 15,000 square feet for maintenance and equipment buildings. The amendment to the SP includes height maximums of 50 feet for buildings and an additional 15 feet to accommodate architectural features and related roof equipment and apparatus. The Project includes a 5.5-acre lagoon, a 7,263-square-foot surf center (26 feet in height), a 4-story, 92-room hotel (55 feet in height), 83 residential units (ranging from 26 feet and 6 inches to 37 feet and 9 inches), 1,494-square-foot clubhouse (24 feet 6 inches in height), and 4,909 square feet of maintenance buildings (15 feet in height). The land uses and heights specified above are all within the allowances of the SP. The building lot coverage maximum is 50 percent; the Project site proposes 19.9 percent, which is within the required allowance. The setback requirements for the commercial component and residential components meet the minimum setback requirements of the SP. The Desert Mid-Century Modern architecture theme is continuous throughout the site with varying architectural elements and high-quality materials including, the incorporation of indoor and outdoor spaces that meets the architecture characteristics required by the DSRT SURF SP. The on-site parking including, the podium parking within the hotel and integrated garages for the residential units, provides for the 443 required parking spaces. In addition, Lot E will be improved to include approximately 288 parking spaces, which will have valet services to the Project. The Project proposes all landscape remain as low water usage desert landscaping for the entirety of the Project including, the perimeter. The Project uses conforms to all the requirements of the SP and all other applicable requirements as conditioned. C. CEQA: The City determined that this Project was subject to the California Environmental Quality Act (CEQA). The City further determined that an Addendum to the 2019 DSRT SURF Project Environmental Impact Report (EIR, SCH No. 2019011044) should be prepared, consistent with the requirements of CEQA. The Addendum has been prepared to evaluate the potential environmental impacts of amending the DSRT SURF SP, TTM, DDA, and Page 290 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 15 of 21 buildout of the revised DSRT SURF Project. In accordance with the CEQA, the Addendum analyzes the proposed Project amendments and demonstrates that all potential environmental impacts associated with the Project at buildout would be within the envelope of impacts already evaluated in the approved EIR, including both on-site and off-site impacts (such as stormwater drainage consistent with the Desert Willow Master Plan, which provides for drainage to golf course waste areas; and the construction of an off-site parking lot). In 2019, the City certified the DSRT SURF SP EIR that analyzed the development of the DSRT SURF Project (2019 Project). The 2019 Project would result in the development of a surf lagoon of up to six (6) acres in size, a surf center to include a restaurant, bar, retail, and similar facilities, up to 350 hotel rooms, and up to 88 resort residential villas on the 17.69-acre site. The Project was to be implemented in two (2) planning areas: the Surf Lagoon Planning Area (PA 1, 11.85 acres), and the Hotel and Villas Planning Area (PA 2, 5.84 acres). Planning Area 1 would be constructed first and include the development of the surf center and pie-shaped surf lagoon, which included a wave machine located in the central pier of the lagoon and in the mechanical building at the southeastern portion of the site. The Hotels and Villas Planning Area (PA 2) would be developed in phase 2 and result in the construction of the hotel(s) and villas on approximately 5.84 acres. The current revised Project proposes amendments to the 2019 DSRT SURF SP, PP, and TTM to accommodate modifications to the hotel, surf center facilities, and villas. Amendments to the DDA are also proposed, consistent with the revised Project. The SP amendment will not change the overall land use approvals for the site, which included 350 hotel rooms, 88 villas, a surf center, a surf lagoon, and ancillary facilities, including parking, recreation, and mechanical/service areas. The amended PP will result in the development of the entire site, consisting of a 92 key hotel, surf center, a 5.5-acre surf lagoon, 33 private villas, and 50 stacked flat residential units, as well as ancillary facilities to support these uses. Based on the evaluation of information provided in this EIR Addendum, no new significant impacts would occur as a result of the proposed Project, nor would there be any substantial increase in the severity of any previously identified adverse environmental impacts. Therefore, none of the conditions described in Section 15162 of the CEQA Guidelines has occurred. For this reason, an EIR addendum is the appropriate document to comply with CEQA requirements for the proposed Project. Revised and Restated Disposition and Development Agreement (DDA): The DDA is an agreement between the City and Desert Wave Ventures, LLC. It outlines business terms and timing for Project improvements, as well as real estate terms for when the City/SARDA will sell the land to the developer. Below is a breakdown of the land sale, business terms, and the City’s participation in a TOT reimbursement and use of bond funds for public improvements. A. Land Transaction In 2019, the City Council approved the DSRT SURF Project: a world-class, first-of-its-kind destination surfing lagoon and resort complex be built within the Desert Willow Golf Resort Page 291 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 16 of 21 area (DWGR). However, the developer, Desert Wave Ventures, LLC (Developer) is proposing several changes to the Project as described above. In order to accommodate the changes to the development new terms for the land sales are outlined in the Revised and Restated DDA. As part of the DDA several land agreements between the Developer, the City, and its Successor Agency to the Redevelopment Agency (SARDA) are included. On February 2, 2018, the City executed an Exclusive Negotiating Agreement with the Developer to explore Parcels B and C within DWGR. SARDA Oversight Board and the State Department of Finance approved the SARDA land sale in July of 2018. A Purchase Option Agreement (POA) was executed by and between SARDA and the Developer on August 15, 2018, for Parcel B. Concurrently, the Developer determined that additional land would be needed to accommodate the full build-out of the proposed resort. Therefore, the City entered into a POA with the Developer for two parcels that currently accommodate DWGR overflow parking. The three parcels are described as follows: • APN 620-420-023 - Owner: SARDA - 14.65 acres - $2,050,000 (“Parcel B” herein) • APN 620-420-024; -400-008 – Owner: City – 3.03 acres - $455,000 (“Overflow lot”) Terms of the POAs require the developer to fulfill a series of obligations prior to close of escrow. Extension options are available. The terms described in more detail below include securing full entitlements and execution of the DDA. The DDA will supplant the City’s POA and become the controlling document for the transfer of land of the City-owned parcels, while the SARDA POA will control the final transfer of SARDA land. In addition, the Developer will be required to complete a number of additional agreements, including those attached to-form and listed below. B. Incentives & Business Terms DSRT SURF resort is a first-of-its-kind facility that combines upper-upscale or luxury resort amenities and luxury for-sale villas all alongside a five-acre wave lagoon and surf center. City staff relies on third-party consultant reports to review development pro formas provided by the Developer and to conduct gap analysis based on those projections. The consultant, Keyser Marston Associates (KMA), reviews developer-provided costs, revenues, operating expenses, compares them with market expectations, and offers a projected gap based on a snapshot of the development at a given moment in time. Development Costs KMA reviewed a scope of the Project proposed by the developer with a total development cost projected at $218,772,000, an increase of $27,772.000 from the original Project approvals in 2019. Multiple factors have contributed to this number, including hard and soft costs, cost of financing, and market expectations of return. As a result, these numbers are subject to external market forces that may change over time. The Project costs reviewed include the hotel and villa development ($147,259,000) and surf lagoon ($71,513,000). Revenues are to be generated from multiple sources, including surf destination ticket sales, hotel revenues, and villa sales. Using a Return on Cost methodology and using the Page 292 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 17 of 21 total development costs across all phases of the Project described herein, KMA’s project feasibility gap projection is: Feasibility Gap Projections Surf Destination $11.4M Hotel & Villa Gap $24.8M Total Feasibility Gap $36.1M It should be noted that the hotel and villa gap is a blended analysis, which includes the returns generated on the sale of the villas. The actual gap of the hotel alone is slightly higher than what is shown in the pro forma gap feasibility analysis. Proposed City Sources Acquisition of Public Improvements $20.0M TOT Performance Based Rebate $16.1M Total Feasibility Gap $36.1M The proposed source of funds to acquire the public improvements are City bond proceeds for Project Area 2 (PA2); therefore, will not impact General Fund dollars. Disbursement of City funds is described in the attached DDA and controlled by various milestones that disburse funds in $2-5M increments based on those milestones. The final $2M payment will be accompanied by the execution of the Acquisition Agreement attached here as-to- form and requires a “look-back” by the City to ensure total project costs are not less than those estimated in the analysis. In the case that the total project costs are less than estimated, the Developer will reimburse the City an amount equal to the difference between $185M and total project costs. The revenues for TOT are performance-based rebate dollars, paid out of TOT proceeds first paid to the City upon start of the operation, and then rebated back to the owner at the proposed amounts: • 40% of Hotel Revenue • 60% of Villa Room Contributions to Hotel In no case shall the TOT shared rebate exceed the TOT amount described herein. By structuring the TOT rebate in this way, it is anticipated that the City will receive 100% of TOT sooner than it would otherwise at a full 50% rebate. Projected Revenues KMA projected total City revenues using the model described throughout this report. TOT revenues are calculated over 20 years at the current Project size and scope. If the Project changes, TOT revenues may need to be adjusted. TOT revenues projections are prior to any rebate to be paid to the Developer. Sales tax is calculated based on the proposed restaurant sizes and use market-based data for like-kind facilities in other areas. Property taxes are the City’s share of property taxes. Based on this analysis, total City revenues generated over 20-years are: Page 293 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 18 of 21 TOT $39.M Sales Tax $2.3M Property Tax $1.3M Total Revenue $42.6M Other business terms are included in the attached DDA. In addition to the DDA, there are other controlling agreements to the DDA and referenced with the DDA. Staff will present the agreements to the City Council that are by law or ordinance required to be reviewed and approved by the Council. However, staff recommends the Council provide authorization to the City Manager to execute those agreements that do not require Council approval and that accompany the DDA, which may include the following: • Acquisition Agreement (for the acquisition of public improvements). • TOT Agreement (for TOT performance-based rebate). • Maintenance and Use Agreement (controlling agreement for various public works and improvements). • Project Impact Fee Development Agreement (describing assessed project impact fees). • Various access and construction easements. • Other agreements as needed. Public Improvements & Benefits As described above, bond proceeds are used to acquire additional public improvements. These improvements, totaling approximately $20M, are outlined in the Acquisition Agreement and include: • 150 parking structure stalls for Surf Center and Desert Willow public parking. • 96 on-site surface parking stalls for the surf center and Desert Willow public parking. • 226 surface public parking stalls to meet obligations outlined in the mitigation requirements outlined in the EIR. Multiple public benefits justify the participation of City bond funds, including the following: • Increased jobs and economic growth both at DWGR and Citywide. • Enhanced TOT, sales and use tax, and property tax. • Additional entertainment and leisure activities for the citizens and visitors. • Growth of tourism and associated spending. • For participating residents, increased health benefits of a sports facility. • Impact fees and other associated fees to support City services. Staff recommends the City Council endorse these public benefits during its deliberations. In addition to the public benefits described above, the public was notified of this meeting in conformance with “AB 562” reporting requirements (State Code, Section 53083). AB 562 reporting requirements are for projects that receive more than $100,000 in economic Page 294 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 19 of 21 development subsidy, and future annual reporting requirements will be administered by staff. Fiscal Impact Sources: The proposed source of funds to acquire the public improvements are City bond proceeds for PA2; therefore, do not have impact General Fund dollars. These bonds were issued specifically for PA2 (DWGR) economic development activities and are one-time use only. This will deplete the fund balance for PA2. TOT tax revenues are incremental revenues and rebated on a performance basis only. Rebate is only made available if TOT is paid to the City. There is no impact to the General Fund other than a decreased amount of TOT for the term of the TOT agreement. Following full funding of the authorized amount, the City will receive 100% of hotel and villa revenue operations. Projected Revenues TOT $39.M Sales Tax $2.3M Property Tax $1.3M Total Revenue $42.6M KMA projected these revenues using the model described throughout this report. TOT revenues are over 20 years at the current scope and size. If the Project changes, TOT revenues may need to be adjusted. TOT revenues projections are prior to any rebate to be paid to the Developer. Sales tax is calculated based on the proposed restaurant sizes and use market-based data for like-kind facilities in other areas. Property taxes are the City’s share of property taxes. Total revenues in actual dollars are estimated at $42.6M to the City’s General Fund over the next 20 years, and revenue projections are subject to changes in general economic forces. Public Input City staff has received several letters of support from local entities and the public. Letters of support were received from Patrick Klein, Board President; Paula Simonds, CEO of the Family YMCA of the Desert; and from David Hilts, Founder of Coachella Valley Surf Club. A letter of support was also received from a member of the public at large. Copies of the letters received are provided as part of this staff report. Conclusion The DSRT SURF SP amendment is consistent with the purpose and intent of the Resort and Entertainment District. The Project proposes a high-quality Desert Mid-Century Modern architectural style building, desert landscaping combined with beach themes for this unique resort development inclusive of a 5.5-acre surf lagoon, a 92 key hotel, surf center, 83 residential units, as well as ancillary facilities to support these uses. The proposed land uses, Page 295 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 20 of 21 site design, architecture, and landscaping that is within the allowances and in conformance with the Specific Plan. The resort development, maintenance, or operation of the Project does not appear to have any adverse effects that are detrimental or injurious to property and improvements within the Desert Willow Golf Resort or the general welfare of the City. Therefore, the overall Project and the requirements imposed on this Project meet the goals and policies of the General Plan. The DDA has been revised to address changes in the Project scope and size. In consideration of the Project, the DDA outlines the following: • Timing of land sales from the City to the developer. • City’s participation in TOT rebates and bond proceeds for public improvements. • Disbursement of bond proceeds based on the developer’s obligation. • A “look-back” to ensure Project costs and not less than estimated. • Schedule of Performance for the developer. The changes to provide certainty for both the developer and City and City participation in the Project is justified through the Project feasibility gap detailed in this report. Environmental Review For the purposes of the California Environmental Quality Act (CEQA), the Director of Development Services has determined that the Project proposal requires consideration of an EIR. An EIR has been prepared and is summarized as part of this report. Staff is recommending that the City Council adopt a Resolution approving the Project, certify the EIR, and adopt a Statement of Overriding Consideration. Page 296 January 27, 2022 - Staff Report Case Nos. Amendment No. 1 to SP 18-0002 /PP 18-0009/TTM 37639 & DDA: DSRT SURF Page 21 of 21 Findings of Approval The findings analyzed in the City Council Resolution No. 2022-____for this Project concludes the amendments to the proposed Project conforms to the General Plan and intent of the Specific Plan, attached to this staff report. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER RH Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez, Dir. of Development Services Janet M. Moore Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, Todd Hileman: APPLICANT: Desert Wave Ventures, LLC c/o: Doug Sheres PO Box 147 Solano Beach, CA 92075 ATTACHMENTS: 1. City Council Resolution No. 2022-___ (Project Approvals) 2. City Council Public Hearing Notice 3. DSRT SURF Specific Plan Amendment (redlined) (hyperlink) 4. DSRT SURF Specific Plan Amendment (hyperlink) 5. Addendum to the EIR 6. Water Demand Analysis 7. TURF Removal Analysis by Terra Nova on November 11, 2021 8. Precise Plan & Tentative Tract Map Provided by the Applicant (hyperlink) 9. DDA 10. Architectural Review Commission- Notice of Action dated April 27, 2021 11. Planning Commission Resolution No. 2802 & draft minutes for December 21, 2021 12. Public Comment 13. Approved City Council Resolution Nos. 19-82 & 19-83 Page 297 1 CITY COUNCIL RESOLUTION NO. 2022-_____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING TO AMEND THE DSRT SURF SPECIFIC PLAN, PRECISE PLAN, TENTATIVE TRACT MAP, AND AN ADDENDUM TO THE ENVIRONMENTAL IMPACT REPORT (EIR) CASE NOS. SP 18-0002/PP 18-0009/ TTM 37639 AMENDMENTS NO. 1 WHEREAS, the DSRT SURF Project (“DSRT SURF” or “Project”) was approved by City Council on November 14, 2019, by Resolution No. 2019-82, a project including a six- acre surf lagoon and surf center facilities to include a restaurant, bar, retail, up to 350 hotel rooms, and up to 88 residential villas on a 17.69 acres site within the Desert Willow Golf Resort, including a Specific Plan (SP 18-0002), Precise Plan (PP 18-0009), Tentative Tract Map (TTM 37639), a certification of an EIR, and a Disposition and Development Agreement (DDA); and WHEREAS, pursuant to CEQA and the State CEQA Guidelines, the City Council adopted Resolution No. 2019-83 on November 14, 2019, certifying the DSRT SURF EIR (SCH No. 2019011044), Mitigated Monitoring and Reporting Program, and adopted a Statement of Overriding Consideration in evaluating potentially adverse environmental impacts; and WHEREAS, on February 4, 2021, Desert Wave Ventures, LLC applied for amendments to the SP 18-0002, PP 18-0009, and TTM 37639, including an addendum to the EIR for the development of a 5.5-acre surf lagoon and surf center facilities, 92 hotel rooms, 83 residential units, circulation, parking, and landscaping constructed on 17.69 acres within the Desert Willow Golf Resort, and an offsite parking location in close proximity; and WHEREAS, on December 21, 2021, the Planning Commission conducted a duly noticed public hearing and adopted Resolution No. 2802, recommending approval of the amended project to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on January 27, 2022, hold a duly noticed public hearing to consider the request for approval of the amended DSRT SURF SP, PP, TTM, an addendum to the EIR, and a DDA for the above- noted project; and WHEREAS, all of the findings, recommendations, and conclusions made by the City Council pursuant to this Resolution are based upon the oral and written evidence presented to it as a whole and not based solely on the information provided in this Resolution; and WHEREAS, prior to taking action, the City Council has heard, been presented with, reviewed, and considered all of the information and data in the administrative record, including by not limited to the findings of the addendum to the EIR, SP, PP, TTM, and DDA, all of which is incorporated herein by this reference; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. Page 298 CITY COUNCIL RESOLUTION NO. 2022- 2 WHEREAS, the City Council has not received any comments or additional information that constituted substantial new information requiring recirculation or additional environmental review under Public Resources Code Sections 21166 and 21092.1 and State CEQA Guidelines section 15088.5; and WHEREAS, at the said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, the City Council did find the following facts and reasons to exist to justify the approval of said request: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: SECTION 1. Recitals. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. Compliance with the California Environmental Quality Act. State CEQA Guidelines section 15164 requires lead agencies to prepare an addendum to a previously certified EIR if some changes or additions to the Project are necessary, but none of the conditions requiring preparation of a subsequent EIR are present. The City Council has reviewed and considered the 2019 EIR and the 2021 Addendum and finds that these documents taken together contain a complete and accurate reporting of all the potential environmental impacts associated with the DSRT SURF Project. The City Council further finds that the 2021 Addendum has been completed in compliance with CEQA and the State CEQA Guidelines. The City Council further finds and determines that the Addendum reflects the City’s independent judgment. SECTION 3. Based on the substantial evidence set forth in the record, including but not limited to the 2019 EIR and the 2021 Addendum, the City Council finds that an addendum is an appropriate document for disclosing the changes to the DSRT SURF Project and that none of the conditions identified in Public Resources Code section 21166 and State CEQA Guidelines section 15162 requiring subsequent environmental review have occurred, because: 1. The amended DSRT SURF Project does not constitute a substantial change that would require major revisions of the 2019 EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. 2. There is not a substantial change with respect to the circumstances under which the DSRT SURF Project will be developed that would require major revisions of the 2019 EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects. 3. New information of substantial importance has not been presented that was not known and could not have been known with the exercise of reasonable diligence at the time the 2019 EIR was certified or adopted, showing any of the following: (i) that the modifications would have one or more significant effects not discussed in the earlier environmental documentation; (ii) that significant effects previously examined would be substantially more severe than shown in the earlier environmental documentation; (iii) that mitigation measures or alternatives Page 299 CITY COUNCIL RESOLUTION NO. 2022- 3 previously found not to be feasible would, in fact, be feasible and would substantially reduce one or more significant effects, but the applicant declined to adopt such measures; or (iv) that mitigation measures or alternatives considerably different from those analyzed previously would substantially reduce one or more significant effects on the environment, but which the applicant declined to adopt. SECTION 4. The City Council readopt those mitigation measures identified in the 2019 EIR applicable to the DSRT SURF Project and as detailed specifically in the Mitigation Monitoring and Reporting Program (“MMRP”) prepared for the EIR. SECTION 6. The 2019 EIR and the 2021 Addendum, and any other documents and materials that constitute the record of proceedings upon which these findings have been based are on file and available for public review at Palm Desert City Hall, 73510 Fred Waring Drive, Palm Desert, California 92260. The custodian of these records is Norma I Alley, the City Clerk of the City. SECTION 7. Findings for Recommended Approval of Specific Plan. 1. The DSRT SURF Specific Plan, as proposed, is consistent with the goals and policies of the Palm Desert General Plan, including that the Project provides a unique resort destination and sports facility consistent with the intent of the Resort and Entertainment District. On November 14, 2019, the City Council approved DSRT SURF Specific Plan (SP 18-0002) by Resolution 2019-82 governing the land uses, development standards, and design guidelines for the site and determining that the specific plan demonstrated compatibility of the applicable goals, policies, and programs contained in the General Plan. The General Plan land use designation of Resort and Entertainment District allows development for entertainment and resort destination uses, drawing visitors to the site. The amendment to the specific plan includes operational function changes and revisions to the development standards, none of which increases the density or intensity of the Project. The compatibility of the General Plan established in the original approval of the Project remains unchanged. 2. The DSRT SURF Specific Plan is not detrimental to the health, safety, or general welfare or will be materially injurious to the surrounding properties or improvements in the City of Palm Desert. The amendment to the DSRT SURF Specific Plan is suitable and appropriate for the location, access, and topography for development because the intent of Desert Willow is to provide resort-style development. The site has been previously mass graded and identified for future resort-style development, all infrastructure to support the Project is nearby, and improvements to infrastructure to support the Project are feasible, and access to the site has been studied and is deemed sufficient to support the Project. 3. The amendments to the DSRT SURF Specific Plan are compatible with the zoning of adjacent properties and ensures the development of desirable character is harmonious with surrounding properties because the intent of Desert Willow is to provide a resort-style development. The Project was approved with a density of 15 dwelling units per acre (maximum 88 residential units), the amendment to the DSRT SURF Specific Plan does not change the density nor Page 300 CITY COUNCIL RESOLUTION NO. 2022- 4 the intensity of the Project. In fact, the construction of the Project will only contain 83 residential units, which is under the maximum allowed. In addition, the approved specific plan allows for a 350-room hotel, and the Project will construct only a 92-room hotel. The new structures incorporate compatible and integrated architecture, materials and colors, and are not visually obstructive or disharmonious with surrounding areas or harm major views from adjacent properties. The grading design would not result in any manufactured slopes or pads that create any significant adverse visual or compatibility impacts with adjacent lots, nor block any significant views. The Project is supported by adequate public facilities and transportation systems and is a compatible use, type, and intensity with the surrounding areas. SECTION 8. Findings for Recommended Approval of Tentative Map. 1. That the density of the proposed subdivision is consistent with applicable general and specific plans. The amendment to the Project is consistent with the goals, objectives, and policies of the Palm Desert General Plan (“General Plan”). The General Plan land use designation is Resort and Entertain District that allows development for entertainment and resort destination uses, drawing visitors to the site. General Plan Land Use Policy 4.1 encourages unique resort complexes within the city. The Project is a resort destination attraction of a surf lagoon with residential ownership units that complement the Project. The subdivision includes 17.69 acres into five (5) parcels, each to accommodate its respective uses, including the surf lagoon, hotel and surf center, stack flats including the clubhouse, and villas that are consistent with the General Plan. 2. That the design or improvement of the proposed subdivision is consistent with applicable general and specific plans. The amendment to the Project and its design and improvements are consistent with the General Plan and comply with the development standards of the Specific Plan. In addition, the lots accommodate the building pads, internal and external streets, drainage, utilities, and adequate access from Desert Willow. 3. That the site is physically suitable for the type of development. The site is physically suitable for the type of development for the Project. The Project is a resort development that is physically suitable for the site and is consistent with the intent of the specific plan and compatible with the surrounding uses, which include a golf course, amenities as well as existing resort-style residential units. The Project site is a 17.69-acre site; the parcel is adequate to accommodate the 5.5-acre surf lagoon, surf center and facilities, hotel, and residential units with adequate access and roadways, infrastructure, utilities, and drainage facilities. 4. That the site is physically suitable for the proposed density of development. Page 301 CITY COUNCIL RESOLUTION NO. 2022- 5 The site is physically suitable for the density allowance of 15 units per acre as specified in the DSRT SURF Specific Plan resulting in 88 residential units. The Project amendments include 83 units which are less than the maximum density and comply with the applicable development standards of the specific plan making it suitable for the site. 5. That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and unavoidably injure fish or wildlife or their habitat. The amended design of the subdivision or the improvements contemplated for the Project are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat. The certified Environmental Impact Report (EIR), SCH# 2019011044, addresses the environmental impacts associated with the Project, including those impacts that could cause substantial environmental damage. There are no known fish, wildlife habitats, or other endangered species on the subject site. No environmental impacts are identified which substantially and avoidably injure fish, wildlife, or their habitat. 6. That the design of the subdivision or type of improvements is not likely to cause serious public health problems. The amended design of the subdivision or type of improvements for the Project are not likely to cause serious public health problems. The conditions of approval ensure all common area structures, landscaping, sidewalks, parking lot surfacing, and all other improvements within the Project must be continually maintained in good condition and repair, all dead or dying landscape material must be replaced with new landscape material, and a security construction plan must be submitted. Compliance with these conditions will prevent the subdivision and its improvements from causing any public health problems for those that enter the development. Storm drainage, sanitary sewer, water, streets, and all utilities are available to the site and have the capacity to accommodate the Project. The subdivision has been designed so the parcels have the necessary infrastructure to adequately serve the development, and all uses as allowed by the zoning ordinances that regulate the Project. 7. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the planned subdivision. The amended design or type of improvements will not conflict with easements acquired by the public at large for access through or use of the property within the subdivision. Public utilities for electricity, water, sewer, telecommunications, and gas service have all been assessed for availability. The access points to the Project have been reviewed and approved by the Fire Department and Public Works as part of the overall Project includes easements for roadways, drainage facilities, and utilities that will be recorded in the final map. There are no known Page 302 CITY COUNCIL RESOLUTION NO. 2022- 6 public easements traversing the subject site that would be adversely affected by the Project. SECTION 9. Findings for Recommended Approval of Design Review (Palm Desert Municipal Code Section 25.68.040. 1. That the proposed development conforms to any legally adopted development standards. The DSRT SURF Specific Plan has land use allowances inclusive of a maximum of the six-acre lagoon, 35,000 square feet surf center, 350 rooms for a hotel, 88 residential units, a clubhouse of 3,125 square feet, and 15,000 square feet for maintenance and equipment buildings. The amendment to the DSRT SURF Specific Plan includes height maximums of 50 feet for buildings and an additional 15 feet to accommodate architectural features and related roof equipment and apparatus. The Project includes a 5.5-acre lagoon, a 7,263-square-foot surf center (26 feet in height), a four-story, 92-room hotel (55 feet in height), 83 residential units (ranging from 26 feet and 6 inches to 37 feet and 9 inches), 1,494-square-foot clubhouse (24 feet 6 inches in height), and 4,909 square feet of maintenance buildings (15 feet in height). The land uses and heights specified above are all within the allowances of the DSRT SURF Specific Plan. The building lot coverage maximum is 50 percent; the project site proposes 19.9 percent, which is within the required allowance. The setback requirements for the commercial component and residential components meet the minimum setback requirements of the DSRT SURF Specific Plan. The Desert Mid-Century Modern architecture theme is continuous throughout the site with varying architectural elements and high-quality materials, including the incorporation of indoor and outdoor spaces that meets the architecture characteristics required by the DSRT SURF Specific Plan. The on-site parking, including the podium parking within the hotel and integrated garages for the residential units, provides for the 443 required parking spaces. In addition, Lot E will be improved to include approximately 288 parking spaces, which will have valet services to the Project. The Project proposes all landscape remain as low water usage desert landscaping for the entirety of the Project, including the perimeter. The Project uses conforms to all the requirements of the DSRT SURF Specific Plan and all other applicable requirements as conditioned. 2. That the design and location of the proposed development and its relationship to neighboring existing or proposed developments and traffic is such that it will not impair the desirability of investment or occupation in the neighborhood; and that it will not unreasonably interfere with the use and enjoyment of neighboring existing or proposed developments and that it will not create traffic hazards or congestion. The amended Project has been designed as a destination point, including a surf lagoon, surf center and amenities, hotel, and residential units, which are compatible uses within a resort development. The proposed Project is located within the Desert Willow Golf Resort, which features a mix of resort development Page 303 CITY COUNCIL RESOLUTION NO. 2022- 7 and existing residential units, including a mixture of timeshares and multifamily units. The Project includes a DSRT SURF Specific Plan, which regulates land uses and provides development standards to ensure there is continuity of architectural style and regulation of density and heights of buildings; therefore, does not impair the desirability of investment. The Environmental Impact Report for the Project provided a Traffic Impact Analysis that reviewed the traffic impact, including circulation, traffic hazards, and congestion of the uses and operation of the site, which resulted in mitigation measures less than significant. No environmental or traffic concerns were identified that would indicate that development in this area would be unsuitable. The Project has also implemented a condition of approval for a parking management plan and improvements to an offsite parking location within proximity to the site to respond to overflow parking needs. 3. That the design and location of the proposed development are in keeping with the character of the surrounding neighborhood and is not detrimental to the harmonious, orderly, and attractive development contemplated by this title and the General Plan of the City. The design and location of the amended Project is in keeping with the character of the surrounding neighborhood and will serve as an additional attraction to the existing resort development. The Project consists of approximately 18-acres within an undeveloped area, with connectivity to the Desert Willow Clubhouse that is adjoining the Project site. The property is designated Resort and Entertainment in the General Plan, which allows development for a range of entertainment and resort destination uses for the purpose of drawing visitors to the site, such as theme parks and sports facilities. The Project includes the high- quality architectural style, amenities, and more importantly, offers unique opportunities for residential resort lifestyle and entertainment destinations inclusive of a surf lagoon and hotel, which will attract visitors and investors to the City. 4. That the design and location of the proposed development would provide a desirable environment for its occupants, as well as for its neighbors, and that it is aesthetically of good composition, materials, textures, and colors. The design is a Desert Mid-Century Modern architectural theme, with sustainable building materials incorporating the natural environment and mid-century styles. The architectural elements include horizontal and vertical planes, varying rooflines, shading elements, intuitive and organic wayfinding designs, natural materials, and blurring lines between indoor and outdoor spaces. The design utilizes high-quality finishes and materials, including natural elements that provide shade and create shadow lines, such as building projections, covered walkways, arcades, and other human-scale elements to reduce the impact of building mass and create visual interest. The Project includes wave structures at the entry point to create a sense of arrival. The enclosure of courtyards and balconies are visually permeable where appropriate and step back on upper floors is utilized to further reduce the visual impact of building mass and maximize view corridors and viewsheds of the mountain. The Project site Page 304 CITY COUNCIL RESOLUTION NO. 2022- 8 includes the thoughtful creation of public gathering space to encourage interaction between guests and residents is achieved by both passive and intentional design. Landscaping utilizes functional seating design elements throughout the site by the use of low-rise block and/or stone walls that serve to define landscaped areas while also providing casual seating throughout the property. Open lawn and sandy beach areas in proximity to the lagoon and pools to encourage guests to create gathering space, reminiscent of an authentic beach experience. More intentional components of the Project include restaurants and bars, cabanas, lounge chairs, fire pits, and recreational activity space. The combination of designed gathering throughout the site and amenities creating intentional spaces promotes a destination resort atmosphere envisioned for the Project. 5. That the proposed use conforms to all the requirements of the zone in which it is located and all other applicable requirements. The Project uses conforms to all the requirements of the DSRT SURF Specific Plan and all other applicable requirements. The Project use considers the need for dedication and improvement of necessary streets and sidewalks, including the avoidance of traffic congestion, and is designed considering topographical and drainage conditions, including the need for dedication and improvements of necessary structures as a part thereof. The Project’s environmental assessment and reviews of City departments and outside city agencies have included appropriate mitigation measures and conditions of approval. 6. That the overall development of the land shall be designed to ensure the protection of public health, safety, and general welfare. The overall development of the land is designed to ensure Project is consistent with the General Plan and as analyzed in the DSRT SURF Specific Plan. The establishment, maintenance, or operation of the Project does not appear to have any adverse effects that are detrimental or injurious to property and improvements within the Desert Willow Golf Resort or the general welfare of the City. Therefore, the overall building design and the requirements imposed ensures the protection of public health, safety, and general welfare. SECTION 10. Project Recommendation. The City Council hereby recommends approval of SP 18-0002 Amendment No. 1, PP 18-0009 Amendment No. 1, TTM 36379 Amendment No. 1, subject to the conditions of approval. SECTION 11. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at City Hall at 73510 Fred Waring Drive, Palm Desert, CA 92260. Norma I Alley, MMC, City Clerk, is the custodian of the record of proceedings. SECTION 12. Execution of Resolution. The Mayor of the City of Palm Desert signs this Resolution, and the City Clerk shall attest and certify to the passage and adoption thereof. Page 305 CITY COUNCIL RESOLUTION NO. 2022- 9 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 27th day of January 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: NORMA I. ALLEY, MMC, CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 306 CITY COUNCIL RESOLUTION NO. 2022- 10 CONDITIONS OF APPROVAL CASE NOS. AMENDMENT NO. 1 TO SP 18-0002/PP 18-0009/EA 18-0002/TTM 37639 GENERAL 1. The Applicant shall comply with all terms and conditions as outlined in the amended Disposition and Development Agreement (DDA) approved by the City Council. 2. Any references to the “Specific Plan” in the Conditions of Approval of Resolution No. 2019-82 shall be replaced with “Amended Specific Plan,” and such the amended specific plan in this resolution shall replace the previous approval. 3. Conditions of Approval approved in Resolution No. 2019-82 by City Council on November 14, 2019, shall remain effective and enforceable unless otherwise stated in this resolution. 4. Mitigation Measures of Resolution No. 2019-82 shall remain effective and enforceable unless otherwise stated in this resolution. SPECIFIC PLAN 5. Applicant shall obtain permission from the Development Services Director to schedule all turf removal activities in coordination with season operations of the golf course. In addition, the Applicant is responsible for obtaining approvals from the City for soil stabilization and any required permits/agreements associated with such activity. 6. Condition of Approval No. 12 of Resolution No. 2019-82 shall be revised to state: All parcels shall develop in a manner consistent with the development standards contained in the amended Specific Plan. All other development standards not addressed in the Specific Plan shall comply with the Palm Desert Municipal Code (PDMC). 7. Condition of Approval No. 19 of Resolution No. 2019-82 shall be revised to state: Special events, which exceed 1,500 spectators, shall not exceed a maximum site capacity of 5,000 spectators. 8. The Applicant shall complete all improvements for Lot E (off-site parking), which includes approximately 288 parking spaces, and shall finalize a Parking Management Plan identifying all traffic control and off-site parking strategies with the Director of Development Services prior to the Certificate of Occupancy of the hotel building. TENTATIVE TRACT MAP 9. The Applicant shall record all easements related to Final Map, including but not limited to reciprocal access easements, shared parking agreements, and maintenance agreements for all common areas prior to the approval of the Final Map. 10. The Applicant or successor in interest shall submit Covenants, Conditions, and Restrictions (CC&Rs) in a form acceptable to the City Attorney, for the proposed subdivision prior to the recordation of the Final Map. Page 307 CITY COUNCIL RESOLUTION NO. 2022- 11 11. The Applicant shall include the following: street names, Subdivision Improvement Agreement, and improvement bonds prior to the approval of the Final Map. 12. The Applicant shall form a property owners association for the maintenance of the following: 1) all interior and common areas, including landscaping; and 2) maintenance of all frontage landscaping. PRECISE PLAN 13. Condition of Approval No. 13 of Resolution No. 2019-82 shall be revised to state: All development within the amended Specific Plan shall conform to the architectural renderings provided in the amended Specific Plan and Precise Plan 21-0002 approvals. Building design deviations are permitted as described in the amended Specific Plan, which shall conform to the architectural guidelines and colors and materials specified in the amended Specific Plan. 14. Condition of Approval No. 14 of Resolution No. 2019-82 shall be revised to state: The development of the property and all buildings pads within the Specific Plan boundaries shall conform substantially with exhibits approved by the Architectural Review Commission and its conditions set forth by minute motion on April 27, 2021, held on file with the Department of Development Services, and as modified by the conditions herein. 15. Condition of Approval No. 47 of Resolution No. 2019-82 is no longer valid since the Project does not include a gated entry unless the gates are for emergency access. If a future gate is installed for the Project, the applicant shall secure secondary access onto Willow Ridge Drive via a gate with Knox locks. 16. The Applicant shall comply with the conditions in the Notice of Action as specified in the Architectural Review Commission meeting of April 27, 2021. END OF CONDITIONS OF APPROVAL Page 308 12 EXHIBIT “A” Page 309 13 Page 310 14 Page 311 15 Page 312 16 Page 313 17 Page 314 18 Page 315 19 Page 316 20 Page 317 21 Page 318 22 Page 319 23 Page 320 CITY OF PALM DESERT LEGAL NOTICE CASE NOS. SP 21-0002, PP 21-0002 & TTM 37639 (Amendment) NOTICE OF A PUBLIC HEARING BEFORE THE CITY OF PALM DESERT CITY COUNCIL TO CONSIDER A REQUEST BY DESERT WAVE VENTURES, LLC, FOR THE AMENDMENTS TO THE SPECIFIC PLAN, TENTATIVE TRACT MAP, AND PRECISE PLAN APPLICATION, LOCATED ON A VACANT 17.69-ACRE SITE ALONG DESERT WILLOW DRIVE, SOUTH OF THE DESERT WILLOW CLUBHOUSE The City of Palm Desert City Council (City), in its capacity as the Lead Agency for this project under the California Environmental Quality Act (CEQA), certified an Environmental Impact Report (EIR), SCH# 2019011044 and the adopting Mitigation Monitoring and Reporting Program (EA 18- 0002) for DSRT SURF Specific Plan, adopted by Resolution No. 2019-83 on November 14, 2019. The applicant has submitted an addendum to the EIR which the City has reviewed and preliminarily determined that the proposed amendments do not result in any significant environmental impacts. Project Location/Description: Project Location: The project is located on a 17.69-acre project site located along the west side of Desert Willow Drive, south of the Desert Willow Clubhouse, and within the boundaries of the Desert Willow Golf Resort. Approximately three (3) acres are developed with parking lot improvements for the Desert Willow Clubhouse. The balance of the site is undeveloped land, previously graded as part of the mass grading for the Desert Willow Golf Resort development. Project Description: DSRT SURF project as amended will include a resort development inclusive of a Surf Lagoon and Surf Center Facility (including Support Facilities), a Four-Story 92 Room Hotel, and 83 Residential units including villas and stacked flats (condominiums), a perimeter roadway, landscape, and infrastructure improvements within Desert Willow Golf Resort. The land uses in the proposed project are within the allowances approved in the DSRT SURF Specific Plan approved on November 14, 2019, by Resolution No. 2019-82 and the proposed DSRT SURF amendment includes additional changes to the operations and development standards of the project. The project applications consist of an amendment to the Specific Plan, Precise Plan, and Tentative Tract Map to develop the 17.69-acre project site. Specifically, the project consists of the following: • 5.5-acre surf lagoon and wave machine with pier and mechanical building • Surf Center and related facilities • 92 room Hotel & amenities • 83 Residential units, Club House, and amenities Recommendation: Approval of the proposed Specific Plan, Precise Plan, and Tentative Tract Map amendments in accordance with CEQA Guidelines, subject to conditions of approval. Public Hearing: The public hearing will be held before the City Council on January 27, 2022, at 4:00 p.m. via Zoom. The hearing will be conducted in accordance with the City’s emergency protocols for social distancing. Options for remote participation will be listed on the Posted Agenda for the meeting at: https://www.cityofpalmdesert.org/our-city/mayor-and-city-council- /city-council-meeting-information-center. Public Review: The plans and related documents are available for public review Monday through Thursday from 8:00 a.m. to 5:00 p.m. by contacting the project planner, Rosie Lua, Principal Planner. Please submit written comments to the Planning/Land Development Division. If any group challenges the action in court, issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the City Council hearing. All comments and any questions should be directed to: Page 321 2 Rosie Lua, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611, Extension 480 rlua@cityofpalmdesert.org PUBLISH: DESERT SUN NORMA I. ALLEY, MMC, CITY CLERK JANUARY 13, 2022 PALM DESERT CITY COUNCIL Page 322 DSRT SURF SPECIFIC PLAN City of Palm Desert Adopted May 2019 Amended September 2021 Page 323 DSRT SURF Specific Plan ii Table of Contents I. INTRODUCTION .................................................................................................................... 1 A. Authority and Scope ....................................................................................................... 1 i. Enabling Legislation ................................................................................................ 2 B. Project Location .............................................................................................................. 2 C. Site Background .............................................................................................................. 2 D. Existing Conditions ........................................................................................................... 6 E. Project Description .......................................................................................................... 6 i. Land Uses ................................................................................................................. 6 ii. Operations ............................................................................................................... 8 F. CEQA Compliance ......................................................................................................... 9 II. DEVELOPMENT STANDARDS .............................................................................................. 10 G. Allowable Uses ............................................................................................................... 12 H. Parking Standards .......................................................................................................... 14 I. Circulation and Emergency Access ........................................................................... 15 III. DESIGN GUIDELINES ........................................................................................................... 17 A. Architecture ................................................................................................................... 17 i. Architectural Themes ........................................................................................... 18 ii. Building Heights and Mass ................................................................................... 22 iii. Building and Design Materials ............................................................................. 26 B. Pathways and Wayfinding ........................................................................................... 27 C. Landscaping .................................................................................................................. 27 i. Conceptual Landscape Plan Zones .................................................................. 28 ii. Landscape Palette ............................................................................................... 30 a) Plants ................................................................................................................. 30 iii. Irrigation ................................................................................................................. 34 iv. Public Space Furniture ......................................................................................... 34 v. Stone ...................................................................................................................... 34 vi. Landscape Lighting .............................................................................................. 37 D. Signage ........................................................................................................................... 37 i. Project Identity and Monument Signage .......................................................... 38 a) Location ............................................................................................................ 38 b) Materials ............................................................................................................ 38 c) Sizing .................................................................................................................. 38 ii. Project Wayfinding Signage ................................................................................ 38 a) Location ............................................................................................................ 38 b) Materials ............................................................................................................ 39 iii. Primary Building Signage ..................................................................................... 39 a) Location ............................................................................................................ 39 b) Materials ............................................................................................................ 40 c) Sizing .................................................................................................................. 40 iv. Retail Signage ....................................................................................................... 40 a) Location ............................................................................................................ 40 b) Materials ............................................................................................................ 40 Page 324 DSRT SURF Specific Plan iii v. Signage Lighting ................................................................................................... 41 vi. Signage Approval Process .................................................................................. 41 E. Walls and Fences ........................................................................................................... 41 F. Lighting ........................................................................................................................... 43 IV. INFRASTRUCTURE ................................................................................................................ 45 A. Roadways ....................................................................................................................... 45 B. Drainage and Flood Control ........................................................................................ 45 C. Public Utilities .................................................................................................................. 46 i. Sewer ...................................................................................................................... 46 ii. Water ...................................................................................................................... 46 iii. Other Utilities .......................................................................................................... 46 V. ADMINISTRATION and IMPLEMENTATION ........................................................................ 50 A. Application Review Process ......................................................................................... 50 B. Specific Plan Amendments .......................................................................................... 50 C. Financing ........................................................................................................................ 50 VI. APPENDIX A: GENERAL PLAN CONSISTENCY .................................................................. 51 List of Tables Table 1 DSRT SURF Specific Plan Land Uses ............................................................................. 6 Table 2 DSRT SURF Development Standards ......................................................................... 10 Table 4 Allowable Uses ............................................................................................................ 13 Table 5 Parking And Loading Standards ............................................................................... 15 List of Exhibits Exhibit 1 Regional Location Map ............................................................................................. 3 Exhibit 2 Vicinity Map ................................................................................................................ 4 Exhibit 3 Project Location Map ................................................................................................ 5 Exhibit 4 Overall Site Plan .......................................................................................................... 7 Exhibit 5 Desert Mid-Century Modern Architecture ............................................................ 18 Exhibit 6 Hotel/Surf Center Architectural Inspiration (sheet 1 of 2) .................................... 23 Exhibit 7 Hotel/Surf Center Architectural Inspiration (sheet 2 of 2) .................................... 24 Exhibit 8 Villa Architectural Inspiration .................................................................................. 25 Exhibit 9 Landscape Palette - Trees ....................................................................................... 31 Exhibit 10 Landscape Palette - Shrubs .................................................................................... 33 Exhibit 11 Landscape Palette - Materials and Site Furnishings (Sheet 1 of 2) ..................... 35 Exhibit 12 Landscape Palette - Materials and Site Furnishings (Sheet 2 of 2) ..................... 36 Exhibit 13 Grading and Utility Plan (Sheet 1 of 3) ................................................................... 47 Exhibit 14 Grading and Utility Plan (Sheet 2 of 3) ................................................................... 48 Exhibit 15 Grading and Utility Plan (Sheet 3 of 3) ................................................................... 49 Page 325 DSRT SURF Specific Plan 1 I.INTRODUCTION The DSRT SURF Specific Plan provides the vision for a recreational and resort development that is authentic to the surrounding desert environment while evoking natural surf environments from around the world. The landscape, architecture, and design will celebrate the blending of natural and man-made elements to create a unique destination surf experience on the beach and in the water. The resort atmosphere and added amenities such as restaurants, bars, and outdoor activities make DSRT SURF the perfect desert escape. "If you're having a bad day, catch a wave." Frosty Hesson A. Authority and Scope A Specific Plan is a document allowed under California law which provides cities and counties with a planning tool for master planning project sites. A Specific Plan, when approved, becomes the zoning ordinance for the project area it covers. The Specific Plan is intended to ensure quality development consistent with the goals, objectives, and policies of the Palm Desert General Plan. The Specific Plan guides the standard of development for the DSRT SURF plan area and is structured to provide a degree of flexibility for future land developers to address market driven changes if necessary. The DSRT SURF Specific Plan establishes and updates the Renderings updated throughout document Page 326 DSRT SURF Specific Plan 2 design and development zoning policies applicable to development within the planning area described herein. This Specific Plan also establishes the regulations and standards which serve as the ordinance and development regulation for the planning area going forward. i. Enabling Legislation The authority to adopt and implement the DSRT SURF Specific Plan is granted to the City of Palm Desert by the provisions of California Government Code Section 65450 et seq. As with General Plans, the Planning Commission must hold a public hearing before it can recommend to City Council the adoption of a Specific Plan or an amendment thereto. The City of Palm Desert may adopt a Specific Plan and/or an amendment to the Specific Plan by either ordinance or resolution. (Palm Desert Zoning Code Chapter 25.78 Decisions by the City Council). B. Project Location The Project consists of three Assessor’s Parcels: 620-420-023, 620-400-024 and -620-400-008. The Project is located on the west side of Desert Willow Drive, north of Country Club Drive in the City of Palm Desert, Riverside County, California (See Exhibit 1: Regional Location Map and Exhibit 2: Vicinity Map). The irregularly shaped site is bounded by golf course on its west, south and east sides, the Westin Resort Villas on its southwest corner, and by the Desert Willow Clubhouse parking lot on the north. (See Exhibits 3: Project Location Map). C. Site Background The City of Palm Desert constructed the Desert Willow Golf Resort in 1997-1998. At the time, it consisted of two 18-hole golf courses and remainder parcels planned for a wide range of resort and residential development on a total of 515± acres. Development within the Project has been governed by the North Sphere Specific Plan, which established multiple planning areas within the Project area. Multiple planning areas have developed, including the hotels and restaurants located at the southwest corner of Frank Sinatra Drive and Cook Street; condominium units on the west side of the golf course and east of Portola Avenue; and resort residential projects in the southern half of the Project area. Four vacant development pads remain today, centered around Desert Willow Drive and generally located east and south of the existing clubhouse. The DSRT SURF planning area generally occurs within Planning Area 10 of the North Sphere Specific Plan. Page 327 Page 328 Page 329 Page 330 DSRT SURF Specific Plan 6 D. Existing Conditions The DSRT SURF Specific Plan area consists of irregular shaped lots totaling 17.69 acres. The land is partially developed with the Desert Willow Golf Resort clubhouse parking lots in its northwest corner, on approximately 3 acres. The balance of the site (approximately 14.7 acres), is vacant, desert land, bounded by the existing golf course. The proposed Specific Plan area is designated as “Resort & Entertainment District” on the City’s General Plan Land Use Map, which allows for various types of lodging, retail, commercial services, recreational facilities, along with specialized entertainment with a commercial floor area ratio (FAR) of up to 0.10, and multi-family residential land uses of up to 10 dwelling units per acre (DU/AC). According to the General Plan (2016), the purpose of this District is “to provide for a range of entertainment and resort destination uses that require large amounts of land and that draw visitors to the City such as theme parks, hotels, and sports facilities.” The City’s Zoning Map currently designates the Specific Plan area as “Planned Residential (PR).” Commercial recreation and hotel land uses are allowed in the PR zone only with the issuance of a conditional use permit when not directly related to a permitted residential development. With regard to hotels in the PR zone, the maximum density must be approved by the Planning Commission or Council (Zoning Code Chapter 25.10 Residential Districts). E. Project Description i. Land Uses The DSRT SURF Specific Plan establishes building and development standards for the entire 17.69-acre Project site. This Specific Plan proposes the development of a 5-acre surf lagoon, surf center facilities, up to 350 hotel rooms, and up to 88 residential villas (See Exhibit 4 Overall Site Plan). Parking has been distributed throughout the site and an off- site parking lot has been secured for special event overflow parking (See Exhibit 3 Project Location Map). Table 1 DSRT SURF Specific Plan Land Uses Land Use Max/Min Allowed Surf Lagoon Max 6 acres Surf Center Max 35,000 SF Hotel(s) Max 350 rooms Villas 15 units per acre/88 villas max. Villa Clubhouse Max 3,125 SF Maintenance and Equipment Buildings Max 15,000 SF Landscaping/OS/Pool /Recreational Space Minimum 20% Planning Area Removed E. Lagoon Cafe/Bar. No max/mins have changed with the exception of Land/OS/Pool/Rec which was reduced from 25% of PA to 20% of PA. Project description revised from two planning areas to one overall project planning area (entire site). Land Use table condensed from two separate planning areas to one overall project LU table. Surf center: removed separate SF breakdown for ancillary/internal uses, now one max. SF. Page 331 Exhibit updated Page 332 DSRT SURF Specific Plan 8 ii. Operations In addition to overall Project design, it is essential that the operational function of the hotel and surf center complement the residential areas to achieve Project cohesion. The site will provide a variety of recreational and commercial opportunities that tie into the surf resort theme envisioned for the Project. The following section lists potential amenities for the Project. Site Program and Recreational Amenities The following are representative of but not limited to recreational amenities proposed for the Project: • Surf Lagoon • Surf Academy • Lifeguard Stations • Pools and Spa/Jacuzzis • Cabanas and Palapas • Fire Pits • Exterior Movie Projection • Shade Hammocks • Open Lawn Space • Boardwalk/Pier • Kids Play Area • Pickle Ball • Pump Track • Restaurants/Bars/Cafes • Stage/Event Amphitheater • Sand Beach Areas/Beach Club • Yoga, Stretching, Workout Space • Adventure Course (Ropes/Climbing) • Bouldering Features • Bocce Courts • Beach Volleyball • Bike Racks (Rentals and Public Use) • Retail/Merchandise • Outdoor Showers • Flex Space • Tennis/Beach Tennis Site Prog/Rec Amen. revised - removed separate PA discussions and consolidated for entire project,. Overall site program the same with added amenities shown in red boxes below. Removed "Event Lawn" and "Art Gallery" Page 333 DSRT SURF Specific Plan 9 Surf Lagoon Hours of Operation Surf Lagoon (surfers in water): Summer Hours (May 15-September 30): 6am-12am Winter/Spring Hours (November 1-May 14): 6am-10pm on weekdays; 6am-12am on weekends, during Holidays1 and special events (special events may be on weekdays or weekends). Surf Center: 6am – 2am Music Events: Allowed 7 days a week. Outdoor music/event to end at 12am, indoor music/event to end at 2am. Ticketing/Admission To access the surf lagoon pools and recreational areas, all guests will be required to purchase a Beach Pass. To participate in surf lessons/surf sessions, guests will be required to purchase an additional Surf Pass. The hotel, surf center, shopping, and restaurants will be open to the public. Lagoon Capacity The surf lagoon will accommodate, on average, 70 surfers at any one time with the ability to accommodate 95 surfers for special events. Lagoon use will be sold in 1-hour increments with the average surf sessions lasting 1-4 hours. Special Events Special Events may also be held that could result in 3,500 ticketed spectators. Parking overflow during special events will be located off-site at location(s) to be approved by the City. A shuttle service will be provided during special events to transport visitors to and from offsite parking to the Surf Center. Lagoon Maintenance The surf lagoon will require daily cleaning and may require one annual full-drain for maintenance purposes. In the event of a maintenance emergency, the lagoon will be drained as necessary and heavy equipment may be required to repair damage and/or replace equipment. F. CEQA Compliance In compliance with the California Environmental Quality Act (CEQA), the City identified the preparation of this Specific Plan as a “Project” under CEQA and prepared an Initial Study. The Initial Study found that the Specific Plan had a potential to significantly impact the environment, and that an Environmental Impact Report (EIR) must be prepared. The City circulated to all responsible and trustee agencies a Notice of Preparation (NOP) of an EIR. All comments received in response to the NOP were considered and incorporated into the EIR. The EIR was circulated to all responsible and trustee agencies, and all other interested parties, for a period of 45 days. All comments received in response to the EIR were considered in the Response to Comments prepared for the Planning Commission and City Council. The City Council certified the EIR prior to adopting this Specific Plan, on X X, 2021. 1 Holidays/Holiday periods include the week of Christmas, week of New Years, Martin Luther King Day, Presidential holidays, Memorial Day, Labor Day, the week of Thanksgiving, and Spring Breaks (March 1- April 15). Music events changed from Fri-Sun to allow music any day of week. Hours have not changed. Avg. capacity reduced from 75 to 70 surfers, same max accommodation of 95 Page 334 DSRT SURF Specific Plan 10 II. DEVELOPMENT STANDARDS This section of the Specific Plan serves as the Specific Plan Area’s Zoning Ordinance. Standards and guidelines which are applied to the Specific Plan Area are described in detail below. When Zoning Ordinance standards and guidelines apply, a reference is made to the appropriate Section of the Zoning Ordinance. The Project site will consist of a surf center, 5±-acre surf lagoon, hotel, surf rentals and lesson space, pool and spa amenities, outdoor activity space, restaurants, bars, and event space. The following table provides a comparison of existing development standards per the PR zoning district and proposed development standard modifications for the DSRT SURF Specific Plan. Table 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF Density Villa Density [PR: Density (du/ac), min – max] 4 – 40 15 du/ac max Hotel Density -- 350 rooms max Building Measurements PR: Height / Number of Stories, max 40’ / 3 50’/ 41 PC-4: Height / Number of Stories, max 55’/ 4 Villa size, max bedrooms per villa -- 4 bedrooms Hotel Room/Suite size, (min SF/ avg. SF per room) 330 SF / 375 SF 330 SF, 375 SF Coverage PR: Building Coverage, max % of Planning Area 50% 50% PC-4: Floor Area Ratio 0.10 Recreational/Lagoon Coverage, min % of Planning Area -- 40% (currently 50%) Surf Center Setbacks Setback from golf course -- 25’ PR: Front Yard, min -- -- Increase from 25% to 40% Development Standards table condensed from two separate tables (PA 1 and 2) to one master table. New footnote, added height condition Page 335 DSRT SURF Specific Plan 11 Table 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF PR: Side Yard, min -- -- PR: Street Side Yard, min -- -- PR: Rear Yard, min -- -- PC-4: Front Yard, min 30’ -- PC-4: Side Yard, min 15’ -- PC-4: Street Side Yard, min -- -- PC-4: Rear Yard, min 20’ -- Hotel Setbacks Setback from golf course -- 25’ PC-4: Front Yard, min 30’ 20’ PC-4: Side Yard, min 15’ 15’ PC-4: Street Side Yard, min -- -- PC-4: Rear Yard, min 20’ 20’ Villa Setbacks Setback from golf course, min -- 5’ PR/PC-4: Front Yard, min -- 5’ PR: Side Yard combined both sides, min -- 5’ PR: Street Side Yard, min -- 5’ PR: Rear Yard, min -- 5’ Stacked Flats Setbacks Setback from golf course, min -- 20’ PR/PC-4: Front Yard, min -- 5’ PR: Side Yard, min -- 0’ PR: Street Side Yard, min -- 5’ PR: Rear Yard, min -- 10’ Landscaping/Open Space/Recreation PR: Planning Area Coverage, pervious surface, min 25% (total Res lot area) NA PR: Front Yard Coverage, non-pervious surface, max 40% (front yard) NA Decreased from 30' Stacked Flats new to project, these are all new standards Decreased from 10' Page 336 DSRT SURF Specific Plan 12 Table 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF PC-4: Commercial Landscaping (other) coverage, min 20% 20% Landscaping, Specific Plan Perimeter, min -- 5’ Source: Palm Desert Municipal Code; Zoning. 1.Parapets, towers, and similar elements may exceed the 50’ building heigh by no more than 10’. Roof stairwells and elevators may exceed the 50’ building heigh by no more than 15’. PR = Planned Residential (planning area existing zoning/land use) PC-4 = Planned Commercial: Resort and Entertainment. Reference for comparable land use standards proposed under DSRT SURF. PR Development Standards, PDMC Ch. 25.10.050 and/or Residential Landscaping PDMC Ch. 25.52.030 PC-4 Development Standards PDMC Ch. 25.16.050. Special Use Provisions: Hotels Minimum room size PDMC Ch. 25.34.070 G.Allowable Uses The DSRT SURF Specific Plan area is designated as Resort and Entertainment District on the City’s General Plan Land Use Map, which allows for various types of lodging, retail, commercial services, recreational facilities, along with specialized entertainment with a commercial floor area ratio (FAR) of up to 0.10, and multi-family residential land uses of up to 10 dwelling units per acre (DU/AC). The City’s Zoning Map currently designates the Specific Plan area as “Planned Residential (PR).” Commercial recreation and hotel land uses are allowed in the PR zone only with the issuance of a conditional use permit when not directly related to a permitted residential development. With regard to hotels in the PR zone, the maximum density shall be approved by the Planning Commission or Council (Zoning Code Chapter 25.10 Residential Districts). A comparison of existing and proposed allowable land uses are listed in Table 4, below. If a proposed use is not listed in the Table, the Community Development Director, upon written request and in conformance with the provisions of Section 25.72 of the Palm Desert Zoning Ordinance, review the proposed unlisted use and determine whether it is Permitted, requires a Conditional Use Permit or is prohibited. Added height condition Page 337 DSRT SURF Specific Plan 13 Table 3 ALLOWABLE USES Land Use Existing (PR) DSRT SURF Special Use Provision Residential Uses Assisted living C N Condominium C P Dwelling, duplex N P Dwelling, multifamily C P 25.10.040.A Dwelling, second P P 25.34.030 Dwelling, single-family P P Guest dwelling P P Home-based business P C Planned unit development, residential C P 25.10.040.C Retail, Service, and Office Uses Bed and breakfast N C Condominium hotel C P Hospital C N Hotel C P 25.10.040.J Resort hotel C P 25.10.040.J Timeshares* C P Ancillary commercial -- P Art gallery -- P Art studio -- P Business support services -- P Health club, gyms or studios -- P Liquor, beverage and food items shop -- P Personal services -- P Restaurant -- P Retail -- P Spa -- P Recreation, Resource Preservation, Open Space, and Public Assembly Uses Amusement facility, indoors -- P Amusement facility, outdoors -- P Club, private C P Nightclub -- P Open space (developed or natural) -- P Public park P P Recreational use, commercial C P 25.10.040.G Recreation facility, commercial N P Recreation facility, incidental C P 25.10.040.H Recreation facility, private P P Recreation facility, public C P Theater/auditorium -- C P=Permitted; C=Conditional Use Permit; N=Not Permitted; -- = Use not listed under existing (PR) land use designation. * = The City requires buildout and operation of a hotel prior to buildout timeshares. Page 338 DSRT SURF Specific Plan 14 H.Parking Standards Primary parking for the hotel and surf center guests will be provided in the hotel’s parking garage, located on the first and second floors of the hotel, and in surface parking adjacent to these buildings. Employee parking will be located at the south end of the site by the maintenance and service areas. Through mutual agreement with the City of Palm Desert, 130 parking spaces will be shared with the Desert Willow golf clubhouse. In the event the parking garage reaches full capacity, the hotel shall have a parking plan in place that may include a combination of an on-site valet and off-site shuttle service to and from the overflow parking lot. Off-street parking for the villas shall be provided immediately adjacent to the proposed buildings or in an adjoining structure, such as a garage or carport. Additional street parking is located throughout the planning area and is not restricted to any particular use. Parking and loading spaces, including off-site parking for special events, shall be designed in conformance with Section 25.46.030.D of the Palm Desert Zoning Ordinance, with the following exceptions: •Tandem parking is permitted for villa areas, however, no more than two tandem spaces are allowed with one access to a drive aisle. •Tandem parking is permitted in parking structures; however, a valet service must be required at all times the use is open for business, and the valet parking area is accessible only by the valet service. The following table provides parking standards for the entire Specific Plan area. Added/Revised: Hotel now has an above ground parking garage (2nd level). Added discussion on parking plan in the event overflow parking is needed - including a combination of on-site valet and off-site shuttle service to and from the overflow parking lot (Lot E). Street parking is throughout the site and is not restricted to certain uses. Page 339 DSRT SURF Specific Plan 15 Table 4 PARKING AND LOADING STANDARDS Measurement/Standard Existing DSRT SURF Commercial/Recreational Parking Restaurants/Bars/Lounges 8 per 1,000 SF 8 per 1,000 SF Surf Lagoon -- 130 Shared Golf + 1.5 per surfer (70 max. surfers) Off-site/Special Events -- 500 stalls Villa Parking Studio and one bedroom 2 stalls per unit 2 per unit Two or more bedrooms 2.5 stalls per unit Hotel Parking Hotels 1 stall per guest unit 1 stall per guest unit Resort Hotels 1.1 stalls per guest unit Stall Dimensions Off-Street Parking Stalls, min. 9’ wide by 18’6” long 9’ wide by 18’ long Off-Street Loading Loading Berth, min L x W 45’ x 12’ 45’ x 12’ Setback to residential, min 50’ 10’ Source: Palm Desert Municipal Code; Zoning, PDMC CH. 25.46.040 Parking Requirements. I.Circulation and Emergency Access Vehicular connectivity within the project will be from a perimeter Promenade with two public access points on Desert Willow Drive. The driveway furthest north will be the primary entrance for the hotel and surf center. The Promenade also provides emergency access to the entire site, with a third gated emergency access point located at the western corner of the site that connects to Willow Ridge Road. Internal circulation will primarily be designed for pedestrians with the exception of emergency lifeguard vehicles, which will have access to the Lagoon area and boardwalk for emergencies and maintenance vehicles for transporting equipment and daily upkeep of the lagoon and surrounding area. Guests and residents are encouraged to leave their vehicles parked and instead use pedestrian walkways, bicycles or golf carts to move around the site. Stall Dimension standards not in previous SP. Removed gated/guarded access for private villas. All internal roads are accessible to the public. Page 340 DSRT SURF Specific Plan 16 Circulation plans for the Project shall adhere to the design guidelines set forth in this Specific Plan. Street improvements, including curbs, gutters, paving and sidewalks, shall adhere to requirements and development standards set forth in Zoning Code Chapter 25.10.B.13, which states: “Required Width of Private Roads. With no parking, the private roads shall be 20 feet wide. With parking on one side, 32 feet wide. With parking on two sides, 40 feet wide. The roadways shall be a minimum of asphaltic concrete with concrete curbs and gutters as approved by the Director. Standards of design and construction of roadways, both public and private, within the project may be modified as is deemed appropriate by the City, especially where it is found that the development plan provides for the separation of vehicular and pedestrian circulation patterns and provides for adequate off-street parking facilities.” Page 341 DSRT SURF Specific Plan 17 III. DESIGN GUIDELINES A. Architecture All buildings constructed onsite shall maintain a consistent character carried out by quality materials and design that are evocative of the surf resort theme proposed within this Specific Plan. Architecture must embrace and incorporate authentic materials, curated in a way that is not overly designed - such as a natural weathered look found in genuine surf environments. It is encouraged that building design features be multi-functional, including shade structures that change with the season and creative seating designs that are integrated into the landscape and building features. Building design shall be unique to the site in that the configuration shall take advantage of and preserve the surrounding vistas while integrating into the existing character of the surrounding Desert Willow property. Various architectural characteristics include: • Blending artificial and natural elements for functional purposes (shade, seating, etc.) to integrate into the environment; • Embrace and integrate the beach into the desert, think dunes to surf; • Encourage intuitive and organic wayfinding designs; Page 342 DSRT SURF Specific Plan 18 • Consider irregular roof lines that encourage unique designs with added functionality for shade and place-making; • Incorporate dynamic and seasonal shading strategies for exterior occupied space; • Encourage the use of eco-friendly materials that have been recycled and upcycled reminiscent of the natural and relaxed feeling of the property. i. Architectural Themes DSRT SURF reflects the natural environment and the Desert Modern theme, which blends contemporary and Mid-Century styles. Buildings must have clean lines, play off horizontal and vertical planes, and incorporate natural materials. Desert Mid-Century Modern Desert Mid-Century Modern is an architectural style characterized by clean simplicity with the intention of blurring the lines between indoor space and outdoor living. This blending with nature is achieved by emphasizing the use of windows and open floor plans when designing indoor spaces. What makes “Desert Mid-Century Modern” unique is the opportunity to design buildings tailored to the warm California climate by incorporating passive cooling techniques, such as the use of open breezeways, ample glazing, angular construction, light facades, and outdoor living space. Simple post-and-beam steel-framed buildings are often used due to the material’s resilience in the harsh desert climate, which also promotes a sleek modern design. Page 343 Page 344 DSRT SURF Specific Plan 20 While in accordance with the prevailing architectural theme, arrival points and building entrances must receive special treatments consistent with the materials discussed in this document. Generous use of desert landscaping, natural materials, and interesting monument signage assist in the creation of a distinctive sense of place that will be carried out throughout the Project. Architectural elements that provide shade and create shadow lines, such as building projections, covered walkways, arcades, and other human scale openings shall be included to reduce the impact of building mass and create visual interest. The means of enclosure to courtyards and balconies shall be visually permeable where appropriate and the stepping back of upper floors should also be utilized to further reduce the visual impact of building mass and maximize view corridors and viewsheds of the mountain vistas. It is also common to see rooflines echoing the surrounding mountains with “butterfly roofs,” or “V roofs,” which are characterized by an inversion of a standard form roof, with two roof structures sloping down from opposing edges towards a middle point of the roof. Preserving and Enhancing Viewsheds The Specific Plan area enjoys views of the surrounding San Bernardino and San Jacinto mountain ranges. As building heights within the Specific Plan generally exceed those previously existing in the surrounding area, it is essential that architectural elements and building components be varied to reduce the overall perception of mass, resulting in graduated frontages that allow generous view corridors. A particularly distinctive viewshed will be created by the opening of the arrival plaza between the surf center and the hotel. Views from the arrival plaza looking southeast between the two buildings shall be unobstructed to the greatest extent possible to preserve the viewshed of the surf lagoon against the dramatic mountain backdrop. Creating Gathering Space One of the overarching goals of this Specific Plan is the thoughtful creation of public gathering space to encourage friendly interactions between guests. This playful co- mingling is achieved by both passive and intentional design. Landscaping will be utilized as a functional seating design element throughout the site by encouraging the use of low-rise block and/or stone walls that serve to define landscaped areas while also providing casual seating throughout the property. Open lawn and sandy beach areas will be strategically placed throughout the property in proximity to the lagoon and pools to encourage guests to create their own hangout space, which is reminiscent of an authentic beach experience. Other Project components that provide intentional Page 345 DSRT SURF Specific Plan 21 hangout space include restaurants and bars, cabanas, lounge chairs, fire pits, and recreational activity space. The combination of designed gathering points and freeform hangout space promotes a destination resort atmosphere envisioned for the Project. Sustainable Building and Energy Efficiency Conservation and sustainability are common values amongst the surf community and encouraged throughout the DSRT SURF Project. Green building techniques and design principles should be implemented throughout DSRT SURF. DSRT SURF structures shall utilize passive design principles that are unique to the site and thus minimize the consumption of energy and maximize user comfort as much as is practicable. Roof overhangs, supplemental shading, strategic glazing ratios, building orientation and daylighting shall be considered in concert. Materials shall be chosen for resiliency as much as for aesthetics. Interior spaces shall be designed to be an extension of the outside and not require conditioning where (and when) practicable. Passive solar design has been implemented in Palm Desert and the Coachella Valley for a number of years, through the use of shade structures and building orientation. Passive solar design should be part of building design to the greatest extent possible through deep recesses for balconies which shield building interiors; window placement on exposed wall faces; and use of structures and trees to shade public or private open spaces, and limit heat sink effects. As technology continues to expand and improve, solar energy can be harnessed to lower the energy demand of the Project. Active solar panel design should also be considered throughout the Project. The surf lagoon wave machine technology is designed to perform at the highest level and as efficiently as possible. In terms of performance, the system runs at an efficiency level of 92%, thus using the energy at the most efficient levels to generate waves within the lagoon. The versatility of the technology permits the number of waves to be adapted Page 346 DSRT SURF Specific Plan 22 to the number of surfers at any given time. In this way, the fixed consumption of the installation is reduced to a minimum, and electricity consumption has a direct correlation to wave generation without unnecessary energy waste. DSRT SURF also promotes the use of products and materials that have a positive economic, social and environmental impact and focuses on minimizing the energy involved in extracting, processing, transporting, maintaining and disposing of materials associated with construction of the machinery. The landscaping palette for DSRT SURF is designed to minimize the use of water for irrigation through the installation of highly efficient irrigation systems, plant-specific emitters, and using drought tolerant desert landscaping. Recycling of materials within DSRT SURF should be made as simple and accessible as possible. Although centralized solid waste disposal is likely throughout the Project, each building should be designed to make the recycling of materials easy and convenient. If trash chutes or centralized sorting areas are designed in buildings, they must include a recycling component. Finally, open spaces within the Project will include furnishings and finishes which should to the greatest extent possible be made of sustainable and/or recycled materials. A broad range of products are now available, with more being introduced every year, which reuse materials in their construction. ii. Building Heights and Mass The Specific Plan allows for development where careful attention to appropriate building height, scale and massing will be essential to creating space and enhancing the surf resort experience. The majority of the planning area will be pedestrian oriented, and all buildings should be sensitively designed to the human scale with active, pedestrian friendly frontages and pathways. The DSRT SURF Specific Plan allows for a maximum building height of 50 feet without articulation. Elements such as awnings, balconies, roof overhangs, or trellises that protrude from the building elevations are encouraged to provide a unique design and additional shade. The following exhibits provide architectural inspiration for the hotel and villas, and should be considered during the precise planning process. New renderings Page 347 Page 348 Page 349 Page 350 DSRT SURF Specific Plan 26 iii. Building and Design Materials The DSRT SURF architectural style is defined by an authentic and organic palette of complementary materials and finishes. While consistent with the broader theme, it is essential that materials, colors and finishes are appropriate to the architectural style of individual buildings. Intense sunshine is a prevailing feature of the desert environment and textured surface finishes on which interesting shadow effects can be achieved will contribute much to distinctive local character. The following materials are encouraged in building design: • Weathered tropical hardwoods such as ipe for pathways and walls; • Ocotillo branch screens and trellises to provide shade with natural materials and interesting textures; • Stacked stone for walls, fencing, and seating; • Sand finished concrete for pathways to create a beachy texture; • Wood siding commonly used for coastal buildings; • Painted steel, rusting steel, and metal roofs will naturally weather creating an authentic look. Removed rammed earth Page 351 DSRT SURF Specific Plan 27 B. Pathways and Wayfinding The streetscape and wayfinding concepts are intended to unify the surf center, lagoon, hotel and residential uses in a cohesive manner. The goal of the internal pathway theme is to encourage organic wayfinding designs with natural materials juxtaposed with artificial materials (such as boardwalks, sand, grass, and concrete) to suggest organic circulation. Haphazard path directions promote the feel of natural wayfinding consistent with natural beach environments. Examples of creative wayfinding include: • A mix of pathway materials, such as concrete, boardwalks, sand, and grass; • Playful pathway directions that avoid 90-degree angles; • Interesting wayfinding signage using natural and/or weathered materials; C. Landscaping The landscape design character at DSRT SURF will project the relaxed surfing beach character of Baja California, where the desert meets the ocean. At DSRT SURF, the use of rustic stone, wooden boardwalks, and casual arrangements of desert compatible plants creates a setting for guests to unwind and engage with the dynamic surfing lagoon. Another goal of the landscape is to complement the character of the landscape at Desert Willow, with an emphasis on desert compatible plant species. The plant species selected at the perimeter of the Project will be species that are currently being grown in the adjacent landscape areas at Desert Willow. The goal is to have DSRT SURF fold seamlessly into the overall landscape character of Desert Willow. The perimeter landscaping will subtly provide screening between DSRT SURF and the golf course, while maintaining views outward to the San Jacinto Mountains. The perimeter landscaping will also use wind tolerant plantings to buffer the Project from the northwesterly winds and mitigate the potential for wind-blown sand. The landscape at DSRT SURF has been designed to celebrate the bold forms, textures, and blooms of succulents and cacti that are adapted to the climate of the Coachella Valley. Varied plant species have been selected and placed to create organic compositions that display the unique colors, textures and forms of novel and memorable plant species. Page 352 DSRT SURF Specific Plan 28 i. Conceptual Landscape Plan Zones The landscape for DSRT SURF has been broken down into four conceptual landscape plan zones. ZONE 1: PERIMETER LANDSCAPE The perimeter landscape will be comprised of evergreen trees and shrubs that are either native or native adaptive. Plants that are currently growing in adjacent landscaped areas at Desert Willow will be incorporated into the plant palette. Plants will have dense evergreen foliage to create a vegetative windbreak or to screen selective views into and outward from the site. Evergreen groundcover plants and angular crushed gravel will be placed to assist in bank stabilization and to reduce wind-blown sand. ZONE 2: PROJECT ENTRY The landscape at the Project entry at Desert Willow Drive will have Fan Palms that provide vertical punctuation to create a sense of arrival and assist with wayfinding. A landscaped median will include additional Fan Palms that will be held back from the intersection so that views of on-coming traffic are not blocked. Project signage will be incorporated into the entry landscape along with LED low voltage up-lights on the palm trees and entry sign. ZONE 3: LAGOON BEACH The zone between the lagoon, hotel and villas is referred to as the ‘Lagoon Beach’. Meandering pathways make their way around the pool and gathering spaces to concrete stairs and an accessible ramp to access the beach level. The concrete paving will have a sand finish to provide the needed slip resistance and ‘sand beach’ character. To strengthen the beach character of the landscape, tropical hardwood decking is inlaid flush into the pavement to suggest beach boardwalks. Cabanas, day beds and chaise lounges line the sand beaches invoking the destination resort feel. Crushed gravel will cover the planting areas to reduce potential blown sand. Previous image of Landscaping Zones removed due to out dated mapping. Text has been amended as necessary per revised site plan. Same desert landscaping concepts proposed. Removed "Arrival Plazas" Zone, not relevant to revised site plan. Page 353 DSRT SURF Specific Plan 29 Located at the Lagoon Beach zone are pools and spas with lounging areas and day beds creating a relaxing, laid back environment. Palms and accent trees are organically interspersed throughout the beach zone to add to the Baja California landscape concept. Most of the trees at the Lagoon Beach will be small textured, evergreen trees located to provide the maximum afternoon shade. The trees will be desert compatible, with minimal litter or pollen production. A variety of tree sizes will be planted to offer varied tree heights and tree ages. Desert shrubs and succulents will have bold textures, colorful blooms, and a variety of foliage colors; variegated, blue-green, or olive-green colors. Shrubs with spines or thorns will be set back from the edge of walkways. ZONE 4: VILLAS, STACKED FLATS, AND CLUBHOUSE The landscape character at the villa and stacked flats sites will have a more intimate, residential scale as compared with the other landscape zones. Large canopy, small textured evergreen trees are located to shade the parking stalls and the pedestrian walkways from the afternoon sun. Shrubs and accent plants will display a variety of colorful foliage and flowers. Pedestrian paving will be a sand finished concrete that will complement the native stone and gravel and provide slip resistance. Residents will have access to a private clubhouse and swimming pool and spa overlooking the lagoon. From the pool deck are stair and ramp pathways leading to the lagoon boardwalk. Common areas include a large lawn space for gatherings and events, recreational areas, cabanas and lounge space. Palm trees are limited to the pool/spa patios and clubhouse common areas. Landscaped areas adjacent to villas may be landscaped with turf block, decomposed granite, or similar material to be used for additional parking, seating areas, and other gathering spaces. Last sentence added regarding landscaped areas adjacent to villas and potential uses. Page 354 DSRT SURF Specific Plan 30 ii. Landscape Palette a) Plants Plant material has been selected using WUCOLS water use calculations with preference given to low water use plants. Plant material native to tropical regions on the planet have been excluded due to their irrigation requirements and the ‘tropical’ character of their foliage. Given the surfing, swimming focus of this Project, plants and trees that produce excessive leaf, flower, seed and pollen litter that could end up in a water filtration system are to be avoided. Trees Entry Plaza tree species were selected for their upright, vertical form that will assist visitors with wayfinding. The trees will be placed to frame views of the mountains and of the lagoon. Parking Area trees will be evergreen and tolerant of seasonal winds and provide shade to parking stalls and pedestrian walkways. The placement of trees will avoid casting shade onto the photo voltaic panels on the parking lot canopies. Promenade trees will have an informal alignment and spacing. Their locations will be selected to buffer views both into and out from the site. The varieties will be evergreen and wind tolerant. Lagoon Beach tree species will include both evergreen shade trees and clusters of Palms. The shade trees will have small textured evergreen foliage and will produce minimal litter. They are placed in informal groves with varied tree heights at time of planting. Perimeter Landscape tree species have been chosen to complement or mimic the golf course landscaping. They will be evergreen, tolerant of seasonal winds and provide judicious screening as required. They will be placed in informal, natural appearing groves comprised of a variety of heights. Exhibit 9 provides a visual list of tree species representative of the palette envisioned for the Project. Material list removed, however names/images are still provided, Stand alone exhibits for Accents removed, however text description and embedded images remain. Discussion of "Groundcover" removed. Page 355 Page 356 DSRT SURF Specific Plan 32 Shrubs The shrub species have been selected for their ability to tolerate wind and afternoon heat. Shrubs that are sensitive to afternoon heat have been placed in shaded north or east facing exposures. Wind tolerant shrubs have been used to create vegetative windbreaks along the perimeter of the Project. In areas of greater visibility, plants have been selected for their variety of foliage colors and forms. At the lagoon beach, shrubs have been chosen for their cleanliness and compatibility with hardscape surfaces. Exhibit 10 provides a visual list of shrub species representative of the palette envisioned for the Project. Accent Plants Accent plants will comprise heat and drought tolerant succulents and cacti. Accent plants will be primarily located in high traffic areas of the Project. Preference has been given to plants with bold sculptural form, large texture and dramatic blooms. Spineless varieties of cacti have been incorporated into the palette. Any accent plant with sharp spines or thorns will be kept away from walking paths. Page 357 Page 358 DSRT SURF Specific Plan 34 iii. Irrigation The irrigation system will be computer controlled and extremely water efficient. The irrigation controller will communicate with a weather station so that the frequency and duration of the irrigation will be adjusted to hourly changes in the weather. The irrigation layout will be zoned to isolate landscapes with similar sun exposures and plant communities. All shrub beds will be irrigated by drip irrigation emitters and trees will be irrigated on zones separate from the shrubs. The water use calculations for this system will be prepared and submitted per CVWD irrigation design requirements. iv. Public Space Furniture The furniture selected for DSRT SURF will be durable and user friendly. Benches will include benches with and without backs. The furniture seating surfaces will be either tropical hardwood or aluminum chosen for its high durability and low heat retention. Movable chairs and tables, incorporated into areas adjacent to food and beverage service, will allow guests to customize the furniture arrangements. Casual seating is encouraged on eighteen-inch-high seat walls and stone boulders located throughout the Lagoon Beach. Customized canvas shade sails are located adjacent to architecture or screen walls to create areas of shade at high volume use areas. Trash receptacles will be durable stainless steel and easy to service. Bicycle racks will be located at prominent access points and will be made of tubular stainless steel. v. Stone Native stone boulders will be placed strategically within the planting beds to provide a native landscape character and to assist in soil retention. Some boulders are located to provide casual seating for guests. The boulders will be sized between two and six feet across. The landscape beds will be covered in either round river cobble or angular crushed rock. This will provide additional texture to the landscape and assist in limiting blowing sand. Native stone will also be used in retaining walls and 18-inch-high seat walls. The stone will be either dry set, mortar set, or used in a gabion wall retention system. Exhibits 11 and 12 provide a visual list of furniture, stone, fencing, and shade structures representative of the palette envisioned for the Project. Page 359 Updated Exhibit Page 360 Updated exhibit Page 361 DSRT SURF Specific Plan 37 vi. Landscape Lighting Landscape lighting will include tree and shrub up lights, path lights, and step lights. All lighting will be low voltage and have low maintenance LED fixtures. The selective use of up lights will limit their numbers to only high-profile specimen tree and shrubs. The lights will be angled to reduce glare and hot spots. The goal is to showcase the lighted element and not the light source. D. Signage To ensure a cohesive overall Project design, the entire planning area will be subjected to these same signage program standards and guidelines. Materials will be consistent with the overall Project material palette and in keeping with the desert modern theme established in this Specific Plan. The overall intent of this section is to describe signage that appears consistent with the materiality of the Project and will weather over time. All signage will be located in a manner that provides optimal efficacy of the overall signage program balancing the need for identification and wayfinding while maintaining a discreetly curated sense of place. Care shall be exercised to minimize the overuse of signage and thus reduce visual clutter around the Project. All Project signage will comply with the local building code and the Americans with Disabilities Act (ADA) and will be approved by the City. Signage will comply with the City’s Zoning Code, Chapter 25.56 and building code pertaining to clearances and sizes, except where provided below. Typography shall be coordinated across the entire Project. Creative design in signage is encouraged. Variations to the standards and materials provided below can be permitted with approval of the Community Development Director. Corporate logos and typestyles are permitted within the parameters set forth below. Page 362 DSRT SURF Specific Plan 38 i. Project Identity and Monument Signage a) Location Project Identity Monument Signage will be located at the primary entrance at Desert Willow Drive in the separated median, or immediately adjacent to the separated median. Signage at the secondary drive onto Desert Willow Drive shall be treated as Project Wayfinding Signage thus ensuring the majority of vehicular traffic enters the Project off the primary entrance at Desert Willow Drive’s roundabout. b) Materials Monument signs shall be constructed in stone or weathering steel or a combination thereof. Narrative content shall be cast or carved into the primary material or shall be additive in the form of individual cast letters on stand-offs or shall be subtracted (e.g. laser cut) from a weathering steel plate placed over the primary material. Stone walls with signage shall be reserved for Project identity signage or principal Project component signage (e.g. The Surf Center, Hotel identity, Villa identity) and shall be grand in scale. c) Sizing Primary narrative content, either positive or negative shall be a minimum of 9” and a maximum of 24” and secondary narrative content shall be no larger than 60% of the height of the primary content. The overall size of the Project monument signage shall be no taller than 7’ measured from adjacent grade and shall be no wider than a maximum proportion of 2.5 times the height. ii. Project Wayfinding Signage Project wayfinding signage is an opportunity to reinforce the overall cohesion of the Project across all phases and programs. a) Location Wayfinding signage shall be located at all major transitions between Project programs (e.g. Surf Lagoon, Hotel, Surf Center, Villas) and minor Project programs (e.g. Restrooms, changing areas, pools, etc.) Wayfinding signage shall be pole or building mounted and Rammed earth removed, other minor modifications made - overall theme remains. Page 363 DSRT SURF Specific Plan 39 narrative content shall be placed within 3’ and 5’ elevation above adjacent grade so that the content is easily read by standing pedestrians. Wayfinding signage shall be placed adjacent to traffic areas in landscaped areas such that it is readily visible. However, care shall be taken to avoid obstructing primary view corridors of the Lagoon or other Project amenities. b) Materials Project wayfinding signage will evoke the beach style created by the architecture, and provide information at different scales. Primary wayfinding information (e.g. directions or simplified descriptors for program) can be reduced to simple graphics or letters that are cut into the plate/post. Secondary wayfinding information may be printed on a contrasting element mounted to the primary surface or may be etched into the surface. iii. Primary Building Signage a) Location Primary building signage shall be located at, or proximate to, the primary public entrance to the building in question. Some images updated. Page 364 DSRT SURF Specific Plan 40 b) Materials Primary building signage shall be of the same or similar materials as the Project identity signage. c) Sizing Primary narrative content, either positive or negative shall be a minimum of 9” and a maximum of 24” and secondary narrative content shall be no larger than 60% of the height of the primary content. Primary building signage may be graphically incorporated into the building skin provided the building skin is a natural material (e.g. rammed earth, natural wood siding, stone, etc.). Graphically incorporated signage shall not be limited in size. Narrative content that is subtracted from other materials in the “field” from which it is subtracted shall be no taller than 3’ and no wider than a maximum proportion of 2.5 times the height. The overall size of the Primary Building Signage shall not be limited. iv. Retail Signage a) Location Retail Signage shall be mounted directly to buildings in the form of letters on standoffs or directly applied rather than integrated into a complete sign. This allows the building façade material to read behind the sign. Blade signs may be considered. Plate or sheet material may be considered if the narrative content is subtracted from the sign and the building façade material is the relief. b) Materials Retail signage shall be of natural materials consistent with this section or painted black, grey or white. Page 365 DSRT SURF Specific Plan 41 v. Signage Lighting Cast surfaces or additive content shall be face illuminated from concealed sources. Laser or otherwise cut narrative content shall be illuminated from behind the material from which the content was subtracted. Wayfinding signage shall be illuminated internally, or by concealed illumination, or by general building illumination if available. vi. Signage Approval Process Signage program(s) shall be approved by the Architectural Commission. Signage program(s) can be submitted with Precise Plan applications, or subsequent to Precise Plan applications. E. Walls and Fences DSRT SURF is being developed as a unified, single Project. Perimeter walls between the surf lagoon, hotel and villas are prohibited. Screen walls are to be limited to only those required for privacy or to block views into service areas, loading docks and similar back of house facilities. Surf Lagoon Fencing surround the lagoon will be installed if necessary, to satisfy the current pool fence code requirements. Gates that satisfy the current pool fence code requirements will be located at each entry point to the surf lagoon/beach area. There will be a minimum 4- inch on-center spacing for the rails or cables for security purposes. There are locations where a building, structure, or wall will provide the required security in lieu of the fence. The fence will occur between any gaps between these structures. A minimum 4-foot clear zone between the top or bottom riser of a staircase and the fence gates is required to address ADA accessibility code. Walls shall be permitted at the ground level only to screen loading dock facilities, pool and lagoon maintenance equipment, and trash enclosures. Walls shall not be allowed to exceed 6 feet in height, as measured from finished grade. Walls shall be constructed of split faced block, precision block, wood, stucco or stone. Gate not currently proposed,language added regarding gate requirements as necessary. Page 366 DSRT SURF Specific Plan 42 Wrought iron fencing, decorative block/rock walls or tubular steel fencing no higher than 3-feet in height shall be permitted to enclose outdoor use areas, such as restaurant terraces and lounge areas. Within the parking garage and service areas, chain link fencing shall be permitted to enclose equipment or storage areas only. The chain link fencing shall not exceed 6-feet in height. Hotel and Villas Adjacent to hotel, walls shall be permitted at the ground level only to screen loading dock facilities. Walls shall not be allowed to exceed 6 feet in height, as measured from finished grade. Walls shall be constructed of split faced block, precision block, stucco or stone. No other material shall be permitted. Wrought iron fencing, decorative block/rock walls or tubular steel fencing no higher than 3 feet in height shall be permitted to enclose outdoor use areas, such as restaurant terraces and lounge areas. Fences and gates that satisfy the current pool fence code requirements will be located at each entry point to the surf lagoon/beach area. There will be a minimum 4-inch on-center spacing for the stainless-steel cables for security purposes. No chain link fencing shall be permitted at or above ground level in any part of the hotel development. Page 367 DSRT SURF Specific Plan 43 Within the parking garage and service areas, chain link fencing shall be permitted to enclose equipment or storage areas only. The chain link fencing shall not exceed 6-feet in height. Adjacent to residential/villa development, walls and fences shall be permitted at the ground level to screen entryways and courtyards. Walls and fences adjacent to a street may not exceed 6-feet in height, as measured from finished grade. Walls and fences on the interior of a building, adjacent to common area open space may not have a visual obstruction that exceed 3 feet in height as measured from finished grade. Glass may be permitted above the 3-foot height threshold, but combined height shall not exceed 6 and a half feet. Walls and fences may be constructed of wrought iron, tubular steel, glass, split face block, precision block, stone, stucco, wood, or decorative metal siding (non- reflective). No chain link fencing shall be permitted at or above ground level. F. Lighting Lighting will be used for landscaping, pathways and stairways, monuments and signs, and security. With the exception of the surf lagoon, all developments within the Specific Plan area are subject to the outdoor lighting requirements set forth in Chapter 24.16 of the Palm Desert Municipal Code. Requirements include architectural outdoor lighting, public street lighting, light trespass standards, holiday exceptions, and time of operation. The following images are example fixtures proposed for the planning area. Page 368 DSRT SURF Specific Plan 44 Surf Lagoon Lighting Standards Lighting for the surf lagoon will require both in ground lighting (flush with the lagoon bottom), lighting in the lagoon side walls, as well as stadium-like lighting above ground to ensure all portions of the lagoon are properly lit for night surfing. The following lighting standards have been developed specific to the surf lagoon to ensure minimal light and glare spillage onto surrounding properties, while optimizing surfer safety. Technology: LED technology positioned in a manner that focuses light directly onto the lagoon to prevent excess light and glare spillage onto neighboring land uses. Light Pole Height: 80 feet maximum. Hours of Operation – Pole Lighting: In Summer (May 15-September 30), pole lighting will be permitted from dusk until 12 AM 7 days a week. In Winter/Spring (November 1-May 14), pole lighting will be permitted from dusk until 10 PM on weekdays, and until 12 AM on weekends, Holidays and during special events. For safety purposes, lighting within the lagoon will be required after hours until dawn. Pole lighting will be permitted in the early hours of operation (6-7am) in the event that natural lighting conditions are inadequate for surfer safety. A lighting plan will be submitted to the City prior to the issuance of building permits to ensure swimmer/surfer safety and that light trespass onto neighboring land uses is minimized. Page 369 DSRT SURF Specific Plan 45 IV. INFRASTRUCTURE The DSRT SURF Project occurs in an area of Palm Desert which is fully developed. As such, most infrastructure, including roadways, water, sewer, and utilities, are in place in the area. It is expected that with implementation of the Specific Plan, the majority of existing trunk lines will remain with minor relocations, and on-site extensions will occur to service individual development components throughout the site. A detailed description of all existing and proposed infrastructure for the Project is provided below. A. Roadways Primary Project entrance ingress and egress will occur at the northeast corner of the site from the existing Desert Willow Drive roundabout. A secondary driveway will be provided approximately 240 feet southeast of the primary access point but will only be used for guest egress and emergency access. Primary vehicular circulation within the Specific Plan area will be from a perimeter roadway or “Promenade” that connects both Planning Areas. The Promenade right of way will range from 24 to 30 feet wide with a single lane of traffic in each direction. Parking will be provided in designated driveways (villas), parking lots and/or structures within the appropriate Planning Area. On-street parking will not be permitted. Two emergency access points will be provided; one from the secondary driveway located southeast of the site entrance, and one gated access point from the neighboring Desert Willow Westin Villas property to the west via Willow Ridge Drive. B. Drainage and Flood Control Storm runoff generated on-site is designed to be conveyed to the adjacent South Golf Course via an underground storm drain piping system in a similar manner to the systems employed by existing adjacent resort developments. The Project will connect to existing 24-inch storm drain lines and proposed underground systems to outlet on-site runoff to the adjacent golf course consistent with the existing South Golf Course Runoff Management Plan. Disposal of accumulated water will take place by infiltration, assisted by the installation of drywells. The surf lagoon will require regular cleaning and maintenance resulting in the need to dispose of lagoon water. Lagoon water will be drained in a similar fashion to stormwater, in that it will be directed to the adjacent South Golf Course via an underground storm drain piping system. Stormwater and lagoon water will be discharged into an existing lake on the golf course that is currently used for stormwater retention and landscape irrigation. Stormwater infiltration will be assisted by the installation of drywells. Page 370 DSRT SURF Specific Plan 46 C. Public Utilities The infrastructure that will serve the development is described below and is designed to provide a coordinated system of infrastructure and public services to adequately serve the plan area at full build out. The infrastructure and utilities plan identify standards relative to land use for the plan area and establishes the infrastructure and public service policies. i. Sewer The development is located within the jurisdiction of the Coachella Valley Water District (CWVD) for sewer and wastewater service. Portions of the project at lower elevations will connect via gravity flow to existing 8-inch sewer lines located within Willow Ridge Drive to the west. The remainder of the project at higher elevation will gravity flow to an existing 12-inch sewer line located within Desert Willow Drive to the east. Wastewater will be conveyed to and treated at CVWD’s wastewater treatment plant WRP-10, which also generates recycled water that is primarily used for irrigation of golf courses and large landscaped areas, including the Desert Willow property. ii. Water The development is located within the jurisdiction of the Coachella Valley Water District (CVWD) for water service. As shown in Exhibits 17-19, existing 8-inch, 12-inch, and 18-inch water lines are located adjacent to the site in both Desert Willow Drive and Willow Ridge Drive. An on-site well is proposed for the southeastern portion of the Project site by the lagoon wave machine infrastructure and will supply water for the lagoon. Alternatively, the Project could connect to an existing well, located south of the Project site within the golf course. A Water Supply Assessment will be prepared prior to Project approval to ensure CVWD has adequate water supply and infrastructure to serve the site. On-site irrigation will connect to existing 10-inch, 12-inch, and 15-inch irrigation lines adjacent to the property. Fire flow water would be provided from the proposed 8-inch pipe located in Willow Ridge Drive, and onsite fire hydrants will be provided per Riverside County Fire Department standards. Two infrastructure realignments are required in proximity to the Desert Willow Drive roundabout and Project entrance. These include the realignments of a 20-inch recycled water line and a 12-inch irrigation line (See Exhibits 17-19). iii. Other Utilities The site is served by Southern California Edison (SCE) for electrical services and by Southern California Gas Company for natural gas. Solid waste and recycling services will be provided by Burrtec Waste and Recycling. Telecommunication services will be provided by Frontier Communications and cable television services will be provided by Spectrum. Added description of gravity flow infrastructure Page 371 Exhibit 13 - GRADING AND UTILITY PLAN (Sheet 1 of 3)DSRT SURF Specific Plan Source: The Altum Group; AO Architects, 2021 9.28.21 Revised exhibit Page 372 Exhibit 14 - GRADING AND UTILITY PLAN (Sheet 2 of 3)DSRT SURF Specific Plan 9.28.21Source: The Altum Group; AO Architects 2021 Revised exhibit Page 373 Exhibit 15 - GRADING AND UTILITY PLAN (Sheet 3 of 3)DSRT SURF Specific Plan Source: The Altum Group; AO Architects, 2021 9.28.21 Revised exhibit Page 374 DSRT SURF Specific Plan 50 V. ADMINISTRATION and IMPLEMENTATION A. Application Review Process This Specific Plan is designed to provide guidance to the public, City staff, and decision makers in realizing the objectives of the DSRT SURF Project. According to the Palm Desert Zoning Code, Chapter 25.78, the following findings shall be made by the Council prior to approval of any specific plan or specific plan amendment: 1. Consistent with the General Plan. The specific plan or amendment is consistent with the goals, objectives, and policies of the General Plan. 2. Public Welfare. The specific plan or amendment will not create conditions materially detrimental to the public health, safety, and general welfare. 3. Land Use Compatibility. The specific plan or amendment is compatible with zoning on adjacent properties and ensures development of desirable character that will be harmonious with surrounding properties. 4. Property Suitability. The specific plan or amendment is suitable and appropriate for the location, access, and topography for the development of the subject property. 5. CEQA. The specific plan or amendment has been reviewed in compliance with the provisions of the California Environmental Quality Act. (Ord. 1303 § 3, 2016). Future development within the planning areas will require a Precise Plan application which shall adhere to requirements and review criteria set forth in Palm Desert Zoning Code, Chapter 25.72.030. B. Specific Plan Amendments Specific Plan Amendments required to clarify standards or guidelines, make interpretations of permitted uses, or otherwise required which do not change development standards in this Specific Plan may be made by the Planning Director. Any amendment which changes uses, density, maximum square footage or units, development standards or circulation within the Specific Plan shall require review by the Planning Commission and City Council. C. Financing The majority of Project costs will be financed via investor funds. Other methods of financing infrastructure may be considered. Page 375 DSRT SURF Specific Plan 51 VI. APPENDIX A: GENERAL PLAN CONSISTENCY California Government Code §65450-§65453 permits the adoption and administration of Specific Plans as an implementation tool for elements contained within the local General Plan. The City of Palm Desert General Plan provides guidance for long-term growth and development in the City through comprehensive plans for future development. Consistency with the General Plan is achieved when the various land uses within the Specific Plan are compatible with the goals, policies, and general pattern of land uses contained in the General Plan. Consistency is defined as follows: “An action, program, or project is consistent with the General Plan if, considering all its aspects, it will further the objectives and policies of the General Plan and not obstruct their attainment.” This statement from the Governor’s Office of Planning and Research (OPR) describes how a Specific Plan should be consistent with the General Plan. The discussion below details the DSRT SURF Specific Plan’s consistency with the goals and policies that are set forth in the City of Palm Desert General Plan. 2035 GENERAL PLAN LAND USE AND ZONING DESIGNATIONS LAND USE and COMMUNITY CHARACTER GOAL 1. Quality Spaces. A beautiful city with a balance of high-quality open spaces and high-quality urban areas. Policies 1.1 Scale of development. Require new development along the city’s corridors use design techniques to moderate height and use and ensure compatible fit with surrounding development. 1.2 Open space preservation. Balance the development of the city with the provision of open space, and especially the hillsides surrounding the City, so as to create both high quality urban areas and high quality open space. 1.3 Traffic generation. Balance medium and high intensity/density development with pedestrian-oriented and bicycle friendly design features so as to maximize trip and VMT reduction. 1.5 Community Amenities. Balance the impacts of new development, density, and urbanization through the provision of a high-level of neighborhood and community amenities and design features. Consistency The development of the DSRT SURF Specific Plan (DSSP) will result in improvements the area’s existing environment. These improvements will be in the form of new sidewalks and enhanced landscape areas as well as the construction of a recreational resort center on a currently vacant lot. Consistency analysis remains the same. Only reference to two separate planning areas removed/revised to one overall project area Page 376 DSRT SURF Specific Plan 52 In addition, the architectural style will be reflective of the desert mid-century modern aesthetic. The aesthetic character of the DSSP, including architecture, landscaping, walls and fences, and signage, are described in the design guidelines defined by Chapter III of the Specific Plan. The integration of a signature surf theme with related recreational amenities also supports the goals of the General Plan. The high-quality design attributes of the DSSP, such as enhanced streetscapes and pedestrian walkways, have the potential to increase surrounding property values and create positive fiscal impacts in the City. GOAL 2. Human-Scaled Design. A city designed for people, fostering interaction, activity, and safety. Policies 2.3 Landscaping. Require development projects to incorporate high quality landscaping in order to extend and enhance the green space network of the city. 2.6 Lighting. Require all new street lights in commercial areas to be pedestrian- oriented and scaled, attractively designed, compatible in design with other street furniture, and to provide adequate visibility and security in accordance with best practices for night sky protection. 2.12 Destination Accessibility. Direct the development of new centers, parks, schools, and similar destinations so as to provide all residences within town ¼ mile to at least two amenities. Consistency The DSSP’s carefully designed landscaped buffers and parkway improvements along perimeter will blend into the existing Desert Willow landscapes. Landscape treatments, theme walls, and entry monumentation will visually enhance the currently vacant area. All lighting within the DSSP, with the exception of the surf lagoon, will be subject to the City’s Municipal Code to reduce impacts to the night sky. Specific lighting standards have been developed for the surf lagoon to ensure minimal light spillage onto offsite properties. Since the DSSP is located within the Desert Willow resort development, resort guests may access the DSSP amenities and vice versa. GOAL 4. Districts. A series of unique, destination-oriented districts that provide space for large-format retail, industrial and resort uses in order to increase access to jobs, provide amenities for residents, and enhance the fiscal stability of the City. Page 377 DSRT SURF Specific Plan 53 Policies 4.1 Resorts. Encourage the development of unique resort complexes. Locate resorts in areas of the city where citywide connectivity will not be negatively affected by the design of the project. 4.2 Resort design and connectivity. Allow resorts to be designed as isolated and gated developments as long as through traffic and external connectivity occurs at distances of no greater than 1,300 feet. Exceptions to this may be made where external connection is not possible because of steep slopes, or natural or man-made barriers. Consistency The DSSP’s uses will support balanced growth in the area since it adds to the existing Desert Willow amenities in a unique format by creating surf community in the center of a desert resort city. Unlike any other resort development, the DSRT SURF Specific Plan area will create a different resort complex within an existing resort and maintain the overall image of the site. GOAL 8. Economic Development. A diverse, growing, and resilient local economy. Policies 8.1 Long-term economic development. Support the development and implementation of long-term economic development strategies that seek to establish and keep new businesses. 8.7 Natural environment. Maintain and enhance the natural environment as critical to the attraction of tourists and ensure that new development does not adversely affect the natural environment as a tourist draw. 8.8 Recreational amenities. Strategically utilize City recreational investments to create and enhance development opportunities. Consistency The DSSP contributes to the economic well-being of the City by offering quality development that will provide a diversity of resort and commercial businesses to the employment pool. GOAL 9. Fiscal Stability. A fiscally sound and sustainable city. Policies 8.1 Fiscal impact assessment. For all major development projects, including but not limited to specific plans, annexations and changes in General Plan designations for areas over 5 acres in size, require a fiscal impact Page 378 DSRT SURF Specific Plan 54 assessment to determine possible fiscal impact of the development project and use the information to formulate conditions of approval for the project. 8.2 Efficient growth. Manage growth in a manner that is fiscally sustainable and protects and/or enhances community value. 8.3 Diverse tax base. Guide development and public investments to maintain a fiscally sound city with a sustainable tax base and user fees including property tax, sales tax, transient occupancy tax, utilities user tax and user fees that pay for cost of services. Consistency The City has required performance and market feasibility assessments to be prepared for the DSSP in order to evaluate these impacts to the City. The assessments will also outline the projected growth of the immediate area as a result of the DSSP. Since the DSSP proposes a hotel and commercial uses such as restaurants and retail uses taxes from these services will create a diverse tax base from the implementation of the DSSP. MOBILITY GOAL 2. Parking. An actively managed system of public and private parking facilities that supports future development. Policies 2.1 Public Parking Facilities. Provide new public parking facilities only after applying appropriate techniques to manage parking demand and ensure efficient use of all public and private parking facilities. 
 2.5 Innovative Parking Approaches. Allow the use of innovative parking supply and demand strategies such as shared parking, unbundling parking, and other related items within privately owned parking facilities to allow an appropriate level of flexibility for these private land owners. 
 2.6 Formal Parking Evaluations. Perform formal evaluations of parking capacity on a biannual basis to identify areas where parking is under- or over-utilized. 
 Consistency Primary parking for the hotel and surf center will be provided in the hotel parking garage on the first and second level of the building, and in surface parking adjacent to the buildings. Parking for the residential component will be provided immediately adjacent to the corresponding buildings or in an attached garage. Underground or structure parking is allowed on site. The Parking standards stipulated by the City of Palm Desert were used in order to design the required parking spaces. Table 4 of the DSSP further breakdowns the standards. Page 379 DSRT SURF Specific Plan 55 ENVIRONMENTAL RESOURCES Goal 1. Water Resources. Protected and readily available water resources for community and environmental use. Policies 1.1 Water conservation technologies. Promote indoor and outdoor water conservation and reuse practices including water recycling, grey water re- use and rainwater harvesting. 1.2 Landscape design. Encourage the reduction of landscaping water consumption through plant selection and irrigation technology. 1.3 Conservation performance targeted to new construction. Incentivize new construction to exceed the state’s Green Building Code for water conservation by an additional 10 percent. 1.4 Greywater. Allow the use of greywater and establish criteria and standards to permit its safe and effective use (also known as on-site water recycling). 1.5 Waterways as amenities. When considering development applications and infrastructure improvements, treat waterways as amenities, not hazards, and encourage designs that embrace the waterways. Consistency As stipulated by SB 610 and SB 221 under Water Code Section 10910(a) the DSSP is required to produce a water supply assessment and water supply verification in order to document the sufficiency of the CVWD water supply to meet the demand associated with the proposed land use. CVWD adopted the DSSP WSA in 2019. The DSSP WSA determined that CVWD has sufficient water supplies to meet the demands of the Project for the next 20 years and the anticipated water demand will not substantially deplete groundwater supplies or interfere with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level. The DSSP will also encourage water conservation through techniques such as the use of low volume irrigation systems and drought-tolerant landscaping. Any water features, such lagoons or pools, built in the specific plan area will be designed to minimize the use of excessive amounts of water. In addition, the Project applicant proposes to offset the lagoon’s water demand by participating in the Golf Course Turf Reduction Plan developed by the City of Palm Desert that will replace approximately 1,035,325 square feet of turf with drought-tolerant landscaping Page 380 DSRT SURF Specific Plan 56 Goal 6. Energy. An energy efficient community that relies primarily on renewable and non-polluting energy sources. Policies 6.1 Passive solar design. Require new buildings to incorporate energy efficient building and site design strategies for the desert environment that include appropriate solar orientation, thermal mass, use of natural daylight and ventilation, and shading. Masquerade 6.2 Alternative energy. Continue to promote the incorporation of alternative energy generation (e.g., solar, wind, biomass) in public and private development. 6.3 Energy Efficient Buildings. Encourage new buildings and buildings undergoing major retrofits to exceed Title 24 energy efficiency standards. 6.11 Energy-efficient infrastructure. Whenever possible, use energy-efficient models and technology when replacing or providing new city infrastructure such as streetlights, traffic signals, water conveyance pumps, or other public infrastructure. Consistency A cornerstone of the surf community is conservation and sustainability. In addition to the solar panel design features included in the surf center, passive solar design such as the use of shade structures and building orientation will be used throughout the DSSP area. The DSSP intends to uphold those values by creating structures and spaces that implement green building techniques and design principles, such as using recycled building material where appropriate. The surf lagoon wave machine technology is designed to perform at the highest level and as efficiently as possible. In terms of performance, the system runs at an efficiency level of 92%, thus using the energy at the most efficient levels to generate waves within the lagoon. SAFETY Goal 3. Flood hazards. A community where flooding and inundation hazard are contained within areas reserved for open spaces. Policies 3.1 Flood Risk in New Development. Require all new development to minimize flood risk with siting and design measures, such as grading that prevents adverse drainage impacts to adjacent properties, on- site retention of runoff, and minimization of structures located in floodplains. Page 381 DSRT SURF Specific Plan 57 3.2 Flood Infrastructure. Require new development to contribute to funding regional flood control infrastructure improvements. 3.3 Stormwater Management. Monitor, update, and enforce stormwater management plans in coordination with regional agencies, utilities, and other jurisdictions. 3.4 Open Space for Flood Control. Prioritize open space or uses that serve recreational purposes as a preferred land use within areas of high flood risk. Consistency The DSSP property is located in Zone X, which represents “areas outside of 0.2% annual chance flood.” (Map No. 06065C1615G) as defined by the Flood Insurance Rate Maps (FIRM) prepared by the Federal Emergency Management Agency (FEMA). Development of the DSSP will not added structures in an area that is subject to flood risk. The retention basin planned for the DSSP will be in the form of a lagoon and passive open space. PUBLIC UTILITIES & SERVICES Goal 1. Stormwater. Stormwater management system that leads to clean water, basin recharge and increased water retention. Policies 1.1 Stormwater infrastructure for new development. Require development projects pay for their share of new stormwater infrastructure or improvements necessitated by that development (regional shallow ground water). 1.2 On-site stormwater retention and infiltration. Whenever possible, stormwater shall be infiltrated, evapotranspirated, reused or treated onsite in other ways that improve stormwater quality and reduce flows into the storm drain system. 1.3 Groundwater infiltration. Encourage the use of above-ground and natural stormwater facilities in new development and redevelopment, such as vegetated swales and permeable paving. 1.4 Stormwater re-use and recycling. Encourage innovative ways of capturing and reusing stormwater for non-drinking purposes to reduce the use of potable drinking water. Page 382 DSRT SURF Specific Plan 58 1.5 Recycled water. Work with the CVWD to encourage existing golf courses to connect to its recycled water system. 1.6 Collaborative stormwater management. Encourage collaborative, integrated stormwater management between multiple property owners and sites. 1.7 Low impact development. Require the use of low-impact development strategies to minimize urban run-off, increase site infiltration, manage stormwater and recharge groundwater supplies. 1.8 Green infrastructure in public rights-of-way. Encourage green streets with in-street bio-retention and other forms of stormwater retention and infiltration in streets and public rights-of-way. 1.10 Stormwater in urban context. Development projects shall incorporate stormwater management into landscaping, except in downtown designations where catch basins shall be prohibited. 1.11 Water quality detention basins. Require water detention basins to be aesthetically pleasing and to serve recreational purposes, such as in the form of a mini park. Detention basins designed for active uses are intended to supplement park and open space and should not be counted towards a developer’s minimum park requirements, unless otherwise determined by the Planning Commission or City Council. 1.12 Retention Basins. Encourage storm water retention basins, especially in the City Center Area, to be underground in future development so as to achieve the most efficient use of land and compact development and promote the urban character goals of the General Plan. Consistency The DSSP will implement the standard requirements for the retention of storm flows and participates in the National Pollution Discharge Elimination System (NPDES) to protect surface waters from pollution, as well as maintain the City of Palm Desert’s Municipal Code 8.70.100 (On-Site Stormwater Retention), which requires all new developments to retain the 100-year storm flow on-site and/or off-site. Goal 2. Sewer. Sewer management and facility operations that allow for adequate disposal within the community. Policies 2.1 Sewer system maintenance. Work with the Coachella Valley Water District to ensure sewers are operational and in good working order. Page 383 DSRT SURF Specific Plan 59 2.2 Sewer infrastructure for new development. Require development projects to pay for their share of new sewer infrastructure or improvements necessitated by that development. 2.3 Sewer connections. In the event that a sewer line exists in the right-of-way where a lateral line connection is required to serve a lot, require a sewer connection at the time the lot is developed. Consistency As mentioned above, the DSSP will incorporate the use of the existing sewer and water facilities and infrastructure near the site and new storm drains to fit extended to tie into existing facilities. The DSSP lines will connect to existing lines beneath Willow Ridge and Desert Willow Drive. All new sewer facilities will be constructed and maintained in accordance with applicable standards. Goal 3. Water Supply. Ensure a sustainable, clean, long-term water supply. Policies 3.1 Agency coordination. Coordinate on an ongoing basis with the Coachella Valley Water District, and other agencies responsible for supplying water to the region. 3.3 Water infrastructure. Maintain existing water infrastructure to protect the supply, quality, and delivery of potable water. 3.4 Water infrastructure for new development. Require development projects to pay for their share of new water infrastructure or improvements necessitated by that project. 3.5 Recycled Water. Expanded use of recycled water in existing and new development. 3.6 Citywide water conservation and efficiency. Encourage and promote community water conservation and efficiency efforts, including indoor and outdoor efforts that exceed CalGreen requirements. Consistency The DSSP will incorporated the State’s Water demands and conservation measures will include techniques such as the use of low volume irrigation systems and drought-tolerant landscaping. The lagoon and added water features that will built in the DSSP area will be designed to minimize the use of excessive amounts of water. As required by Water Code Section 10910(f) a Water Supply Assessment was prepared and approved for the DSSP area to assess the condition of the groundwater basin and a sufficiency analysis of the basin to supply the Project area. Coachella Valley Water District (CVWD) adopted the DSSP WSA in 2019 that determined CVWD has sufficient water supplies to meet the demands of the Project for the next 20 years. Page 384 DSRT SURF SPECIFIC PLAN City of Palm Desert Adopted May 2019 Amended September 2021 Page 385 DSRT SURF Specific Plan ii Table of Contents I. INTRODUCTION .................................................................................................................... 1 A. Authority and Scope ....................................................................................................... 1 i. Enabling Legislation ................................................................................................ 2 B. Project Location .............................................................................................................. 2 C. Site Background .............................................................................................................. 2 D. Existing Conditions ........................................................................................................... 6 E. Project Description .......................................................................................................... 6 i. Land Uses ................................................................................................................. 6 ii. Operations ............................................................................................................... 8 F. CEQA Compliance ......................................................................................................... 9 II. DEVELOPMENT STANDARDS .............................................................................................. 10 G. Allowable Uses ............................................................................................................... 12 H. Parking Standards .......................................................................................................... 14 I. Circulation and Emergency Access ........................................................................... 15 III. DESIGN GUIDELINES ........................................................................................................... 17 A. Architecture ................................................................................................................... 17 i. Architectural Themes ........................................................................................... 18 ii. Building Heights and Mass ................................................................................... 22 iii. Building and Design Materials ............................................................................. 26 B. Pathways and Wayfinding ........................................................................................... 27 C. Landscaping .................................................................................................................. 27 i. Conceptual Landscape Plan Zones .................................................................. 28 ii. Landscape Palette ............................................................................................... 30 a) Plants ................................................................................................................. 30 iii. Irrigation ................................................................................................................. 34 iv. Public Space Furniture ......................................................................................... 34 v. Stone ...................................................................................................................... 34 vi. Landscape Lighting .............................................................................................. 37 D. Signage ........................................................................................................................... 37 i. Project Identity and Monument Signage .......................................................... 38 a) Location ............................................................................................................ 38 b) Materials ............................................................................................................ 38 c) Sizing .................................................................................................................. 38 ii. Project Wayfinding Signage ................................................................................ 38 a) Location ............................................................................................................ 38 b) Materials ............................................................................................................ 39 iii. Primary Building Signage ..................................................................................... 39 a) Location ............................................................................................................ 39 b) Materials ............................................................................................................ 40 c) Sizing .................................................................................................................. 40 iv. Retail Signage ....................................................................................................... 40 a) Location ............................................................................................................ 40 b) Materials ............................................................................................................ 40 Page 386 DSRT SURF Specific Plan iii v. Signage Lighting ................................................................................................... 41 vi. Signage Approval Process .................................................................................. 41 E. Walls and Fences ........................................................................................................... 41 F. Lighting ........................................................................................................................... 43 IV. INFRASTRUCTURE ................................................................................................................ 45 A. Roadways ....................................................................................................................... 45 B. Drainage and Flood Control ........................................................................................ 45 C. Public Utilities .................................................................................................................. 46 i. Sewer ...................................................................................................................... 46 ii. Water ...................................................................................................................... 46 iii. Other Utilities .......................................................................................................... 46 V. ADMINISTRATION and IMPLEMENTATION ........................................................................ 50 A. Application Review Process ......................................................................................... 50 B. Specific Plan Amendments .......................................................................................... 50 C. Financing ........................................................................................................................ 50 VI. APPENDIX A: GENERAL PLAN CONSISTENCY .................................................................. 51 List of Tables Table 1 DSRT SURF Specific Plan Land Uses ............................................................................. 6 Table 2 DSRT SURF Development Standards ......................................................................... 10 Table 4 Allowable Uses ............................................................................................................ 13 Table 5 Parking And Loading Standards ............................................................................... 15 List of Exhibits Exhibit 1 Regional Location Map ............................................................................................. 3 Exhibit 2 Vicinity Map ................................................................................................................ 4 Exhibit 3 Project Location Map ................................................................................................ 5 Exhibit 4 Overall Site Plan .......................................................................................................... 7 Exhibit 5 Desert Mid-Century Modern Architecture ............................................................ 18 Exhibit 6 Hotel/Surf Center Architectural Inspiration (sheet 1 of 2) .................................... 23 Exhibit 7 Hotel/Surf Center Architectural Inspiration (sheet 2 of 2) .................................... 24 Exhibit 8 Villa Architectural Inspiration .................................................................................. 25 Exhibit 9 Landscape Palette - Trees ....................................................................................... 31 Exhibit 10 Landscape Palette - Shrubs .................................................................................... 33 Exhibit 11 Landscape Palette - Materials and Site Furnishings (Sheet 1 of 2) ..................... 35 Exhibit 12 Landscape Palette - Materials and Site Furnishings (Sheet 2 of 2) ..................... 36 Exhibit 13 Grading and Utility Plan (Sheet 1 of 3) ................................................................... 47 Exhibit 14 Grading and Utility Plan (Sheet 2 of 3) ................................................................... 48 Exhibit 15 Grading and Utility Plan (Sheet 3 of 3) ................................................................... 49 Page 387 DSRT SURF Specific Plan 1 I.INTRODUCTION The DSRT SURF Specific Plan provides the vision for a recreational and resort development that is authentic to the surrounding desert environment while evoking natural surf environments from around the world. The landscape, architecture, and design will celebrate the blending of natural and man-made elements to create a unique destination surf experience on the beach and in the water. The resort atmosphere and added amenities such as restaurants, bars, and outdoor activities make DSRT SURF the perfect desert escape. "If you're having a bad day, catch a wave." Frosty Hesson A. Authority and Scope A Specific Plan is a document allowed under California law which provides cities and counties with a planning tool for master planning project sites. A Specific Plan, when approved, becomes the zoning ordinance for the project area it covers. The Specific Plan is intended to ensure quality development consistent with the goals, objectives, and policies of the Palm Desert General Plan. The Specific Plan guides the standard of development for the DSRT SURF plan area and is structured to provide a degree of flexibility for future land developers to address market driven changes if necessary. The DSRT SURF Specific Plan establishes and updates the Page 388 DSRT SURF Specific Plan 2 design and development zoning policies applicable to development within the planning area described herein. This Specific Plan also establishes the regulations and standards which serve as the ordinance and development regulation for the planning area going forward. i. Enabling Legislation The authority to adopt and implement the DSRT SURF Specific Plan is granted to the City of Palm Desert by the provisions of California Government Code Section 65450 et seq. As with General Plans, the Planning Commission must hold a public hearing before it can recommend to City Council the adoption of a Specific Plan or an amendment thereto. The City of Palm Desert may adopt a Specific Plan and/or an amendment to the Specific Plan by either ordinance or resolution. (Palm Desert Zoning Code Chapter 25.78 Decisions by the City Council). B. Project Location The Project consists of three Assessor’s Parcels: 620-420-023, 620-400-024 and -620-400-008. The Project is located on the west side of Desert Willow Drive, north of Country Club Drive in the City of Palm Desert, Riverside County, California (See Exhibit 1: Regional Location Map and Exhibit 2: Vicinity Map). The irregularly shaped site is bounded by golf course on its west, south and east sides, the Westin Resort Villas on its southwest corner, and by the Desert Willow Clubhouse parking lot on the north. (See Exhibits 3: Project Location Map). C. Site Background The City of Palm Desert constructed the Desert Willow Golf Resort in 1997-1998. At the time, it consisted of two 18-hole golf courses and remainder parcels planned for a wide range of resort and residential development on a total of 515± acres. Development within the Project has been governed by the North Sphere Specific Plan, which established multiple planning areas within the Project area. Multiple planning areas have developed, including the hotels and restaurants located at the southwest corner of Frank Sinatra Drive and Cook Street; condominium units on the west side of the golf course and east of Portola Avenue; and resort residential projects in the southern half of the Project area. Four vacant development pads remain today, centered around Desert Willow Drive and generally located east and south of the existing clubhouse. The DSRT SURF planning area generally occurs within Planning Area 10 of the North Sphere Specific Plan. Page 389 Page 390 Page 391 Page 392 DSRT SURF Specific Plan 6 D. Existing Conditions The DSRT SURF Specific Plan area consists of irregular shaped lots totaling 17.69 acres. The land is partially developed with the Desert Willow Golf Resort clubhouse parking lots in its northwest corner, on approximately 3 acres. The balance of the site (approximately 14.7 acres), is vacant, desert land, bounded by the existing golf course. The proposed Specific Plan area is designated as “Resort & Entertainment District” on the City’s General Plan Land Use Map, which allows for various types of lodging, retail, commercial services, recreational facilities, along with specialized entertainment with a commercial floor area ratio (FAR) of up to 0.10, and multi-family residential land uses of up to 10 dwelling units per acre (DU/AC). According to the General Plan (2016), the purpose of this District is “to provide for a range of entertainment and resort destination uses that require large amounts of land and that draw visitors to the City such as theme parks, hotels, and sports facilities.” The City’s Zoning Map currently designates the Specific Plan area as “Planned Residential (PR).” Commercial recreation and hotel land uses are allowed in the PR zone only with the issuance of a conditional use permit when not directly related to a permitted residential development. With regard to hotels in the PR zone, the maximum density must be approved by the Planning Commission or Council (Zoning Code Chapter 25.10 Residential Districts). E. Project Description i. Land Uses The DSRT SURF Specific Plan establishes building and development standards for the entire 17.69-acre Project site. This Specific Plan proposes the development of a 5-acre surf lagoon, surf center facilities, up to 350 hotel rooms, and up to 88 residential villas (See Exhibit 4 Overall Site Plan). Parking has been distributed throughout the site and an off- site parking lot has been secured for special event overflow parking (See Exhibit 3 Project Location Map). Table 1 DSRT SURF Specific Plan Land Uses Land Use Max/Min Allowed Surf Lagoon Max 6 acres Surf Center Max 35,000 SF Hotel(s) Max 350 rooms Villas 15 units per acre/88 villas max. Villa Clubhouse Max 3,125 SF Maintenance and Equipment Buildings Max 15,000 SF Landscaping/OS/Pool /Recreational Space Minimum 20% Planning Area Page 393 Page 394 DSRT SURF Specific Plan 8 ii. Operations In addition to overall Project design, it is essential that the operational function of the hotel and surf center complement the residential areas to achieve Project cohesion. The site will provide a variety of recreational and commercial opportunities that tie into the surf resort theme envisioned for the Project. The following section lists potential amenities for the Project. Site Program and Recreational Amenities The following are representative of but not limited to recreational amenities proposed for the Project: • Surf Lagoon • Surf Academy • Lifeguard Stations • Pools and Spa/Jacuzzis • Cabanas and Palapas • Fire Pits • Exterior Movie Projection • Shade Hammocks • Open Lawn Space • Boardwalk/Pier • Kids Play Area • Pickle Ball • Pump Track • Restaurants/Bars/Cafes • Stage/Event Amphitheater • Sand Beach Areas/Beach Club • Yoga, Stretching, Workout Space • Adventure Course (Ropes/Climbing) • Bouldering Features • Bocce Courts • Beach Volleyball • Bike Racks (Rentals and Public Use) • Retail/Merchandise • Outdoor Showers • Flex Space • Tennis/Beach Tennis Page 395 DSRT SURF Specific Plan 9 Surf Lagoon Hours of Operation Surf Lagoon (surfers in water): Summer Hours (May 15-September 30): 6am-12am Winter/Spring Hours (November 1-May 14): 6am-10pm on weekdays; 6am-12am on weekends, during Holidays1 and special events (special events may be on weekdays or weekends). Surf Center: 6am – 2am Music Events: Allowed 7 days a week. Outdoor music/event to end at 12am, indoor music/event to end at 2am. Ticketing/Admission To access the surf lagoon pools and recreational areas, all guests will be required to purchase a Beach Pass. To participate in surf lessons/surf sessions, guests will be required to purchase an additional Surf Pass. The hotel, surf center, shopping, and restaurants will be open to the public. Lagoon Capacity The surf lagoon will accommodate, on average, 70 surfers at any one time with the ability to accommodate 95 surfers for special events. Lagoon use will be sold in 1-hour increments with the average surf sessions lasting 1-4 hours. Special Events Special Events may also be held that could result in 3,500 ticketed spectators. Parking overflow during special events will be located off-site at location(s) to be approved by the City. A shuttle service will be provided during special events to transport visitors to and from offsite parking to the Surf Center. Lagoon Maintenance The surf lagoon will require daily cleaning and may require one annual full-drain for maintenance purposes. In the event of a maintenance emergency, the lagoon will be drained as necessary and heavy equipment may be required to repair damage and/or replace equipment. F.CEQA Compliance In compliance with the California Environmental Quality Act (CEQA), the City identified the preparation of this Specific Plan as a “Project” under CEQA and prepared an Initial Study. The Initial Study found that the Specific Plan had a potential to significantly impact the environment, and that an Environmental Impact Report (EIR) must be prepared. The City circulated to all responsible and trustee agencies a Notice of Preparation (NOP) of an EIR. All comments received in response to the NOP were considered and incorporated into the EIR. The EIR was circulated to all responsible and trustee agencies, and all other interested parties, for a period of 45 days. All comments received in response to the EIR were considered in the Response to Comments prepared for the Planning Commission and City Council. The City Council certified the EIR prior to adopting this Specific Plan, on X X, 2021. 1 Holidays/Holiday periods include the week of Christmas, week of New Years, Martin Luther King Day, Presidential holidays, Memorial Day, Labor Day, the week of Thanksgiving, and Spring Breaks (March 1- April 15). Page 396 DSRT SURF Specific Plan 10 II.DEVELOPMENT STANDARDS This section of the Specific Plan serves as the Specific Plan Area’s Zoning Ordinance. Standards and guidelines which are applied to the Specific Plan Area are described in detail below. When Zoning Ordinance standards and guidelines apply, a reference is made to the appropriate Section of the Zoning Ordinance. The Project site will consist of a surf center, 5±-acre surf lagoon, hotel, surf rentals and lesson space, pool and spa amenities, outdoor activity space, restaurants, bars, and event space. The following table provides a comparison of existing development standards per the PR zoning district and proposed development standard modifications for the DSRT SURF Specific Plan. Table 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF Density Villa Density [PR: Density (du/ac), min – max] 4 – 40 15 du/ac max Hotel Density -- 350 rooms max Building Measurements PR: Height / Number of Stories, max 40’ / 3 50’/ 41 PC-4: Height / Number of Stories, max 55’/ 4 Villa size, max bedrooms per villa -- 4 bedrooms Hotel Room/Suite size, (min SF/ avg. SF per room) 330 SF / 375 SF 330 SF, 375 SF Coverage PR: Building Coverage, max % of Planning Area 50% 50% PC-4: Floor Area Ratio 0.10 Recreational/Lagoon Coverage, min % of Planning Area -- 40% (currently 50%) Surf Center Setbacks Setback from golf course -- 25’ PR: Front Yard, min -- -- Page 397 DSRT SURF Specific Plan 11 Table 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF PR: Side Yard, min -- -- PR: Street Side Yard, min -- -- PR: Rear Yard, min -- -- PC-4: Front Yard, min 30’ -- PC-4: Side Yard, min 15’ -- PC-4: Street Side Yard, min -- -- PC-4: Rear Yard, min 20’ -- Hotel Setbacks Setback from golf course -- 25’ PC-4: Front Yard, min 30’ 20’ PC-4: Side Yard, min 15’ 15’ PC-4: Street Side Yard, min -- -- PC-4: Rear Yard, min 20’ 20’ Villa Setbacks Setback from golf course, min -- 5’ PR/PC-4: Front Yard, min -- 5’ PR: Side Yard combined both sides, min -- 5’ PR: Street Side Yard, min -- 5’ PR: Rear Yard, min -- 5’ Stacked Flats Setbacks Setback from golf course, min -- 20’ PR/PC-4: Front Yard, min -- 5’ PR: Side Yard, min -- 0’ PR: Street Side Yard, min -- 5’ PR: Rear Yard, min -- 10’ Landscaping/Open Space/Recreation PR: Planning Area Coverage, pervious surface, min 25% (total Res lot area) NA PR: Front Yard Coverage, non-pervious surface, max 40% (front yard) NA Page 398 DSRT SURF Specific Plan 12 Table 2 DSRT SURF DEVELOPMENT STANDARDS MEASUREMENT/STANDARD EXISTING DSRT SURF PC-4: Commercial Landscaping (other) coverage, min 20% 20% Landscaping, Specific Plan Perimeter, min -- 5’ Source: Palm Desert Municipal Code; Zoning. 1.Parapets, towers, and similar elements may exceed the 50’ building heigh by no more than 10’. Roof stairwells and elevators may exceed the 50’ building heigh by no more than 15’. PR = Planned Residential (planning area existing zoning/land use) PC-4 = Planned Commercial: Resort and Entertainment. Reference for comparable land use standards proposed under DSRT SURF. PR Development Standards, PDMC Ch. 25.10.050 and/or Residential Landscaping PDMC Ch. 25.52.030 PC-4 Development Standards PDMC Ch. 25.16.050. Special Use Provisions: Hotels Minimum room size PDMC Ch. 25.34.070 G.Allowable Uses The DSRT SURF Specific Plan area is designated as Resort and Entertainment District on the City’s General Plan Land Use Map, which allows for various types of lodging, retail, commercial services, recreational facilities, along with specialized entertainment with a commercial floor area ratio (FAR) of up to 0.10, and multi-family residential land uses of up to 10 dwelling units per acre (DU/AC). The City’s Zoning Map currently designates the Specific Plan area as “Planned Residential (PR).” Commercial recreation and hotel land uses are allowed in the PR zone only with the issuance of a conditional use permit when not directly related to a permitted residential development. With regard to hotels in the PR zone, the maximum density shall be approved by the Planning Commission or Council (Zoning Code Chapter 25.10 Residential Districts). A comparison of existing and proposed allowable land uses are listed in Table 4, below. If a proposed use is not listed in the Table, the Community Development Director, upon written request and in conformance with the provisions of Section 25.72 of the Palm Desert Zoning Ordinance, review the proposed unlisted use and determine whether it is Permitted, requires a Conditional Use Permit or is prohibited. Page 399 DSRT SURF Specific Plan 13 Table 3 ALLOWABLE USES Land Use Existing (PR) DSRT SURF Special Use Provision Residential Uses Assisted living C N Condominium C P Dwelling, duplex N P Dwelling, multifamily C P 25.10.040.A Dwelling, second P P 25.34.030 Dwelling, single-family P P Guest dwelling P P Home-based business P C Planned unit development, residential C P 25.10.040.C Retail, Service, and Office Uses Bed and breakfast N C Condominium hotel C P Hospital C N Hotel C P 25.10.040.J Resort hotel C P 25.10.040.J Timeshares* C P Ancillary commercial -- P Art gallery -- P Art studio -- P Business support services -- P Health club, gyms or studios -- P Liquor, beverage and food items shop -- P Personal services -- P Restaurant -- P Retail -- P Spa -- P Recreation, Resource Preservation, Open Space, and Public Assembly Uses Amusement facility, indoors -- P Amusement facility, outdoors -- P Club, private C P Nightclub -- P Open space (developed or natural) -- P Public park P P Recreational use, commercial C P 25.10.040.G Recreation facility, commercial N P Recreation facility, incidental C P 25.10.040.H Recreation facility, private P P Recreation facility, public C P Theater/auditorium -- C P=Permitted; C=Conditional Use Permit; N=Not Permitted; -- = Use not listed under existing (PR) land use designation. * = The City requires buildout and operation of a hotel prior to buildout timeshares. Page 400 DSRT SURF Specific Plan 14 H.Parking Standards Primary parking for the hotel and surf center guests will be provided in the hotel’s parking garage, located on the first and second floors of the hotel, and in surface parking adjacent to these buildings. Employee parking will be located at the south end of the site by the maintenance and service areas. Through mutual agreement with the City of Palm Desert, 130 parking spaces will be shared with the Desert Willow golf clubhouse. In the event the parking garage reaches full capacity, the hotel shall have a parking plan in place that may include a combination of an on-site valet and off-site shuttle service to and from the overflow parking lot. Off-street parking for the villas shall be provided immediately adjacent to the proposed buildings or in an adjoining structure, such as a garage or carport. Additional street parking is located throughout the planning area and is not restricted to any particular use. Parking and loading spaces, including off-site parking for special events, shall be designed in conformance with Section 25.46.030.D of the Palm Desert Zoning Ordinance, with the following exceptions: •Tandem parking is permitted for villa areas, however, no more than two tandem spaces are allowed with one access to a drive aisle. •Tandem parking is permitted in parking structures; however, a valet service must be required at all times the use is open for business, and the valet parking area is accessible only by the valet service. The following table provides parking standards for the entire Specific Plan area. Page 401 DSRT SURF Specific Plan 15 Table 4 PARKING AND LOADING STANDARDS Measurement/Standard Existing DSRT SURF Commercial/Recreational Parking Restaurants/Bars/Lounges 8 per 1,000 SF 8 per 1,000 SF Surf Lagoon -- 130 Shared Golf + 1.5 per surfer (70 max. surfers) Off-site/Special Events -- 500 stalls Villa Parking Studio and one bedroom 2 stalls per unit 2 per unit Two or more bedrooms 2.5 stalls per unit Hotel Parking Hotels 1 stall per guest unit 1 stall per guest unit Resort Hotels 1.1 stalls per guest unit Stall Dimensions Off-Street Parking Stalls, min. 9’ wide by 18’6” long 9’ wide by 18’ long Off-Street Loading Loading Berth, min L x W 45’ x 12’ 45’ x 12’ Setback to residential, min 50’ 10’ Source: Palm Desert Municipal Code; Zoning, PDMC CH. 25.46.040 Parking Requirements. I.Circulation and Emergency Access Vehicular connectivity within the project will be from a perimeter Promenade with two public access points on Desert Willow Drive. The driveway furthest north will be the primary entrance for the hotel and surf center. The Promenade also provides emergency access to the entire site, with a third gated emergency access point located at the western corner of the site that connects to Willow Ridge Road. Internal circulation will primarily be designed for pedestrians with the exception of emergency lifeguard vehicles, which will have access to the Lagoon area and boardwalk for emergencies and maintenance vehicles for transporting equipment and daily upkeep of the lagoon and surrounding area. Guests and residents are encouraged to leave their vehicles parked and instead use pedestrian walkways, bicycles or golf carts to move around the site. Page 402 DSRT SURF Specific Plan 16 Circulation plans for the Project shall adhere to the design guidelines set forth in this Specific Plan. Street improvements, including curbs, gutters, paving and sidewalks, shall adhere to requirements and development standards set forth in Zoning Code Chapter 25.10.B.13, which states: “Required Width of Private Roads. With no parking, the private roads shall be 20 feet wide. With parking on one side, 32 feet wide. With parking on two sides, 40 feet wide. The roadways shall be a minimum of asphaltic concrete with concrete curbs and gutters as approved by the Director. Standards of design and construction of roadways, both public and private, within the project may be modified as is deemed appropriate by the City, especially where it is found that the development plan provides for the separation of vehicular and pedestrian circulation patterns and provides for adequate off-street parking facilities.” Page 403 DSRT SURF Specific Plan 17 III. DESIGN GUIDELINES A. Architecture All buildings constructed onsite shall maintain a consistent character carried out by quality materials and design that are evocative of the surf resort theme proposed within this Specific Plan. Architecture must embrace and incorporate authentic materials, curated in a way that is not overly designed - such as a natural weathered look found in genuine surf environments. It is encouraged that building design features be multi-functional, including shade structures that change with the season and creative seating designs that are integrated into the landscape and building features. Building design shall be unique to the site in that the configuration shall take advantage of and preserve the surrounding vistas while integrating into the existing character of the surrounding Desert Willow property. Various architectural characteristics include: • Blending artificial and natural elements for functional purposes (shade, seating, etc.) to integrate into the environment; • Embrace and integrate the beach into the desert, think dunes to surf; • Encourage intuitive and organic wayfinding designs; Page 404 DSRT SURF Specific Plan 18 • Consider irregular roof lines that encourage unique designs with added functionality for shade and place-making; • Incorporate dynamic and seasonal shading strategies for exterior occupied space; • Encourage the use of eco-friendly materials that have been recycled and upcycled reminiscent of the natural and relaxed feeling of the property. i. Architectural Themes DSRT SURF reflects the natural environment and the Desert Modern theme, which blends contemporary and Mid-Century styles. Buildings must have clean lines, play off horizontal and vertical planes, and incorporate natural materials. Desert Mid-Century Modern Desert Mid-Century Modern is an architectural style characterized by clean simplicity with the intention of blurring the lines between indoor space and outdoor living. This blending with nature is achieved by emphasizing the use of windows and open floor plans when designing indoor spaces. What makes “Desert Mid-Century Modern” unique is the opportunity to design buildings tailored to the warm California climate by incorporating passive cooling techniques, such as the use of open breezeways, ample glazing, angular construction, light facades, and outdoor living space. Simple post-and-beam steel-framed buildings are often used due to the material’s resilience in the harsh desert climate, which also promotes a sleek modern design. Page 405 Page 406 DSRT SURF Specific Plan 20 While in accordance with the prevailing architectural theme, arrival points and building entrances must receive special treatments consistent with the materials discussed in this document. Generous use of desert landscaping, natural materials, and interesting monument signage assist in the creation of a distinctive sense of place that will be carried out throughout the Project. Architectural elements that provide shade and create shadow lines, such as building projections, covered walkways, arcades, and other human scale openings shall be included to reduce the impact of building mass and create visual interest. The means of enclosure to courtyards and balconies shall be visually permeable where appropriate and the stepping back of upper floors should also be utilized to further reduce the visual impact of building mass and maximize view corridors and viewsheds of the mountain vistas. It is also common to see rooflines echoing the surrounding mountains with “butterfly roofs,” or “V roofs,” which are characterized by an inversion of a standard form roof, with two roof structures sloping down from opposing edges towards a middle point of the roof. Preserving and Enhancing Viewsheds The Specific Plan area enjoys views of the surrounding San Bernardino and San Jacinto mountain ranges. As building heights within the Specific Plan generally exceed those previously existing in the surrounding area, it is essential that architectural elements and building components be varied to reduce the overall perception of mass, resulting in graduated frontages that allow generous view corridors. A particularly distinctive viewshed will be created by the opening of the arrival plaza between the surf center and the hotel. Views from the arrival plaza looking southeast between the two buildings shall be unobstructed to the greatest extent possible to preserve the viewshed of the surf lagoon against the dramatic mountain backdrop. Creating Gathering Space One of the overarching goals of this Specific Plan is the thoughtful creation of public gathering space to encourage friendly interactions between guests. This playful co- mingling is achieved by both passive and intentional design. Landscaping will be utilized as a functional seating design element throughout the site by encouraging the use of low-rise block and/or stone walls that serve to define landscaped areas while also providing casual seating throughout the property. Open lawn and sandy beach areas will be strategically placed throughout the property in proximity to the lagoon and pools to encourage guests to create their own hangout space, which is reminiscent of an authentic beach experience. Other Project components that provide intentional Page 407 DSRT SURF Specific Plan 21 hangout space include restaurants and bars, cabanas, lounge chairs, fire pits, and recreational activity space. The combination of designed gathering points and freeform hangout space promotes a destination resort atmosphere envisioned for the Project. Sustainable Building and Energy Efficiency Conservation and sustainability are common values amongst the surf community and encouraged throughout the DSRT SURF Project. Green building techniques and design principles should be implemented throughout DSRT SURF. DSRT SURF structures shall utilize passive design principles that are unique to the site and thus minimize the consumption of energy and maximize user comfort as much as is practicable. Roof overhangs, supplemental shading, strategic glazing ratios, building orientation and daylighting shall be considered in concert. Materials shall be chosen for resiliency as much as for aesthetics. Interior spaces shall be designed to be an extension of the outside and not require conditioning where (and when) practicable. Passive solar design has been implemented in Palm Desert and the Coachella Valley for a number of years, through the use of shade structures and building orientation. Passive solar design should be part of building design to the greatest extent possible through deep recesses for balconies which shield building interiors; window placement on exposed wall faces; and use of structures and trees to shade public or private open spaces, and limit heat sink effects. As technology continues to expand and improve, solar energy can be harnessed to lower the energy demand of the Project. Active solar panel design should also be considered throughout the Project. The surf lagoon wave machine technology is designed to perform at the highest level and as efficiently as possible. In terms of performance, the system runs at an efficiency level of 92%, thus using the energy at the most efficient levels to generate waves within the lagoon. The versatility of the technology permits the number of waves to be adapted Page 408 DSRT SURF Specific Plan 22 to the number of surfers at any given time. In this way, the fixed consumption of the installation is reduced to a minimum, and electricity consumption has a direct correlation to wave generation without unnecessary energy waste. DSRT SURF also promotes the use of products and materials that have a positive economic, social and environmental impact and focuses on minimizing the energy involved in extracting, processing, transporting, maintaining and disposing of materials associated with construction of the machinery. The landscaping palette for DSRT SURF is designed to minimize the use of water for irrigation through the installation of highly efficient irrigation systems, plant-specific emitters, and using drought tolerant desert landscaping. Recycling of materials within DSRT SURF should be made as simple and accessible as possible. Although centralized solid waste disposal is likely throughout the Project, each building should be designed to make the recycling of materials easy and convenient. If trash chutes or centralized sorting areas are designed in buildings, they must include a recycling component. Finally, open spaces within the Project will include furnishings and finishes which should to the greatest extent possible be made of sustainable and/or recycled materials. A broad range of products are now available, with more being introduced every year, which reuse materials in their construction. ii. Building Heights and Mass The Specific Plan allows for development where careful attention to appropriate building height, scale and massing will be essential to creating space and enhancing the surf resort experience. The majority of the planning area will be pedestrian oriented, and all buildings should be sensitively designed to the human scale with active, pedestrian friendly frontages and pathways. The DSRT SURF Specific Plan allows for a maximum building height of 50 feet without articulation. Elements such as awnings, balconies, roof overhangs, or trellises that protrude from the building elevations are encouraged to provide a unique design and additional shade. The following exhibits provide architectural inspiration for the hotel and villas, and should be considered during the precise planning process. Page 409 Page 410 Page 411 Page 412 DSRT SURF Specific Plan 26 iii. Building and Design Materials The DSRT SURF architectural style is defined by an authentic and organic palette of complementary materials and finishes. While consistent with the broader theme, it is essential that materials, colors and finishes are appropriate to the architectural style of individual buildings. Intense sunshine is a prevailing feature of the desert environment and textured surface finishes on which interesting shadow effects can be achieved will contribute much to distinctive local character. The following materials are encouraged in building design: • Weathered tropical hardwoods such as ipe for pathways and walls; • Ocotillo branch screens and trellises to provide shade with natural materials and interesting textures; • Stacked stone for walls, fencing, and seating; • Sand finished concrete for pathways to create a beachy texture; • Wood siding commonly used for coastal buildings; • Painted steel, rusting steel, and metal roofs will naturally weather creating an authentic look. Page 413 DSRT SURF Specific Plan 27 B. Pathways and Wayfinding The streetscape and wayfinding concepts are intended to unify the surf center, lagoon, hotel and residential uses in a cohesive manner. The goal of the internal pathway theme is to encourage organic wayfinding designs with natural materials juxtaposed with artificial materials (such as boardwalks, sand, grass, and concrete) to suggest organic circulation. Haphazard path directions promote the feel of natural wayfinding consistent with natural beach environments. Examples of creative wayfinding include: • A mix of pathway materials, such as concrete, boardwalks, sand, and grass; • Playful pathway directions that avoid 90-degree angles; • Interesting wayfinding signage using natural and/or weathered materials; C. Landscaping The landscape design character at DSRT SURF will project the relaxed surfing beach character of Baja California, where the desert meets the ocean. At DSRT SURF, the use of rustic stone, wooden boardwalks, and casual arrangements of desert compatible plants creates a setting for guests to unwind and engage with the dynamic surfing lagoon. Another goal of the landscape is to complement the character of the landscape at Desert Willow, with an emphasis on desert compatible plant species. The plant species selected at the perimeter of the Project will be species that are currently being grown in the adjacent landscape areas at Desert Willow. The goal is to have DSRT SURF fold seamlessly into the overall landscape character of Desert Willow. The perimeter landscaping will subtly provide screening between DSRT SURF and the golf course, while maintaining views outward to the San Jacinto Mountains. The perimeter landscaping will also use wind tolerant plantings to buffer the Project from the northwesterly winds and mitigate the potential for wind-blown sand. The landscape at DSRT SURF has been designed to celebrate the bold forms, textures, and blooms of succulents and cacti that are adapted to the climate of the Coachella Valley. Varied plant species have been selected and placed to create organic compositions that display the unique colors, textures and forms of novel and memorable plant species. Page 414 DSRT SURF Specific Plan 28 i. Conceptual Landscape Plan Zones The landscape for DSRT SURF has been broken down into four conceptual landscape plan zones. ZONE 1: PERIMETER LANDSCAPE The perimeter landscape will be comprised of evergreen trees and shrubs that are either native or native adaptive. Plants that are currently growing in adjacent landscaped areas at Desert Willow will be incorporated into the plant palette. Plants will have dense evergreen foliage to create a vegetative windbreak or to screen selective views into and outward from the site. Evergreen groundcover plants and angular crushed gravel will be placed to assist in bank stabilization and to reduce wind-blown sand. ZONE 2: PROJECT ENTRY The landscape at the Project entry at Desert Willow Drive will have Fan Palms that provide vertical punctuation to create a sense of arrival and assist with wayfinding. A landscaped median will include additional Fan Palms that will be held back from the intersection so that views of on-coming traffic are not blocked. Project signage will be incorporated into the entry landscape along with LED low voltage up-lights on the palm trees and entry sign. ZONE 3: LAGOON BEACH The zone between the lagoon, hotel and villas is referred to as the ‘Lagoon Beach’. Meandering pathways make their way around the pool and gathering spaces to concrete stairs and an accessible ramp to access the beach level. The concrete paving will have a sand finish to provide the needed slip resistance and ‘sand beach’ character. To strengthen the beach character of the landscape, tropical hardwood decking is inlaid flush into the pavement to suggest beach boardwalks. Cabanas, day beds and chaise lounges line the sand beaches invoking the destination resort feel. Crushed gravel will cover the planting areas to reduce potential blown sand. Page 415 DSRT SURF Specific Plan 29 Located at the Lagoon Beach zone are pools and spas with lounging areas and day beds creating a relaxing, laid back environment. Palms and accent trees are organically interspersed throughout the beach zone to add to the Baja California landscape concept. Most of the trees at the Lagoon Beach will be small textured, evergreen trees located to provide the maximum afternoon shade. The trees will be desert compatible, with minimal litter or pollen production. A variety of tree sizes will be planted to offer varied tree heights and tree ages. Desert shrubs and succulents will have bold textures, colorful blooms, and a variety of foliage colors; variegated, blue-green, or olive-green colors. Shrubs with spines or thorns will be set back from the edge of walkways. ZONE 4: VILLAS, STACKED FLATS, AND CLUBHOUSE The landscape character at the villa and stacked flats sites will have a more intimate, residential scale as compared with the other landscape zones. Large canopy, small textured evergreen trees are located to shade the parking stalls and the pedestrian walkways from the afternoon sun. Shrubs and accent plants will display a variety of colorful foliage and flowers. Pedestrian paving will be a sand finished concrete that will complement the native stone and gravel and provide slip resistance. Residents will have access to a private clubhouse and swimming pool and spa overlooking the lagoon. From the pool deck are stair and ramp pathways leading to the lagoon boardwalk. Common areas include a large lawn space for gatherings and events, recreational areas, cabanas and lounge space. Palm trees are limited to the pool/spa patios and clubhouse common areas. Landscaped areas adjacent to villas may be landscaped with turf block, decomposed granite, or similar material to be used for additional parking, seating areas, and other gathering spaces. Page 416 DSRT SURF Specific Plan 30 ii. Landscape Palette a) Plants Plant material has been selected using WUCOLS water use calculations with preference given to low water use plants. Plant material native to tropical regions on the planet have been excluded due to their irrigation requirements and the ‘tropical’ character of their foliage. Given the surfing, swimming focus of this Project, plants and trees that produce excessive leaf, flower, seed and pollen litter that could end up in a water filtration system are to be avoided. Trees Entry Plaza tree species were selected for their upright, vertical form that will assist visitors with wayfinding. The trees will be placed to frame views of the mountains and of the lagoon. Parking Area trees will be evergreen and tolerant of seasonal winds and provide shade to parking stalls and pedestrian walkways. The placement of trees will avoid casting shade onto the photo voltaic panels on the parking lot canopies. Promenade trees will have an informal alignment and spacing. Their locations will be selected to buffer views both into and out from the site. The varieties will be evergreen and wind tolerant. Lagoon Beach tree species will include both evergreen shade trees and clusters of Palms. The shade trees will have small textured evergreen foliage and will produce minimal litter. They are placed in informal groves with varied tree heights at time of planting. Perimeter Landscape tree species have been chosen to complement or mimic the golf course landscaping. They will be evergreen, tolerant of seasonal winds and provide judicious screening as required. They will be placed in informal, natural appearing groves comprised of a variety of heights. Exhibit 9 provides a visual list of tree species representative of the palette envisioned for the Project. Page 417 Page 418 DSRT SURF Specific Plan 32 Shrubs The shrub species have been selected for their ability to tolerate wind and afternoon heat. Shrubs that are sensitive to afternoon heat have been placed in shaded north or east facing exposures. Wind tolerant shrubs have been used to create vegetative windbreaks along the perimeter of the Project. In areas of greater visibility, plants have been selected for their variety of foliage colors and forms. At the lagoon beach, shrubs have been chosen for their cleanliness and compatibility with hardscape surfaces. Exhibit 10 provides a visual list of shrub species representative of the palette envisioned for the Project. Accent Plants Accent plants will comprise heat and drought tolerant succulents and cacti. Accent plants will be primarily located in high traffic areas of the Project. Preference has been given to plants with bold sculptural form, large texture and dramatic blooms. Spineless varieties of cacti have been incorporated into the palette. Any accent plant with sharp spines or thorns will be kept away from walking paths. Page 419 Page 420 DSRT SURF Specific Plan 34 iii. Irrigation The irrigation system will be computer controlled and extremely water efficient. The irrigation controller will communicate with a weather station so that the frequency and duration of the irrigation will be adjusted to hourly changes in the weather. The irrigation layout will be zoned to isolate landscapes with similar sun exposures and plant communities. All shrub beds will be irrigated by drip irrigation emitters and trees will be irrigated on zones separate from the shrubs. The water use calculations for this system will be prepared and submitted per CVWD irrigation design requirements. iv. Public Space Furniture The furniture selected for DSRT SURF will be durable and user friendly. Benches will include benches with and without backs. The furniture seating surfaces will be either tropical hardwood or aluminum chosen for its high durability and low heat retention. Movable chairs and tables, incorporated into areas adjacent to food and beverage service, will allow guests to customize the furniture arrangements. Casual seating is encouraged on eighteen-inch-high seat walls and stone boulders located throughout the Lagoon Beach. Customized canvas shade sails are located adjacent to architecture or screen walls to create areas of shade at high volume use areas. Trash receptacles will be durable stainless steel and easy to service. Bicycle racks will be located at prominent access points and will be made of tubular stainless steel. v. Stone Native stone boulders will be placed strategically within the planting beds to provide a native landscape character and to assist in soil retention. Some boulders are located to provide casual seating for guests. The boulders will be sized between two and six feet across. The landscape beds will be covered in either round river cobble or angular crushed rock. This will provide additional texture to the landscape and assist in limiting blowing sand. Native stone will also be used in retaining walls and 18-inch-high seat walls. The stone will be either dry set, mortar set, or used in a gabion wall retention system. Exhibits 11 and 12 provide a visual list of furniture, stone, fencing, and shade structures representative of the palette envisioned for the Project. Page 421 Page 422 Page 423 DSRT SURF Specific Plan 37 vi. Landscape Lighting Landscape lighting will include tree and shrub up lights, path lights, and step lights. All lighting will be low voltage and have low maintenance LED fixtures. The selective use of up lights will limit their numbers to only high-profile specimen tree and shrubs. The lights will be angled to reduce glare and hot spots. The goal is to showcase the lighted element and not the light source. D. Signage To ensure a cohesive overall Project design, the entire planning area will be subjected to these same signage program standards and guidelines. Materials will be consistent with the overall Project material palette and in keeping with the desert modern theme established in this Specific Plan. The overall intent of this section is to describe signage that appears consistent with the materiality of the Project and will weather over time. All signage will be located in a manner that provides optimal efficacy of the overall signage program balancing the need for identification and wayfinding while maintaining a discreetly curated sense of place. Care shall be exercised to minimize the overuse of signage and thus reduce visual clutter around the Project. All Project signage will comply with the local building code and the Americans with Disabilities Act (ADA) and will be approved by the City. Signage will comply with the City’s Zoning Code, Chapter 25.56 and building code pertaining to clearances and sizes, except where provided below. Typography shall be coordinated across the entire Project. Creative design in signage is encouraged. Variations to the standards and materials provided below can be permitted with approval of the Community Development Director. Corporate logos and typestyles are permitted within the parameters set forth below. Page 424 DSRT SURF Specific Plan 38 i. Project Identity and Monument Signage a) Location Project Identity Monument Signage will be located at the primary entrance at Desert Willow Drive in the separated median, or immediately adjacent to the separated median. Signage at the secondary drive onto Desert Willow Drive shall be treated as Project Wayfinding Signage thus ensuring the majority of vehicular traffic enters the Project off the primary entrance at Desert Willow Drive’s roundabout. b) Materials Monument signs shall be constructed in stone or weathering steel or a combination thereof. Narrative content shall be cast or carved into the primary material or shall be additive in the form of individual cast letters on stand-offs or shall be subtracted (e.g. laser cut) from a weathering steel plate placed over the primary material. Stone walls with signage shall be reserved for Project identity signage or principal Project component signage (e.g. The Surf Center, Hotel identity, Villa identity) and shall be grand in scale. c) Sizing Primary narrative content, either positive or negative shall be a minimum of 9” and a maximum of 24” and secondary narrative content shall be no larger than 60% of the height of the primary content. The overall size of the Project monument signage shall be no taller than 7’ measured from adjacent grade and shall be no wider than a maximum proportion of 2.5 times the height. ii. Project Wayfinding Signage Project wayfinding signage is an opportunity to reinforce the overall cohesion of the Project across all phases and programs. a) Location Wayfinding signage shall be located at all major transitions between Project programs (e.g. Surf Lagoon, Hotel, Surf Center, Villas) and minor Project programs (e.g. Restrooms, changing areas, pools, etc.) Wayfinding signage shall be pole or building mounted and Page 425 DSRT SURF Specific Plan 39 narrative content shall be placed within 3’ and 5’ elevation above adjacent grade so that the content is easily read by standing pedestrians. Wayfinding signage shall be placed adjacent to traffic areas in landscaped areas such that it is readily visible. However, care shall be taken to avoid obstructing primary view corridors of the Lagoon or other Project amenities. b) Materials Project wayfinding signage will evoke the beach style created by the architecture, and provide information at different scales. Primary wayfinding information (e.g. directions or simplified descriptors for program) can be reduced to simple graphics or letters that are cut into the plate/post. Secondary wayfinding information may be printed on a contrasting element mounted to the primary surface or may be etched into the surface. iii. Primary Building Signage a) Location Primary building signage shall be located at, or proximate to, the primary public entrance to the building in question. Page 426 DSRT SURF Specific Plan 40 b) Materials Primary building signage shall be of the same or similar materials as the Project identity signage. c) Sizing Primary narrative content, either positive or negative shall be a minimum of 9” and a maximum of 24” and secondary narrative content shall be no larger than 60% of the height of the primary content. Primary building signage may be graphically incorporated into the building skin provided the building skin is a natural material (e.g. rammed earth, natural wood siding, stone, etc.). Graphically incorporated signage shall not be limited in size. Narrative content that is subtracted from other materials in the “field” from which it is subtracted shall be no taller than 3’ and no wider than a maximum proportion of 2.5 times the height. The overall size of the Primary Building Signage shall not be limited. iv. Retail Signage a) Location Retail Signage shall be mounted directly to buildings in the form of letters on standoffs or directly applied rather than integrated into a complete sign. This allows the building façade material to read behind the sign. Blade signs may be considered. Plate or sheet material may be considered if the narrative content is subtracted from the sign and the building façade material is the relief. b) Materials Retail signage shall be of natural materials consistent with this section or painted black, grey or white. Page 427 DSRT SURF Specific Plan 41 v. Signage Lighting Cast surfaces or additive content shall be face illuminated from concealed sources. Laser or otherwise cut narrative content shall be illuminated from behind the material from which the content was subtracted. Wayfinding signage shall be illuminated internally, or by concealed illumination, or by general building illumination if available. vi. Signage Approval Process Signage program(s) shall be approved by the Architectural Commission. Signage program(s) can be submitted with Precise Plan applications, or subsequent to Precise Plan applications. E. Walls and Fences DSRT SURF is being developed as a unified, single Project. Perimeter walls between the surf lagoon, hotel and villas are prohibited. Screen walls are to be limited to only those required for privacy or to block views into service areas, loading docks and similar back of house facilities. Surf Lagoon Fencing surround the lagoon will be installed if necessary, to satisfy the current pool fence code requirements. Gates that satisfy the current pool fence code requirements will be located at each entry point to the surf lagoon/beach area. There will be a minimum 4- inch on-center spacing for the rails or cables for security purposes. There are locations where a building, structure, or wall will provide the required security in lieu of the fence. The fence will occur between any gaps between these structures. A minimum 4-foot clear zone between the top or bottom riser of a staircase and the fence gates is required to address ADA accessibility code. Walls shall be permitted at the ground level only to screen loading dock facilities, pool and lagoon maintenance equipment, and trash enclosures. Walls shall not be allowed to exceed 6 feet in height, as measured from finished grade. Walls shall be constructed of split faced block, precision block, wood, stucco or stone. Page 428 DSRT SURF Specific Plan 42 Wrought iron fencing, decorative block/rock walls or tubular steel fencing no higher than 3-feet in height shall be permitted to enclose outdoor use areas, such as restaurant terraces and lounge areas. Within the parking garage and service areas, chain link fencing shall be permitted to enclose equipment or storage areas only. The chain link fencing shall not exceed 6-feet in height. Hotel and Villas Adjacent to hotel, walls shall be permitted at the ground level only to screen loading dock facilities. Walls shall not be allowed to exceed 6 feet in height, as measured from finished grade. Walls shall be constructed of split faced block, precision block, stucco or stone. No other material shall be permitted. Wrought iron fencing, decorative block/rock walls or tubular steel fencing no higher than 3 feet in height shall be permitted to enclose outdoor use areas, such as restaurant terraces and lounge areas. Fences and gates that satisfy the current pool fence code requirements will be located at each entry point to the surf lagoon/beach area. There will be a minimum 4-inch on-center spacing for the stainless-steel cables for security purposes. No chain link fencing shall be permitted at or above ground level in any part of the hotel development. Page 429 DSRT SURF Specific Plan 43 Within the parking garage and service areas, chain link fencing shall be permitted to enclose equipment or storage areas only. The chain link fencing shall not exceed 6-feet in height. Adjacent to residential/villa development, walls and fences shall be permitted at the ground level to screen entryways and courtyards. Walls and fences adjacent to a street may not exceed 6-feet in height, as measured from finished grade. Walls and fences on the interior of a building, adjacent to common area open space may not have a visual obstruction that exceed 3 feet in height as measured from finished grade. Glass may be permitted above the 3-foot height threshold, but combined height shall not exceed 6 and a half feet. Walls and fences may be constructed of wrought iron, tubular steel, glass, split face block, precision block, stone, stucco, wood, or decorative metal siding (non- reflective). No chain link fencing shall be permitted at or above ground level. F. Lighting Lighting will be used for landscaping, pathways and stairways, monuments and signs, and security. With the exception of the surf lagoon, all developments within the Specific Plan area are subject to the outdoor lighting requirements set forth in Chapter 24.16 of the Palm Desert Municipal Code. Requirements include architectural outdoor lighting, public street lighting, light trespass standards, holiday exceptions, and time of operation. The following images are example fixtures proposed for the planning area. Page 430 DSRT SURF Specific Plan 44 Surf Lagoon Lighting Standards Lighting for the surf lagoon will require both in ground lighting (flush with the lagoon bottom), lighting in the lagoon side walls, as well as stadium-like lighting above ground to ensure all portions of the lagoon are properly lit for night surfing. The following lighting standards have been developed specific to the surf lagoon to ensure minimal light and glare spillage onto surrounding properties, while optimizing surfer safety. Technology: LED technology positioned in a manner that focuses light directly onto the lagoon to prevent excess light and glare spillage onto neighboring land uses. Light Pole Height: 80 feet maximum. Hours of Operation – Pole Lighting: In Summer (May 15-September 30), pole lighting will be permitted from dusk until 12 AM 7 days a week. In Winter/Spring (November 1-May 14), pole lighting will be permitted from dusk until 10 PM on weekdays, and until 12 AM on weekends, Holidays and during special events. For safety purposes, lighting within the lagoon will be required after hours until dawn. Pole lighting will be permitted in the early hours of operation (6-7am) in the event that natural lighting conditions are inadequate for surfer safety. A lighting plan will be submitted to the City prior to the issuance of building permits to ensure swimmer/surfer safety and that light trespass onto neighboring land uses is minimized. Page 431 DSRT SURF Specific Plan 45 IV. INFRASTRUCTURE The DSRT SURF Project occurs in an area of Palm Desert which is fully developed. As such, most infrastructure, including roadways, water, sewer, and utilities, are in place in the area. It is expected that with implementation of the Specific Plan, the majority of existing trunk lines will remain with minor relocations, and on-site extensions will occur to service individual development components throughout the site. A detailed description of all existing and proposed infrastructure for the Project is provided below. A. Roadways Primary Project entrance ingress and egress will occur at the northeast corner of the site from the existing Desert Willow Drive roundabout. A secondary driveway will be provided approximately 240 feet southeast of the primary access point but will only be used for guest egress and emergency access. Primary vehicular circulation within the Specific Plan area will be from a perimeter roadway or “Promenade” that connects both Planning Areas. The Promenade right of way will range from 24 to 30 feet wide with a single lane of traffic in each direction. Parking will be provided in designated driveways (villas), parking lots and/or structures within the appropriate Planning Area. On-street parking will not be permitted. Two emergency access points will be provided; one from the secondary driveway located southeast of the site entrance, and one gated access point from the neighboring Desert Willow Westin Villas property to the west via Willow Ridge Drive. B. Drainage and Flood Control Storm runoff generated on-site is designed to be conveyed to the adjacent South Golf Course via an underground storm drain piping system in a similar manner to the systems employed by existing adjacent resort developments. The Project will connect to existing 24-inch storm drain lines and proposed underground systems to outlet on-site runoff to the adjacent golf course consistent with the existing South Golf Course Runoff Management Plan. Disposal of accumulated water will take place by infiltration, assisted by the installation of drywells. The surf lagoon will require regular cleaning and maintenance resulting in the need to dispose of lagoon water. Lagoon water will be drained in a similar fashion to stormwater, in that it will be directed to the adjacent South Golf Course via an underground storm drain piping system. Stormwater and lagoon water will be discharged into an existing lake on the golf course that is currently used for stormwater retention and landscape irrigation. Stormwater infiltration will be assisted by the installation of drywells. Page 432 DSRT SURF Specific Plan 46 C. Public Utilities The infrastructure that will serve the development is described below and is designed to provide a coordinated system of infrastructure and public services to adequately serve the plan area at full build out. The infrastructure and utilities plan identify standards relative to land use for the plan area and establishes the infrastructure and public service policies. i. Sewer The development is located within the jurisdiction of the Coachella Valley Water District (CWVD) for sewer and wastewater service. Portions of the project at lower elevations will connect via gravity flow to existing 8-inch sewer lines located within Willow Ridge Drive to the west. The remainder of the project at higher elevation will gravity flow to an existing 12-inch sewer line located within Desert Willow Drive to the east. Wastewater will be conveyed to and treated at CVWD’s wastewater treatment plant WRP-10, which also generates recycled water that is primarily used for irrigation of golf courses and large landscaped areas, including the Desert Willow property. ii. Water The development is located within the jurisdiction of the Coachella Valley Water District (CVWD) for water service. As shown in Exhibits 17-19, existing 8-inch, 12-inch, and 18-inch water lines are located adjacent to the site in both Desert Willow Drive and Willow Ridge Drive. An on-site well is proposed for the southeastern portion of the Project site by the lagoon wave machine infrastructure and will supply water for the lagoon. Alternatively, the Project could connect to an existing well, located south of the Project site within the golf course. A Water Supply Assessment will be prepared prior to Project approval to ensure CVWD has adequate water supply and infrastructure to serve the site. On-site irrigation will connect to existing 10-inch, 12-inch, and 15-inch irrigation lines adjacent to the property. Fire flow water would be provided from the proposed 8-inch pipe located in Willow Ridge Drive, and onsite fire hydrants will be provided per Riverside County Fire Department standards. Two infrastructure realignments are required in proximity to the Desert Willow Drive roundabout and Project entrance. These include the realignments of a 20-inch recycled water line and a 12-inch irrigation line (See Exhibits 17-19). iii. Other Utilities The site is served by Southern California Edison (SCE) for electrical services and by Southern California Gas Company for natural gas. Solid waste and recycling services will be provided by Burrtec Waste and Recycling. Telecommunication services will be provided by Frontier Communications and cable television services will be provided by Spectrum. Page 433 Exhibit 13 - GRADING AND UTILITY PLAN (Sheet 1 of 3)DSRT SURF Specific Plan Source: The Altum Group; AO Architects, 2021 9.28.21 Page 434 Exhibit 14 - GRADING AND UTILITY PLAN (Sheet 2 of 3)DSRT SURF Specific Plan 9.28.21Source: The Altum Group; AO Architects 2021 Page 435 Exhibit 15 - GRADING AND UTILITY PLAN (Sheet 3 of 3)DSRT SURF Specific Plan Source: The Altum Group; AO Architects, 2021 9.28.21 Page 436 DSRT SURF Specific Plan 50 V. ADMINISTRATION and IMPLEMENTATION A. Application Review Process This Specific Plan is designed to provide guidance to the public, City staff, and decision makers in realizing the objectives of the DSRT SURF Project. According to the Palm Desert Zoning Code, Chapter 25.78, the following findings shall be made by the Council prior to approval of any specific plan or specific plan amendment: 1. Consistent with the General Plan. The specific plan or amendment is consistent with the goals, objectives, and policies of the General Plan. 2. Public Welfare. The specific plan or amendment will not create conditions materially detrimental to the public health, safety, and general welfare. 3. Land Use Compatibility. The specific plan or amendment is compatible with zoning on adjacent properties and ensures development of desirable character that will be harmonious with surrounding properties. 4. Property Suitability. The specific plan or amendment is suitable and appropriate for the location, access, and topography for the development of the subject property. 5. CEQA. The specific plan or amendment has been reviewed in compliance with the provisions of the California Environmental Quality Act. (Ord. 1303 § 3, 2016). Future development within the planning areas will require a Precise Plan application which shall adhere to requirements and review criteria set forth in Palm Desert Zoning Code, Chapter 25.72.030. B. Specific Plan Amendments Specific Plan Amendments required to clarify standards or guidelines, make interpretations of permitted uses, or otherwise required which do not change development standards in this Specific Plan may be made by the Planning Director. Any amendment which changes uses, density, maximum square footage or units, development standards or circulation within the Specific Plan shall require review by the Planning Commission and City Council. C. Financing The majority of Project costs will be financed via investor funds. Other methods of financing infrastructure may be considered. Page 437 DSRT SURF Specific Plan 51 VI. APPENDIX A: GENERAL PLAN CONSISTENCY California Government Code §65450-§65453 permits the adoption and administration of Specific Plans as an implementation tool for elements contained within the local General Plan. The City of Palm Desert General Plan provides guidance for long-term growth and development in the City through comprehensive plans for future development. Consistency with the General Plan is achieved when the various land uses within the Specific Plan are compatible with the goals, policies, and general pattern of land uses contained in the General Plan. Consistency is defined as follows: “An action, program, or project is consistent with the General Plan if, considering all its aspects, it will further the objectives and policies of the General Plan and not obstruct their attainment.” This statement from the Governor’s Office of Planning and Research (OPR) describes how a Specific Plan should be consistent with the General Plan. The discussion below details the DSRT SURF Specific Plan’s consistency with the goals and policies that are set forth in the City of Palm Desert General Plan. 2035 GENERAL PLAN LAND USE AND ZONING DESIGNATIONS LAND USE and COMMUNITY CHARACTER GOAL 1. Quality Spaces. A beautiful city with a balance of high-quality open spaces and high-quality urban areas. Policies 1.1 Scale of development. Require new development along the city’s corridors use design techniques to moderate height and use and ensure compatible fit with surrounding development. 1.2 Open space preservation. Balance the development of the city with the provision of open space, and especially the hillsides surrounding the City, so as to create both high quality urban areas and high quality open space. 1.3 Traffic generation. Balance medium and high intensity/density development with pedestrian-oriented and bicycle friendly design features so as to maximize trip and VMT reduction. 1.5 Community Amenities. Balance the impacts of new development, density, and urbanization through the provision of a high-level of neighborhood and community amenities and design features. Consistency The development of the DSRT SURF Specific Plan (DSSP) will result in improvements the area’s existing environment. These improvements will be in the form of new sidewalks and enhanced landscape areas as well as the construction of a recreational resort center on a currently vacant lot. Page 438 DSRT SURF Specific Plan 52 In addition, the architectural style will be reflective of the desert mid-century modern aesthetic. The aesthetic character of the DSSP, including architecture, landscaping, walls and fences, and signage, are described in the design guidelines defined by Chapter III of the Specific Plan. The integration of a signature surf theme with related recreational amenities also supports the goals of the General Plan. The high-quality design attributes of the DSSP, such as enhanced streetscapes and pedestrian walkways, have the potential to increase surrounding property values and create positive fiscal impacts in the City. GOAL 2. Human-Scaled Design. A city designed for people, fostering interaction, activity, and safety. Policies 2.3 Landscaping. Require development projects to incorporate high quality landscaping in order to extend and enhance the green space network of the city. 2.6 Lighting. Require all new street lights in commercial areas to be pedestrian- oriented and scaled, attractively designed, compatible in design with other street furniture, and to provide adequate visibility and security in accordance with best practices for night sky protection. 2.12 Destination Accessibility. Direct the development of new centers, parks, schools, and similar destinations so as to provide all residences within town ¼ mile to at least two amenities. Consistency The DSSP’s carefully designed landscaped buffers and parkway improvements along perimeter will blend into the existing Desert Willow landscapes. Landscape treatments, theme walls, and entry monumentation will visually enhance the currently vacant area. All lighting within the DSSP, with the exception of the surf lagoon, will be subject to the City’s Municipal Code to reduce impacts to the night sky. Specific lighting standards have been developed for the surf lagoon to ensure minimal light spillage onto offsite properties. Since the DSSP is located within the Desert Willow resort development, resort guests may access the DSSP amenities and vice versa. GOAL 4. Districts. A series of unique, destination-oriented districts that provide space for large-format retail, industrial and resort uses in order to increase access to jobs, provide amenities for residents, and enhance the fiscal stability of the City. Page 439 DSRT SURF Specific Plan 53 Policies 4.1 Resorts. Encourage the development of unique resort complexes. Locate resorts in areas of the city where citywide connectivity will not be negatively affected by the design of the project. 4.2 Resort design and connectivity. Allow resorts to be designed as isolated and gated developments as long as through traffic and external connectivity occurs at distances of no greater than 1,300 feet. Exceptions to this may be made where external connection is not possible because of steep slopes, or natural or man-made barriers. Consistency The DSSP’s uses will support balanced growth in the area since it adds to the existing Desert Willow amenities in a unique format by creating surf community in the center of a desert resort city. Unlike any other resort development, the DSRT SURF Specific Plan area will create a different resort complex within an existing resort and maintain the overall image of the site. GOAL 8. Economic Development. A diverse, growing, and resilient local economy. Policies 8.1 Long-term economic development. Support the development and implementation of long-term economic development strategies that seek to establish and keep new businesses. 8.7 Natural environment. Maintain and enhance the natural environment as critical to the attraction of tourists and ensure that new development does not adversely affect the natural environment as a tourist draw. 8.8 Recreational amenities. Strategically utilize City recreational investments to create and enhance development opportunities. Consistency The DSSP contributes to the economic well-being of the City by offering quality development that will provide a diversity of resort and commercial businesses to the employment pool. GOAL 9. Fiscal Stability. A fiscally sound and sustainable city. Policies 8.1 Fiscal impact assessment. For all major development projects, including but not limited to specific plans, annexations and changes in General Plan designations for areas over 5 acres in size, require a fiscal impact Page 440 DSRT SURF Specific Plan 54 assessment to determine possible fiscal impact of the development project and use the information to formulate conditions of approval for the project. 8.2 Efficient growth. Manage growth in a manner that is fiscally sustainable and protects and/or enhances community value. 8.3 Diverse tax base. Guide development and public investments to maintain a fiscally sound city with a sustainable tax base and user fees including property tax, sales tax, transient occupancy tax, utilities user tax and user fees that pay for cost of services. Consistency The City has required performance and market feasibility assessments to be prepared for the DSSP in order to evaluate these impacts to the City. The assessments will also outline the projected growth of the immediate area as a result of the DSSP. Since the DSSP proposes a hotel and commercial uses such as restaurants and retail uses taxes from these services will create a diverse tax base from the implementation of the DSSP. MOBILITY GOAL 2. Parking. An actively managed system of public and private parking facilities that supports future development. Policies 2.1 Public Parking Facilities. Provide new public parking facilities only after applying appropriate techniques to manage parking demand and ensure efficient use of all public and private parking facilities. 
 2.5 Innovative Parking Approaches. Allow the use of innovative parking supply and demand strategies such as shared parking, unbundling parking, and other related items within privately owned parking facilities to allow an appropriate level of flexibility for these private land owners. 
 2.6 Formal Parking Evaluations. Perform formal evaluations of parking capacity on a biannual basis to identify areas where parking is under- or over-utilized. 
 Consistency Primary parking for the hotel and surf center will be provided in the hotel parking garage on the first and second level of the building, and in surface parking adjacent to the buildings. Parking for the residential component will be provided immediately adjacent to the corresponding buildings or in an attached garage. Underground or structure parking is allowed on site. The Parking standards stipulated by the City of Palm Desert were used in order to design the required parking spaces. Table 4 of the DSSP further breakdowns the standards. Page 441 DSRT SURF Specific Plan 55 ENVIRONMENTAL RESOURCES Goal 1. Water Resources. Protected and readily available water resources for community and environmental use. Policies 1.1 Water conservation technologies. Promote indoor and outdoor water conservation and reuse practices including water recycling, grey water re- use and rainwater harvesting. 1.2 Landscape design. Encourage the reduction of landscaping water consumption through plant selection and irrigation technology. 1.3 Conservation performance targeted to new construction. Incentivize new construction to exceed the state’s Green Building Code for water conservation by an additional 10 percent. 1.4 Greywater. Allow the use of greywater and establish criteria and standards to permit its safe and effective use (also known as on-site water recycling). 1.5 Waterways as amenities. When considering development applications and infrastructure improvements, treat waterways as amenities, not hazards, and encourage designs that embrace the waterways. Consistency As stipulated by SB 610 and SB 221 under Water Code Section 10910(a) the DSSP is required to produce a water supply assessment and water supply verification in order to document the sufficiency of the CVWD water supply to meet the demand associated with the proposed land use. CVWD adopted the DSSP WSA in 2019. The DSSP WSA determined that CVWD has sufficient water supplies to meet the demands of the Project for the next 20 years and the anticipated water demand will not substantially deplete groundwater supplies or interfere with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level. The DSSP will also encourage water conservation through techniques such as the use of low volume irrigation systems and drought-tolerant landscaping. Any water features, such lagoons or pools, built in the specific plan area will be designed to minimize the use of excessive amounts of water. In addition, the Project applicant proposes to offset the lagoon’s water demand by participating in the Golf Course Turf Reduction Plan developed by the City of Palm Desert that will replace approximately 1,035,325 square feet of turf with drought-tolerant landscaping Page 442 DSRT SURF Specific Plan 56 Goal 6. Energy. An energy efficient community that relies primarily on renewable and non-polluting energy sources. Policies 6.1 Passive solar design. Require new buildings to incorporate energy efficient building and site design strategies for the desert environment that include appropriate solar orientation, thermal mass, use of natural daylight and ventilation, and shading. Masquerade 6.2 Alternative energy. Continue to promote the incorporation of alternative energy generation (e.g., solar, wind, biomass) in public and private development. 6.3 Energy Efficient Buildings. Encourage new buildings and buildings undergoing major retrofits to exceed Title 24 energy efficiency standards. 6.11 Energy-efficient infrastructure. Whenever possible, use energy-efficient models and technology when replacing or providing new city infrastructure such as streetlights, traffic signals, water conveyance pumps, or other public infrastructure. Consistency A cornerstone of the surf community is conservation and sustainability. In addition to the solar panel design features included in the surf center, passive solar design such as the use of shade structures and building orientation will be used throughout the DSSP area. The DSSP intends to uphold those values by creating structures and spaces that implement green building techniques and design principles, such as using recycled building material where appropriate. The surf lagoon wave machine technology is designed to perform at the highest level and as efficiently as possible. In terms of performance, the system runs at an efficiency level of 92%, thus using the energy at the most efficient levels to generate waves within the lagoon. SAFETY Goal 3. Flood hazards. A community where flooding and inundation hazard are contained within areas reserved for open spaces. Policies 3.1 Flood Risk in New Development. Require all new development to minimize flood risk with siting and design measures, such as grading that prevents adverse drainage impacts to adjacent properties, on- site retention of runoff, and minimization of structures located in floodplains. Page 443 DSRT SURF Specific Plan 57 3.2 Flood Infrastructure. Require new development to contribute to funding regional flood control infrastructure improvements. 3.3 Stormwater Management. Monitor, update, and enforce stormwater management plans in coordination with regional agencies, utilities, and other jurisdictions. 3.4 Open Space for Flood Control. Prioritize open space or uses that serve recreational purposes as a preferred land use within areas of high flood risk. Consistency The DSSP property is located in Zone X, which represents “areas outside of 0.2% annual chance flood.” (Map No. 06065C1615G) as defined by the Flood Insurance Rate Maps (FIRM) prepared by the Federal Emergency Management Agency (FEMA). Development of the DSSP will not added structures in an area that is subject to flood risk. The retention basin planned for the DSSP will be in the form of a lagoon and passive open space. PUBLIC UTILITIES & SERVICES Goal 1. Stormwater. Stormwater management system that leads to clean water, basin recharge and increased water retention. Policies 1.1 Stormwater infrastructure for new development. Require development projects pay for their share of new stormwater infrastructure or improvements necessitated by that development (regional shallow ground water). 1.2 On-site stormwater retention and infiltration. Whenever possible, stormwater shall be infiltrated, evapotranspirated, reused or treated onsite in other ways that improve stormwater quality and reduce flows into the storm drain system. 1.3 Groundwater infiltration. Encourage the use of above-ground and natural stormwater facilities in new development and redevelopment, such as vegetated swales and permeable paving. 1.4 Stormwater re-use and recycling. Encourage innovative ways of capturing and reusing stormwater for non-drinking purposes to reduce the use of potable drinking water. Page 444 DSRT SURF Specific Plan 58 1.5 Recycled water. Work with the CVWD to encourage existing golf courses to connect to its recycled water system. 1.6 Collaborative stormwater management. Encourage collaborative, integrated stormwater management between multiple property owners and sites. 1.7 Low impact development. Require the use of low-impact development strategies to minimize urban run-off, increase site infiltration, manage stormwater and recharge groundwater supplies. 1.8 Green infrastructure in public rights-of-way. Encourage green streets with in-street bio-retention and other forms of stormwater retention and infiltration in streets and public rights-of-way. 1.10 Stormwater in urban context. Development projects shall incorporate stormwater management into landscaping, except in downtown designations where catch basins shall be prohibited. 1.11 Water quality detention basins. Require water detention basins to be aesthetically pleasing and to serve recreational purposes, such as in the form of a mini park. Detention basins designed for active uses are intended to supplement park and open space and should not be counted towards a developer’s minimum park requirements, unless otherwise determined by the Planning Commission or City Council. 1.12 Retention Basins. Encourage storm water retention basins, especially in the City Center Area, to be underground in future development so as to achieve the most efficient use of land and compact development and promote the urban character goals of the General Plan. Consistency The DSSP will implement the standard requirements for the retention of storm flows and participates in the National Pollution Discharge Elimination System (NPDES) to protect surface waters from pollution, as well as maintain the City of Palm Desert’s Municipal Code 8.70.100 (On-Site Stormwater Retention), which requires all new developments to retain the 100-year storm flow on-site and/or off-site. Goal 2. Sewer. Sewer management and facility operations that allow for adequate disposal within the community. Policies 2.1 Sewer system maintenance. Work with the Coachella Valley Water District to ensure sewers are operational and in good working order. Page 445 DSRT SURF Specific Plan 59 2.2 Sewer infrastructure for new development. Require development projects to pay for their share of new sewer infrastructure or improvements necessitated by that development. 2.3 Sewer connections. In the event that a sewer line exists in the right-of-way where a lateral line connection is required to serve a lot, require a sewer connection at the time the lot is developed. Consistency As mentioned above, the DSSP will incorporate the use of the existing sewer and water facilities and infrastructure near the site and new storm drains to fit extended to tie into existing facilities. The DSSP lines will connect to existing lines beneath Willow Ridge and Desert Willow Drive. All new sewer facilities will be constructed and maintained in accordance with applicable standards. Goal 3. Water Supply. Ensure a sustainable, clean, long-term water supply. Policies 3.1 Agency coordination. Coordinate on an ongoing basis with the Coachella Valley Water District, and other agencies responsible for supplying water to the region. 3.3 Water infrastructure. Maintain existing water infrastructure to protect the supply, quality, and delivery of potable water. 3.4 Water infrastructure for new development. Require development projects to pay for their share of new water infrastructure or improvements necessitated by that project. 3.5 Recycled Water. Expanded use of recycled water in existing and new development. 3.6 Citywide water conservation and efficiency. Encourage and promote community water conservation and efficiency efforts, including indoor and outdoor efforts that exceed CalGreen requirements. Consistency The DSSP will incorporated the State’s Water demands and conservation measures will include techniques such as the use of low volume irrigation systems and drought-tolerant landscaping. The lagoon and added water features that will built in the DSSP area will be designed to minimize the use of excessive amounts of water. As required by Water Code Section 10910(f) a Water Supply Assessment was prepared and approved for the DSSP area to assess the condition of the groundwater basin and a sufficiency analysis of the basin to supply the Project area. Coachella Valley Water District (CVWD) adopted the DSSP WSA in 2019 that determined CVWD has sufficient water supplies to meet the demands of the Project for the next 20 years. Page 446 ADDENDUM TO THE DSRT SURF PROJECT ENVIRONMENTAL IMPACT REPORT (SCH No. 2019011044) Prepared for: City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 Prepared by: Terra Nova Planning & Research, Inc.® 42635 Melanie Place, Suite #101 Palm Desert, California 92211 June 2021 Page 447 i Table of Contents 1. Introduction and Project Background ............................................................................... 1 1.1. Summary ....................................................................................................................... 1 1.2. Project Location ............................................................................................................ 1 1.3. Existing Conditions and Current Proposal .................................................................... 2 1.4. Purpose of an EIR Addendum ..................................................................................... 18 2. Proposed Amendments ................................................................................................. 19 3. Impact Analysis .............................................................................................................. 21 3.1. Aesthetics ................................................................................................................... 22 3.2. Agriculture and Forestry Resources ............................................................................ 28 3.3. Air Quality ................................................................................................................... 28 3.4. Biological Resources ................................................................................................... 40 3.5. Cultural and Tribal Resources ..................................................................................... 44 3.6. Energy ......................................................................................................................... 47 3.7. Geology/Soils .............................................................................................................. 53 3.8. Greenhouse Gas Emissions & Energy ......................................................................... 60 3.9. Hazards & Hazardous Materials ................................................................................. 64 3.10. Hydrology/Water Quality ........................................................................................... 67 3.11. Land Use/Planning ...................................................................................................... 74 3.12. Mineral Resources ...................................................................................................... 77 3.13. Noise ........................................................................................................................... 78 3.14. Population, Employment, and Housing ...................................................................... 82 3.15. Public Services and Utilities ........................................................................................ 84 3.16. Transportation ............................................................................................................ 89 3.17. Utilities ........................................................................................................................ 98 List of Tables Table 1 2019 DSRT SURF Specific Plan ...................................................................................... 3 Table 2 2019 DSRT SURF PA1 Precise Plan ................................................................................ 4 Table 3 Construction Emissions Summary .............................................................................. 30 Table 4 Unmitigated Operational Emissions Summary ........................................................... 31 Table 5 Localized Significance Thresholds 25 Meters, 5 Acres (lbs per day) ........................... 32 Table 6 Construction GHG Emissions Summary ...................................................................... 61 Table 7 Special Events Operational Emissions: 2019 DSRT SURF EIR ...................................... 61 Table 8 Operational GHG Emission Summary: 2019 DSRT SURF EIR (Metric Tons/Year) ....... 62 Table 9 2019 DSRT SURF Specific Plan Specific Plan Land Uses .............................................. 75 Table 10 2019 DSRT SURF Project Surf Lagoon Precise Plan Land Uses .................................... 76 Page 448 ii List of Exhibits Exhibit 1 Regional Location Map ................................................................................................. 7 Exhibit 2 Area Location Map ....................................................................................................... 8 Exhibit 3 Vicinity Map .................................................................................................................. 9 Exhibit 4 Project Location Map .................................................................................................. 10 Exhibit 5 Project Site Plan .......................................................................................................... 11 Exhibit 6 Tentative Tract Map 37639 ........................................................................................ 12 Exhibit 7 Surf Center Elevations ................................................................................................ 13 Exhibit 8 Surf Center Ancillary Uses Elevations ......................................................................... 14 Exhibit 9 Hotel Elevations .......................................................................................................... 15 Exhibit 10 Typical Villa Elevations ................................................................................................ 16 Exhibit 11 Typical Stacked Flats Elevations ................................................................................. 17 Page 449 1 DSRT SURF PROJECT ADDENDUM TO THE DSRT SURF PROJECT ENVIRONMENTAL IMPACT REPORT (SCH No. 2019011044) 1. INTRODUCTION AND PROJECT BACKGROUND 1.1. SUMMARY This document is an Addendum to the 2019 DSRT SURF Project Environmental Impact Report (EIR, SCH No. 2019011044). This Addendum has been prepared to evaluate the potential environmental impacts of amending the DSRT SURF Specific Plan, Tentative Tract Map, Development Agreement, and buildout of the revised DSRT SURF Project, referred to herein as the “Project.” In accordance with the California Environmental Quality Act (CEQA), this Addendum analyzes the proposed Project amendments and demonstrates that all potential environmental impacts associated with the Project at buildout would be within the envelope of impacts already evaluated in the approved EIR. In this document, Section I provides the detailed description of the City of Palm Desert’s planning procedures and environmental review process under the California Environmental Quality Act (CEQA). Section 2 describes the proposed Specific Plan amendment and revised DSRT SURF Project. Section 3 describes the potential environmental impacts of the proposed amended Project in the context of the 2019 DSRT SURF Specific Plan EIR. 1.2. PROJECT LOCATION The 17.69-acre Project site is located on the west side of Desert Willow Drive, north of Country Club Drive in the City of Palm Desert, Riverside County, California. The irregularly shaped site is bounded by golf course on its west, south and east sides, and by the Desert Willow Clubhouse parking lot on the north. The Project site is located in Section 4, Township 5 South, Range 6 East, San Bernardino Baseline and Meridian and consists of three Assessor’s Parcels: 620-420-023, 620-400-024 and -620-400-008. Regional location and project vicinity maps are provided in Exhibits 1 through 4. Page 450 2 1.3. EXISTING CONDITIONS AND CURRENT PROPOSAL Background The Project site is partially developed with the Desert Willow Clubhouse parking lot in its northwest corner (approximately 3 acres) and the balance of the site (approximately 14.7 acres) is vacant desert land. The site is designated as Resort and Entertainment District on the City’s General Plan Land Use Map which allows bed and breakfast inns, recreational facilities, retail, lodging, and commercial services along with specialized entertainment with a commercial floor area ratio (FAR) of up to 0.10, and multi-family residential land uses of up to 10 dwelling units per acre (DU/AC). The City’s Zoning Map designates the site as Planned Residential (PR-5), allowing 5 units per acre. Prior to adoption of the DSRT SURF Specific Plan, development of the site was governed by the North Sphere Specific Plan (NSSP), which encompassed a total of 515± acres and allowed for a wide range of resort and residential development. The DSRT SURF planning area generally occurs within Planning Area 10 of the NSSP. 2019 DSRT SURF Project In 2019, the City of Palm Desert certified the DSRT SURF Specific Plan EIR that analyzed development of the DSRT SURF Project (2019 Project). The 2019 Project would result in the development of a surf lagoon of up to 6 acres in size, a surf center to include restaurant, bar, retail and similar facilities, up to 350 hotel rooms, and up to 88 resort residential villas on the 17.69-acre site. The Project was to be implemented in two phases and consisted of two planning areas: the Surf Lagoon Planning Area (PA 1, 11.85 acres), and the Hotel and Villas Planning Area (PA 2, 5.84 acres). Planning Area 1 would be constructed first and include the development of the surf center and pie-shaped surf lagoon, which included a wave machine located in the central pier of the lagoon and in the mechanical building at the southeastern portion of the site. The Hotels and Villas Planning Area (PA 2) would be developed in phase 2 and result in the construction of the hotel(s) and villas on approximately 5.84 acres. The 2019 Project included a Specific Plan (SP) to guide the overall development of the site, a Precise Plan (PP) for the lagoon and surf center, and a Tentative Tract Map (TTM) to subdivide the site into five parcels. The Project also included a Disposition and Development Agreement to facilitate the sale of the property which is currently owned by the City, and establish development responsibilities of both the applicant and the City. The 2019 Specific Plan set forth the planning principles, land use policies, development standards, maximum development densities and design guidelines for the overall development of DSRT SURF and public improvements within the Specific Plan area. The architectural theme for the Project was Desert Mid-Century Modern, inspired by the Desert Modern and Mid-Century styles. The follow land use and development standards were set forth in the 2019 Specific Plan: Page 451 3 The land use, design, and development standards of Planning Area 1 would be regulated through a Precise Plan based on the City’s Municipal Code Section 25.72.030. A Precise Plan application was filed for the Lagoon and Surf Center, including a 5.5 acre lagoon, restaurants, bars, retail space and entertainment facilities and was considered and approved as part of the 2019 Project. A Precise Plan application was not submitted for the Hotel and Villa Planning Area at the time of the EIR analysis, therefore impact analysis was based on the Planning Area’s maximum buildout potential of 350 hotel rooms and 88 resort residential villas on approximately 5.84 acres. Table 1 2019 DSRT SURF Specific Plan Land Uses and Development Standards Planning Area 1 Surf Lagoon Planning Area (11.85 acres) Max/Min Allowed Surf Lagoon Max 6 acres Surf Center Building Max 35,000 SF ; Max Height 50 feet Café Juice Bar Max 1,750 SF Restaurant (120 Occupants w/seats) Max 2,250 SF* Bar (83 Occ w/seats, 180 Occs w/o seats) Max 1,250 SF** Events (233 Occ w/seats, 500 Occs w/o seats) Max 2,750 SF*** Ancillary Restrooms/Changing Rooms/Locker Buildings Max 1,500 SF Ancillary Rental Building(s) Max 1,500 SF East Lagoon Café and Bar Max 2,750 SF Maintenance and Equipment Buildings Max 12,500 SF Landscaping/OS/Pool /Recreational Space Minimum 20% Planning Area site coverage Parking Surf Lagoon: 1.5 per surfer (max. 95 surfers) Restaurant/Bar/Lounge: 8 per 1,000 SF Planning Area 2 Hotel and Villas Planning Area (5.84 acres) Max/Min Allowed Hotels Max 350 rooms, Max 200,000 SF; Max Height 50 feet Hotel Spa Max 12,500 SF Villas 15 units per acre/87 villas max. Villa Clubhouse Max 3,125 SF Maintenance and Equipment Buildings Max 2,500 SF Landscaping/OS/Pool/Recreational Space Minimum 25% Planning Area site coverage Parking Hotel: 1 per room Villas: 2 per unit Page 452 4 Table 2 2019 DSRT SURF PA1 Precise Plan Development Assumptions Land Use/Building SF AC Surf Lagoon 239,580 5.50 Surf Center Building 31,500 0.88 Café Juice Bar 1,500 Restaurant (120 Occupants w/seats) 2,000* Bar (83 Occ w/seats, 180 Occs w/o seats) 1,000** Events (233 Occ w/seats, 500 Occs w/o seats) 2,500*** Ancillary Restrooms/Changing Rooms/Locker Buildings 1,070 0.02 Ancillary Rental Building(s) 640 0.01 East Lagoon Café and Bar 1,000 0.06 Maintenance and Equipment Buildings 1,600 0.21 Landscape/OS/Pools/Rec./Amenities 104,789 2.41 Roadways/Driveways/Parking (asphalt paved areas) 120,307 2.76 90 Surface Parking 160 Underground Parking (not incl. in site total AC) * Restaurant = 2,000 SF built space plus 1,000 SF exterior non-built space, total of 3,000 SF of usable space. ** Bar = 1,000 SF built space plus 500 SF exterior non-built space, total of 1,500 SF of usable space. ***Events = 2,500 SF built space plus 1,000 SF exterior non-built space, total of 3,500 SF of usable space. On-site parking under the 2019 Project would include a mix of surface parking throughout the site and underground parking in proximity to the surf center and future hotels. The surf center building would be open to the public, including retail shops and surf center restaurants. Future guests could purchase a Beach Pass or Surf Pass to access the pool and recreational areas, lagoon- side surf shack/bars, and the surf lagoon for surf lessons and surf sessions. The lagoon’s capacity was up to 75 surfers during regular days, and up to 95 surfers for special events. It was assumed that one special event would be held per month for a total of 12 special events annually, which could result in 3,500 ticketed spectators per event. Parking overflow during special events would be located off-site at a lot called “Lot E,” which has a capacity for 500 vehicles, and at established parking lots elsewhere, including the Indian Wells Tennis Garden parking facilities. A shuttle service would be provided during special events to transport visitors to the Surf Lagoon. The 2019 Project also proposed off-site improvements including stormwater management and pool/lagoon discharge infrastructure, a lagoon water source, removal of golf course turf in several locations within the existing golf course and replacement with desert landscaping, other landscaping improvements, and soil removal and storage. The 2019 Project also included improvements to Lot E, the existing off-site parking lot southeast of the Project site that will provide overflow parking during special events. Page 453 5 Also part of the 2019 Project was a TTM that subdivided the site into five parcels, including the perimeter roadway, the surf lagoon and its associated buildings and facilities, the hotel(s) parcel, and multiple parcels for the residential villas. The Disposition and Development Agreement would facilitate the sale of the property between the City and the applicant, and establish responsibilities of both parties in the development process, including: • Infrastructure, public parking and overflow parking improvements • Performance requirements for the applicant to contribute fair share monies for the installation of the traffic signal at Market Place Drive, and for the City to install the signal prior to the issuance of a certificate of occupancy for the surf center • Various easements including: o Resort storm water drainage into the Mountainview Golf Course waste areas just south of the site o Lagoon Evacuation Line, though the City’s Moutainview Golf Course and within the existing Embarc 40’ Easement to the southeast of the Project site; o Access to Mountainview Golf Course well water and supply line, located to the south of lagoon; o Access to off-site parking lot (Lot E) for overflow parking • Off-site grading and turf reduction on the Desert Willow Golf Course Current Proposal The current proposal will amend the Specific Plan, Precise Plan, and TTM to accommodate proposed modifications to the hotel, surf center facilities, and villas. The Disposition and Development Agreement (DDA) is also being amended, to reflect the changes in the Project. The components of the DDA listed above, however, are not substantially changing. A summary of Project components is provided below, and a detailed description of the Project is provided in Section 2, Proposed Amendments. Specific Plan The amended Specific Plan will maintain the Project’s original vision and aesthetic character, including the architectural themes, desert landscape palette and recreational amenities. The Specific Plan also maintains the existing land uses, including the development of a surf lagoon up to 6-acres and associated facilities, up to 350 hotel rooms, and up to 88 residential villas (see Specific Plan for details). Overall operations would remain the same with the average number of surfers in the lagoon at any given time reduced from 75 to 70 surfers. It is still assumed that 12 special events would be held annually. The Specific Plan build out is consistent with the 2019 Project in terms of land use intensity and density. Amendments are proposed to development standards, including residential setbacks; and the two previous Planning Areas are proposed to be combined into one, consistent with the revised Precise Plan, which establishes the design of the entire Project site. The DDA establishes the phasing schedule for the Project, which is expected to be constructed sequentially, with the surf lagoon and surf center occurring first, followed by the hotel and villas. Page 454 6 Precise Plan The site is no longer divided into two Planning Areas. Instead, a Precise Plan application was prepared for the entire site and for all Project components (Exhibit 5: Project Site Plan). The surf lagoon is in the same general location, of the same general size, and will utilize the same wave technology previously proposed and analyzed in the EIR. The surf lagoon will also include beach areas, a control tower, life guard towers, viewing decks, gathering areas, and pool-spa areas. The surf center includes the surf lagoon ticketing area, retail sales, offices for operations, areas for board and wetsuit rentals, lockers, bathrooms, flex space, and indoor/outdoor surf instruction areas. The hotel proposed in the Precise Plan application will include 92 keys and be four stories in height (see Exhibit 7 for hotel elevations). The ground level will have amenities including a restaurant, bar and lounge, all on the southwest side of the building, and a parking structure on the northeast side of the building. The second level is entirely parking. The third level includes a fitness center, spa, flex space, bar area, outdoor amenity deck, pool-spa areas, and guestrooms. The fourth level is entirely guestrooms. (see Precise Plan Application). The Precise Plan also includes 83 residential units located around the perimeter of the surf lagoon, as well as ancillary facilities to serve the residences, including recreational amenities, a homeowners’ (HOA) clubhouses and open space. Off-site improvements will remain the same as the 2019 Project, including stormwater and lagoon drainage, turf removal in several locations within the existing golf course, landscaping improvements, Lot E parking facilities for special events and overflow parking, and soil removal and storage. Tentative Tract Map The Tentative Tract Map (see Exhibit 6 for TTM 37639) was amended to accommodate the revised residential component of the Project, which now proposes 33 private villas, a series of seven condominium style buildings called “stacked flats,” and two private club houses (see Exhibits 8 and 9 for typical elevations). Combined, the stacked flats have a total of 50 units, resulting in a Project total of 83 residential units. The Precise Plan provides development specifics for City review, including the site plan, architectural elevations, floor plans, roof plans, cross sections, landscape plans, lighting plans, and utility plans. (see Precise Plan Application). Page 455 Page 456 Page 457 Page 458 Page 459 ExhibitDSRT SURFProject Site PlanPalm Desert, California 5Source: AO Architects, 2021 05.10.21Page 460 ExhibitDSRT SURFTentative Tract Map 37639 Palm Desert, California 6Source: The Altum Group, 2021 05.10.21Page 461 DSRT SURFSurf Center ElevationsPalm Desert, California Source: AO Architects, 2021 05.10.217 Exhibit Page 462 Source: AO Architects, 2021Exhibit 8 05.10.21DSRT SURFSurf Center Ancillary Uses Elevations Palm Desert, California Page 463 DSRT SURFHotel ElevationsPalm Desert, California Source: AO Architects, 2021 05.10.219 Exhibit Page 464 Source: AO Architects, 2021Exhibit 10 05.10.21DSRT SURFTypical Villa Elevations Palm Desert, California Page 465 Source: AO Architects, 2021 Exhibit 11 05.10.21DSRT SURFTypical Stacked Flats Elevations Palm Desert, California Page 466 18 1.4. PURPOSE OF AN EIR ADDENDUM In accordance with CEQA Guidelines Section 15164, a Lead Agency is required to prepare an EIR Addendum to a previously certified EIR if some changes or additions to a project are necessary, but the proposed project modifications do not require preparation of a subsequent EIR, as provided in Guidelines Section 15162. In addition, the proposed modifications cannot result in new or substantially more significant environmental impacts compared with the impacts disclosed in the previously certified EIR. CEQA Guidelines Section 15162 states that a subsequent EIR would be required for a project if any of the following conditions exist: 1. Substantial changes to the project require major revisions to the previously certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified effects. 2. Substantial changes occur with respect to the circumstances under which the project is undertaken that require major revisions to the previously certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified effects; or 3. The availability of new information of substantial importance, which was not known or could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified, shows that the project will have one or more significant effects not discussed in the previous EIR, significant effects previously examined will be substantially more severe than shown in the previous EIR, or mitigation measures or alternatives that were previously found not to be feasible or that are considerably different from those analyzed in the previously certified EIR would substantially reduce one or more significant effects on the environment, but the project proponent declines to adopt the mitigation measure or alternative. This Addendum was prepared to analyze potential impacts of the proposed DSRT SURF Specific Plan and Project amendments as compared to those previously identified in the 2019 DSRT SURF Project EIR. Based on the evaluation of information provided in this EIR Addendum, no new significant impacts would occur as a result of the proposed Project, nor would there be any substantial increase in the severity of any previously identified adverse environmental impacts. Therefore, none of the conditions described in Section 15162 of the CEQA Guidelines has occurred. For this reason, an EIR addendum is the appropriate document to comply with CEQA requirements for the proposed Project. Page 467 19 2. PROPOSED AMENDMENTS The Project proposes amendments to the 2019 DSRT SURF Specific Plan, Precise Plan, and Tentative Tract Map to accommodate modifications to the hotel, surf center facilities, and villas. Amendments to the DDA are also proposed, consistent with the revised Project. The Specific Plan amendment will not change the overall land use approvals for the site, which included 350 hotel rooms, 88 villas, a surf center, surf lagoon and ancillary facilities, including parking, recreation and mechanical/service areas. The architectural style (Desert Mid-Century Modern) and landscape palette will also remain consistent and maximum building height will stay at 50 feet. Overall, the Project does not propose changes to the Specific Plan’s land uses, and only minor changes to the development standards. The most notable change is the consolidation of the Project into one planning area as opposed to the two planning areas set forth the 2019 Specific Plan. The amended Precise Plan will result in the development of the entire site, consisting of a 92 key hotel, surf center, a 5-acre surf lagoon, 33 private villas and 50 stacked flat residential units, as well as ancillary facilities to support these uses. The following provides a comparison of the assumptions made in the EIR versus proposed Project amendments. • Architectural Themes and Design Guidelines: o The 2019 Specific Plan architectural theme is Desert Mid-Century Modern. Design guidelines were provided for height and mass (up to 4 stories or 50 feet), pathways and wayfinding, landscaping, signage, walls and fences, and lighting. o The proposed Specific Plan does not propose changes to the Project’s design guidelines1 and the current Precise Plan was designed in accordance to the Specific Plan. • Surf lagoon: o The EIR assumed buildout of a 6-acre surf lagoon per the 2019 Specific Plan. Details including water and energy demand were provided and analyzed in the EIR. o The proposed Specific Plan does not change development standards of the lagoon and therefore the same buildout assumptions would apply. The Precise Plan proposes a 5- acre lagoon, however 6-acres is assumed to represent potential maximum impacts. The same water and energy demands are assumed. • General Commercial: o The EIR assumed 45,000 square feet, including the surf center and mechanical rooms, changing room, and other ancillary buildings proposed for Phase 1. o The proposed Specific Plan generally maintains the same overall land use assumptions with minor amendments. The maximum buildout potential of the surf center and maintenance and equipment space remains 35,000 square feet and 15,000 square 1 The proposed Specific Plan includes clarifying text for parapets, towers, elevators, staircases and similar architectural elements that may extend above the 50’ building height by no more than 10’. Page 468 20 feet respectively; however, the standalone surf center ancillary buildings (up to 3,000 square feet) have been removed, and it is assumed that any such use will be included in the surf center’s maximum buildout potential. Also, the 8,000 square feet of restaurant space originally allowed and accounted for within the 35,000 square feet of surf center space was analyzed as a separate use in the 2019 EIR for air quality analysis purposes due to the different trip generation rates for general retail and restaurant uses. In total, the 2019 EIR analyzed 27,000 square feet of surf center space (after subtracting 8,000 square feet of restaurant from the 35,000 square feet), 3,000 square feet of ancillary uses, and 15,000 square feet of mechanical space for a total of 45,000 square feet of surf center/general retail. Therefore, it can assumed that the 45,000 square feet of retail space analyzed in the 2019 EIR was reduced to approximately 42,000 square feet (subtracting the 3,000 square feet of stand alone ancillary uses), representing a 7% reduction compared to the 2019 Project. The Precise Plan proposes approximately 7,414 square feet of surf center facilities, including ticketing, retail, lockers, control tower, and board and wetsuit rentals. In addition, there are approximately 4,909 square feet of lagoon maintenance and equipment space for a total of 12,323 square feet of surf center facilities. This represents an 27% reduction in commercial spaces compared to the 2019 Project. • Restaurant/Bars: o The EIR assumed 11,250 square feet of restaurant/bar space which only accounts for Phase 1 restaurant space. Hotels would include restaurant space for Phase 2, although the exact square footage was not known at the time of the EIR. Modeling for hotel uses for air quality, traffic, water use and similar quantifiable impacts included hotel services such as spas, restaurants, bars and conference rooms. o The proposed Specific Plan generally maintains the same overall land use assumptions including maximum allowable surf center and hotel space; however, the standalone east lagoon café and bar (up to 2,750 square feet) has been removed. The proposed Specific Plan is not explicit about the allowed square footage of restaurant/bar space in the surf center, other than it needs to fall within the surf center’s maximum allowed buildout of 35,000 square feet. It is possible that buildout under the proposed Specific Plan could result in 11,250 square feet of restaurant/bar space and therefore, assumptions and impacts will be the same. The Precise Plan proposes approximately 3,271 square feet of restaurant/bar/grab and go cafe space located within the hotel, representing a 71% reduction in this space compared to the 2019 Project. • Hotel and Villas: o The EIR assumed the maximum Specific Plan buildout of 350 hotel rooms and 88 villas, and it assumed a combined total 500,000 square feet for analysis purposes. o The proposed Specific Plan does not propose limits or changes to hotel and villas development quantities and therefore the same maximum buildout assumptions would apply. The Precise Plan proposes 92 hotel rooms and 83 villas. The total gross building area for the hotel is 68,689 SF (84,363 square feet with amenity deck) and 168,529 square feet of villas and stacked flats (183,476 square feet with roof decks). Therefore, total hotel and villa building square footage would be approximately 237,218 square feet, representing a 53% reduction compared to the 2019 Project. Page 469 21 • Parking: o The EIR assumed 520 parking spaces and a multi-level structure with elevator. o The proposed Specific Plan does not propose limits or changes to parking requirements, and therefore the same assumptions as those used in the EIR would apply. The Precise Plan proposes an above ground parking garage with elevator and 443 parking stalls. This represents a 14% reduction in parking compared to the 2019 Project. • Capacity: o The 2019 Project assumed, on average, 75 surfers would be in the lagoon at one time with the ability to accommodate 95. Special events may be held that could result in 3,500 ticketed spectators. o The proposed Project reduces the lagoon capacity from 75 to 70 surfers. Special events assumptions would remain the same. • Off-site Improvements: o The 2019 Project included the following off-site improvements: stormwater and lagoon drainage, turf removal in several locations within the existing golf course, landscaping improvements and turf removal, Lot E parking facilities for special events and overflow parking, and soil removal and storage. o The proposed Project does not propose changes to off-site improvements, and therefore assumptions and impacts will be the same. 3. IMPACT ANALYSIS The proposed Specific Plan amendments are limited to updating the Project renderings, minor modifications and clarifications of development standards, and merging the two planning areas into one overall planning area. Maximum land use assumptions and quantities have not changed, and therefore impacts associated with buildout of the amended Specific Plan would be comparable, if not identical to those previously identified in the certified EIR. Changes in development standards are limited to residential setbacks, which have been reduced for front and side yards at the villas and stacked flats. Implementation of the proposed Specific Plan would not result in any new adverse impacts or significantly increase the severity of previously identified significant impacts in the certified EIR. Therefore, further analysis of the Specific Plan is not required in this document. In addition, the Project does not propose changes to off-site improvements previously analyzed in the EIR. Because no changes are proposed, impacts associated with off-site improvements would be the same as previously identified in the EIR. Buildout of off-site improvements would not result in any new adverse impacts or significantly increase the severity of previously identified significant impacts in the certified EIR. Therefore, further analysis of off-site improvements is not required in this document. Page 470 22 In accordance with CEQA Guidelines §15162, the following analysis addresses each of the environmental issues analyzed in the certified EIR as compared to the potential changes in environmental impacts due to the proposed Project. As discussed above, impacts associated with the proposed Specific Plan and off-site improvements are identical to those analyzed in the EIR, and further analysis is not detailed below. Changes related to the Precise Plan application, and ultimate build out of the Project site, are the focus of this document. The certified EIR identified two environmental issues associated with the 2019 DSRT SURF Project that could result in potentially significant impacts: Air Quality and Greenhouse Gas Emissions. Significant impacts are primarily attributed to the increase in vehicle trips generated by the Project during special events, resulting in significant levels of mobile source criteria pollutants and greenhouse gas emissions. The EIR analysis determined that air quality impacts associated with NOx emissions during the life of the Project and greenhouse gas emissions could not be mitigated to less than significant levels, and were therefore considered an unavoidable significant impact. The City determined that the social and economic benefits of developing the DSRT SURF Project outweighed the severity of these impacts, and Findings and a Statement of Overriding Considerations were adopted. 3.1. AESTHETICS Summary of Findings in the EIR Scenic Vistas The Coachella Valley is a low desert basin surrounded by dramatic mountainous terrain created by the active geology that is characteristic of Southern California. Surrounding mountains include the San Jacinto, Santa Rosa, and San Bernardino Mountain ranges. At its peak, Mount San Jacinto rises to an elevation of 10,834 feet above mean sea level. The Santa Rosa Mountains, with Toro Peak at an elevation of 8,715 feet above mean sea level, generally form the southerly boundary of the valley. In the northerly portion of the valley are the Indio Hills, with elevations rising to about 1,600 feet, and the Little San Bernardino Mountains further north, forming the northeasterly boundary of the valley. Emanating from the mouths of mountain canyons are numerous alluvial fans. Surrounding mountain views are of high aesthetic value across all of the Coachella Valley, including the City of Palm Desert. The Project site is generally flat and lies on the valley floor at an elevation of about 250 feet above mean sea level. From the Project site, foreground views to the north, south, and east include golf course greens, cart paths, and desert landscaping of the surrounding Desert Willow Golf Course, as well as the clubhouse and parking lot to the northeast. Views to the west include two-, three- and four-story residential villas and parking lots of the Westin Desert Willow villas. Distant views include the middle and upper elevation slopes of the Santa Rosa Mountains approximately 3 miles to the south and southwest, and the San Jacinto Mountains approximately 10 miles to the west. In some locations, the Indio Hills (5 miles to the north) and Little San Bernardino Mountains (8 miles to the north) are visible. Predominant views from the Project site are of the Santa Rosa Mountains to the south. The aesthetic value of the other mountain ranges Page 471 23 is somewhat diminished due to distance from the Project site and intervening development and landscaping. The Project site is not located along a designated State scenic highway and contains no scenic resources, such as trees, rock outcroppings, or historic buildings. Construction of the surf lagoon, surf center, hotels, villas, and off-site improvements would require the use of heavy equipment for grading, paving and excavation. Standard construction methods would be used for the construction of the one- and two-story buildings proposed in PA 1 and up to 4-story (50 feet) buildings allowed in PA 2. Construction activities would be visible from the surrounding golf course, Montecito and Retreat developments, and the Westin Desert Willow project. Impacts from construction are temporary and would be limited by distance and grade differences. Buildout of PA 1 would result in a 2-story surf center, at the north end of the Project site, and 2- story equipment building at the southeast corner of the Project site, representing the tallest buildings in the Planning Area at 42± feet. No development application(s) for Planning Area 2 (hotel and villas) were filed at the time of the EIR, so specific architectural plans were not available. However, the Project Specific Plan allows the hotel building(s) to have a maximum height of 50 feet and the villas were envisioned as 2-story units. Project building heights were found to be consistent with the Desert Willow Golf Course Clubhouse and other nearby resort development, including the two- to four-story Westin Desert Willow villas to the immediate west and southwest. The PA 1 site plan (Precise Plan) preserved views of the Santa Rose Mountains to the south by clustering the surf center, swimming pools, event lawn, and other gathering spaces in the northerly portion of the site and orienting them toward the surf lagoon and scenic views to the south and southwest. No perimeter fencing, walls, or other barriers that would obstruct scenic views were proposed. Lower level views of mountain foothills would be somewhat reduced, but the peaks and the extent of the range would still be visible above the proposed structures. The EIR determined that Project impacts to scenic vistas would be limited by distance and strategic site planning, and impacts were found to be less than significant. Visual Character The Specific Plan would guide overall development of the 2019 Project, including maximum development densities, standards, and design guidelines. The 2019 Project was found consistent with the visual character and scenic quality of the area, which is characterized by resort development, native and drought-tolerant landscaping, and architectural themes, materials, and colors that complement the desert environment. The EIR determined the 2019 Specific Plan would not conflict with City policies preserving view corridors or scenic roadways. The 2019 Specific Plan and Precise Plan allowed for buildings of up to 50 feet in height and surf lagoon light poles of up to 80 feet. The Precise Plan lighting plan for the lagoon showed a total of 11 pole lights, ranging in height from 40 to 80 feet. Of this total, one was proposed at 40 feet, three at 60 feet, four at 70 feet, and three at 80 feet in height, distributed on all sides of the lagoon, and on the central pier. Given the heights proposed, these pole lights had the potential to impact the visual character of the area, because the maximum building height within both the proposed Project and surrounding projects ranges to approximately 50 feet. Page 472 24 Visual simulations from 7 photo location points on the outer edge of the public golf course were prepared to demonstrate where the surf lagoon light poles would be located. Overall, it was determined that the light poles would not significantly impact the visual character of the area because of their limited mass, light color, and because views would already be partially screened by the Project’s structures. Overall, the EIR determined that the DSRT SURF Project would not significantly impact the visual character of the area, or impact public views, because the mass and scale of the 2019 DSDRT SURF Project was consistent with existing development within the Desert Willow golf course, and the mass of the structures would be softened and blocked by existing golf course landscaping. Impacts associated with visual character and public views were found to be less than significant. Light and Glare The 2019 DSRT SURF Project would increase light and glare from the following sources: 1. Pole-mounted lighting was proposed along the central pier and both sides of the outer boardwalk. This included a total of 34 luminaires mounted on eleven (11) galvanized steel poles that will be 40 to 80 feet in height. Of this total, one was proposed at 40 feet, three at 60 feet, four at 70 feet, and three at 80 feet in height. Section 24.16.015(F) of the Palm Desert Municipal Code states that the maximum pole heights for sport courts shall be thirty (30) feet. The Specific Plan allowed for the construction of light poles of up to 80 feet in height. Section 24.16.015(E) of the Municipal Code requires that sports lighting fixtures use the latest technology to control spill light from the lighting fixture. Each luminaire will be fitted with a light/glare control visor that directs light downward onto the lagoon and reduces glare and light spillage. Section 24.16.045(C) of the Municipal Code states that outdoor recreational sports lighting shall be turned off at 10:00 pm with partial lighting remaining on until 10:30 pm to allow participants to safely vacate the field/venue. The Specific Plan’s proposed surf lagoon operational hours that allow surfers in the water until 12:00 am on holidays, weekends and during special events, and 10 pm on weekdays. 2. Other lighting fixtures proposed in the 2019 Project include lights mounted in the concrete pony wall along the entire boardwalk (18 inches above the boardwalk deck), and fixtures mounted on handrail vertical posts along the entire pier (20 inches above the pier deck), as well as landscaping lighting throughout the site. 3. The Project would involve the installation of photovoltaic (PV) solar panels, which would convert sunlight directly into electricity. 4. Vehicles accessing and parking onsite will generate new sources of light and glare. 5. Windows will increase glare to some extent; however, exterior surfaces will be non-reflective. Typical interior and exterior lighting will be installed. Page 473 25 The 2019 Specific Plan required that the Project comply with the City’s lighting standards, which require that light be shielded and not spill onto adjoining properties. Windows will increase glare to some extent; however, exterior surfaces will be non-reflective, and impacts related to glare will be less than significant. Typical interior and exterior lighting will be installed at the surf center, hotels and villas. The lighting plan prepared for the perimeter of the site, which included all areas of the Project, included photometric analysis of the proposed outdoor lighting. Light generated from these fixtures would meet the City’s requirements for screening and limitations associated with light levels being non-existent at the property line. Light would illuminate the Promenade roadway, parking lots, hotel, villas, surf lagoon boardwalk and pier, and common areas around the surf center, including ancillary buildings, swimming pools, and the event lawn. The 2019 Precise Plan application provided the design of the lighting fixtures for the light poles, including a large focusing visor which significantly limits light spillage. Analysis in the EIR demonstrated that lighting levels at the property line would be reduced to imperceptible levels to the north and south of the site at the property line, conforming to City standards. Light pole luminaires would emit a total of 112,455 lumens, which is less than the 130,000 lumens allowed for commercial light poles in Municipal Code Section 24.16-015, Outdoor Lighting Requirements. The lighting impacts associated with the lagoon lighting as it relates to light fixture outputs would therefore be less than significant. The EIR found that lighting levels at the villas immediately adjacent to the lagoon could experience higher lighting levels. Per Mitigation Measure AES-1 of the EIR, architectural plans for the villas in proximity to the lagoon will be required to demonstrate that interior light levels in those villas will not exceed 1 footcandle, the lower allowable standard under the City’s standards. This mitigation measure will assure that impacts associated with lighting at the lagoon villas will be less than significant. Solar panels were proposed for the roof of the surf center building. Reflectivity levels of solar panels are significantly lower than standard glass or galvanized steel, and would not pose a reflectance hazard to area viewers. Furthermore, these solar panels would be directed upward so that they would not be reflecting sunlight onto the site to cause glare. The City will review and approve all lighting plans prior to development to assure they provide sufficient safety and security and comply with the Palm Desert Municipal Code. With implementation of these standard requirements, impacts will be less than significant. The City does not have specific numeric standards for glare. However, based on the findings in the EIR, the lagoon lighting as proposed (40-80 foot tall poles) will result in minimal glare off-site, and impacts were determined to be less than significant. Summary of Impacts The EIR determined that impacts related to scenic vistas and resources, degradation of existing visual character, and creation of new sources of light or glare that would adversely affect nighttime views were to be less than significant because of the development policies, programs, and design performance standards set forth in the 2019 Specific Plan and City’s General Plan and Municipal Code, and the implementation of Mitigation measure AES-1. Page 474 26 Mitigation Measures AES-1 In order to assure that lighting levels at the Lagoon Villas do not exceed City standards, architectural plans for these villas will be accompanied by a lighting plan that demonstrates that the interior lighting level at the windows located facing the lagoon does not exceed 1.0 footcandle. Analysis of the Proposed Project Specific Plan Amendments The proposed Specific Plan amendments are limited to minor modifications to development standards, updating the Project renderings and merging the two planning areas into one overall planning area. Land uses and quantities have not changed, and therefore impacts associated with buildout of the amended Specific Plan would be the same as previously identified in the certified EIR. Implementation of the proposed Specific Plan would not result in any new adverse impacts or significantly increase the severity of previously identified significant impacts in the certified EIR. Therefore, impacts are considered less than significant Precise Plan The proposed Project will result in the development of a 92 key hotel with adjoining surf center facilities, a 5-acre surf lagoon, 33 private villas and 50 stacked flat residential units. The proposed hotel is 4-stories2 (50 feet), the surf center is single story (26 feet), villas are 2-stories (up to 30 feet), and stacked flats are 2- to 3-stories (up to 40 feet). These proposed building heights are consistent with those previously analyzed in the EIR, which assumed 4-stories for the hotel, 2- stories for the villas, and 2-stories for the surf center. The surf lagoon is in the same general location, of the same general size, and will utilize the same wave technology previously proposed and analyzed in the EIR. No perimeter fencing, walls, or other barriers that would obstruct scenic views are proposed. Lower level views of mountain foothills would be somewhat reduced, but the peaks and the extent of the range would still be visible above the proposed structures. Similar to the previously approved Project, proposed Project impacts to scenic vistas would be limited by distance and strategic site planning, and impacts will be less than significant. The proposed DSRT SURF Project would not significantly impact the visual character of the area, or impact public views, because the mass and scale of the proposed Project are consistent with what was previously analyzed in the EIR and existing development within the Desert Willow golf course. As with the 2019 Project, the mass of the proposed structures will be softened and blocked by existing golf course landscaping. The location of structures has been modified from what was analyzed in the EIR, but their overall mass has not changed. The hotel structure will be located on the northeastern portion of the site, generally in the location of the surf center in the 2019 project. Although the hotel proposes a taller structure than the surf center, that structure 2 Maximum building height is 50 feet; The Specific Plan has special provisions for parapets, towers, mechanical screening etc. that allow such features Page 475 27 will be screened by distance and landscaping from existing development to the northeast. The villas and stacked flats occur in generally the same locations as previously analyzed, and are of the same mass and scale as that considered in the 2019 EIR. Impacts to viewers to the west of the Project would be equivalent to or somewhat less than analyzed in the EIR, because the hotel structure would not occur within that field of view. Impacts associated with visual character and public views would be generally equivalent to those analyzed in the EIR, and will be less than significant. The site is currently vacant, therefore the Project will result in an increase in light associated with development. The level of lighting will be consistent with what was previously analyzed in the certified EIR, including lighting for the hotel, surf center, surf lagoon, villas, stacked flats, and landscaping. The photometric analysis provided in the Precise Plan demonstrates that light impacts will be controlled at the property line, and that the impacts of lagoon lighting will be consistent with that analyzed in the EIR. Mitigation Measure AES-1, requiring limited light levels at villas located adjacent to the lagoon, will also be applied to the proposed Precise Plan to lower impacts of lagoon lighting on residents of the Project. The City will review and approve all lighting plans prior to development to assure they provide sufficient safety and security and comply with the Palm Desert Municipal Code. With implementation of these standard requirements, impacts will be less than significant. The City does not have specific numeric standards for glare. However, it was previously determined in the EIR that the lagoon lighting as proposed (40-80 foot tall poles) will result in minimal glare off-site, and the currently proposed lighting plan does not change from that analyzed in the EIR. Impacts will be consistent with that analyzed in the EIR, and less than significant with the implementation of mitigation measures. Off-Site Improvements The Project does not propose changes to off-site improvements previously analyzed in the EIR. Being that no changes are proposed, impacts associated with off-site improvements would be the same as previously identified in the EIR. Buildout of off-site improvements would not result in any new adverse impacts or significantly increase the severity of previously identified significant impacts in the certified EIR. Therefore, impacts are considered less than significant. Summary of Impacts The proposed Project would not create any new impacts associated with views, and any impacts would be comparable to those identified in the EIR. Thus, potential impacts to scenic vistas and views associated with the proposed Project would be less than significant with implementation of applicable Specific Plan, General Plan policies and design performance standards. Impacts associated with lighting and glare will be less than significant as they relate to architectural lighting, landscape and safety lighting, consistent with the EIR. Lighting levels resulting from the light poles at the lagoon will, consistent with the findings of the EIR, have the potential to impact residential villas, but will be required to implement Mitigation Measure AES-1, which will reduce light impacts to assure that they comply with City standards, and result in less than significant impacts. Page 476 28 3.2. AGRICULTURE AND FORESTRY RESOURCES Summary of Findings in the EIR The Project site is within the urban core of the City, and does not contain agricultural or forestry resources. Nor is there any zoning for such resources in the City. The Initial Study Notice of Preparation determined there would be no impacts to these resources, and therefore impacts were not further analyzed in the EIR. Analysis of the Proposed Project The site is currently vacant and contains sparse native vegetation. There are no existing or mapped agricultural or forestry resources within or in proximity to the Project site, and such uses are not proposed as part of the proposed Project. Therefore, the proposed Project would not create any new impacts associated with these resources, consistent with those identified in the EIR. No impacts to agricultural or forestry resources would occur under the proposed Project. 3.3. AIR QUALITY Summary of Findings in the EIR The City of Palm Desert is located in the Salton Sea Air Basin (SSAB) portion of the South Coast Air Quality Management District (SCAQMD). The SCAQMD is the air pollution control district principally responsible for comprehensive air pollution control in the Basin. Local development and population growth, traffic, construction activities, and various site disturbances in the City contribute to air quality emissions. The Coachella Valley portion of the SSAB is classified as a “non-attainment” area for PM10 and ozone. State and federal standards for carbon monoxide, nitrogen oxides, sulfur dioxide, and lead are in attainment within the City and the SSAB. SCAQMD has adopted a series of Air Quality Management Plans (AQMPs) to meet the state and federal ambient air quality standards. In March 2017, the SCAQMD approved the 2016 AQMP. The 2016 AQMP continues to evaluate current integrated strategies and control measures to meet the National Ambient Air Quality Standards (NAAQS) and explore new and innovative methods to reach its goals. The 2016 AQMP incorporates scientific and technological information and planning assumptions, including the 2016-2040 Regional Transportation Plan/Sustainable Communities Strategy (2016-2040 RTP/SCS), a planning document that supports the integration of land use and transportation to help the region meet the federal Clean Air Act (CAA) requirements. The EIR determined that the DSRT SURF Project would be consistent with SCAG projections, and therefore consistent with the AQMP. Coachella Valley PM10 State Implementation Plan PM10 emissions consist of fine suspended particles of ten microns or smaller in diameter, and are the byproducts of road dust, sand, diesel soot, windstorms, and the abrasion of tires and brakes. Page 477 29 The proposed Project area lies on the valley floor of the central Coachella Valley where wind erosion can be severe. The Project area and vicinity have a Very High Wind Erodibility Rating per figure 8.3 in the General Plan. Strong winds lift and transport large quantities of sand and dust and contribute to regional exceedances of PM10. The Coachella Valley has a history of elevated PM10 emissions and is subject to the 2003 Coachella Valley PM10 State Implementation Plan (CV PM10 SIP). The CV PM10 SIP includes control measures for the abatement of large particles by targeting construction and earth moving activities, disturbed vacant lands, unpaved roads and lots, paved road dust, and agriculture. To reduce the impacts of local fugitive dust and PM10 emissions, the City of Palm Desert adopted a Fugitive Dust (PM10) Control Ordinance (Chapter 24.12 of the Palm Desert City Municipal Code). The ordinance establishes minimum dust control requirements for construction and demolition activities, including: preparation and approval of a fugitive dust mitigation plan, reductions in vehicular speeds on unpaved roads and at construction sites, the application of chemical and/or vegetative dust suppressants and stabilizers, paving of parking lots and roadways, installation of wind fencing, vegetation of disturbed areas, and implementation of street and vehicle cleaning programs at construction sites. Local PM10 Air Quality Inspectors working for SCAQMD out of the Coachella Valley Association of Governments (CVAG) offices are tasked with monitoring and identifying development activities that are not meeting emission standards, and help educate developers and cities on meeting PM10 standards. Ozone and Regional Air Quality Management Plans Chapter 7 in the 2016 AQMP constitutes the ozone SIP for the 2008 8-hour ozone NAAQS, which addresses the current status of ozone air quality and provides the strategy toward future attainment of the federal 8-hour ozone standards in the Coachella Valley Construction Emissions Buildout of the 2019 DSRT SURF Project would result in the direct and indirect generation and emission of air pollutants during construction and operation. The California Emissions Estimator Model (CalEEMod), version 2016.3.2, was used to estimate potential air pollutant emissions associated with the Project. Assumptions were based on buildout of the Specific Plan and represent potential maximum emissions. Due to the cumulative nature of assessing air quality impacts, the DSRT SURF air quality analysis addressed the entire Project as a whole and the combined impacts associated with the components listed below. • Surf Lagoon and Surf Center – demolition of existing parking lot, grading, excavation, soil export, construction, operational energy use, operational and construction-related vehicle and haul trips for soil export. o Assumes 12 special events per year for analysis purposes. • Hotel and Villas – grading, excavation, soil export, construction, operational energy use, operational and construction-related vehicle and haul trips for soil export. • Off-Site Improvements: o Stormwater Management – grading, excavation, potential soil export o Pool/Lagoon Discharge – grading, excavation, potential soil export o Golf Course Turf Reduction – soil disturbance Page 478 30 o Landscaping Improvements – soil disturbance o Special Events Parking – limited grading, paving, soil disturbance associated with landscape improvements o Soil Removal/Storage – soil export and storage Construction of the Project would require the export of approximately 103,000 cubic yards3 of surplus earthen material to the Classic Club, which has a designated fill site for excess soils and is located approximately 3.5 miles northeast of the subject property4. Therefore, it was assumed that each haul round trip would be approximately 7 miles. This represents a worse-case hauling distance, since the City may also allow the off-loading of Project-related soil export within vacant areas of the Desert Willow project, which are much closer than the 7 miles associated with the Classic Club location. Additional assumptions included: • Surf lagoon: 6-acre “recreation swimming pool” (CalEEMod terminology, model inputs have been adjusted to reflect Project specifics) • General Retail: 45,000 square feet. This includes the Surf Center and square footage for mechanical rooms, changing room, and other ancillary buildings proposed for Phase 1 • Restaurant/Bars: 11,250 square feet. This only accounts for Phase 1 restaurant space; however, CalEEMod assumes “hotels” will include restaurant space for Phase 2. • Hotel: 438 rooms (350 hotel rooms and 88 villas), assumes 500,000 square feet • Parking: 520 parking spaces, multi-level structure with elevator • Other asphalt: 1 acre for off-site parking and internal roadways The following table (Table 2.3-6 in the EIR) described pollutant emissions during construction of the DSRT SURF Project. Data represent maximum daily emissions expected over the 2-year buildout period. Table 3 Construction Emissions Summary 2019 DSRT SURF Project (lbs./day) CO NOx ROG SOx PM10 PM2.5 Max. Daily Emissions 64.85 92.32 65.90 0.14 9.58 6.11 SCAQMD Threshold* 550.00 100.00 75.00 150.00 150.00 55.00 Exceeds Threshold No No No No No No Source: Table 2.3-6 of the EIR. The EIR determined that SCAQMD daily thresholds for CO, NOx, ROG, SOx, PM10 and PM2.5 would not be exceeded during construction of the 2019 DSRT SURF Project and construction-related emission impacts would be less than significant No mitigation measures were required. 3 Based on Project Grading Plan. Assumes grading of entire project (both Planning Areas). 4 CalEEMod assumes the average haul load is 20 tons (or 16 cy) per trip. Page 479 31 Long-term Operation Emissions Operational emissions are those released over the long-term life of the Project. They include emissions generated by area, energy, and mobile sources. Area sources include consumable products, such as building maintenance and cleaning supplies, kitchen and restroom supplies, pavement off-gassing, and periodic reapplication of architectural coatings. Energy sources include the direct and indirect use of fossil fuels for energy, including natural gas and electricity use in buildings, parking lot lighting, ventilation equipment, and elevators. Mobile emissions are generated by motor vehicle trips. The EIR determined that 2019 Project-generated operational emissions would not exceed SCAQMD thresholds for CO, ROG, SOx, PM10, or PM2.5 during typical operations or special events. However, Project-generated NOx emissions will exceed SCAQMD thresholds during both types of operations, as shown in the table below (Table 2.3-7 in EIR). Table 4 Unmitigated Operational Emissions Summary 2019 DSRT SURF Project: Typical Operation vs. Special Events (lbs./day) CO NOx ROG SOx PM10 PM2.5 Typical Operation: Area 0.13 0.00 14.16 0.00 0.00 0.00 Energy 7.48 8.91 0.98 0.05 0.68 0.68 Mobile 129.16 107.65 12.85 0.45 26.60 7.35 TOTAL: 136.77 116.56 27.99 0.50 27.28 8.03 SCAQMD Threshold* 550.00 100.00 75.00 150.00 150.00 55.00 Exceeds Threshold No Yes No No No No Special Event Operation: Area 0.13 0.00 14.16 0.00 0.00 0.00 Energy 7.48 8.91 0.98 0.05 0.68 0.68 Mobile 173.61 143.63 17.13 0.61 35.96 9.94 TOTAL: 181.22 152.54 32.27 0.66 36.64 10.62 SCAQMD Threshold* 550.00 100.00 75.00 150.00 150.00 55.00 Exceeds Threshold No Yes No No No No Source: Table 2.3-7 of the EIR. Projected NOx exceedances were largely associated with the number of vehicle trips expected to be generated at Project buildout. Approximately 94% of Project-related NOx emissions are due to motor vehicle trips. Because Project-related NOx emissions are directly linked to motor vehicle trip generation rates associated with the proposed land uses, the EIR determined there are no feasible ways to mitigate NOx emissions without changing project land uses, or project density. The number of vehicle trips could be reduced, to some extent, by the use of alternative modes of transportation by those accessing the Project site. However, the EIR determined that the elective use of alternative modes of transportation by Project patrons could not be confidently quantified and applied as a mitigation measure. Therefore, operational impacts would continue to exceed NOx emissions, and impacts would be significant and unavoidable. The City determined Page 480 32 that the social and economic benefits of developing the DSRT SURF Project outweighed the severity of these impacts, and Findings and a Statement of Overriding Considerations were adopted. Sensitive Receptors The EIR analyzed Localized Significance Thresholds (LST) to determine whether the 2019 DSRT SURF Project would generate significant adverse localized air quality impacts to the nearest exposed individual or sensitive receptor. The nearest sensitive receptors to the proposed Project are resort residences approximately 150 feet to the west, in the Westin Desert Willow villas project. The Mass Rate Look-Up tables for LSTs were used to determine if the Project would have the potential to generate significant adverse localized air quality impacts during construction. The LST for Source Receptor Area (SRA) 30 (Coachella Valley) was used to determine LST emission thresholds. The distance from the emission source and the maximum daily site disturbance also determines emission thresholds. For analysis purposes, the worst-case scenario of a sensitive receptor being within 25 meters was used. The EIR determined that LST thresholds are not expected to be exceeded for any criteria pollutant during construction. Because the proposed land uses do not include major stationary polluters (such as a landfill, chemical plant, oil field, refineries etc.), LST analysis was not conducted or required for Project operation. Therefore, impacts to sensitive receptors were determined to be less than significant. Table 5 Localized Significance Thresholds 25 Meters, 5 Acres (lbs per day) CO NOx PM10 PM2.5 Construction 64.85 92.32 9.58 6.11 LST Threshold* 2,292.00 304.00 14.00 8.00 Exceed? No No No No Source: Table 2.3-8 of the EIR. Health Impacts The 2019 DSRT SURF would exceed NOx emissions under both typical operations and during special events. During typical operations, the Project traffic is expected to exceed NOx emissions by 16.56 lbs. per day. During special events, which is assumed to be 12 times a year, the Project traffic is expected to exceed NOx emissions by 52.54 lbs. per day. As it relates to health impacts, short-term exposure to NOx can result in airway constriction and diminished lung capacity and is highly toxic by inhalation. Populations living near roadways are more likely to experience the effects of nitrogen oxides due to elevated exposure to motor vehicle exhaust. The EIR determined that it is not scientifically possible to calculate the degree to which exposure to various levels of NOx emissions will impact an individual’s health with today’s technology. Although there is a scientific consensus that there are health risks associated with exposure to Page 481 33 elevated levels of NOx, there are several factors that make predicting a Project-specific numerical impact difficult: • Not all individuals will be affected equally due to medical history. Some may have medical pre-dispositions and diet and exercise levels tend to vary across a population. • Due to the dispersing nature of the pollutant and transient nature of vehicles (the emission source), it is difficult to locate and identify which group of individuals will be impacted, either directly or indirectly. • There are currently no approved methodologies or studies to base assumptions on, such as baseline health levels or NOx emission level-to-health risk ratios. On-site health risks associated with NOx were expected to be less than significant because the project is not located in proximity to a major roadway and will not be directly be exposed to concentrated vehicle emissions or elevated levels of NOx. However, for the reasons stated above, it is uncertain how the 2019 Project will impact health in the region. Because the Project’s NOx exceedances are due to motor vehicle travel, and motor vehicle travel increases with population growth, it can be assumed that individuals in the region are already exposed to increasing levels of NOx emissions and that the Project with only marginally contribute to existing conditions. Additionally, Project emissions assume full capacity traffic conditions. In reality, the Project site will not reach capacity most days, especially in the winter months due to the seasonal nature of Project activities (surfing). Due to the limitations described above, the EIR determined that the extent to which the 2019 Project poses a health risk is uncertain but unavoidable. It is anticipated that impacts associated with NOx will be less than significant overall, and will only pose a significant risk during summer special events due to the seasonal nature of Project activities and the reality that the Project is not expected to reach maximum capacity often, thus generating fewer vehicle trips. Nuisance Odors Certain commercial and industrial land uses may have the potential to cause odor impacts, including fast food restaurants, photographic studios, and laundry facilities, and other industrial uses. The 2019 DSRT SURF Project has the potential to result in short-term odors associated with operation of heavy equipment during grading, excavation, and other construction activities. However, construction-related odors would be temporary and quickly dispersed below detectable levels as distance from the construction area increases. During Project operation, odors may be emitted from onsite restaurants and food service facilities; however, all facilities would be equipped with proper ventilation systems to effectively remove grease, smoke, and other odors. Therefore, the EIR determined that impacts related to nuisance odors would be less than significant and no mitigation measures were required. Cumulative Impacts Cumulative potential impacts to air quality are assessed on a regional scale given the dispersing nature of pollutant emissions and aggregate impacts from surrounding jurisdictions and air management districts. Any activity resulting in emissions of PM10, ozone, or ozone precursors will Page 482 34 contribute, to some degree, to regional non-attainment designations of ozone and PM10. However, the level of cumulative impact a single project may have on regional air quality is difficult to measure. PM10 is regulated through the SCAQMD 2016 Air Quality Management Plan and 2003 PM10 Coachella Valley State Implementation Plan (CVSIP). Additional PM10 reduction measures include applicable state code and AQMD Rules, such as Rule 403 (Fugitive Dust), which enforces fugitive dust compliance for all activities within the SSAB. The EIR determined the DSRT SURF Project would not exceed local daily thresholds for PM10 during construction or operation. Therefore, cumulative impacts to PM10 were considered less than significant. As previously discussed, operational NOx emissions could not be reduced through conventional mitigation measures. Because NOx is a precursor to ozone, impacts were considered Significant and Unavoidable and would have cumulatively considerable impacts to regional non-attainment designation for ozone. The City determined that the social and economic benefits of developing the 2019 DSRT SURF Project outweighed the severity of these impacts, and Findings and a Statement of Overriding Considerations were adopted. Mitigation Measures The following mitigation measures were identified to improve operational air emissions. However, even with the implementation of these identified measures, mobile NOx emissions will not be reduced to less than significant levels. As previously discussed, there are no feasible ways to mitigate for NOx emissions that are directly linked to a land use vehicle trip rate. Therefore, operational impacts will continue to exceed NOx emissions under the current analysis methods, and impacts will be significant and unavoidable. AQ-1 Electric Vehicle Charging Stations At least 6% of all vehicle parking spaces shall include EV charging stations and 8% of all vehicle parking spaces shall include designated parking for clean air vehicles. AQ-2 Delivery Vehicle Idling Time Delivery vehicle idling time shall be limited to no more than five minutes. For any delivery that is expected to take longer than five minutes, the vehicle’s operator shall be required to shut off the engine. The Project proponent shall notify vendors of these idling requirements at the time the delivery purchase order is issued and again when vehicles enter the facility. Signs shall be posted at entry to the facility’s delivery area stating that idling longer than five minutes is not permitted. AQ-3 Employee Commute Any employer than employs 250 or more employees at a work site, on a full or part- time basis, shall implement an Employee Commute Reduction Program (ECRP) under SCAQMD Rule 2202, On-Road Motor Vehicle Mitigation Option. Page 483 35 AQ-4 Paving and Roofing Materials Light-colored paving and roofing materials shall be utilized onsite, to the greatest extent practical. AQ-5 Energy Star Energy Star heating, cooling, and lighting devices, and appliances shall be installed onsite to the greatest extent practical. AQ-6 Sweepers Electric or alternatively fueled sweepers with HEPA filters shall be used onsite to the greatest extent practical. AQ-7 Lawn Maintenance Electric lawn mowers and leaf blowers shall be used onsite to the greatest extent practical. AQ-8 Cleaning Products Water-based or low VOC cleaning products shall be used to the greatest extent practical. AQ-9 Dust Control Plan: SCAQMD Rule 403.1 SCAQMD Rule 403 (403.1 specific to the Coachella Valley): A Dust Control Plan shall be prepared and implemented by all contractors during all construction activities, including ground disturbance, grubbing, grading, and materials import and export. Said plan shall include but not be limited to the following best management practices: • Treated and stabilized soil where activity will cease for at least four consecutive days; • All construction grading operations and earth moving operations shall cease when winds exceed 25 miles per hour; • Water site and equipment morning and evening and during all earth-moving operations; • Operate street-sweepers on impacted paved roads adjacent to site; • Establish and strictly enforce limits of grading for each phase of construction; • Wash off trucks as they leave the project site to control fugitive dust emissions • Cover all transported loads of soils, wet materials prior to transport, provide freeboard (space from the top of the material to the top of the truck) to reduce PM10 and deposition of particulate matter during transportation • Use track-out reduction measures such as gravel pads at project access points to minimize dust and mud deposits on roads affected by construction traffic. AQ-10 Off-Road Emission Standards It shall be required that all off-road diesel-powered construction equipment meets or exceeds the California Air Resources Board (CARB) and U.S. Environmental Protection Agency (USEPA) Tier 4 off-road emissions standards for equipment rated at 50 horsepower or greater during Project construction. Page 484 36 Analysis of the Proposed Project The EIR analyzed maximum daily emissions based on buildout of the 2019 Specific Plan. Similar to the EIR, air quality analysis considers the entire Project as a whole and the combined impacts associated with both on-site and off-site improvements and operations. The following provides a comparison of the assumptions made in the EIR versus proposed Project revisions. • Grading: o The EIR determined construction would require the export of approximately 103,000 cubic yards of surplus earthen material to the Classic Club, which has a designated fill site for excess soils and is located approximately 3.5 miles northeast of the subject property. o The proposed Project would assume the same quantities as site conditions have not changed since certification of the EIR. • Surf lagoon: o The EIR assumed buildout of a 6-acre surf lagoon per the Specific Plan. Details including water and energy demand were provided by the applicant. o The proposed Specific Plan does not change development standards of the lagoon and therefore the same CalEEMod assumptions would apply. The Precise Plan proposes a 5-acre lagoon, however 6-acres is assumed to represent potential maximum emissions. The same water and energy demand are assumed. • General Commercial: o The EIR assumed 45,000 square feet, including the Surf Center (not including the 8,000 square feet of restaurant space, which is accounted for under “Restaurant/Bars”) and square footage for mechanical rooms, changing room, and other ancillary buildings proposed for Phase 1. o The proposed Specific Plan reduces the overall commercial by approximately 3,000 square feet (removal of standalone surf center ancillary uses). Therefore, it can be assumed that impacts associated with the revised Specific Plan would have a comparable or less intense impact to air quality when compared to the 2019 EIR and that previous CalEEMod assumptions would still apply. The Precise Plan proposes 12,323 square feet of surf center facilities, including ticketing, retail, lockers, control tower, maintenance space, and board and wetsuit rentals. This represents a 27% reduction in retail spaces compared to the previously analyzed Project. • Restaurant/Bars: o The EIR assumed 11,250 square feet of restaurant/bar space which only accounts for Phase 1 restaurant space. The CalEEMod model assumed “hotels” would include restaurant space for Phase 2. o The proposed Specific Plan reduces the overall restaurant/bar space by removing the standalone east lagoon café and bar (up to 2,750 square feet). Therefore, it can be assumed that impacts associated with the revised Specific Plan would have a comparable or less intense impact to air quality when compared to the 2019 EIR and that previous CalEEMod assumptions would still apply. The Precise Plan Page 485 37 proposes approximately 3,271 square feet of restaurant/bar/grab and go cafe space, representing a 71% reduction in this space compared to the previously analyzed Project. • Hotel and Villas: o The EIR assumed the maximum Specific Plan buildout of 350 hotel rooms and 88 villas, and it assumes a combined total 500,000 square feet for analysis purposes. o The proposed Specific Plan does not propose limits or changes to hotel and villa development quantities and therefore the same CalEEMod assumptions would apply. The Precise Plan proposes 92 hotel rooms and 83 villas. The total gross building area for the hotel is 68,689 SF (84,363 square feet with amenity deck) and 168,529 square feet of villas (183,476 square feet with roof decks). Therefore, total hotel and villa building structure square footage would be approximately 237,218 square feet, representing a 52% reduction compared to the 2019 Project. • Parking: o The EIR assumed 520 parking spaces and a multi-level structure with elevator. o The proposed Specific Plan does not propose limits or changes to parking requirements, and therefore the same CalEEMod assumptions would apply. The Precise Plan proposes an above ground parking garage with elevator and 443 parking stalls. This represents a 14% reduction in parking compared to the previously analyzed Project. Construction Emissions The Specific Plan does not limit or change the maximum potential buildout assumptions made in the EIR, and impacts of maximum buildout potential of the site under the proposed Specific Plan would be virtually the same as those analyzed in the EIR. Construction on the property would still be phased, with lagoon and surf center construction occurring first, followed by villas and hotel construction. The Precise Plan would result in a 27% reduction in commercial space, 71% reduction in restaurant/bar space, 53% reduction is hotel and villa building square footage, a 14% reduction in parking and the same off-site improvements compared to maximum buildout assumptions analyzed in the EIR. Therefore, emissions associated with buildout of the Precise Plan would be less intense than those previously analyzed in the EIR due to the reduction in overall development intensity and building square footage compared to maximum buildout of the Specific Plan. Similar to findings in the EIR, impacts related to criteria pollutant emissions during construction would be less than significant and no mitigation measures are required. Long-term Operation Emissions The Specific Plan amendment and proposed Project do not propose changes to operations or the frequency and size of special events when compared to that analyzed in the EIR. Therefore, impacts would be the same as those analyzed in the EIR. As previously discussed, the EIR determined that Project-generated operational emissions would not exceed SCAQMD thresholds for CO, ROG, SOx, PM10, or PM2.5 during typical operations or special events. However, Project- generated NOx emissions will exceed SCAQMD thresholds during both types of operations due to mobile trips. The City adopted Findings and a Statement of Overriding Considerations finding that significant adverse effects are acceptable because expected benefits of 2019 DSRT SURF Project Page 486 38 outweigh unavoidable adverse environmental impacts associated with the marginal increase in daily NOx emissions. The Project has not substantially changed, and the adopted Findings apply to the revised Project currently proposed. The proposed Precise Plan, as described above, will reduce the number of hotel rooms and villas analyzed in the EIR, and will result in lower air emissions than that analyzed in the EIR. The proposed Project will be subject to the Mitigation Measures included in the EIR. Although impacts associated with NOx emissions may exceed SCAQMD thresholds, the benefits of the Project, being equivalent to those analyzed in the EIR, outweigh the impacts, and the revised Project can rely on the adopted Findings and Statement of Overriding Considerations. Consistency with Air Quality Management Plans The proposed Project site is located within the Salton Sea Air Basin (SSAB) and will be subject to SCAQMD’s 2016 Air Quality Management Plan (2016 AQMP) and the 2003 Coachella Valley PM10 State Implementation Plan (2003 CV PM10 SIP). The AQMP is a comprehensive plan that establishes control strategies and guidance on regional emission reductions for air pollutants. The AQMP is based, in part, on the land use plans of the jurisdictions in the region. The proposed Project and Specific Plan amendment are consistent with the General Plan land use designation and approved 2019 Specific Plan. The 2016 AQMP is based in part on the land use plans of local jurisdictions, including the City of Palm Desert’s General Plan. Therefore, it is expected that the proposed Project will result in emissions consistent with those anticipated in the 2016 AQMP. In addition, projects that are consistent with the projections of population forecasts in the 2016 RTP/SCS are considered consistent with the AQMP. The proposed Project is consistent with the City’s land use designations and would not impact population, as employees of the proposed Project are expected to be residents of the City and region and the villas are anticipated to be for vacation purposes and for permanent residents. The site’s land use designation allows for permanent residency; therefore, the AQMP has already accounted for a slight population increase for the site. The proposed Project would be implemented in accordance with all applicable air quality management plans to ensure impacts to air quality are reduced to the greatest extent possible. Actions include, but are not limited to, the preparation of a standard dust control management plan in compliance with the CVSIP. In conclusion, consistent with the findings of the EIR, the proposed Project is consistent with the assumptions underlying the AQMP and will not conflict with or obstruct implementation of the applicable air quality plan. No impact is anticipated. Health Impacts The proposed Specific Plan does not increase land use intensities or change development standards from those previously analyzed in the EIR, and therefore health related impacts are anticipated to be the same or less intense. The EIR determined that the extent to which the Project poses a health risk is uncertain but unavoidable. It is anticipated that impacts associated with NOx will be less than than that analyzed in the EIR overall, and will only pose a significant risk during summer special events due to the seasonal nature of Project activities, thus generating fewer vehicle trips. Page 487 39 CO Hot Spot Analysis A CO Hot Spot is a specific location where sensitive receptors are exposed to high localized concentrations of CO. Motor vehicles, and traffic-congested roadways and intersections are the primary source of high localized CO concentrations. SCAQMD recommends an evaluation of potential localized CO impacts when a project causes the level of service (LOS) at a study intersection to worsen from C to D, or if a project increases the traffic volume (or demand) to capacity (V/C) ratio at any intersection rated D or worse by 2 percent or more. Level of Service (LOS) is a qualitative measure used to define the performance of a roadway system. Currently, the desired and optimal level of service for intersections and roadway segments within the City is LOS C; however, LOS D is considered the generally acceptable service level.5 Although the EIR did not provide a specific discussion of CO Hot Spot analyses, impacts can be inferred from results of the 2019 Project-specific Traffic Impact Analysis (TIA). The TIA determined that all 12 studied intersections were operating at acceptable LOS during one or more peak hours, except for the intersection at Cook Street and Market Place Drive, which is operating at LOS F during the PM peak hour only. The EIR determined that with installation of a traffic signal (Mitigation Measure TRANSP-1), the Cook Street and Market Place Drive intersection will operate at an acceptable LOS under all buildout scenarios. Expansion of the eastbound left turn lane on Market Place Drive at Cook Street to a minimum of 165 feet (Mitigation Measure TRANSP-2) would also reduce Project impacts at this intersection. With mitigation, the EIR determined that none of the studied intersections would meet the evaluation criterion for a hot spot analysis, and therefore, the DSRT SURF Project (2019 or proposed) would not result in the creation of a CO hotspot. Therefore, sensitive receptors would not be exposed to substantial pollutant concentrations as the result of Specific Plan traffic, and impacts would remain less than significant. Nuisance Odors The Project does not propose land uses that cause odor impacts, such as fast-food restaurants, photographic studios, and laundry facilities, and other commercial and industrial uses. Odors may be emitted from onsite restaurants and food service facilities; however, all facilities would be equipped with proper ventilation systems to effectively remove grease, smoke, and other odors. Similar to findings in the EIR, impacts related to nuisance odors would be less than significant and no mitigation measures are required. Summary of Impacts Implementation of the Specific Plan amendment and proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact than those analyzed in the EIR. Overall impacts are expected to be less than those previously identified in the EIR due to the reduction in overall development intensity and square footage proposed in the Precise Plan. Therefore, implementation of the proposed Project and Specific Plan amendment would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. 5 Palm Desert General Plan (DEIR) – Page 4.15-14, The City of Palm Desert, 2016. Page 488 40 3.4. BIOLOGICAL RESOURCES Summary of Findings in the EIR The EIR included a comprehensive analysis of special-status and sensitive species, local habitats and vegetation communities, and jurisdictional waters in the Project area, including the Project site. The Project site lies at an elevation of 247 to 263 feet above mean sea level and is surrounded by a mix of golf resort development, residential areas, and commercial operations of the existing Desert Willow Golf Resort. It consists of three parcels: the two northern parcels consist of existing parking lots and have no native vegetation, while the southerly 14.65-acre parcel had been significantly impacted by development activities, including grading and the installation of irrigation systems. This parcel did contain some native vegetation dominated by brittle bush scrub. However, its disturbed condition results in poor quality native habitat. The Project site is within the boundaries of the CVMSHCP/NCCP but is not within any designated Conservation Area. The Project site does not contain wetlands or riparian areas and therefore no impacts would occur. Soils According to the EIR, the Project site contains two distinct types of soils • Myoma fine sand (MaB) – A nearly level soil (0 to 5 percent slopes) that is found on alluvial fans, lacustrine basins, and flood plains of the Coachella Valley. This soil type is found on nearly all of the Project site, except the southeasterly edge. • Myoma fine sand (MaD) – A moderately sloping to rolling soil (5 to 15 percent slopes) that is found on dunes and alluvial fans. This soil type is found along the southeasterly edge of the Project site. Vegetation Communities and Flora Species A total of twenty-three (23) plant species were identified during the field survey, which occurred on July 18, 2018. The vegetation that occurs on the project site most closely resembles Desert Scrub, dominated by brittle bush scrub (Encelia farinosa). Other native plants observed include: scattered broom baccharis (Baccharis sarothroides), California croton (Croton californicus), scalebroom (Lepidospartum squamatum), Emory’s indigo bush (Psorothamnus emoryi), and desert twinbugs (Dicoria canescens). Wildlife During the reconnaissance survey in 2018, a total of thirteen (13) vertebrate wildlife species (twelve birds and one reptile) and eight dragonfly species were detected. Among the bird species observed were western kingbird (Tyrannus verticalis), Berwick’s wren (Thryomanes bewickii), common raven (Corvus corax), greater roadrunner (Geococcyx californianus), and Costa’s hummingbird (Calypte costae). No nesting birds were detected. One reptile, the desert iguana (Dipsosaurus dorsalis), was observed, and other common species, Page 489 41 including side-blotched lizard (Uta stansburiana) and Great Basin whiptail (Aspidoscelis tigris tigris), not seen during the site survey are likely to occur in the survey area. None of these are sensitive species. Given the disturbed nature of the site, including conversion to asphalt parking areas, clearing, and installation of irrigation systems, the site is an island of poor-quality habitat surrounded by non-native developed areas. This results in poor habitat for native species, as many of these species require natural habitats of better quality. Sensitive Species A literature review was conducted to identify sensitive biological resources known from the Project vicinity. The results indicated that there is a potential for as many as 43 sensitive species to occur in the Project vicinity. As indicated in the EIR, many of the species known to occur in the general Project area are not expected to occur onsite or have “Very low” to “Low” occurrence probabilities due to lack of habitat, incorrect elevational range, degraded nature of the site, or other reasons. No sensitive species were observed or detected on the Project site during the biological survey. Project Impacts Construction of the Project would result in the direct disturbance and/or removal of soils, vegetation, and plant and animal species occupying the site. Development of the surf lagoon and surf center will involve demolition of the existing parking lot, grading of 11.85 acres, and construction of the lagoon, buildings, and associated improvements. Development of the hotel and villas will result in grading and construction on 5.84 acres. Off-site improvements, including those for stormwater management, golf course turf reduction and overflow parking would all occur on areas current disturbed and containing ornamental plantings. The development of the Project will result in the disturbance of the entire site and areas where there will be off-site improvements. Impacts to biological resources would be consistent across all components of the proposed Project. The EIR determined that due to the level of existing disturbance onsite from parking lot development, grading, installation of irrigation systems, development of surrounding parcels, and daily disturbances of human activity on the adjacent Desert Willow Golf Resort, there is a low potential for the Project to adversely impact sensitive biological species. Furthermore, the Surf Lagoon component of the Project will operate daily from 6 AM to 12 AM, resulting in constant motion on the surf lagoon. This water activity, combined with the human activity associated with surfers, will prevent water fowl from taking up residence in the Surf Lagoon. No sensitive plant species were observed or detected on the Project site during the biological field survey. The following sensitive plant species were found to have a very low or low potential to occur on the Project site: 1) Coachella Valley milk-vetch, 2) Glandular ditaxis, 3) Abrams’ spurge, 4) Flat-seeded spurge, and 5) slender cottonheads. However, only marginally suitable Page 490 42 habitat occurs onsite, and due to the degraded nature of the site, Project-related impacts would be less than significant. Further, Coachella Valley milk-vetch and Glandular ditaxis are covered species under the CVMSHCP, and any Project-related impacts to them would be further mitigated through the payment of standard CVMSHCP developer impact fees (EIR Mitigation Measure BIO- 1). No sensitive wildlife species were observed or detected onsite during field surveys. The following sensitive wildlife species were found to have a very low or low potential to occur onsite: 1) prairie falcon, 2) loggerhead shrike, 3) black-tailed gnatcatcher, 4) burrowing owl, 5) vermilion flycatcher, 6) pocketed free-tailed bat, and 7) Western yellow bat. However, their occurrence potential is very low to low given a lack of suitable habitat onsite. Prairie falcon, loggerhead shrike, and black-tailed gnatcatcher would have no to low potential for nesting due to lack of suitable habitat, but could forage over the site. Pocketed free-tailed bat has a low potential to forage over the site, but would not be expected to roost onsite due to the lack of roosting habitat. In addition, Western yellow bat is a covered species under the CVMSHCP, and any potential Project-related impacts to it would be mitigated through payment of standard CVMSHCP developer impact fees. The biologist determined that suitable burrowing owl habitat is present on the vacant portion of the Project site, however the species was not detected during site surveys. A focused burrowing owl survey was not performed as part of the survey effort. According to the California Department of Fish and Wildlife, projects not in a Coachella Valley MSHCP Conservation Area (the proposed Project site is not in a MSHCP Conservation Area) do not require burrowing owl protocol surveys, according to the Coachella Valley MSHCP Section 9, Burrowing Owl, page 9- 143. However, they are still required by law (DFW codes and MBTA) to avoid take of burrowing owls. The EIR determined that Project-related impacts to the species will be mitigated through implementation of EIR Mitigation Measure BIO-3 which requires pre-construction surveys to identify any burrowing owls present onsite, and consultation with CDFW regarding the use of exclusion devices, if appropriate, to minimize impacts to the species. Special-status bird species which may nest in the Project area are protected from take by the MBTA. Nesting bird surveys in compliance with the MBTA will mitigate any potential Project- related impacts to these species (EIR Mitigation Measure BIO-2). The surveys would determine whether nesting birds are present onsite immediately prior to site disturbance and, if present, prohibit project-related work within avoidance buffers until the young have fledged. Summary The EIR determined that the 2019 Project would result in less than significant impacts to biological resources with implementation of Mitigation Measures BIO-1 through BIO-3 set forth in the EIR. Development conducted in adherence to these mitigation measures and existing federal, state, and City regulations would ensure potential impacts are reduced to less than significant levels. Page 491 43 Mitigation Measures BIO-1 Payment of CVMSHCP Fees The Project proponent shall be required to pay the CVMSHCP local development mitigation fee to mitigate for impacts to covered species and natural communities within the Project site. BIO-2 MBTA Compliance For any grading or other site disturbance or tree or vegetation removal occurring during the nesting season between February 1st and August 31st, a qualified biologist shall conduct at least one nesting bird survey, and more if deemed necessary by the consulting biologist, immediately prior to initiation of project-related ground disturbing activities. If nesting birds are present, no work shall be permitted near the nest until the young birds have fledged. While there is no established protocol for nest avoidance, when consulted, the CDFW generally recommends avoidance buffers of about 500 feet for birds-of-prey, and 100 – 300 feet for songbirds . BIO-3 Burrowing Owl Surveys A qualified biologist shall conduct two (2) take avoidance pre-construction burrowing owl surveys onsite. The first shall occur between 14 and 30 days prior to ground disturbance, and the second shall occur within 24 hours of ground disturbance. If burrowing owls are detected, the project proponent shall consult with CDFW to determine what course of action is needed, such as the use of exclusion devices (if applicable) to discourage owls from using burrows that are believed to be in jeopardy of being impacted by implementation of the project. Analysis of the Proposed Project Specific Plan and Precise Plan Implementation of the proposed Specific Plan amendment and buildout of the currently proposed Project would not significantly change impacts to biological resources, because the Project site would be expected to be graded and fully disturbed under either the 2019 Project or the proposed Project. The implementation of either Project would result in similar impacts, and therefore less than significant impacts on biological resources with adherence to Mitigation Measures BIO-1 through BIO-3 set forth in the EIR. The Project does not propose a land use designation change that would convert protected or open space lands to urban uses. The site is not located in a Conservation Area as defined by the CVMSHCP, and is subject to the payment of mitigation fees as identified in the EIR. The Project site does not contain wetlands or riparian areas, and is not suitable as a migratory corridor because the site is surrounded by development on all sides. This would be true under either the existing or proposed Project. Page 492 44 Off-Site Improvements The Project does not propose changes to off-site improvements previously analyzed in the EIR. Being that no changes are proposed, impacts associated with off-site improvements would be the same as previously identified in the EIR. Buildout of off-site improvements would not result in any new adverse impacts or significantly increase the severity of previously identified significant impacts in the certified EIR. Therefore, impacts are considered less than significant. Summary Overall, the proposed Project will not result in any new significant impacts or increase the severity of impacts already identified in the EIR with implementation of Mitigation Measures BIO- 1 through BIO-3 set forth in the EIR. Development conducted in adherence to these mitigation measures and existing federal, state, and City regulations would ensure potential impacts are reduced to less than significant levels, consistent with the findings of the EIR. 3.5. CULTURAL AND TRIBAL RESOURCES Summary of Findings in the EIR Historic Resources According to the EIR, roughly 40% of land within the one-mile radius of the Project site had been included in previous cultural resources studies completed over the past 30 years. Results of the Eastern Information Center (EIC) records search identified a total of 2 recorded cultural resources - one archaeological site and one isolate - within a one-mile radius of the site. Site 33-005080 (CA-RIV-5080) consists of small ceramic scatter and is located approximately a quarter-mile northwest of the Project area. The isolate, 33-012698, is comprised of a pottery sherd and a mano fragment located nearly three quarters of a mile to the northeast. Neither resource would be impacted by the Project. The previous cultural resource study that included the Project site was completed in 1993 and involved an intensive-level survey of approximately 500 acres that now hold the existing Desert Willow Golf Resort. The 1993 survey noted the remains of 15 buildings constructed between 1952 and 1960 as being within the surveyed site. Two of those buildings were located within the currently proposed Project boundaries, but they were not formally recorded since they were less than 45 years old at the time. These buildings were “jackrabbit homesteads,” a term used to describe homes that were built rapidly as a result of post-WWII streamlining of the Small Tract Act of 1938. The 2018 cultural resource site survey conducted for the 2019 Project found that the two buildings and their remains are no longer visible onsite. The parking lot that is currently onsite was built between 2009 and 2011, but the remainder of the property has remained undeveloped. Therefore, the EIR determined that both on- and off-site improvements associated with the 2019 DSRT SURF Project would have no impact on historical resources because no such resources occur onsite. Page 493 45 Archaeological Resources No archaeological resources were observed during the site-specific cultural resources field survey, and none were found or recorded during previous surveys. The Project area is within the traditional use area of the Agua Caliente Band of Cahuilla Indians, and the potential exists for archaeological resources to be uncovered during ground-disturbing activities. The EIR found that although the site has been previously graded, features or artifacts of prehistoric origin may be uncovered during Project development, particularly since excavation for parking structure and pool and lagoon backwash drainage structure construction will be at greater depths than previously occurred. The EIR determined that this would represent a potentially significant impact. To reduce the impact, Mitigation Measure CUL-1 requires educating construction personnel about possible archaeological artifacts, human remains, and other cultural materials that could be uncovered during construction activities, pursuant to CEQA Guidelines § 15064.5. If any of those materials are unearthed during construction, Mitigation Measure CUL-2 would require further actions to secure those materials and assure their proper disposition. Overall, the EIR found that impacts to archaeological resources pursuant to § 15064.5 would be mitigated to less than significant levels through implementation of Mitigation Measures CUL-1 and CUL-2. Human Remains The subject site and off-site improvement locations do not contain a formal cemetery; however, it is within the traditional use area of Native American tribes, and the potential exists for human remains to be unearthed during ground-disturbing activities, such as grading and excavation. During site excavation, California Health and Safety Code Section 7050.5 requires that all excavation stop, and that the County coroner inspect the site if remains are uncovered. Should the remains be identified as Native American by the coroner, the NAHC is required to contact the most likely descendant, and that descendant may recommend appropriate burial. This requirement, reflected in Mitigation Measure CUL-3 in the EIR, would assure that impacts associated with human remains are less than significant. Tribal Resources AB 52 and SB 18 require that the consultation process between local and tribal governments begin prior to the release of an environmental impact report, negative declaration, or mitigated negative declaration. On February 8, 2019, the City of Palm Desert distributed AB 52 and SB 18 consultation letters for the Project to each of the following 13 Native American tribes identified by the NAHC as having traditional lands or cultural places within City boundaries. Written responses were received from 2 tribes. The Morongo Band of Mission Indians deferred to the Agua Caliente Band of Cahuilla Indians (ACBCI), and the ACBCI requested copies of cultural reports and site records. Tribal representatives indicated that the site does not contain any tribal cultural resources. However, the site is within the Traditional Use Area of the ACBCI. Therefore, the potential exists for archaeological resources to be uncovered during ground-disturbing activities, including the deep excavation required for the parking structure and pool and lagoon backwash drainage structures. The inclusion of construction staff training, and the requirement for monitoring should resources be identified, will reduce these potential impacts to less than significant levels with implementation of Mitigation Measures CUL-1 and CUL-2. Page 494 46 Summary The cultural resources survey conducted for the DSRT SURF Project in 2018 evaluated a wide range of literature, data, and information on historic, archaeological, and tribal resources that has added to a baseline of knowledge and understanding of these resources. Tribal representatives were contacted for their knowledge, input, and coordination regarding the presence of tribal resources in the Project area. No historical resources were identified onsite as listed or eligible for listing under the California Register of Historical Resources or the National Register of Historic Places. No archaeological resources were identified onsite. The potential for buried artifacts or resources to be unearthed during Project development exists; however, potential impacts would be mitigated to less than significant levels through implementation of mitigation measures. Mitigation Measures CUL-1 Worker Education Program: Prior to commencing any phase of Project ground disturbance, all personnel working onsite shall be required to complete a worker education program performed by a qualified archaeologist that describes potential archaeological artifacts, human remains, and other cultural materials that could be unearthed during the Project development process, and the procedures required in the event such a discovery is made. CUL-2 Monitoring: If buried cultural materials are encountered inadvertently during any earth-moving operations associated with the Project, all work within 50 feet of the discovery should be halted or diverted until a qualified archaeologist can evaluate the nature and significance of the finds. The archaeologist shall prepare a findings report summarizing the methods and results of the investigation, including an itemized inventory and detailed analysis of recovered artifacts upon completion of field and laboratory work. The report shall include an interpretation of the cultural activities represented by the artifacts and discussion of their significance. The submittal of the report to the City and Tribal representative, as appropriate, along with final disposition of the recovered artifacts in a manner consistent with determination of the lead agency, Project archaeologist, and consulting tribes, will signify the completion of the monitoring program and, barring unexpected findings of significance, the mitigation of potential project impacts on cultural and tribal resources. CUL-3 Human Remains: Should buried human remains be discovered during grading or other construction activities, in accordance with State law, the County coroner shall be contacted. If the remains are determined to be of Native American heritage, the Native American Heritage Commission and the appropriate local Native American Tribe shall be contacted to determine the Most Likely Descendant (MLD). Page 495 47 Analysis of the Proposed Project Specific Plan and Precise Plan The majority of the proposed Project site is currently vacant, with the exception of the Desert Willow parking lot at the northern portion of the site, and contains sparse native vegetation. The proposed Project will disturb the same area of land as that analyzed in the EIR. Excavation activity will be similar, and somewhat reduced from that analyzed in the EIR, insofar as the subterranean parking garages proposed for the 2019 Project are not proposed under the current Precise Plan. No historical, archaeological, or tribal resources were identified during the 2018 site survey. Development under either the 2019 Project or proposed Project would result in grading of the entire site, disturbance of off-site improvement locations, and equivalent earth moving activities. Impacts would therefore be identical under either condition. Should cultural resources be located on the site during grading and excavation, the impacts to these resources would be considered significant. In order to reduce these impacts to less than significant levels, the proposed Project will be required to implement Mitigation Measures CUL-1 through CUL-3 set forth in the EIR. Consultation was undertaken by the City for the proposed Project, and one letter was received from the ACBCI, requesting copies of the cultural resources reports. The Tribe was sent the reports and the EIR, and no further communication has occurred. The Tribe was satisfied with the mitigation measures provided in the EIR, insofar as they would mitigate any potential resources uncovered during Project construction. Summary Overall, the proposed Project will not result in any new significant impacts or increase the severity of impacts already identified in the EIR. Development conducted pursuant to the mitigation measures set forth in the EIR, and in adherence to existing federal, state, and City regulations will ensure potential impacts associated with cultural resources are reduced to less than significant levels. 3.6. ENERGY Summary of Findings in the EIR Primary energy sources include nuclear energy, fossil energy (oil, coal and natural gas) and renewable sources like wind, solar, geothermal and hydropower. These primary sources are converted to electricity, a secondary energy source, which flows through power lines and other transmission infrastructure to developments. Electricity The Project site is located within the SCE service area which covers approximately 50,000 square miles and serves approximately 4.4 million residential service accounts and 520,000 commercial service accounts. The California Energy Commission estimated that the total electricity consumption for Riverside County was 15,906.31 million kWh in 2017.6 According to the Palm 6 California Energy Commission - California Energy Consumption Database for Riverside County, total electricity consumption for 2017. Page 496 48 Desert Greenhouse Gas Inventory Update, city-wide electricity usage in Palm Desert in 2013 was 756,834,386 kWh7. This includes all electricity consumed by municipal buildings, residential, commercial, and industrial land uses, and resorts and golf courses, combined. The report had not been updated at the time of the EIR, and a more recent estimate was not available. However, it can be assumed that current (2019) electricity usage per capita will be comparable to 2013, if not less, due to the increased energy efficiency standards of the California Building and Energy Codes. Currently, the Project site is predominantly undeveloped and not using any electricity. A negligible amount of electricity is used by pole-mounted lights in the existing parking area. SCE distribution lines are located in proximity to Project site, from Portola Avenue, bordering Desert Willow Resort on the west, through Desert Willow Westin Villas, and along the northerly boundary of the Project site toward Desert Willow Drive and the existing clubhouse. Electricity consumed during Project construction of both on-site and off-site improvements would vary throughout the construction period based on the construction activities being performed. Activities requiring electricity could include powering outdoor security or worksite lighting, operation and charging of electronic equipment, and powering a temporary worksite office or trailer. Such electricity demand would be temporary, nominal, and would cease upon the completion of construction. Overall, electricity will not be the primary energy source used during construction. Instead, the use of equipment fuels such as diesel and petroleum will be the primary energy source, and impacts from consumption of electricity during construction would be less than significant. During operation of the Project, energy would be consumed for multiple purposes including, but not limited to, heating/ventilating/air conditioning (HVAC), refrigeration, lighting, electronics, office equipment, residential and commercial machinery (including kitchen appliances), and swimming pool operations, including wave generation at the surf lagoon. Off-site improvements are limited to utility infrastructure expansion and landscaping improvements. Such improvements will not generate an operational demand for electricity and therefore have no impact on the electrical grid. According to the CalEEMod outputs and Lagoon specific utility data8, the 2019 Project would consume approximately 21,711,725 kWh per year of electricity. This represents a 2.87% increase in annual city-wide kWh usage. The 2019 Project proposed the installation of solar panels onsite which could generate an estimated 1,700,000 kWh per year. Operation of the solar panels will offset the Project’s electrical demand, thereby reducing it to approximately 20,011,725 kWh per year, which represents approximately 2.64% of the city’s total annual electricity demand. In addition, adherence to current California Building Code and Energy Code standards will ensure the most energy efficient technologies and practices are used for the development and operation of the Project. The EIR determined the 2019 Project would not result in wasteful, inefficient, or 7 Palm Desert Greenhouse Gas Inventory 2013 Update. 8 Per the Project-specific lighting plan, pole/tower lighting for the lagoon will have a max load of 39 kw for 7 hours per day (night lighting) for 365 days per year, totaling 99,645 kWh/yr. The average wave machine requires a maximum average load of 1,622 kw for 18 hours a day for 365 days per year, totaling 10,656,540 kWh/yr. Page 497 49 unnecessary consumption of electrical energy resources during project operation. Construction and operation-related electricity impacts associated with the surf lagoon, surf center, hotels, villas, and off-site improvements would be less than significant. Natural Gas According to the Palm Desert Greenhouse Gas Inventory Update, city-wide natural gas consumption totaled 17,532,930 therms in 20139. This includes natural gas consumed by residential, commercial, and industrial land uses, and resorts and golf courses. The report had not been updated at the time of the EIR, and a more recent estimate was not available. However, similar to statewide predictions, it can be assumed that the annual consumption of natural gas per capita within the City of Palm Desert would be comparable to 2013 or would decline. The Project site does not currently consume any natural gas. Construction of the 2019 Project typically would not involve the consumption of natural gas. Construction would, however, involve installation of new natural gas connections to serve the Project site. Prior to ground disturbance, Project contractors would notify and coordinate with SoCalGas to identify the locations and depths of all existing gas lines and avoid disruption of gas service. The use of natural gas during Project construction would not be wasteful, inefficient, or unnecessary. Construction-related impacts to natural gas supplies and infrastructure were determined to be less than significant. Operation of the Project would consume natural gas for heating, cooking, and powering equipment such as furnaces. According to the CalEEMod outputs and Lagoon specific utility data, operation of the Project at buildout would consume approximately 331,811 therms per year of natural gas, which is equivalent to a 1.89% increase in annual City-wide therm usage. Adherence to current California Building Code and Energy Code standards would ensure the most energy efficient technologies and practices are used for the development and operation of the 2019 Project. The EIR found that the Project would not result in wasteful, inefficient, or unnecessary consumption of natural gas energy resources during project operation. Transportation Energy According to the Palm Desert Greenhouse Gas Inventory Update, there were 510,875,864 vehicle miles traveled in Palm Desert in 2013. This includes both the municipal fleet and community- wide miles traveled. It should be noted that the original 2008 inventory reported an annual VMT of 368,694,193, which represented a 35% increase in VMTs but only a 2% increase in CO2e emission. This difference in emissions is attributed to increased vehicle fuel efficiency standards meaning less fuel energy is required for increased VMTs. The undeveloped portion of the Project site currently generates no VMT. Fuel consumed by construction equipment, such as petroleum and diesel, would be the primary energy resource expended over the course of construction, and VMT associated with the transportation of construction materials and construction worker commutes would also result in petroleum consumption. Heavy-duty construction equipment associated with construction 9 Palm Desert Greenhouse Gas Inventory 2013 Update. Page 498 50 activities, as well as haul trucks involved in moving dirt around the project area, would rely on diesel fuel. Construction workers would travel to and from the project area throughout the duration of construction. The EIR assumed that construction workers would travel to and from the project area in gasoline-powered vehicles. According to the CalEEMod outputs generated for air quality analysis, it was assumed that worker trip lengths were 11 miles, vendor trip lengths 5.4 miles, and hauling trip lengths 3.5 miles. Based on the number of trips required to complete project construction that were generated by the CalEEMod software, combined VMTs for workers, vendors, and hauling would be 39,732 miles. Overall, petroleum and diesel use during construction would be temporary and minimal and would not be wasteful or inefficient. Construction-related transportation energy impacts associated with the surf lagoon, surf center, hotels, villas, and off-site improvements would be less than significant. During operation, the 2019 Project would result in the consumption of petroleum-based fuels related to vehicular travel to and from the Project site. According to the Project-specific traffic analysis, the Project was estimated to generate 5,496 daily vehicle trips under typical daily operations, and 7,288 daily vehicle trips during a special event. Daily visitors will include a mix of local residents and out of town visitors. For analysis purposes, the EIR assumed that the average daily trip length was 25 miles. This accounts for local residents who are estimated to travel approximately 15 miles to the Project site from within the Coachella Valley, and out of town visitors who are estimated to travel further to the Project site from outside the valley. Based on this estimate, the Project could potentially generate 12,213,217 VMTs. This represents a 2.4% increase in City-wide VMTs. It should be noted that VMTs are regional in nature, and that not all Project VMTs will occur solely within the City’s boundaries. Although the 2019 Project will result in a direct increase in VMTs, the EIR found that the Project will not interfere with increased fuel efficiency standards and will not result in wasteful, inefficient, or unnecessary consumption of transportation energy resources during operation. Impacts were determined to be less than significant. State and Local Energy Efficiency Plans The 2019 Project would be designed, built and operated in accordance with all existing, applicable regulations that would serve to reduce energy demand and avoid conflict with any applicable energy standards, including energy conservation standards. Such regulations and standards included the 2016 Building Code, California Green Building Code, and 2019 Energy Code to ensure the most efficient construction/building technologies are used, which will benefit overall building operations. The 2019 Project included the installation of solar panels to reduce energy use in the surf center and might include solar installation in the hotel and villa component. The EIR found that the Project will not interfere with any state or local plan that promotes renewable energy or energy efficiency. Adherence to the applicable state standards enforced by the City will ensure the project is consistent with current energy standards and conservation goals. Therefore, no impact related to compliance with applicable energy standards would result. Page 499 51 Summary For the reasons described above, the EIR determined the 2019 DSRT SURF Project would not place a substantial demand on regional energy supply or require significant additional capacity, or significantly increase peak and base period electricity demand, or cause wasteful, inefficient, and unnecessary consumption of energy during project construction, operation, and/or maintenance, or preempt future energy development or future energy conservation. Therefore, this impact would be less than significant. Analysis of the Proposed Project Electricity Under both buildout scenarios (2019 and proposed), electricity would be consumed during construction and would vary throughout the construction period based on the construction activities being performed. Such electricity demand would be temporary, nominal, and would cease upon the completion of construction. During operation, electricity will be used for multiple purposes including but not limited to air conditioning, lighting, electronics, refrigeration and other kitchen appliances, powering the lagoon machinery, equipment and ancillary facilities. The EIR analyzed maximum buildout potential under the 2019 Specific Plan, and because the Project does not propose changes to the Specific Plan that would increase development intensities and maximum buildout potential, electricity impacts would be comparable to those analyzed in the EIR. The Precise Plan would result in a 27% reduction in commercial space, 71% reduction in restaurant/bar space, 53% reduction is hotel and villa building square footage. Therefore, demand for electricity generated by the proposed Precise Plan would further reduce future energy demands of the site. Adherence to current California Building Code and Energy Code standards, which are more stringent than those in place when the EIR was prepared, will ensure the most energy efficient technologies and practices are used for the development and operation of the Project. The Project reduces the use of electricity analyzed in the EIR, and therefore impacts remain less than significant. Natural Gas Construction of the Project site under any buildout scenario typically would not involve the consumption of natural gas. Construction would, however, involve installation of new natural gas connections to serve the Project site, and would be required under both buildout scenarios. As determined in the EIR, the use of natural gas during construction would not be wasteful, inefficient, or unnecessary. Operation of the proposed Project would consume natural gas primarily for heating and cooking and powering equipment such as furnaces. The EIR analyzed maximum buildout potential under the 2019 Specific Plan, and because the Project does not propose changes to the Specific Plan that would limit or increase development intensities and maximum buildout potential, natural gas impacts would be comparable to those analyzed in the EIR. Page 500 52 The Precise Plan would result in a 27% reduction in commercial space, 71% reduction in restaurant/bar space, 53% reduction is hotel and villa building square footage. Therefore, it can be assumed that demand for natural gas would further reduce future energy demands of the site. Adherence to current California Building Code and Energy Code standards will ensure the most energy efficient technologies and practices are used for the development and operation of the Project. The Project reduces the amount of natural gas analyzed in the EIR, and therefore impacts remain less than significant. Transportation Energy Under both buildout scenarios (2019 and proposed), transportation energy would be consumed during construction and would vary throughout the construction period based on the construction activities being performed. During construction, petroleum and diesel would be the primary fuel source consumed by construction equipment, material hauling equipment, and worker commutes. It is assumed that construction equipment would consume the most diesel fuel, while worker commutes would consume the most gasoline traveling to and from the project area in their private vehicles. Similar to assumptions made in the EIR, it is expected that most construction workers will live locally, which would minimize the need for long commutes and limit fuel consumption. Overall, petroleum and diesel use during construction of both on-site and off-site improvements would be temporary and minimal and would not be wasteful or inefficient. During operation, the Project would result in the consumption of petroleum-based fuels related to vehicular travel to and from the Project site. The EIR analyzed maximum buildout and operational potential under the Specific Plan, and because the Project does not propose changes to the Specific Plan that would limit or increase daily operations or special events, impacts from vehicular travel would be comparable to those analyzed in the EIR. Development plans for the proposed Precise Plan would result in 258 fewer hotel rooms and 5 fewer residential villas than those assumed for maximum site buildout, which would reduce VMTs. The Precise Plan reduces the vehicle trips analyzed in the EIR, and therefore impacts associated with transportation energy will remain less than significant. Summary of Impacts Buildout of the site would be subject to the same General Plan policies, programs, and current SCAQMD Rules and Regulations analyzed in the EIR. Implementation of the proposed Project would not result in any new impacts or increase the severity of a previously identified impact as analyzed in the EIR. Overall impacts are expected to be less than those identified in the EIR due to the reduction in overall building space proposed in the Precise Plan. Therefore, implementation of the proposed Project and Specific Plan amendment would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. Page 501 53 3.7. GEOLOGY/SOILS Summary of Findings in the EIR The Project area is located in the Colorado Desert Geomorphic Province. More specifically, the City is located within the central portion of the Coachella Valley where elevations range from approximately 5,100 feet above mean sea level (AMSL) in the Santa Rosa Mountains, to a low of about 60 feet AMSL in the Bermuda Dunes area. The City is primarily located on the desert floor, at an elevation of approximately 250 feet AMSL. Fault Rupture (Primary Seismic Hazard) The Project planning area is located within the central portion of the Coachella Valley, which is a rift valley associated with the San Andreas Fault System in Southern California. The valley is located in the northwestern portion of the Salton Trough, a tectonic depression roughly 130 miles long and 70 miles wide that extends from the San Gorgonio Pass to the Gulf of Mexico. No portion of the City is located within a fault zone, as defined by the Alquist-Priolo Act. Based on information from the California Geological Survey, no known major active faults are located in the City. According to the EIR, the closest active faults to Palm Desert are the San Andreas fault, located approximately 4 miles to the north; the San Jacinto fault, located 10 miles to the southwest; and the Elsinore fault, located 30 miles to the southwest. These faults are capable of generating earthquakes of magnitude >5.0; however, fault rupture is not expected on the Project site Seismic Groundshaking (Primary Seismic Hazard) The Project site is located in a seismically active region where earthquakes originating on local and regional seismic faults can produce severe ground shaking. Although no active faults run through the City, Palm Desert’s soils and geologic characteristics result in other potential secondary seismic hazards. The Modified Mercalli Intensity scale describes the magnitude of an earthquake in terms of actual physical effects. Six historic seismic events (M 5.9 or greater) have significantly affected the Coachella Valley region in the past 100 years. To address seismic hazards, the City has codified the 2016 CBC in Municipal Code Section 15.24.010, which requires that structures be designed with adequate strength to withstand the lateral dynamic displacements induced by the Design Basis Ground Motion, which the CBC defines as the earthquake ground motion that has a 10% chance of being exceeded in 50 years. The Project is required to comply with the CBC and all California seismic design requirements, which would ensure that it would not expose persons or property to significant injury or damage from strong seismic ground shaking hazards. To further minimize ground shaking and strengthen the building foundations, the site-specific Geotechnical Investigation Report for the 2019 Project included several recommendations, included as mitigation measures in the EIR. Implementation of mitigation measures GEO-6 and GEO-7 will ensure adequate uniform structural support for enclosed walls during strong seismic groundshaking events. GEO-10 requires appropriate Asphalt Concrete Pavement design and Page 502 54 construction measures to minimize potential damage to proposed structures if strong seismic ground shaking is encountered. GEO-13 requires compaction of up to 90% to minimize cracking of concrete flatworks. Adherence to the CBC, California seismic design requirements, the City’s Municipal Code, and the mitigation measures set forth in the EIR would ensure potential impacts related to seismic groundshaking would be less than significant. Expansive and Collapsible Soils (Primary Seismic Hazard) Expansive soils, also referred as swelling soils, are soils that have a tendency to increase in volume with an increase in the moisture content. These soils swell when water is added to them and shrink when they dry out. Foundations with swelling soils will heave and can cause lifting of a building or structure when the moisture content rises. This can ultimately lead to the failure of foundations and structures. No specific expansive soil area is identified in the City. Collapsible soils are unsaturated soils that exhibit a high strength when dry but experience a large and rapid volume reduction upon saturation, which can result in substantial structural damage. Alluvial and aeolian sediments in the City have the potential for settlement and collapse even under relatively low loads. The surface soils on the Project site consist of silty sand, which has very low collapse potential.10 The site is located on relatively flat ground but could be subject to slope instability, collapse, or slumping during an earthquake, particularly in areas where excavation would be required, including both the subsurface parking garage and pool and Lagoon backwash drainage structures, and the surf lagoon. In order to minimize the potential for collapse, instability or slumping, mitigation measures GEO-1 through GEO-5 will assure that soil is clean, adequately compacted, and that excavated slopes remain stable during a seismic event. Due to a lack of expansive soils onsite, the proposed Project would not create a substantial risk to life or property. With implementation of these mitigation measures, the EIR found that impacts will be reduced to less than significant levels. Subsidence In the Coachella Valley, the main source of ground subsidence has been associated with the pumping of groundwater. Beginning in the late 1940s, pumping of groundwater resulted in water-level declines of as much as 15 meters. Since 1996, the U.S. Geological Survey (USGS) and Coachella Valley Water District (CVWD) have investigated land subsidence associated with groundwater level declines. Results show that the land surface subsided about 220 to 600 millimeters (0.72 to 1.97 ft) in three areas of the Coachella Valley near Palm Desert, Indian Wells, and La Quinta; the subsidence is associated with areas of substantial and on-going groundwater pumping.11 The potential for groundwater extraction-related ground subsidence is considered to 10 Shalaby, S.Ibrahim: Potential Collapse for Sandy Compacted Soil During Inundation. International Journal of Innovative Science, Engineering and Technology, Vol. 4 Issue 5, May 2017. 11 Land Subsidence, Groundwater Levels, and Geology in the Coachella Valley, California, 1993–2010 by Michelle Sneed, Justin T. Brandt, and Mike Solt. Page 503 55 be limited due to reduction in pumping in these areas and replenishment of regional groundwater aquifers with imported water. As discussed in the EIR, the surf lagoon and surf center facilities would require approximately 88.32 AFY of domestic water and the hotel and villas portion of the site would require approximately 76.89 AFY of water, for a total of 165.21 AFY. After applying the water demand offsets associated with implementation of the proposed turf reduction program at the Desert Willow Golf Course (106.75 AFY), the net total water demand for the Project is expected to be 58.46 AFY. The EIR identified that the Project will provide water for the surf lagoon in one of three ways: installation of a new groundwater well at the southeastern corner of the site; connection to the existing Desert Willow groundwater well located south of the site near Country Club Drive; or utilization of the potable water from CVWD. Water demand for the surf lagoon is 73.04 AFY, which represents 0.00025% of total water in storage. If the Project installs a new groundwater well on the site, the groundwater well will be metered and in compliance with requirements of the Regional Water Quality Control Board (RWQCB). Other components of the Project will be connected to CVWD’s water distribution system. If the Project connects to the existing Desert Willow groundwater well located south of the site near Country Club Drive, then the project would require construction and extension of underground pipes to supply approximately 73.04 AFY per year. Otherwise, CVWD would provide approximately 73.04 AFY per year of water for the surf lagoon. Overall, the EIR determined that no excessive withdrawal of water was anticipated at the site, and the potential for subsidence was considered low. Consequently, impacts from subsidence, liquefaction or collapse would be less than significant. Soils and Geologic Units According to the EIR, the majority of the City is underlain by fine drained sand of alluvial and aeolian deposition. During the Project-specific Geotechnical Investigation, approximately 2 to 3 feet of fill/disturbed soil was encountered whose composition and appearance varied throughout the depth of bores; however, density increased with depth. The artificial fill and native sandy soil encountered at the site are generally dry throughout and grayish brown in color. Wind/Soil Erosion Hazard The City of Palm Desert faces exposure to potential erosion hazards due to wind. Due to sparse desert vegetation, little groundcover exists to hold materials in place which accelerates the soil erosion at the surface. The sand dunes along Interstate 10 and the Whitewater River are the two most significant sources of wind-blown sand in the city. The subject site is not located in proximity to these areas, however the Project site is located in an area with a Very High Wind Erodibility rating.12 12 Palm Desert General Plan; Figure 8-3. Page 504 56 The EIR found that the Project would include demolition of the existing parking lot, excavation, site preparation, grading, paving, building construction, off-site improvements and other ground disturbance by heavy machinery that could result in the loss of some topsoil and generate particulate matter. Grading and construction activities would occur in accordance with erosion control requirements, including dust control measures, imposed by the City pursuant to grading permit regulations. Specifically, project construction would be required to comply with the City’s Municipal Code Section 27.28.09013, including submittal and approval of grading permits to ensure that the project does not generate excessive soil erosion. City Municipal Code Sections 24.12.01014 and 24.20.05015 require preparation of a fugitive dust (PM10) mitigation plan and compliance with National Pollutant Discharge Elimination System (NPDES) standards prior to and during construction. Furthermore, Policy 1.13 (Soil Erosion) of the City’s General Plan requires the prevention of water-born soil erosion from new development especially during grading activities.16 A Water Quality Management Plan (WQMP)17 was prepared for the Project which included Best Management Practices (BMPs). These BMPs would be implemented during grading and construction to reduce sedimentation and soil erosion, and in compliance with City standards. Mitigation measures GEO-16 through GEO-18 were also provided to specifically address and mitigate the potential for soil erosion through watering or covering soils, and by prohibiting construction activities during significant storms or wind events. In addition, project construction contractors would be required to comply with City grading permit regulations18, which require dust control measures to reduce sedimentation and erosion.19 Compliance with regulatory requirements, implementation of PM10 mitigation plan, NPDES, and BMPs, and mitigation measures GEO-16, GEO-17, and GEO-18 would reduce potential impacts to less than significant levels. Landslides (Secondary Seismic Hazard) The Project site is currently partially developed and does not contain unstable soils or geologic units. No fissure or other surficial evidence of subsidence was observed at the Project site. Based on the Geotechnical Investigation Report for the 2019 Project, the site is not susceptible to on- or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse; this is due to on-site conditions, distance from sloping terrain and foothills, and depth to groundwater. Mitigation measure GEO-3 of the EIR required use of engineered fill free of unstable soil at the site to reduce potential risks associated with lateral spreading, subsidence, liquefaction or collapse for all components of the project. The EIR found that implementation of this mitigation measure would reduce impacts to less than significant levels. 13 Palm Desert Municipal Code 27.28.090 – Plans to Accompany Application. 14 Chapter 24.12 Fugitive Dust (PM10) Control, Palm Desert Municipal Code 24.12.010 – Purpose and Intend. 15 Palm Desert Municipal Code 24.20.050 - Discharge of pollutants. 16 Palm Desert General Plan, City of Palm Desert 2016; Page 135. 17 Preliminary Water Quality Management Plan for Tentative Map 37639 – DSRT SURF prepared by The Altum Group, December 31, 2018. 18 Palm Desert Municipal Code 27.12.180 – Building Permits and Chapter 24.12 – Fugitive Dust (PM10) Control. 19 Palm Desert Municipal Code 27.12.065 – Erosion Control. Page 505 57 Liquefaction (Secondary Seismic Hazard) Liquefaction occurs primarily in saturated, loose, fine to medium-grained soils in areas where the groundwater table is generally 50 feet or less below the surface. The site-specific Geotechnical Investigation Report for the 2019 Project indicated that the depth to groundwater is greater than 200 feet beneath the surface of the subject property, and therefore, onsite liquefaction is unlikely.20 Therefore, potential impacts related to liquefaction would be less than significant. Seiches and Tsunamis A seiche is defined as “an occasional and sudden oscillation of the closed water body (enclosed water body, lake, bay, estuary, etc.) producing fluctuations in the water level.” There are many causes of seiches, for example, wind, earthquakes, and changes in barometric pressure. The seiche hazard in the valley includes above-ground water reservoirs, golf course lakes and other impoundments. Domestic water reservoirs in the valley have been constructed to resist the effects of groundshaking that could compromise the integrity of these structures. The EIR found that the proposed surf lagoon will contain approximately 23,798,770 gallons of water and could present a seiche hazard; potential impacts were analyzed in the Hydrology Section, below. Wastewater Disposal Systems Soils in the project area are capable of supporting septic tanks. However, the 2019 Project did not propose septic tanks. Therefore, the EIR found that there would be no impacts associated with subsurface waste disposal systems. Paleontological Resources Paleontological resources are the remains and/or traces of prehistoric life, exclusive of remains from human activities, and include the localities where fossils were collected and the sedimentary rock formations from which they were obtained. In the Coachella Valley, paleontological resources are associated with the Lake Cahuilla sediments which generally consist of freshwater mollusks. The project site contains Quaternary-age alluvium in the subsurface which has an unknown paleontological resource sensitivity. The Project site is not known to contain unique paleontological features; however, construction activities have the potential to reveal Quaternary-age alluvium. To reduce the potential impacts to paleontological resources due to excavation activities, Mitigation Measure GEO-15 is provided in the EIR. A qualified paleontologist would be required to evaluate any buried paleontological materials discovered during earth-moving operations at the site to reduce Project impacts to less than significant levels. Summary of Impacts Overall, the EIR found that adherence to the CBC, California seismic design requirements, the City’s Municipal Code, site specific Geotechnical Report, and the mitigation measures set forth in the EIR (and herein) would ensure potential impacts related to geologic hazards would be less than significant. 20 Geotechnical Investigation Report for the project site by Sladden Engineering in December 2018. Page 506 58 Mitigation Measures GEO-1 Site Clearing: Prior to commencement of remedial grading within the site, all existing vegetation, associated root systems, and debris shall be cleared. Areas planned to receive fill shall be cleared of old fill and any irreducible matter. GEO-2 At Grade Structure Areas Requirements: All undocumented artificial fill and low- density native surface soil shall be removed and re-compacted for the at-grade structures (e.g., spa building and cabanas). Over-excavation should extend to a minimum depth of 3 feet below existing grade or 3 feet below the bottom of the footings, whichever is deeper. The exposed native soil shall be moisture conditioned to within 2 percent of optimum moisture content and compacted to at least 90 percent relative compaction. Removals shall extend at least 5 feet laterally beyond the footing limits. GEO-3 Fill Placement and Compaction: Engineered fill shall be free of organic material, debris, and other deleterious substances, and should not contain irreducible matter greater than 3-inches in maximum dimensions. The imported fill shall meet the following criteria: Plastic Index <12 Liquid Limit <35 % Soil Passing #200 Sieve Between 15% and 35% Maximum Aggregate Size 3 inches GEO-4 Shrinkage and Subsidence: Volumetric shrinkage of the material shall be between 10 and 15 percent. GEO-5 Temporary Excavation: Temporary excavation up to 20 feet in depth may be required to accomplish the proposed construction. Excavations to depth of 20 feet shall have slope cuts no steeper than horizontal to one vertical (1:1). GEO-6 Conventional Shallow Spread Footings: Adequate support for the proposed resort buildings and surf lagoon enclosed walls will be provided through Conventional Shallow Spread Footings. GEO-7 Slabs-on-Grade: Concrete slabs-on-grade must be placed on compacted engineered fill to provide uniform support. A minimum slab thickness of 4-inches and a minimum reinforcement consisting of #3 bars at 18-inches on center in each direction shall be required. GEO-7 Slabs-on-Grade: Concrete slabs-on-grade must be placed on compacted engineered fill to provide uniform support. A minimum slab thickness of 4-inches and a minimum reinforcement consisting of #3 bars at 18-inches on center in each direction shall be required. Page 507 59 GEO-8 Structure Mat Slabs: Structure Mat Slabs shall be required for the below grade structures associated with the wave generating equipment which would meet an allowable soil bearing pressure of 3,000 psf. GEO-9 Retaining Walls: Subterranean parking levels and the surf lagoon would require retaining walls. Ground surface behind retaining walls shall be sloped to drain. GEO-10 Asphalt Concrete Pavement: This shall be designed in accordance with Topic 608 of the Caltrans Highway Design Manual to meet the following thickness for the site: Pavement Material Required Thickness Asphalt Concrete Surface Course 3 inches Class II Aggregate Base Course 4 inches Compacted Subgrade Soil 12 inches GEO-11 Corrosion Series: Prior to ground disturbing activities, a corrosion expert shall be consulted regarding appropriate corrosion protection measures for corrosion sensitive installation. GEO-12 Utility Trench Backfill: All utility trench backfill shall be compacted to a minimum relative compaction of 90%. GEO-13 Exterior Concrete Flatwork: The subgrade soil below concrete flatwork areas shall first be compacted to minimum relative compaction of 90 percent to minimize cracking of concrete flatworks. GEO-14 Drainage: To provide rapid removal of surface water runoff to an adequate discharge point, all final grades shall be provided with positive gradients away from foundations. In addition, surface water shall be directed away from building foundations to an adequate discharge point to reduce water infiltration into the subgrade soil. GEO-15 If buried paleontological materials are discovered inadvertently during any earth- moving operations associated with the project, all work within 50 feet of the discovery shall be halted or diverted until a qualified paleontologist can evaluate the nature and significance of the finds. GEO-16 All project grading plans shall include a soil erosion prevention/dust control plan. Blowing dust and sand during excavation and grading operations shall be mitigated by adequate watering of soils prior to and during excavation and grading, and limiting the area of dry, exposed and disturbed materials and soils during these activities. To mitigate against the effects of wind erosion after site development, a variety of measures shall be implemented, including maintaining moist surface soils, planting stabilizing vegetation, establishing windbreaks with non-invasive vegetation or perimeter block walls, and using chemical soil stabilizers. Page 508 60 GEO-17 There shall be a cessation of grading activities during rainstorms or high wind events. The project contractor shall install flow barriers and soil catchments (such as straw bales, silt fences, and temporary detention basins) during construction to control soil erosion. GEO-18 All materials transported off-site shall be either sufficiently watered or securely covered to prevent excessive amounts of spillage or dust. GEO-19 Prior to ground disturbing activities, all employees at the construction site shall be trained in earthquake preparedness and identify safe places near the construction site to facilitate emergency evacuation. Analysis of the Proposed Project Specific Plan and Precise Plan The site would be fully developed, regardless of buildout scenario (2019 or proposed Project). The entire site will be disturbed, and the same mitigation measures associated with stabilizing soils and assuring adequate geotechnical design would apply to the proposed Project. The EIR analyzed maximum buildout potential under the Specific Plan. The proposed Specific Plan amendment would not increase the maximum development intensities, including site density and building heights, and therefore the Project would not generate new significant impacts or a substantial increase in previously identified impacts associated with geology and soils. Instead, impacts would less intense due to the reduction in building square footage, hotel rooms, and villas associated with the Precise Plan. Adherence to the City’s Municipal Code, General Plan policies, Project-specific Geotechnical Report, and mitigation measures contained in the EIR would result in less than significant impacts, consistent with the findings of the EIR. Mitigation measures will apply to the currently proposed Project. Therefore, implementation of the proposed Project and Specific Plan amendment would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. 3.8. GREENHOUSE GAS EMISSIONS & ENERGY Summary of Findings in the EIR Construction of the 2019 Project was anticipated to occur over a two-year period starting in mid- 2019 with build out in mid-2021. Project components are listed below; during construction of each component, fossil fuel use by construction equipment, machinery, haul trucks, and employees’ commuter vehicles will generate short-term GHG emissions. • Surf Lagoon and Surf Center • Hotel and Villas • Off-Site Improvements: o Stormwater Management Page 509 61 o Pool/Lagoon Discharge o Golf Course Turf Reduction o Landscaping Improvements o Special Events Parking o Soil Removal/Storage The California Emissions Estimator Model (CalEEMod), version 2016.3.2, was used to estimate Project-related GHG emissions during construction. The results are summarized in the following table. GHG emissions will be temporary and will end once construction is complete. All components of construction, including equipment, fuels, and materials, will be subject to current regulations of GHGs and equipment efficiency standards, which are meant to reduce GHG emissions. Construction emissions were amortized over a 30-year period and added to annual operational emissions to be compared to applicable GHG thresholds Table 6 Construction GHG Emissions Summary 2019 DSRT SURF EIR (Metric Tons) CO2 CH4 N2O Total CO2e 2019 766.21 0.16 0.00 770.34 2020 1,404.68 0.17 0.00 1,408.87 2021 289.61 0.03 0.00 290.37 TOTAL 2,460.5 0.33 0.00 2,469.58 Table 2.8-1 of EIR. Operational emissions will occur throughout the life of the Project. At buildout, five emission source categories will contribute either directly or indirectly to operational GHG emissions: energy/electricity usage, water usage, solid waste disposal, area emissions (pavement and architectural coating off-gassing), and mobile sources. CalEEMod was used to estimate annual operational GHG emissions generated by the Project under two scenarios: 1) typical operations, and 2) special event operations. The table below shows daily emissions for a one-day special event. For analysis purposes, it was assumed that 12 special events would be held per year. Special event emissions have been added to typical operation emissions and amortized construction emissions, as shown below. Table 7 Special Events Operational Emissions: 2019 DSRT SURF EIR CO2 CH4 N2O CO2e Pounds/Day 73,327.33 4.97 0.20 73,510.04 Conversion to Metric Tons 33.26 0.00 0.00 33.34 Table 2.8-2 of EIR. Page 510 62 Table 8 Operational GHG Emission Summary: 2019 DSRT SURF EIR (Metric Tons/Year) CO2 CH4 N2O CO2e Typical Operations 16,907.63 24.91 0.12 17,565.85 12 Special Events1 399.12 0.00 0.00 400.08 Amortized Construction2 82.01 0.01 0.00 83.02 Total Operational Emissions 18,048.95 Table 2.8-s of EIR.. The EIR assessed Project impacts using the SCAQMD tiered test approach, which states a project’s greenhouse gas emissions would be considered significant if it could not comply with at least one of the following “tiered” tests: Tier 1: Is there an applicable exemption? Does Not Comply: The proposed Project does not qualify for an applicable exemption under CEQA. Tier 2: Is the project compliant with a greenhouse gas reduction plan that is, at a minimum, consistent with the goals of AB 32? Does Not Comply: Although the City of Palm Desert has an adopted Environmental Sustainability Plan which is consistent with AB 32, the Project would not comply with Tier 2 because the Plan is not a CEQA certified document. SCAQMD requires that the “greenhouse gas reduction plan,” in this case the Sustainability Plan, have a certified Final CEQA document. Tier 3: Is the project below an absolute threshold (10,000 MTCO2e/yr for industrial projects; 3,000 MTCO2e/yr for residential and commercial projects)? Does Not Comply: The proposed Project is considered a commercial project and is estimated to emit 18,048.97 MT of CO2e annually. Tier 4: Is the project below a (yet to be set) performance threshold? Does Not Comply: There are currently no performance thresholds applicable to the proposed Project to measure against. Tier 5: Would the project achieve a screening level with off-site mitigation? Does Not Comply: The off-site mitigation proposed for the Project (Turf Reduction Plan) will offset water demands, but will not reduce Project GHG emissions to achieve a screening level. The Project did not comply with any of the tiered tests presented above, and would therefore have significant and unavoidable impacts associated with GHG emissions. However, Mitigation Measure GHG-1 assured that the Project would adhere to the Palm Desert Environmental Sustainability Plan21, and its implementation would help reduce GHG emission impacts. In addition, all new development within the City is required to implement energy efficiency design 21 It should be noted that adherence to the Environmental Sustainability Plan, which is consistent with AB 32, would not comply with Tier 2 because the Plan is not a CEQA certified document. SCAQMD requires that the “greenhouse gas reduction plan,” in this case the Sustainability Plan, have a certified Final CEQA document. Page 511 63 requirements consistent with the California Green Building Standards Code. Nonetheless, the EIR determined that the GHG emissions generated by the 2019 DSRT SURF Project were cumulatively considerable and significant and unavoidable. In its consideration of the EIR, the City determined that the social and economic benefits of the Project outweighed the severity of these impacts, and Findings and a Statement of Overriding Considerations were adopted. Consistency with Greenhouse Gas Emissions Reduction Plans All components of construction and operation, including equipment, fuels, materials, and management practices, would be subject to current SCAQMD rules and regulations related to greenhouse gases. The Project will also adhere to the required state Low Carbon Fuel Standard for construction equipment and heavy-duty vehicle efficiency standards. Construction-related GHG emissions would not exceed GHG thresholds for construction because no such thresholds have been established. However, because the Project would result in significant and unavoidable impacts, as discussed above, the EIR determined that the Project would conflict with GHG reduction goals because operation of the Project would either exceed or not comply with SCAQMD’s interim tiered thresholds. By exceeding such thresholds, the Project is contributing to GHG emissions at a level that is not conducive to reducing state and local GHG emissions. Although implementation of Mitigation Measure GHG-1 will assure the Project complies with the Palm Desert Environmental Sustainability Plan, the EIR determined that impacts were considered significant and unavoidable. As described above, the City determined that the social and economic benefits of the Project outweighed the severity of these impacts, and Findings and a Statement of Overriding Considerations were adopted. Mitigation Measures GHG-1 The Project shall implement the policies of the Palm Desert Environmental Sustainability Plan applicable to its development. The Project shall adhere to the following principals, goals, and actions: • Adherence to California Building Code, Title 24; • Assess potential for light-colored surfaces and shading to reduce urban heat island effect; • Incorporate solar power; • Use water efficient technologies to reduce water waste; • Require mandatory waste diversion of 100% inert and 75% other debris from residential, commercial, and construction debris; • Promote programs that replace turf with native low water-use plants, trees, ground cover and “hard-scapes,” including the redesign of golf courses to reduce the amount of irrigation required; • Use “desert style landscaping” and require “time-of-use” irrigating to reduce evaporation. Page 512 64 Analysis of the Proposed Project Specific Plan and Precise Plan The Specific Plan amendment does not limit or change the maximum potential buildout assumptions made in the EIR, and therefore impacts of maximum buildout potential of the site under the proposed Specific Plan would be virtually the same as those analyzed in the EIR. The Precise Plan would result in a 27% reduction in commercial space, 71% reduction in restaurant/bar space, 53% reduction in hotel and villa building square footage, a 14% reduction in parking and the same off-site improvements compared to maximum buildout assumptions analyzed in the EIR. Because the entire site would be graded and constructed upon, GHG emissions associated with construction of the Precise Plan would be equivalent to those analyzed in the EIR. Operational emissions associated with buildout of the Precise Plan would be less than those previously analyzed in the EIR due to the reduction in overall development density and building square footage. Implementation of the Specific Plan amendment and proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact as analyzed in the EIR. Overall impacts are expected to be less than those previously identified in the EIR due to the reduction in overall development intensity and square footage proposed in the Precise Plan. Impacts are expected to remain significant and unavoidable, however, because of the number of vehicle trips and energy use associated with the proposed Project. Because the Specific Plan and proposed Project are consistent with the analysis of the EIR, however, the Findings and Statement of Overriding Considerations which applied to the 2019 Project are applicable to the currently proposed Project. 3.9. HAZARDS & HAZARDOUS MATERIALS Summary of Findings in the EIR The Riverside County Department of Environmental Health Hazardous Materials Branch is responsible for overseeing the six hazardous materials programs in the County, including in the City of Palm Desert. The County-wide Hazardous Materials Emergency Response Team consists of personnel from the Riverside County Fire Department and Environmental Health HazMat Program staff. This team responds jointly to hazardous materials incidents in the County and any CalFire-contracted city, including Palm Desert. The City implements regular consultation with the State Water Resource Control Board (SWRCB) and Regional Water Quality Control Board (RWQCB), and also monitors and regulates industrial plants and commercial areas through the City’s Municipal Code. Areas with Potential Hazardous Materials Contamination SWRCB maintains an online database (GeoTracker) which includes information on existing locations of hazardous waste sites and their status. According to the GeoTracker database at the time the EIR was prepared, 40± sites within the City were either listed or permitted as hazardous material sites under the California Department of Toxic Substances Control (DTSC). No hazardous material site was recorded at the Project site. Page 513 65 Government Code Section 65962.5 requires the California Department of Toxic Substances Control (DTSC) compile and regularly update a list of hazardous waste sites, known as the Cortese List. No properties in the Planning Area were identified on the DTSC’s Cortese List. Transportation of Hazardous Materials Major transportation corridors such as Highway 111 or Interstate 10 (I-10) may be used to transport hazardous materials and represent accident risks that could result in releases of hazardous materials. The City does no designate specific haul routes for hazardous materials; however, the California Highway Patrol (CHP) must be notified when acutely toxic hazardous materials are transported. Airports The Bermuda Dunes Airport (UDD) is a privately owned public use airport located 5 miles east of the Project site in the Palm Desert sphere of influence (SOI) and offers charter flights, hangar rentals, and a flight school. The Palm Springs International Airport (PSP) is located approximately 9 miles west of the City and is the largest and primary air transportation link for the region. Schools The Project site is within the Desert Sands Unified School District (DSUSD) service boundary. The nearest elementary school is James Earl Carter Elementary School, located approximately 1.10 miles southwest of the project site. No school sites are located within a quarter mile of any component of the proposed Project. Wildfire The City of Palm Desert is exposed to fire-related hazards from two potential sources: wildfires and fires that occur in urban settings. Wildfire hazards are highest in areas of the community near the wildland-urban interface (WUI). Southern portions of the City are susceptible to the risk of wildland fires. To reduce the wildfire risk, the City has adopted an emergency response plan which established procedures for fire conditions. The Project is located in the urban core of the City, and more than three miles from an area of wildland fire potential. Emergency Response and Evacuation Routes The primary emergency evacuation routes in the City of Palm Desert include I-10, Highway 111, Monterey Avenue, Portola Avenue, Cook Street, and Washington Street. The project site is located between Portola Avenue and Cook Street, which provide access in an emergency for the majority of the central city. The project is not proposing to modify any City roadway. Project Impacts Construction of the 2019 Project, including both on- and off-site improvements would involve the temporary use of potentially hazardous materials, including vehicle fuels, paints, oils, and transmission fluids. However, all potentially hazardous materials would be contained, stored, and used in accordance with the manufacturers’ instructions and handled in compliance with applicable federal, State, and local regulations. Any associated risk would be adequately reduced to a less than significant level through compliance with these standards and regulations. Page 514 66 Operational activities that would occur at the site would involve the use of limited quantities of hazardous materials. The surf lagoon would use cleaning equipment and chemicals to maintain the pH levels for surfers. The hotel and residential units would also involve use of limited quantities of hazardous materials such as cleaning and degreasing solvents, fertilizers, pesticides, and similar materials. These chemicals will be transported and stored within the project site in limited quantities and will not require a hazardous material handling/storage permit. Quantities stored at the site would be comparable to typical commercial uses, and would be regulated by State and local law, including Fire Department regulations requiring proper storage and inspection. These regulations, including those imposed by both the County of Riverside and the Fire Department, are designed to lower impacts to less than significant levels. Therefore, the EIR determined that long-term impacts would be less than significant. Access for emergency vehicles would be maintained throughout Project construction and operation. Appropriate traffic management and control plans would be followed pursuant to mitigation measures TRANSP-15 through -19 in the EIR (see the Transportation and Traffic Section). During normal operations, the Project will not impact existing evacuation routes, as it does not propose any change in the street grid. Emergency access to the site will be provided via the internal loop road, and an emergency access point will be located at Willow Ridge Road, in addition to the two public access points onto Desert Willow Drive. Special events would occur on-site, increasing traffic on major roadways such as Country Club Drive, Portola Avenue, Cook Street, and Frank Sinatra Drive. However, this increase in traffic will not cause significant deterioration in roadway operations, as described in the Project TIA. In addition, to control the traffic on these roads, a Special Event Traffic Management Plan would be prepared for each special event., as described in Mitigation Measures TRANSP-5 though -14 in the EIR. With implementation of these measures, daily operations and special events would not physically interfere with emergency response or evacuation plans. The EIR determined that impacts would be less than significant with implementation of these mitigation measures. The EIR determined that the Project site is not within the land use plan for the Bermuda Dunes Airport, and would have no impact on its operations. The EIR further determined that the Project site is located on the valley floor, and not subject to wildfires. The EIR determined that with the imposition of mitigation measures relating to traffic operations at and surrounding the site, and compliance with and enforcement of existing federal, state, and local laws and regulations concerning the handling, transport, or disposal of hazardous materials impacts would be reduced to less than significant levels Mitigation Measures See Mitigation measures (TRANSP-5 through TRANSP -14 and TRANSP -15 through -19) provided in Section 3.16. Page 515 67 Analysis of the Proposed Project Currently (2021) within the City there are no hazardous waste sites listed on the Cortese List and there are no LUFT sites listed in proximity to the Project site per the SWRCB GeoTracker. Specific Plan and Precise Plan The proposed Specific Plan amendment would not result in changes to development intensities or densities that would increase the severity of impacts, therefore impacts associated with the proposed Specific Plan would be the same as those analyzed in the EIR. Buildout of the revised Precise Plan has the potential to result in a 27% reduction in commercial space, 71% reduction in restaurant/bar space, 53% reduction is hotel and villa building square footage, a 14% reduction in parking and the same off-site improvements compared to maximum buildout assumptions analyzed in the EIR. Therefore, construction and operational emissions associated with buildout of the Precise Plan would be less intense than those previously analyzed in the EIR due to the reduction in overall development density and building square footage, and a parallel reduction in the less than significant impacts identified in the EIR would occur. Implementation of proposed Specific Plan amendment and revised DSRT SURF Project would not result in any new impacts or increase the severity of a previously identified significant impact as previously analyzed in the EIR. Overall impacts are expected to be less than those previously identified in the EIR due to the reduction in hotel rooms, residential density, and overall building square footage proposed in the Precise Plan. Therefore, implementation of the proposed Project would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. 3.10. HYDROLOGY/WATER QUALITY Summary of Findings in the EIR The City of Palm Desert is located at the southwesterly boundary of the Colorado River Hydrologic Region (HR) in the Whitewater River Hydrologic Unit (HU) and falls under the jurisdiction of the Colorado River Regional Water Quality Control Board (Region 7). Within the Whitewater River Hydrologic Unit, the Project site lies in the Whitewater River watershed. Surface Water and Drainage Patterns The Whitewater River is the principal drainage course in the Coachella Valley; it is typically dry, but flows southeasterly when it carries water. The Whitewater River has a total drainage area of approximately 850 square miles and drains areas as far away as the summit of Mount San Gorgonio and the steep southern and eastern slopes of Mount San Gorgonio. The majority of local surface water is derived from runoff from the San Bernardino and San Jacinto Mountains with lesser amounts from the Santa Rosa Mountains. This runoff either percolates in the streambeds or is captured in mountain-front debris basins where it recharges the groundwater basin. Page 516 68 The Coachella Valley Water District (CVWD) and the Riverside County Flood Control and Water Conservation District are responsible for the management of regional drainage within and in the vicinity of Palm Desert, including rivers, major streams and their tributaries, and areas of significant sheet flooding. Topographically, the Project site consists of flat terrain with a gradual slope toward the south.22 Stormwater percolates into ground surface soils or sheet flows to the south. There are no streams or rivers onsite. The 2019 Project would alter existing drainage patterns both on- and off-site, but proposed stormwater management improvements were designed to adequately manage Project drainage such that the Project will not result in substantial erosion or siltation.23 The designed drainage system met all standards of rainstorm protection as adopted by the City of Palm Desert. Drainage waste areas are already available off-site to retain the 100-year storm event, and there will be no adverse impact, because the Desert Willow drainage plan was designed to accommodate all 100 year storm flows throughout the development. The Project drainage plans integrate into the existing Desert Willow drainage program, and tie into the existing facilities to the northwest and southeast of the site. The 2019 Project also included a WQMP which provides for BMPs to control erosion and sedimentation entering the proposed drainage pipes. These requirements, to be implemented by mitigation measure HYD-1, will assure that impacts associated with erosion and siltation are reduced to less than significant levels. Off-site improvements would be undertaken to City standards, including storm water BMPs included in both WQMP(s) and SWPPP(s) for these parts of the Project. Because these off-site improvements will be subject to mitigation measure HYD-1 and HYD-2, and with City requirements for the protection of surface waters, impacts associated with off-site improvements will be reduced to less than significant levels. Groundwater The Whitewater River Groundwater Basin underlies the valley which generally extends from the Whitewater River in the northwest to the Salton Sea in the southeast. The aquifer is naturally subdivided by fault barriers into subbasins, which are further divided into subareas. Desert Water Agency (DWA) and the Coachella Valley Water District (CVWD) jointly utilize and manage a replenishment program for the local groundwater basin, the Upper Whitewater River Subbasin. Estimates of groundwater storage in the Upper Whitewater River Subbasin range from 10.5 to 14.2 million acre-feet. In total, the subbasins underlying the Coachella Valley contain approximately 39.2 million acre-feet of water in storage, of which about 28.8 million are within the Whitewater River Subbasin. Natural recharge from precipitation and runoff, supplemented with artificial recharge from imported Colorado River, State Water Project water, and recycled water from wastewater treatment plants also provide water to the Coachella Valley. The Project site is located within the CVWD service area, where urban water demands are estimated to grow from 114,600 AFY in 2020 to 194,300 AFY in 2040. The Project would require approximately 88.32 AFY of water at buildout of both the lagoon and surf center and 22 Geotechnical Investigation Report prepared by Sladden Engineering in 2018 (Page 2). 23 Preliminary Hydrological Report for Tentative Tract Map No. 37639 – DSRT SURF prepared by The Altum Group, December 3, 2018. Page 517 69 approximately 76.89 AFY of water for the Hotel and Villas Planning Area, resulting in a total demand approximately 165.21 AFY of water at buildout. This is approximately 0.14 percent of CVWD’s anticipated 2020 total urban water demand of 114,600 AF, and approximately 0.09 percent of CVWD’s anticipated 2040 total urban water demand of 194,300 AF. After applying the water demand offsets associated with implementation of the proposed turf reduction program at the Desert Willow Golf Course (106.75 AFY) provided in Mitigation Measure HYD-4, the net total water demand for the Project is expected to be 58.46 AFY. This represents approximately 0.05 percent of the total projected water supply of 114,600 AF for 2020, and would represent 0.03 percent of the total projected water supply of 194,300 AF for 2040. The EIR determined that water demands for off-site improvements would be negligible and primarily associated with temporary construction activities. Less than significant impacts are expected. The Project will provide water for the lagoon in one of three ways: installation of a new groundwater well at the southeastern corner of the site; connection to the existing Desert Willow groundwater well located south of the site near Country Club Drive; or utilization of potable water from CVWD. Water demand for the lagoon is projected to be approximately 73.04 AFY per year. If the Project installs a new groundwater well on the site, then approximately 73.04 AFY of groundwater would be extracted every year for the surf lagoon. The groundwater well will be metered and in compliance with requirements of the Regional Water Resources Control Board (RWRCB). Other components of the Project will be connected to CVWD’s domestic water distribution system. If the Project connects to the existing Desert Willow groundwater well located south of the site near Country Club Drive, then the Project would need construction and extension of underground pipes to supply approximately 73.04 AFY per year. Otherwise, CVWD would provide water for the lagoon. As described in the EIR and WSA, CVWD has sufficient water supplies to meet the demands of the Project for the next 20 years and the 2019 Project, including off-site improvements, will not substantially deplete groundwater supplies or interfere with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level. Flood Hazards and Stormwater Runoff Stormwater flows and flash flood runoff from the Indio Hills and the foothills of the San Jacinto and San Bernardino Mountains generate flooding hazards in the City. The majority of the northern portion of the City, north of I-10, is located within the 100- or 500-year flood zone. The Project site is not located within the 100- or 500-year flood zone.24 According to the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Map (FIRM), the site is located in Zone D, which represents “areas in which flood hazards are undetermined, but possible.” No Project structures would be placed within a 100-yr flood hazard area such that flood flows would be impeded or redirected. 24 Palm Desert General Plan, City of Palm Desert, 2016 – Figure 8.4. Page 518 70 Construction impacts due to development of the entire Project area, including off-site improvements, would be minimized through compliance with the General Construction Activity Stormwater Permit, including implementation of a SWPPP and the MS4 Permit. The 2019 Project would not alter a floodway in a manner that would redirect or impede flow during construction, and impacts will be less than significant. The Project’s planning areas are divided into four sub-areas, from where storm water will be conveyed to three existing drainage waste areas via underground pipes. These pipes will be constructed to City standards, and will carry storm flows after they have been treated by the Best Management Practices (BMPs) specific to the Project site per the Water Quality Management Plan (WQMP). Based on the hydrological analysis discussed in the EIR, the existing drainage waste areas and lake in the Desert Willow Golf Course have adequate capacity to accommodate projected flows from all components of the 2019 Project. While the Project would increase the amount of impervious surfaces on the site, the proposed drainage plan includes well-connected drainage areas that would retain runoff during storm events, allowing it to be released in a metered fashion that can be accommodated by the storm drain system. The National Pollutant Discharge Elimination System (NPDES) mandates that plans and programs for stormwater management be developed, adopted, and implemented to assure that municipalities “effectively prohibit non-stormwater discharge into storm drains, and requires controls to reduce the discharge of pollutants from stormwater systems to waters of the United States to the maximum extent possible.” The City of Palm Desert is a co-permittee with the County of Riverside, CVWD, Riverside County Flood Control and Water Conservation District, and municipalities in the Whitewater River subbasin for NPDES management. The Palm Desert Public Works Department manages the City’s NPDES program. The Project site, including off-site improvements, is not in a flood hazard or tsunami inundation zone and would not be subject to inundation by a flood or tsunami. In addition, the surf lagoon would be a reinforced concrete structure to contain the seismically-induced oscillations within the lagoon without any structural damage to result in spill over or release of pollutants. Less than significant impacts are anticipated. Overall, the Project would generate runoff due to increased amounts of impervious surfaces; however, it is not anticipated to create or make a significant contribution to runoff which would exceed the capacity of the existing storm drain system within the Desert Willow Golf Course and add substantial additional sources of polluted runoff. With compliance with the MS4 Permit, and implementation of Mitigation Measures HYD-1 through HYD-3, the operational impacts would be less than significant. Water Quality Groundwater quality in the Coachella Valley varies with depth, proximity to faults and recharge basins, presence of surface contaminants, and other hydrogeological or human factors. CVWD conducts water quality monitoring in accordance with federal and state drinking water Page 519 71 requirements and analyzes water samples for more than 100 regulated and unregulated substances. Based on the most current water quality report available at the time of the EIR (CVWD 2017-2018), drinking water delivered from CVWD’s potable water system supplied from groundwater wells complied with all state and federal drinking water quality regulations.25 Two naturally occurring substances, arsenic and chromium-6, are among the over 100 constituents that are monitored in the Coachella Valley’s groundwater supply. CVWD treats some of its groundwater wells to reduce arsenic and chromium-6 levels in the drinking water supply and is conducting ongoing water treatment efforts to reduce chromium-6 levels delivered from groundwater wells. The Project is required to comply with a number of regulations designed to reduce or eliminate construction-related water quality effects, including the National Pollutant Discharge Elimination System (NPDES), which will regulate stormwater discharges to surface waters during construction of the lagoon and surf center. Adherence to NPDES protocols will protect the quality of surface waters from potential construction-related impacts. A Preliminary Water Quality Management Plan (WQMP) was prepared for the proposed Project which includes Best Management Practices (BMPs) specific to the Project site. Mitigation Measures HYD-1 and HYD-3 will effectively reduce or avoid the discharge of any pollutants of concern that might enter nearby receiving waters by establishing limits of construction and the use of a variety of standard practices. Implementation of these mitigation measures will minimize impacts to surface water quality without substantially degrading surface or groundwater quality. In order to assure that sediment and silt are controlled, mitigation measures HYD-1 and HYD-2 were provided in the EIR, requiring the implementation of WQMP BMPs and the stabilization of exposed soils. These mitigation measures will assure that impacts to water quality related to sediments will be reduced to less than significant levels. The EIR determined that buildout of the 2019 Project would increase the amount of impervious surface area, thereby increasing the total volume and peak discharge rate of stormwater runoff and associated pollutants. At Project buildout, runoff from the lagoon and surf center could contain pollutants common in urban runoff, including metals, oils and grease, pesticides, herbicides, nutrients, pet waste, and garbage/litter. Without BMPs to remove these pollutants, stormwater leaving the lagoon and surf center site could degrade the quality of receiving waters. To reduce urban runoff impacts associated with potential pollutants, the city’s General Plan contains policies with requirements that address surface water quality impacts. For example, the City requires on-site stormwater retention and infiltration to improve stormwater quality and reduce flows into the storm drain system. Furthermore, the City of Palm Desert Municipal Code Chapter 24.20 establishes requirements for stormwater and non-stormwater quality discharge and control by prohibiting discharges of pollutants or waters containing pollutants that cause or contribute to a violation of applicable water quality standards 25 Coachella Valley Water District 2017-2018 Water Quality Report Annual Review Report. Page 520 72 The surf lagoon will be a “self-treating area,” which will be required to meet water standards for users. Water from the lagoon will be treated prior to discharging to the artificial lake located south of the golf course via an evacuation line. According to the hydrological map, the surf center and associated parking structure are located in sub-drainage areas 3 and 4. Stormwater from sub-drainage areas 3 and 4 would be conveyed to two existing drainage waste areas located northwest and southeast of the site within the Desert Willow Golf Course. The hotel and villas are located in sub-drainage areas 1 and 2. Stormwater from sub-drainage area 1 would be conveyed to an existing drainage waste area located northwest of the site within the Desert Willow Golf Course. Whereas stormwater from sub-drainage area 2 will be conveyed to an existing drainage waste area located south of the site within the Desert Willow Golf Course. The 2019 Project also proposed a system of underground tanks, pipes and drywells to convey and control daily pool and lagoon backwash discharge. This system will consist of holding tanks, connected to the pools or lagoon and drywells connected by pipes at four locations. The anticipated daily discharge could be as high as 4,000 gallons per day, but is expected to average 2,200 gallons per day. The backwash will enter the tanks, where sediments and debris will be removed, treated as needed, and released in a metered manner to the drywells. The drywells will drain the water into the soil, for eventual recharge. The system would be regulated by the City and the RWQCB, and would be required to meet all required water quality standards. These requirements will assure that the backwash system will not exceed water quality standards, and impacts are expected to be less than significant. The 2019 Project, including off-site improvements, would be required to comply with NPDES regulations and the BMPs set forth in the Project-specific WQMP, which minimize the pollutant load associated with urban runoff during construction and operation of the 2019 Project. The Project is within the CVWD’s boundaries requiring that it meet water quality requirements in the production and delivery of domestic water and sewage management. The imposition of conditions of approval, local, and state standard requirements and the requirements of the law will assure that the Project will not violate any water quality standards or waste discharge requirements. With the implementation of Mitigation Measures HYD-1 through HYD-4, Project impacts would be less than significant. Mitigation Measures HYD-1 BMPs, as described in the Project-specific WQMP, shall be implemented to ensure that water quality impacts resulting from the Project meet the City’s NPDES standards. HYD-2 Exposed soil from excavated areas, stockpiles, and other areas where ground cover is removed shall be stabilized by wetting or other approved means to avoid or minimize the inadvertent transport by wind or water. HYD-3 The Project shall be subject to NPDES Construction General Permit requirements. Page 521 73 HYD-4 The Turf Reduction Program shall be completed prior to the issuance of certificates of occupancy for the surf center. Analysis of the Proposed Project Specific Plan and Precise Plan Buildout of the proposed Precise Plan would result in a 92 room hotel, 12,323 square foot surf center and associated facilities, 83 residential units and a 5-acre surf lagoon, which is a less intense development than maximum buildout of the Specific Plan. The EIR analyzed the maximum buildout potential of the site under the Specific Plan. Therefore impacts associated with the less intense Precise Plan would be within the envelope of impacts already evaluated in the approved EIR and a subsequent EIR or WSA is not required. After applying the water demand offsets associated with implementation of the proposed turf reduction program at the Desert Willow Golf Course (106.75 AFY), the net total water demand for the proposed Project is expected to be 7.6 AFY due to the reduction in overall development density and building square footage. (see section 3.17 Utilities). This represents approximately 0.006 percent of the total projected water supply of 114,600 AF for 2020, and would represent 0.004 percent of the total projected water supply of 194,300 AF for 2040. A Project-specific WQMP and Preliminary Hydrology Report were prepared for the proposed Project. According to the Hydrology Report, storm drain runoff generated from the Project site is designed to be conveyed to the adjacent East and South Golf Course via an underground storm drain piping system in a similar manner to the systems employed by existing adjacent resort developments. As with the 2019 Project, the surf lagoon will act as a “self-treating area” since no rainfall tributary to the Lagoon is intended to be directed to the existing golf course waste areas. Areas immediately adjacent to the Lagoon will be designed to carry storm runoff away from the Lagoon, into the storm drain system that leads to the proposed drywells and to the existing golf course. The proposed Surf Lagoon is designed to be evacuated annually using the series of drywells designed to collect storm water runoff for the project site toward the East and South Golf Course within Desert Willow Resort where it will infiltrate into the soils, consistent with the planned annual maintenance analyzed in the EIR. Summary Implementation of the proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact as previously analyzed in the EIR. Water demand will be reduced based on the reduced intensity of development proposed in the Precise Plan. Development of the site would increase the amount of impervious surfaces in the City under both buildout scenarios. The Project will be required to comply with all City regulations, and control the 100-year storm on-site. The Project will also be required to prepare SWPPP and WQMP documents to prevent surface and ground water pollution. Buildout of the site is required to comply with local and state regulations, and policies set forth in the General Plan update that pertain to the protection of local hydrology and water quality. The currently proposed Project will be required to comply with the same mitigation measures identified in the EIR, to assure that impacts are reduced to less than significant levels. Page 522 74 Overall impacts are expected to be similar to, or less than, those previously identified in the EIR. Therefore, implementation of the Specific Plan amendment and buildout of the DSRT SURF Project would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. 3.11. LAND USE/PLANNING Summary of Findings in the EIR General Plan Consistency The Project site is designated as Resort and Entertainment District on the City’s General Plan Land Use Map, which allows theme parks, hotels, sports facilities, bed and breakfast inns, recreational facilities, small retail, large retail, and lodging, support retail, and commercial services along with specialized entertainment with a commercial floor area ratio (FAR) of up to 0.10, and multi-family residential land uses of up to 10 dwelling units per acre (DU/AC). The City’s Zoning Map designates the site as Planned Residential (PR-5), allowing 5 DU/AC. The NSSP allows for a “Luxury Hotel” with a maximum of 500 rooms. The Project site is located within planning area 10 (PA 10) of that plan and is designated for hotel and resort development. The site was partially developed with an existing surface parking lot and is located within the Desert Willow Golf Course. The Desert Willow development includes two championship golf courses, the Firecliff Course and Mountain View Course, as well as residential and resort developments. The following describes lands surrounding the Project site. • North: Desert Willow Golf Course, Clubhouse and a parking lot • South: Desert Willow Golf Course • East: Desert Willow Golf Course and Desert Willow Drive • West: Desert Willow Golf Course, the Westin Desert Willow Villas, Willow Ridge Drive. All lands adjacent to the site are currently designated as Resort and Entertainment and developed as golf course except the Westin Desert Willow Villas to the southwest of the subject development site. The DSRT SURF Specific Plan proposed a mix of entertainment, recreation, commercial, and resort residential development uses consistent with those described in the General Plan and NSSP. The EIR provided a consistency analysis of all applicable goals, policies and programs contained in the General Plan. The findings of that analysis considered the Project as a whole. To summarize the consistency analysis, the EIR determined the Project site was an appropriate location for mixed used development of the type proposed, and all components of the Project were found to be consistent with the City’s General Plan and NSSP. Municipal Code and Zoning Consistency The City’s Zoning Map designates the site as Planned Residential (PR-5), allowing 5 units per acre. The Planned Residential zone also allows for the development of hotels with approval of a Page 523 75 Conditional Use Permit (CUP) but prohibits the development of “Commercial Recreation Facilities” (Section 25.10.030-Allowed Land Uses and Permit Requirements). Commercial Recreation Facilities are defined as “any use or development either public or private, providing amusement, pleasure, or sport, which is operated or carried on primarily for financial gain.” Municipal Code Section 25.10.40 (Specific Use Standards), however, inconsistently states that Commercial Recreational Facilities are permitted in the PR zone with approval of a Conditional Use Permit “when not related to a permitted residential development.” This portion of the Zoning Ordinance would allow the proposed surf lagoon with approval of a CUP. This inconsistency is rectified through preparation of the DSRT SURF Specific Plan. The 2019 Specific Plan would supersede the current zoning designations on the Project site and will guide the development of the Project overall. The 2019 Specific Plan set forth the planning principles, land use policies, development standards, and design guidelines for the proposed development, and on-site and off-site public improvements. The Specific Plan addressed maximum development densities as shown in the Table below. All development on the Project site is required to adhere to the standards Table 9 2019 DSRT SURF Specific Plan Specific Plan Land Uses Surf Lagoon Planning Area (11.85 acres) Max/Min Allowed Surf Lagoon Max 6 acres Surf Center Building, including: Max 35,000 SF; Max Height 50 feet Restaurants/Bars Max. 8,000* SF Meetings/Events Max. 6,000 SF Retail Max. 4,000 SF Ancillary Restrooms/Changing Rooms/Locker Buildings Max 1,500 SF Ancillary Rental Building(s) Max 1,500 SF East Lagoon Café and Bar Max 2,750 SF Maintenance and Equipment Buildings Max 15,000 SF Landscaping/OS/Pool /Recreational Space Minimum 20% Planning Area site coverage Parking Per SP parking development code Hotel and Villas Planning Area (5.84 acres) Max/Min Allowed Hotels Max 350 rooms, Max 200,000 SF; Max Height 50 feet Hotel Spa Max 12,500 SF Villas Max 88 Villas; 1 to 4 bedrooms Villa Clubhouse Max 3,125 SF Maintenance and Equipment Buildings Max 2,500 SF Landscaping/OS/Pool /Recreational Space Minimum 25% Planning Area site coverage Parking Per SP parking development code Source: Table 2.11-1 of EIR Page 524 76 The 2019 Project also included a Precise Plan, Tentative Tract Map and a Development Agreement. The design, and development standards of the proposed Surf Lagoon Planning Area would be regulated through the 2019 Specific Plan and a Precise Plan based on City Municipal Code Section 25.72.030 (Precise Plan). The Surf Lagoon Planning Area was designed in accordance with the 2019 Specific Plan and is therefore consistent with the Municipal Code and zoning standards. A Precise Plan further defines and implements the goals and objectives of the Specific Plan by providing specific designs and plans that ultimately regulate the construction of the surf lagoon and surf center. Additional Precise Plan application(s) would be required for the hotel and villa development proposed in Planning Area II. The following Table breaks down the Precise Plan land uses for the Surf Lagoon Planning Area. Overall, the EIR found the Surf Lagoon Planning Area to be consistent with applicable municipal code and zoning regulations through adherence to the 2019 Specific Plan, thus resulting in no adverse impacts. Table 10 2019 DSRT SURF Project Surf Lagoon Precise Plan Land Uses Land Use/Building SF AC Surf Lagoon 239,580 5.50 Surf Center Building, including: 30,300 0.88 Restaurants, Bars and associated kitchens 8,475 -- Meeting Rooms 5,625 -- Administrative offices 2,275 -- Gallery 3,275 -- Mechanical, restrooms, storage, corridors, etc. 11,925 Ancillary Restrooms/Changing Rooms/Locker Buildings 450 0.02 Ancillary Rental Building(s) 600 0.01 East Lagoon Café and Bar 650 0.06 Maintenance and Equipment Buildings 13,950 0.21 Landscape/OS/Pools/Rec./Amenities 104,789 2.41 Roadways/Driveways/Parking (asphalt paved areas) 120,307 2.76 Parking 239 spaces Source: Table 2.11-2 of the EIR. The design, and development standards of the Hotels and Villas Planning Area would be regulated through the 2019 Specific Plan. Prior to approval, a Precise Plan for the Hotels and Villas Planning area would be submitted to the City for review per City Municipal Code Section 25.72.030 (Precise Plan). The City would review the Precise Plan for consistency with the Specific Plan to ensure the Hotels and Villas Planning area development is consistent with the Municipal Code and zoning standards, thus resulting in no adverse impacts. Page 525 77 Habitat Conservation Plan (CVMSHCP) The City of Palm Desert is a signatory to and participates in the implementation of the CVMSHCP. The subject property is located within the boundaries of the CVMSHCP but is outside the boundaries of any of the Plan’s Conservation Areas. Lands not developed prior to 1996 are subject to the payment of a Development Mitigation Fee to mitigate impacts of urban development to covered species. The site is not within or adjacent to a CVMSHCP-designated Conservation Area; thus, the implementation of the 2019 Project would not conflict with the provisions of an adopted habitat conservation plan, natural community conservation plan, or other related plans designed to avoid an environmental impact. Overall, the EIR determined that the 2019 DSRT SURF Project would have a less than significant impact to land use or land use planning. Analysis of the Proposed Project Specific Plan and Precise Plan The proposed Specific Plan amendment does not propose an increase to overall land use densities or development standards. As a result, the consistency identified in the EIR with the General Plan’s policies and programs also applies to the currently proposed Project. The proposed Specific Plan is consistent with the previously approved 2019 Specific Plan and development of the proposed Project will be in accordance with the requirements of the Specific Plan and other applicable regulations, including payment of the CVMSHCP development impact fee and the implementation of its standards. The Precise Plan is consistent with the revised Specific Plan, and proposes development that will meet or exceed the development standards in the Specific Plan. As the Specific Plan acts as the zoning document for the Project, the Precise Plan will be consistent with the City’s zoning standards, since it meets of exceeds the Specific Plan development standards. Summary Implementation of proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact previously analyzed in the EIR. Overall impacts are expected to be similar to those previously identified in the EIR. Therefore, implementation of the proposed Project and Specific Plan amendment would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. 3.12. MINERAL RESOURCES Summary of Findings in the EIR The City of Palm Desert is located in an MRZ-3 zone, which is a classification indicating the area has known mineral deposits that may qualify as mineral resources (MRZ-3a), or the area may have inferred deposits which may qualify as mineral resources (MRZ-3b). Mining has not historically occurred within the planning area, thus the EIR determined that mineral resources are present, but the significance of the resource is considered speculative. There are no active mining sites in the City, nor are there future mining sites designated in the General Plan. Page 526 78 Mineral Resources was not discussed in the EIR because the Initial Study/Notice of Preparation determined there would be no environmental impacts as a result of the proposed Project Analysis of the Proposed Project The currently proposed Project occurs on the same site as that analyzed in the EIR. The land uses proposed in the Specific Plan are the same as those in the 2019 Specific Plan. The Project does not propose mining activities and there are no mining land uses or activities in the vicinity. The land is not planned for mining activities, and no impact will occur as a result of the currently proposed Project. Implementation of proposed Project would not result in any new impacts or increase the severity of a previously identified significant impacts in the Initial Study/Notice of Preparation for the Project. Consistent with the Certified EIR, there will be no impacts to mineral resources. 3.13. NOISE Summary of Findings in the EIR Primary sources of noise in the City include traffic, freeways, and major roadways. The City has the authority to set land use noise standards and place restrictions on private activities that generate excessive or intrusive noise. However, I-10 is under the purview of the Federal Highway Administration (FHWA). The FHWA has developed noise standards that are typically used for federally funded roadway projects or projects that require either federal or Caltrans review. Land uses that are sensitive to noise include, but are not limited to, residences, schools, libraries, churches, hospitals and nursing homes, and destination resort areas. Least sensitive to noise are heavy commercial and industrial uses, transportation, communication and utility land uses. Project-Wide Off-Site Traffic Noise Impacts The Noise Impact Analysis prepared for the 2019 Project established criteria for potential noise impacts based on a number of sources, including the City’s General Plan and Municipal Code, where standards were available, and on outside sources, where the City had no standard. In these cases, the noise study established noise impact thresholds based on the National Institute for Occupational Safety and Health, and the Riverside County General Plan, respectively. The Noise Impact Analysis considered the impacts of the 2019 Project’s traffic on off-site locations to determine whether the Project would impact noise levels off-site. The analysis considered current (2018-2019) noise levels, Existing Off-Site Noise Contours, and then added ambient growth (increased traffic due to the anticipated annual growth in traffic volumes), as well as growth based on approved cumulative projects (projects approved and/or under construction). The trips added to the regional road system by the 2019 Project were then added, to determine the level of impact in 2022, which was the anticipated opening year for the Project. Page 527 79 Based on a comparison of 2022 without and with Project conditions, the EIR analysis determined the 2019 Project would not significantly increase off-site noise levels associated with the Project’s increases in traffic within the area surrounding the proposed site. Project-Wide Operational Impacts The 2019 Project would generate noise from commercial recreational activities, hotel activities, and villa activities. These were analyzed to determine the level of noise that would be created by typical project activities, and the impacts of these activities on surrounding sensitive receptors. The EIR determined that the impact of typical project activities on surrounding sensitive receptors will be less than significant during both daytime and nighttime hours, when compared to the significance criteria thresholds. Construction Noise Impacts Construction noise from development and redevelopment projects would be short term and exempt during the hours of 7:00 a.m.to 5:30 p.m. weekdays and 8:00 a.m. to 5:00 p.m. Saturdays. The General Plan Noise Element includes policies to limit exposure of noise sensitive land uses to excessive noise levels from point sources, including construction activities. In addition, future development projects are required to conduct project-level noise analysis. Construction of all 2019 Project components would require the use of heavy equipment for the demolition of the existing on-site parking lot, Project site preparation/excavation, installation of new utilities, and building fabrication. Construction activities would also involve the use of smaller power tools, generators, and other sources of noise. During each stage of construction, a different mix of equipment would be operating, and noise levels would vary based on the amount of equipment in operation and the location of the activity. Six locations where sensitive receptors currently occur were analyzed in the EIR with distances ranging from 10 feet to 1,705 feet from the Project site. The noise analysis prepared for the 2019 Project further considered whether the project noise levels would exceed the National Institute of Occupational Safety and Health (NIOSH) standards for construction noise standards. Those standards consider a noise level in excess of 85 dBA Leq to be significant. Based on this threshold, noise levels affecting sensitive receptors closest to the Project were found to be less than significant. Any increase in noise levels during construction would be temporary in nature, would occur during daytime hours, and would not generate continuously high noise levels. In addition, the construction noise during the heavier initial periods of construction (i.e., excavation and grading work) would typically be reduced in the later construction phases (i.e., interior building construction) as the physical structure would obstruct the line-of-sight noise emitting from the construction area. Therefore, overall, the EIR determined that impacts would be less than significant during the construction phase of the lagoon and surf center, hotels and villas, and off- site improvements. Page 528 80 Operational Noise Impact The City of Palm Desert has developed exterior land use compatibility standards that rate compatibility using the terms normally acceptable, possibly acceptable, and normally unacceptable, and also provide standards for interior acceptable noise levels. These standards also establish maximum interior noise levels for new residential development, requiring that sufficient insulation be provided to reduce interior ambient noise levels to 45 dBA CNEL/Ldn. In addition to the noise normally associated with commercial recreational activities, described above under “Project-wide Operational Impacts,” the Surf Lagoon will include equipment used to generate waves. It is also anticipated that at build out, surf competitions and other special events would be organized at the site. During recreational/competitive surf and other events, amplified musical equipment could be used. Notable noise generating activities include surf lagoon/wave machine activity, outdoor game activities, and special events/outdoor event activity. The dominant noise sources attributable to the lagoon and surf center planning area are the wave generating machine and special events outdoor activities. Based on the analysis in the EIR, the noise levels of 83.6 and 66.8 dBA at 50 feet would attenuate to 49.2 dBA Leq at the closest sensitive receiver. None of the project components is expected to exceed the City’s exterior noise level standards for either daytime or nighttime conditions at any of the sensitive receivers. Therefore, impacts would be less than significant. The dominant noise sources in the Hotel and Villas Planning Area would be vehicular traffic accessing the site, grounds maintenance equipment, heating, ventilation and air conditioning (HVAC) units, and outdoor swimming pool/spa activities which could reach up to 57.8 dBA Leq at 50 feet. Based on the Project’s noise impact analysis, the City’s noise standards allow outdoor noise levels of 65 and 55 dBA CNEL in the commercial area during the day and night times, respectively. None of the project components is expected to exceed the City’s exterior noise level standards for either daytime and nighttime. Therefore, impacts would be less than significant. The EIR also determined that all noise-related impacts associated with the construction and operation of the off-site improvements would be less than significant. Groundborne Vibration Both the planning areas and off-site improvements analyzed in the EIR were expected to be constructed in phases, over a two-year period. Construction activities such as grading activities, construction equipment and trucks hauling project materials would have the potential to generate low levels of ground-borne vibration within the Project area. The EIR found that construction vibration velocities would reach up to 0.009 inches per second RMS. The threshold for construction vibration velocity in Riverside County is 0.01 inches per second RMS. Construction vibration velocities at all six locations would be below the threshold and therefore were considered less than significant. Page 529 81 According to the Federal Transit Administration (FTA), construction vibration levels ranging from 0.12 to 0.5 inches per second PPV are damaging for buildings. As discussed in the EIR, Project- related construction vibration levels would reach up to 0.013 inches per second PPV, which is below the 0.12 inches per second PPV. Therefore, a less than significant impact was anticipated. At buildout, no operational components of the 2019 Project would generate significant groundborne noise or vibration sources and no significant vibrations sources currently exist, or are planned, in the Project area. Thus, no significant groundborne noise or vibration impacts would occur with the operation of the 2019 Project. The EIR also determined that all groundborne vibration impacts associated with the construction and operation of the off-site improvements would be less than significant. Summary of Impacts The EIR determined that noise impacts resulting from adoption and implementation of the 2019 Project, including all Project components, would be less than significant and would not require mitigation. Results of the Noise Study show that adding the 2019 Project’s noise levels to future noise levels would not result in an adverse cumulative noise increase as defined by the Noise Element at the closest sensitive receptor location, because of the low project noise levels and distance. Therefore, the proposed Project’s contribution to area-wide noise levels would not be cumulatively considerable. Analysis of the Proposed Project Currently, the Project site is partially developed with an existing surface parking lot where the noise sources include vehicles traveling to and from the golf course. Other noise sources in the vicinity of the golf course include stationary noise sources in existing residential and commercial areas such as pool and spa equipment or heating, ventilating and air conditioning (HVAC) units. Temporary noise sources include landscape maintenance activities, home stereo systems, golf course users and carts, and barking dogs, which are governed by the provisions of the City Noise Ordinance and Municipal Code. Specific Plan and Precise Plan The proposed Specific Plan amendment would result in a consistent maximum buildout potential as the approved 2019 Specific Plan and therefore, impacts would be the same as those analyzed in the EIR for maximum buildout. Buildout of the revised Precise Plan has the potential to result in a 27% reduction in commercial space, 71% reduction in restaurant/bar space, 53% reduction is hotel and villa building square footage, and a 14% reduction in parking compared to maximum buildout assumptions analyzed in the EIR. Therefore construction and operational noise levels associated with buildout of the Precise Plan would be less intense than those previously analyzed in the EIR due to the reduction in development density and building square footage. Page 530 82 Construction noise would be expected to be similar under both buildout scenarios (2019 and proposed), since the entire site would still be graded and constructed upon. Construction activities associated with build out of the proposed Project would adhere to the City’s allowable construction hours, and would also be temporary in nature. Since temporary construction noise is exempt from the City’s noise ordinance requirements, construction-related noise would result in less than significant noise impacts. Therefore, construction-related noise due to the proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact previously analyzed in the EIR, and impacts would remain less than significant. Post-construction activities would be limited to hotel, surf center, surf lagoon, and residential operations and activities that would not be expected to generate long-term or excessive groundborne noise or vibration. Operational noise under the Precise Plan would consist of the same noise sources, including the outdoor activities of the surf lagoon, hotel and residential pools and activity areas, but these would be marginally reduced because of the decrease in residents and guests resulting from the smaller hotel and fewer residences. Operational noise under the proposed Precise Plan is expected to be less than significant and less than that of maximum buildout of the site under the Specific Plan due to reduced density and associated traffic to and from the site. Long-term operations would not result in any new impacts and would reduce the impacts previously analyzed in the EIR. Similar to the 2019 Project, it is anticipated that surf competitions and other special events would be organized at the site which may result in the use of amplified musical equipment. Other notable noise generating activities include surf lagoon/wave machine activity, outdoor game activities, and outdoor event activity. However, proposed Project operations are the same as those proposed in the approved 2019 Project, and therefore impacts associated with operational noise for special events will be the same as those analyzed in the EIR, and would remain less than significant. Operation-related noise due to the proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact previously analyzed in the EIR. Summary Overall, build out of the proposed Project will result in impacts that are comparable to, or lower than, what was analyzed for the 2019 DSRT SURF Specific Plan. With the implementation of General Plan policies and Municipal Code requirements, impacts will remain less than significant. 3.14. POPULATION, EMPLOYMENT, AND HOUSING Summary of Findings in the EIR According to city’s General Plan EIR, the City’s 2015 population was 49,335, making Palm Desert the third largest city in the Coachella Valley and the twelfth largest city in Riverside County, accounting for 2.2 percent of the county’s total population. Between 2000 and 2014, the annual population growth in Palm Desert was 662 persons per year, representing a 22.5 percent level of growth. Page 531 83 According to the 2019 Project EIR, the 2018 population of the City of Palm Desert was 52,769, which represents a 1.4 percent increase over 2017. The City is composed of a mix of single-family and multi-family development, but the majority (55%) of housing units are single-family homes. The Southern California Association of Governments (SCAG) estimates that the City will have a total population of 61,700 in 2040.26 The 2019 Project would result in the construction of 88 new resort style villas, up to 350 hotel rooms and amenities, and a surf lagoon with surf center facilities to include restaurant, bar, retail and similar facilities. All of the proposed uses will generate a variety of new jobs, including retail, restaurant service jobs, recreational instructors and management personnel. However, on-site employment opportunities are expected to be filled by people already living in the valley; therefore, new employment opportunities associated with the proposed Project are expected to be minor and less than significant. The 2019 Project anticipated that the 88 villas would operate as either timeshares and/or an extension of a future hotel. However, the 2019 Specific Plan allows for permanent single-family housing units. Given the city’s average household size of 2.17 persons in 201827, 88 new residential villas of the Project could potentially increase the permanent population by approximately 191 persons. This represents 0.3% of the City’s anticipated 2040 population of 61,700, which would have a less than significant impact on the overall population of the area. Buildout of the 2019 Project will not require the expansion, extension or construction of new public streets or utilities that would indirectly induce population growth because all infrastructure required to serve the Project exists adjacent to the Project. Impacts were found to be less than significant. Off-site improvements include stormwater management, pool/lagoon discharge, golf course turf reduction, landscaping improvements, overflow parking, and soil removal/storage. These activities will not induce population growth either directly or indirectly, and therefore there will be no impacts. Analysis of the Proposed Project Specific Plan and Precise Plan The proposed Specific Plan does not change the residential densities or development intensities previously analyzed in the 2019 Specific Plan. Therefore, Specific Plan-related impacts to population and housing would be the same, and the proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact previously analyzed in the EIR. 26 2016-2040 Demographics and Growth Forecast by Southern California Association of Governments – Page 27. 27 “Report E-5 Population and Housing Estimates for Cities, Counties and the State, January 1, 2011-2018, with a 2010 Benchmark,” California Department of Finance, released May 1, 2018. Page 532 84 Buildout of the Precise Plan would result in a 92 room hotel, 83 villas, and surf lagoon. Compared to the 2019 Project, and using the 2020 average household size of 2.15 persons, the proposed Project could potentially increase the city’s permanent population by approximately 179 persons, resulting in a 12 person population decrease compared to the 2019 Project. This also represents 0.3% of the City’s anticipated 2040 population of 61,700, which would have a less than significant impact on the overall population of the area. Summary Implementation of the proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact as previously analyzed in the EIR. The purposed Precise Plan would lower the site’s residential density when compared to the maximum density allowed in the Specific Plan, resulting in a reduced population potential compared to that analyzed in the EIR. The site is vacant and will not displace any existing population or cause a need for additional housing elsewhere. The proposed Project does not change or propose additions to existing infrastructure, such as streets or utility lines, and those impacts will be consistent with that analyzed in the EIR, and remain less than significant. Overall impacts associated with the build out of the Precise Plan are expected to be less than those previously identified in the EIR. Therefore, implementation of the proposed Specific Plan and buildout of the Project would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. 3.15. PUBLIC SERVICES AND UTILITIES Summary of Findings in the EIR Fire Protection The City of Palm Desert contracts with Riverside County Fire Department (RCFD) for fire protection services. RCFD is one of the largest regional fire service organizations in the State of California. At the time of the EIR, the nearest fire station to the Project site was Riverside County Fire Station 71 at 73995 Country Club Drive, approximately 0.5 mile southwest of the Project site. This station also receives backup fire support from station No. 55 in Indian Wells and Stations No. 50 and No. 69 in Rancho Mirage. The station physically closest to the emergency will respond even if it is outside the station’s official jurisdiction. The RCFD service area consists of all unincorporated areas in Riverside County, 18 contract cities, and one Community Service District (CSD). Under contract with the California Department of Forestry and Fire Protection (CAL FIRE), the RCFD is the Operational Area Coordinator for the California Fire and Rescue Mutual Aid System for all fire service jurisdictions in the County of Riverside. As such, RCFD has also been given the authority to enter into several automatic aid agreements with city jurisdictions, as well as with adjacent National Forests. Page 533 85 Construction and operation of the 2019 Project as a whole would increase the demand for fire protection and emergency response services. The construction of all components within the 2019 Project will result in a marginal potential increase in fire and medical response demand associated with construction activities and equipment. However, the Fire Code requires that water connections be available prior to the initiation of construction, thereby assuring that should a fire occur, water will be available to extinguish it. In addition to the two public access points provided on Desert Willow Drive, a third emergency access was to be be provided at the northwestern portion of the site, from the adjacent Westin Willow Ridge roadway. Emergency vehicles would circulate through the Project area using the internal roadway loop. The internal roadway would be designed to provide looped secondary emergency vehicle access and egress. Fire lanes, turning radii and back up space around buildings will require approval of the Fire Marshall, so as to assure adequate access for emergency and fire equipment vehicles. Pavements are required to support loads created by emergency vehicle traffic. Standpipe and fire suppression system connections are required for architectural design elements and in locations accessible to fire equipment. The 2019 Project’s demand for services was expected to be consistent with that of other residential, commercial, and resort developments in the Project vicinity. It was not expected to require the construction of new or physically altered fire facilities that might result in physical environmental impacts. Impacts were expected to be less than significant. The surf lagoon includes lifeguard facilities, including a lifeguard tower on the north end of the lagoon with visibility over all parts of the lagoon. This design feature supplements emergency fire response, and assures that impacts associated with emergency medical events at the lagoon would remain less than significant. The 2019 Project would be required to pay the Fire Facilities Impact Fee, which is charged on new residential and commercial development. Funding provided by the Project would result in capital that would be used toward future fire facilities. All off-site improvements would result in no impact, with the exception of overflow parking. The use of the off-site parking facility will be associated with the special events held at the surf lagoon, and would be tied to safety and traffic plans for these events. The use of the parking lot will have similar impacts to fire protection during special events as the surf center, and would be subject to Mitigation Measures PS-2 and PS-3, assuring that impacts are reduced to less than significant levels. Police Protection The City of Palm Desert Police Department (PDPD) is contracted through the Riverside County Sheriff’s Department (RCSD) for police protection services. RCSD provides several law enforcement services, such as general community policing, as well as the operation and maintenance of several correctional facilities, to areas under its jurisdiction. The RCSD is a "demand response" agency that maintains limited patrol services throughout the County of Page 534 86 Riverside. The RCSD has established a criteria of one sworn officer per 1,000 population; one supervisor and one support staff employee per seven officers; one patrol vehicle per three sworn officers; and one school resource officer per school. The nearest police station is the Palm Desert Police Station on Gerald Ford Drive, approximately 1.6 mile to the northwest. When the EIR was certified, staffing consisted of 70 sworn officers that included 45 deputies, 10 of which were dedicated to traffic enforcement. The City of Palm Desert provided about 1.75 sworn officers for every 1,000 residents. The average response time by priority is as follows:28 Priority 1 calls < 5 minutes Priority 2 calls < 19 minutes Priority 3 calls < 35 minutes Adoption and implementation of the 2019 Project would increase visitors, patrons, population, and employees onsite, thereby generating a potential increase in the level of police protection service calls from the Project site. The Project is expected to host special events that could attract an estimated 3,500 ticketed spectators. Such events may require coordination with the Palm Desert Police Department for additional onsite police support, such as directing traffic or increased foot patrols. Special events will occur occasionally and are expected to be consistent with other regional entertainment venues and sporting competitions, requiring additional police support but not increasing demand to the extent that new or expanded police personnel or facilities are needed. The 2019 Project also included bars, restaurants, and a surf center that could attract late-night patrons. Trained security personnel were required, per Mitigation Measure PS-1, to be employed to minimize impacts to the Palm Desert Police Department at onsite facilities and during daily operations and special events. Overall, with the buildout of all components of the 2019 Project, the net increase in persons at the project site on a daily basis would not require a substantial increase in police protection services in order to maintain the current officer to civilian ratio. No new or expanded police stations, the construction of which could cause significant environmental impacts, would be needed as a result of the 2019 Project. However, the EIR determined that additional police support may be required during special events, and private security personnel should be employed onsite to minimize additional demands for police services. To assure that impacts associated with public safety services are mitigated, Mitigation Measures PS-1 through PS-3 were required, and are provided below. These measures require the provision of private security services on site, and the coordination and approval of RCSD for special events. With implementation of Mitigation Measures PS-1 through PS-3, the EIR determined that impacts to police protection services would be less than significant. 28 Provided by Lieutenant Robert Castro at Riverside County Sheriff’s Department in August 2018. Page 535 87 All off-site improvements would result in no impact, with the exception of overflow parking. The use of the off-site parking facility will be associated with the special events held at the Surf Lagoon, and would be tied to safety and traffic plans for these events. The use of the parking lot will have similar impacts to fire protection during special events as the surf center, and would be subject to Mitigation Measures PS-2 and PS-3, assuring that impacts are reduced to less than significant levels. Schools Public education services and facilities are provided to Palm Desert by the Desert Sands Unified School District (DSUSD) and the Palm Springs Unified School District (PSUSD). At the time the EIR was prepared, DSUSD consisted of 19 elementary schools, one charter elementary school, six middle schools, one charter middle school, four comprehensive high schools, two continuation high schools, one alternative education school, and one preschool.29 The project site is within DSUSD’s jurisdiction.30 The nearest school is James Earl Carter Elementary School, located approximately 1.10 miles southwest of the project site. The residential portion of the 2019 Project would introduce approximately 191 new residents to the Project site. When the EIR was prepared, schools that serve the Project area were over capacity. Based on DSUSD student generation rates at the time the EIR was prepared, the 2019 Project has the potential to generate approximately 31 kindergarten through twelfth grade students, if the villas are occupied by permanent residents. This is a conservative estimate based on the Project’s 88 new villas being occupied by families with children residing on the project site on a fulltime, year-round basis. In actuality, these units were likely to be occupied on a temporary basis by individuals and families during vacations. Nonetheless, the potential student increase represents less than 1% of DSUSD’s current student body. The EIR determined that existing laws and regulations would require funding for the provision or expansion of new school facilities to offset impacts from new residential or commercial development, including payment of the required developer fees, and therefore impacts were considered less than significant. None of the off-site improvements would generate permanent population and, therefore, will have no impact on schools. These components of the Project will not increase the student population and there will be no impacts. Parks The City of Palm Desert has a total of 163 acres of park lands and an additional 56 acres dedicated for future parks.31 Beyond the Desert Willow golf course, within which the Project is located, the nearest public park to the project site is Hovley Soccer Park, approximately 1.1 mile south of the proposed Project. 29 Desert Sands Unified School District; https://www.dsusd.us, accessed November 2018. 30 Desert Sands Unified School District Boundary Map; https://www.dsusd.us/sites/default/files/DSUSD_SchoolFacilities.pdf, accessed November 2018. 31 Palm Desert General Plan Draft EIR – Page 4.14-18. Page 536 88 Implementation and buildout of all components of the 2019 Project would result in the development of a surf center, surf lagoon, up to 350 hotel rooms, restaurants, retail, and up to 88 new villas that could generate approximately 191 new residents, including approximately 31 school-aged children, if the villas are developed as permanent housing units. The Project proposed resort hotel and residential uses, outdoor use areas, and multiple options for recreational amenities, including lounges, swimming pools, a spa/wellness center, and a surf lagoon. The surf lagoon was expected to be the primary attraction for Project patrons and guests. Some visitors may attend events and undertake activities at local parks however, such visits are expected to be minimal and are not expected to require new or expanded park facilities that could result in adverse environmental impacts. In addition, the Project will be located within the Desert Willow golf course, providing additional recreational opportunities. The Project’s proposed recreational amenities, in conjunction with the City’s current parks and recreational facilities and the collection of Developer Impact Fees (DIF) that support the City’s park and recreation fund (as required by City’s Municipal Code 25.40.13032), would be adequate to accommodate the Project’s demand for parks and recreational services. Therefore, Project impacts to parks would be less than significant. None of the off-site improvements would generate demand for park services and, therefore, no impact was anticipated. Other Public Services Other public facilities in the City include city hall, the public library, museums, and medical/emergency facilities. As mentioned above, the Project’s recreational facilities, particularly the surf lagoon, were expected to be the primary attraction for Project patrons and guests. Some visitors may attend the local library, museums, or other attractions, and some may require medical services at local hospitals. However, such visits are expected to be minimal and are not expected to require new or expanded facilities that could result in adverse environmental impacts. Project-related impacts to other public facilities were expected be less than significant, and no mitigation measures were required. Mitigation Measures PS-1. All components of the Project shall be required to employ on-site private security. PS-2. Per the City’s Municipal Code Sections 5.87.180 and 5.100.02033, at least two weeks prior to a special event at the lagoon area, the applicant shall file a “Special Event Temporary Entertainment Permit.” Event notifications and specifics shall be approved in advance with the RCSD and Fire Marshall prior to scheduled events. 32 Palm Desert Municipal Code 25.40.130 (Required Park Dedication Fees). No building permit shall be issued for any new development until the use established is in compliance with all applicable regulations of the City’s local park dedication or payment of fees in lieu thereof requirement, as provided by the Subdivision Ordinance. (Ord. 1259 § 1, 2013). 33 Palm Desert Municipal Code 5.87.180 (Special events notification required) and 5.100.020 (Special event temporary entertainment permit required). Page 537 89 PS-3. Project facilities shall be designed and maintained to maximize public safety, including providing secure facilities access and parking, adequate nighttime lighting, maximization of defensible space and minimization of “dead zones,” and professional security personnel. The Project proponent shall coordinate with the Police Department to assure the Project is designed to address these and other safety concerns. PS-4. During construction, excavation areas, construction staging, and storage areas shall be fenced and locked. All equipment shall be returned to staging and storage areas at the end of each work day. Analysis of the Proposed Project Specific Plan and Precise Plan The proposed Specific Plan amendment would not increase the overall project density or development intensity of the approved 2019 Specific Plan, and therefore impacts to public facilities associated with population increases would be comparable to what was previously analyzed in the EIR. The Precise Plan would result in a reduction in potential dwelling units from the maximum buildout potential of 88 units to 83 units. This change will also result in a corresponding reduction in population. These reductions will also reduce demand from fire and police services, since fewer incidents would occur due to reductions in density at both the villas and the hotel. Similarly, impacts associated with libraries, schools and parks would be reduced with buildout of the Precise Plan, due to reductions in units and population requiring these services. Summary Implementation of proposed Project would not result in any new impacts or increase the severity of a previously identified significant impact as previously analyzed in the EIR. The proposed Project will be subject to the same mitigation measures as the 2019 Project. Overall, impacts are expected to be comparable to or less than those previously identified in the EIR due to the reduction in hotel room guests, residential density and population proposed by the proposed Precise Plan. Therefore, implementation of the Specific Plan amendment and buildout of the Project would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. 3.16. TRANSPORTATION Summary of Findings in the EIR Roadway Network Regional connectivity to the City is provided by Interstate 10, Highway 111, and State Route 74. Major roadways include Highway 111, Fred Waring Drive, Country Club Drive, Frank Sinatra Drive, Gerald Ford Drive, Dinah Shore Drive, Monterey Avenue, Portola Avenue, Cook Street, and Washington Street. Higher volume roadways include Washington Street, Monterey Avenue, Page 538 90 Highway 111, and Fred Waring Drive which are designed to carry approximately 51,000 (avg.), 37,400 (avg.), 39,800 (avg.), and 36,300 (avg.) vehicles per day at General Plan buildout (2040), respectively. Major roadways in the vicinity of the Project site include Country Club Drive to the south, Portola Avenue to the west, Cook Street to the east, and Frank Sinatra Drive to the north. At General Plan buildout, these major roadways could carry approximately 34,900 (avg.), 14,600 (avg.), 21,700 (avg.), and 12,300 (avg.) vehicles per day, respectively.34 Level of Service (LOS) is a qualitative measure used to define the performance of a roadway system. The desired and optimal level of service for intersections and roadway segments within the City is LOS C; however, LOS D is considered the generally acceptable service level. Transit Public transportation in the Coachella Valley consists of transit bus service operated by the SunLine Transit Agency. When the EIR was written, six SunLine bus routes served the City of Palm Desert: 20, 21, 32, 54, 70, 111, and Commuter Link 220.35 Sunline also provides paratransit service to supplement fixed route service. Service headways ranged from 20 minutes to 60 minutes during the weekdays. Less frequent service was provided on nights and weekends. The closest bus route to the Project site is Route 20 which extends along Cook Street. The nearest bus stop to the Project site is located at Cook Street and Country Club Drive, approximately ½ mile to the east. Bicycle and Golf Cart Facilities When the EIR was prepared, bicycle facilities in the immediate Project area included Class III bike lanes along Country Club Drive, Cook Street, Portola Avenue, and Frank Sinatra Drive.36 The Project site is located within the Desert Willow golf course property, and golf cart paths run along all sides of the property. Meandering pathways also extend along much of Desert Willow Drive.37 CV Link CV Link is a multi-modal transportation pathway which, at full buildout, will extend ±49 miles through 12 Coachella Valley jurisdictions, from Palm Springs on the west to the Salton Sea on the east.38 At the time the EIR was written, approximately 2.4 miles of CV Link had been constructed in the City of Cathedral City. In the City of Palm Desert, CV Link was to be constructed along the Whitewater River Stormwater Channel, and generally along Parkview Drive and Magnesia Falls Drive. It is anticipated that CV Link, once fully constructed, will contribute to increased fitness, local reductions in traffic volumes and associated air pollutants, and expanded economic opportunities. 34 Palm Desert General Plan (DEIR) – Table 4.15-24, The City of Palm Desert, 2016. 35 SunLine Transit Agency Website, https://www.sunline.org, accessed February 2019. 36 “Coachella Valley Association of Governments Active Transportation Plan,” Michael Baker International, 2016. 37 Google Earth Pro Version 7.3.2.5491. 38 CV Link Draft EIR (2017). Page 539 91 Pedestrian Environment Connections between roadways and transit facilities are provided through a network of sidewalks and crosswalks. The nearest pedestrian sidewalk to the Project site is along Desert Willow Drive. Sidewalks also exist along Country Club Drive, Cook Street, Portola Avenue, and Frank Sinatra Drive. Airports The Coachella Valley is served by three airports. The Palm Springs International Airport is the largest and primary air transportation link for the region. It is located approximately 8 miles northwest of the subject property and is classified in the National Plan of Integrated Airport Systems (NPIAS) as a long-haul commercial service airport. It also handles air freight and provides heliport access that is largely limited to medical evacuation flights between the Desert Regional Medical Center and Eisenhower Medical Center. The Bermuda Dunes Airport is a privately owned, public use airport located approximately 5.5 miles northeast of the subject property. It accommodates corporate and private aircraft and is the designated airport for medivac flights for John F. Kennedy Hospital and Eisenhower Medical Center. The Jacqueline Cochran Regional Airport is located in the unincorporated community of Thermal, approximately 15 miles southeast of the Project site. It caters to business and private aviation aircraft. Intersection Operations The Project-specific Traffic Impact Analysis (TIA) studied twelve (12) intersections in the Project area based on the Project description and input from City staff. Conditions were evaluated for weekday PM peak hours and Saturday peak hours, when the proposed Project is expected to be busiest. Data in the EIR demonstrated that all studied intersections are operating at acceptable LOS during one or more peak hours, except for the intersection at Cook Street and Market Place Drive, which is unsignalized and operating at LOS F during the PM peak hour only. The EIR requires mitigation to reduce impacts to less than significant levels, as provided in Mitigation Measure TRANSP-1, which requires that the Project pay its fair share of the installation of a traffic signal at this location. Further, the Development Agreement requires that the payment be made by the Project proponent, and that the City install the signal prior to the issuance of a certificate of occupancy for the Surf Center. This assures that the improvement will be complete at the time that the Project is operational, and that the impact will be less than significant when the Project begins operations. The TIA also analyzed potential impacts of the 2019 Project on the I-10 freeway ramps at Cook Street, since special events are expected to attract travelers from more distant locations that will require freeway travel. The EIR determined that the freeway off-ramps will operate at acceptable levels during special events. Page 540 92 Vehicle Miles Traveled CEQA Guidelines Section 15064.3, as amended December 2018, states that vehicle miles traveled (VMT) is the most appropriate measure of transportation impacts. A lead agency may use models or other methods to analyze a project’s VMT quantitatively or qualitatively. For land use projects, such as the proposed DSRT SURF Project, “projects within one-half mile of either an existing major transit stop or a stop along an existing high-quality transit corridor should be presumed to cause a less than significant transportation impact. Projects that decrease vehicle miles traveled in the project area compared to existing conditions should be considered to have a less than significant transportation impact.” During construction, an estimated 12,875 haul trips (equivalence)39 will transport excess soils to either: 1) vacant land on the Desert Willow Golf Course, less than ¼ mile from the Project site, or 2) along Cook Street to the Classic Club 2½ miles to the north. For conservative analysis, it was assumed that all excess soil will be hauled to the Classic Club, resulting in approximately 32,188 VMT. Once construction is complete, this Project component would generate no VMT. Impacts would be less than significant. The EIR determined that buildout of the entire Project would generate a combined total of 5,496 weekday daily trips during typical operation, and a combined total of 7,288 weekend daily trips during special events. The Project is centrally located in the Coachella Valley; vehicles traveling from the furthest points of the valley from the Project site would travel approximately 15 miles to the Project, while those in the denser population centers would travel 10 miles or less. During special events, spectators could travel from areas outside the Coachella Valley; western Riverside County and Los Angeles, for example, are 60 miles and 100 miles from the Project site, respectively. For analysis purposes, it was assumed that the average distance traveled per trip was 25 miles, resulting in an annual VMT of 12,213,217 under typical operation and 16,511,125 when accounting for special events. The EIR determined that the Project’s central location and proximity to arterials, I-10, and established transit routes are expected to reduce the amount of driving required to access the Project. Therefore, impacts were considered less than significant. Emergency Access Emergency vehicles will be able to access the surf lagoon, surf center, hotel, and villas via two main driveways on Desert Willow Drive and a gated emergency entrance on Willow Ridge. The internal roadway will provide vehicular access around the perimeter of the Project. Prior to the initiation of any site disturbance, the Project proponent will be required to confer with the City Public Works, Fire, and Police departments to assure that demolition (of the existing parking lot), grading, and construction plans provide adequate emergency access. After the construction and installation of off-site improvements is complete, these project components will have no impact on emergency access. 39 CalEEMod generates the number of “haul trips” and associated hauling emissions based on the quantity/weight of material being hauled and the distance to the haul site. The number of haul trips generated in CalEEMod provides an equivalent emissions projection based on haul load assumptions programmed into the software. Based on project haul data, CalEEMod assumes that the project will require 12,875 material haul trips. It is assumed that an average haul load is 20 tons (or 16 cubic yards). Page 541 93 All development plans will be reviewed by the Police and Fire Departments to assure that adequate fire lanes, vehicle turning radius, and signage is provided for emergency vehicles during all phases of operation (Mitigation Measures TRANSP-15 through TRANSP-19). With implementation of these mitigation measures, Project-related impacts will be less than significant. Parking and Special Events Overflow parking improvements are planned for the southeast corner of Desert Willow Drive and Market Place Drive. Preliminary designs for this parking lot estimate that approximately 285± parking spaces can be provided at this location in a fully improved parking lot. During standard operations, the lot will be vacant, and no special traffic management strategies will be necessary. However, during special events, up to 1,459 vehicles would require parking and vehicles will access the overflow parking lot via Cook Street, Country Club Drive, and Market Place Drive. The EIR determined that without additional off-site parking, potential impacts associated with parking and site access could result in significant impacts to the Project site and surrounding roadway network. However, implementation of Mitigation Measures TRANSP-5 through TRANSP-14 will reduce potential impacts to less than significant levels. They require the Project proponent to implement a Special Event Traffic Management Plan that uses temporary signage, flaggers, traffic signal timing adjustments, shuttle services, and other mechanisms to facilitate the movement of special event traffic and reduce impacts to roads in the Project vicinity. Transit Service The surf lagoon, surf center, hotel, and villas will have no impact on transit, bicycle, or pedestrian facilities. The Project site is ½ mile from the nearest Sunline transit route and bus stops on Cook Street, and ⅓-mile from the nearest sidewalk and bike lane on Country Club Drive. The Project will not impact sidewalks or golf paths within Desert Willow Golf Course. It does not propose new transit or bicycle facilities, or modifications to existing ones, and will not conflict with any such programs, plans, ordinances, or policies. Internal walkways and trails will connect to existing sidewalks and pathways on Desert Willow Drive, which then connect to sidewalks on Country Club Drive. Summary of Impacts The TIA assumed that all project components would be built out by 2022, studying both typical daily operations and special events. Although the 2019 Project was to be implemented in two phases, and both phases may not be completed by 2022, this represents a worst-case scenario in which all traffic impacts occur simultaneously. Typical daily operations were assumed to include up to 95 surfers at one time in the lagoon, activity at surf center retail and restaurant facilities, and full occupancy of the 350 hotel rooms and 88 villas. Special event operations considered the addition of up to 3,500 ticketed guests at the surf lagoon, in addition to the operational characteristics described above. As previously discussed, the intersection at Cook Street and Market Place Drive would operate at LOS F during the PM peak hour only. With installation of a traffic signal (Mitigation Measure TRANSP-1), the Cook Street and Market Place Drive intersection will operate at an acceptable LOS. Expansion of the eastbound left turn lane on Market Place Drive at Cook Street to a Page 542 94 minimum of 165 feet (Mitigation Measure TRANSP-2) would also reduce Project impacts at this intersection. TRANSP-3 and TRANSP-4 will further enhance site access and traffic safety at the Project site by requiring implementation of onsite traffic signing and striping plans and review of sight distance at Project access points. Primary access to the surf lagoon, surf center, hotel, and villas will be provided at two access points on Desert Willow Drive, and emergency access will be provided via a gated access point on Willow Ridge. An internal road will be used to access onsite facilities and parking. No roads, intersections, or design features are proposed that would increase hazards. During long-term operation, vehicles accessing the site will be similar to those accessing the adjacent golf course. Off-site improvements would have no impact on traffic-related hazards at buildout. Overall, No impact would occur. In regard to off-site improvements, stormwater management, pool/lagoon discharge, soil removal and storage, golf course turf reduction, and landscaping improvements would have no impact on circulation plans, policies, or programs. Mitigation Measures Site Access Improvements TRANSP-1 The Project proponent shall pay its fair share of the costs of installing a traffic signal at the intersection of Cook Street and Market Place Drive. The fair share amount shall be 12.1%, as defined in Table 1-5 of the “Desert Wave Traffic Impact Analysis, City of Palm Desert,” prepared by Urban Crossroads, March 4, 2019. Signal timing shall be coordinated with the traffic signal at the intersection of Cook Street and Country Club Drive. TRANSP-2 The Project shall extend the eastbound left turn lane on Market Place Drive at Cook Street to provide a minimum of 165 feet of storage. TRANSP-3 Onsite traffic signing and striping shall be implemented in conjunction with detailed construction plans for the Project site. TRANSP-4 Sight distance at each Project access point shall be reviewed with respect to Caltrans and City of Palm Desert sight distance standards at the time of preparation of final grading, landscape, and street improvement plans. Special Event Traffic Management TRANSP-5 The Project proponent shall coordinate with City staff to prepare, refine, and approve a Special Event Traffic Management Plan that facilitates the safe and efficient movement of special event traffic, shuttles, and pedestrians. A master management plan shall be prepared that details all potential measures required for a special event, which shall be supplemented with individual plans addressing specific special events based on their size and duration. The Special Event Traffic Management Plan shall be submitted to the City prior to certificate of occupancy for Page 543 95 the Surf Center. Individual management plans for specific special events shall be submitted at least 30 days prior to the start of the event. The Special Event Traffic Management Plan shall include the measures identified in Mitigation Measures TRANSP-6 through 14, below. TRANSP-6 Shuttle service shall be provided to transport spectators between the Project site and overflow parking lot via Desert Willow Drive, and for any other off-site parking location required to accommodate the parking requirements for each special event. The calculation for number of parking spaces required shall be based on the number of planned attendees, divided by 2.4, and multiplied by 0.70 (70%) (as described in Section 1.10 of the “Desert Wave Traffic Impact Analysis, City of Palm Desert,” prepared by Urban Crossroads, March 4, 2019). Shuttle routes and stops shall be identified in the Special Event Traffic Management Plan. TRANSP-7 In developing the Special Event Traffic Management Plan, the Project proponent shall include the use of portable changeable message signs (CMS) along Country Club Drive and Cook Street to facilitate event traffic to and from on-site and off-site parking. TRANSP-8 In developing the Special Event Traffic Management Plan, the Project proponent shall include the use of law enforcement personnel and/or special event flaggers to direct traffic at the following locations: 1) Desert Willow Drive & Country Club Drive, 2) Cook Street & Market Place Drive, 3) Desert Willow Drive & Market Place Drive, and 4) Desert Willow Drive & Project entrance. Any plans involving law enforcement personnel shall be coordinated with the Palm Desert Police Department. TRANSP-9 In developing the Special Event Traffic Management Plan, the Project proponent and City shall include the use of public service announcements (PSA) to provide information to event guests prior to the event. Examples include, but are not limited to, online event information (i.e., suggested routes, parking, etc.), changeable message signs (CMS) prior to the event, and brochures. TRANSP-10 The City shall provide traffic signal timing adjustments based on the expected peak arrival and departure periods of the special event at the following locations: 1) Desert Willow Drive & Country Club Drive, 2) Cook Street & Market Place Drive, and 3) Cook Street & Country Club Drive. TRANSP-11 In developing the Special Event Traffic Management Plan, the Project proponent shall include the designation of convenient and accessible drop-off and pick-up areas to promote ridesharing and reduce parking demands. The Plan may also include short-term parking with time restrictions of 10-15 minutes for staging areas for ridesharing vehicles. TRANSP-12 In developing the Special Event Traffic Management Plan, the Project proponent shall include providing off-site parking facilities for employees to increase available on-site parking for guests. Employee parking sites shall be served by shuttles that transport employees to and from the Project site. Page 544 96 TRANSP-13 In developing the Special Event Traffic Management Plan, the Project Proponent shall include implementing valet parking to increase available on-site parking capacity. TRANSP-14 The Project proponent shall demonstrate availability of additional parking spaces at Desert Springs Marketplace, the Indian Wells Tennis Garden or other location(s) prior to each special event. Shuttle service to/from the Project site shall be provided to serve all off-site parking locations. Emergency Access TRANSP-15 Prior to site disturbance, construction staging plans shall be approved by the Public Works, Fire, and Police Departments to assure they adequately consider and account for temporary detours, changing access to business and residential areas, and emergency access, and that they cause minimal disruption to adjoining streets and land uses, during all phases of Project development. TRANSP-16 The Construction Manager shall be required to identify and promptly repair any Project-related damage to existing public roads upon completion of each phase of Project development. The Construction Manager shall monitor the condition of these routes throughout the construction process and, in the event of an accidental load spill or other Project-related incident, shall arrange for the immediate clean-up of any material with street sweepers or other necessary procedures. TRANSP-17 The final location and design of the site access points and internal circulation improvements shall comply with City of Palm Desert access and design standards and be reviewed by the City Engineer and Fire and Police Departments. TRANSP-18 Parking adjacent to the surf lagoon, surf center, hotel, villas, and other buildings shall be prohibited, where necessary, to provide unobstructed access by emergency service vehicles and first responders. TRANSP-19 The Police and Fire Departments shall be provided with a Knox Box or other master key or access code that enables immediate entry to the Project’s secured emergency access gate on Willow Ridge. Cumulative Impact Mitigation TRANSP-20 The Project proponent shall participate in the CVAG’s TUMF program by paying the requisite TUMF fees. Page 545 97 Analysis of the Proposed Project Specific Plan and Precise Plan The Specific Plan amendment would facilitate the same buildout potential as the 2019 Specific Plan, and therefore would result in similar impacts to traffic and circulation. Access to bicycle and golf cart facilities, transit, the pedestrian networks, and CV Link is the same as previously analyzed in the EIR. Buildout of the revised Precise Plan has the potential to result in a 27% reduction in commercial space, 71% reduction in restaurant/bar space, 53% reduction is hotel and villa building square footage, and a 14% reduction in parking compared to maximum buildout assumptions analyzed in the EIR. To calculate traffic trips for the Precise Plan, the same trip generation rates used in the 2019 EIR were used to calculate Project-specific trip generation. The following trip generation rates were used: • Hotel: The 2019 EIR analyzed 350 rooms at a rate of 8.36 daily trips per room for a total of 2,926 daily trips. The Precise Plan proposes 92 rooms for a daily trip generation of 770 daily trips; • Surf Center/Surf Lagoon: The 2019 EIR and Traffic Impact Analysis (TIA) used the number of guests per day as the metric to assess the surf center and lagoon trip generation. Daily capacity and usage rates will remain the same, and therefore the same assumptions used in the EIR were used for a total of 1,126 daily trips; • Villas/Stacked Flats: The 2019 EIR analyzed 88 villas at a rate of 8.36 daily trips per unit for a total of 736. The Precise Plan proposes 83 units for a daily trip generation of 694; • Retail: The 2019 EIR and TIA analyzed 4,000 square feet of retail space separate from the surf center and hotel at a rate of 46.12 daily trips per 1,000 square feet for a total of 152 daily trips. The Precise Plan proposes 418 square feet of retail to be located within the surf center building for a total of 20 daily trips; • Restaurant/Bars: The 2019 EIR and TIA analyzed 11,250 square feet of restaurant/bar space at 112.18 daily trips per 1,000 square feet for a total of 1,264 daily trips. The Precise Plan proposes 3,271 square feet of restaurant/bar space for a total of 367 daily trips; • Special Events: The Precise Plan does not propose changes to special event capacity, therefore it is assumed that the same daily trips would apply (3,500 guests for a total of 2,918 daily trips during special events) Based on the factors above, the Precise Plan has the potential to generate approximately 2,977 daily trips (before internal trip capture) during typical operations (no special event). Compared to the maximum buildout assumptions analyzed in the 2019 EIR, the Precise Plan has the potential to reduce daily trips by 52%, from 6,204 daily trips (also before internal trip capture) to 2,977 daily trips. These trips will be further reduced by the internal capture created by the use synergies. Therefore, it can be assumed that daily trips and peak hour trips associated with buildout of the Precise Plan would be less intense than those previously analyzed in the EIR due to the reduction in overall development density and building square footage. Page 546 98 The Precise Plan would maintain the three emergency access points (two main driveways and Desert Willow Drive) previously analyzed in the 2019 EIR and will therefore not result in a new adverse impact. The Precise Plan will also have access to the same external network of transit, golf cart, bicycle, and pedestrian networks in Project vicinity, and proposes an internal network of multimodal paths to encourage non-vehicular travel throughout the site. The proposed Project will adhere to the same mitigation measures set forth in the EIR and no new mitigation measures are required. Therefore, implementation of the proposed Specific Plan amendment and buildout of the Project would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR 3.17. UTILITIES Summary of Findings in the EIR Water Service The main water source used by CVWD for urban potable water use is local groundwater. The CVWD operates more than 100 wells to obtain groundwater from both the Whitewater River and the Mission Creek subbasins of the Coachella Valley Groundwater Basin.40 The Coachella Valley Groundwater Basin has been identified by the Department of Water Resources (DWR) as being in a condition of overdraft since the 1940s. CVWD, through its water replenishment programs, estimates that overdraft in both the West and East Whitewater River subbasins has been curtailed, but must be maintained. Although Colorado River and SWP water are used to replenish the groundwater basin, the potable water distribution system does not currently receive water directly from either imported water source. As discussed in the Hydrology and Water Quality Section, and per the Project-specific Water Supply Assessment (WSA), the proposed Project would require approximately 165.21 AF of water annually. Of that demand, it is anticipated that the 2019 Project will use up to 8.54 AFY of recycled water for landscaping. Implementation of the Turf Reduction Plan would reduce irrigation water consumption in the immediate Project area, serving to offset the water demand of the proposed Project by approximately 106.75 AFY. Use of recycled water for landscaping and the Turf Reduction Plan would reduce the Project’s overall net water demand to 58.46 AFY. The Project’s net domestic water demand of 58.46 AFY represents approximately 0.05 percent of the total water supply (114,600 AFY) for 2020 and 0.03 percent of the total water supply (194,300 AFY) for 2040 estimated by the CVWD in its Urban Water Management Plan. The EIR and WSA determined that CVWD has sufficient water supplies available to serve the Project in future during normal, dry and multiple dry years. The Project’s incremental effect would not be cumulatively considerable with respect to water supply and, therefore, impacts would be less than significant, with the implementation of the Turf Reduction Program required in Mitigation Measure HYD-4. 40 Engineer's Report on Water Supply and Replenishment Assessment 2017-2018, CVWD. Page 547 99 The 2019 Project would require extension of water lines within the site to connect to the existing CVWD water lines under Willow Ridge Road and the traffic circle at Desert Willow Drive. The Project may construct a new onsite well to supply the lagoon water demands, which will be metered in compliance with requirements of the RWRCB. This would not significantly affect CVWD water facilities, and once connected to the CVWD water lines, CVWD will have sufficient water to accommodate the proposed Project. Extension of water lines will have less than significant impacts on expanded water services because the physical expansion will occur within already disturbed areas of the golf course and its roadways, and because the proposed Project’s mandate to implement a Turf Reduction Program will substantially reduce net water demand of the Project. Wastewater CVWD also provides wastewater and sewage collection and treatment services in the city. Wastewater is conveyed through sewer trunk lines generally ranging in size from 4 to 24 inches, relying primarily on gravity flow. When the EIR was prepared, CVWD treated and recycled wastewater at two wastewater treatment plants (WRP-9 and WRP-10) for the City of Palm Desert and surrounding areas. These two plants had a total capacity of 18.40 million gallons per day. The EIR estimated that the Project would generate a total of 161,500 gpd of wastewater per day, which will constitute an increase of 1 percent of the treatment flows currently entering the CVWD’s WRP-10 daily. Recycled water from these facilities has been used for golf course and greenbelt irrigation in the City for many years, including irrigation at the Desert Willow golf course, thereby reducing demand on the groundwater basin. CVWD implements all requirements of the Regional Water Quality Control Board pertaining to water quality and wastewater discharge. According to the CVWD, the existing sewer lines under Willow Ridge Road and the traffic circle at the clubhouse entrance on Desert Willow Drive have the capacity to handle the additional sewage generated by the Project, based on the number of lateral tie-ins presently contributing to the sewer flow. The Proposed Project will require construction of on-site sewer infrastructure to connect to the existing sewer mains located in the Desert Willow Drive and Willow Ridge Road rights-of-way. Overall, the EIR determined that CVWD has sufficient treatment capacity to treat wastewater generated by the 2019 Project, and the Project is not anticipated to result in the construction or relocation of a wastewater treatment plant. The 2019 Project’s impact on wastewater treatment systems would be less than significant. Stormwater Management and Protection Within CVWD's boundaries, there are 16 stormwater protection channels. The entire system includes approximately 135 miles of channels built along the natural alignment of dry creeks that naturally flow from the surrounding mountains into the Whitewater River. Along with the channels, a number of dikes and levees have been designed and built to collect rapidly flowing flood water as it drains from the adjacent mountains onto the floor of the Coachella Valley. Page 548 100 The backbone of the stormwater protection system is a 50-mile stormwater channel that runs from the Whitewater area north of Palm Springs to the Salton Sea. The western half of the channel, known as the Whitewater River Stormwater Channel, runs along the natural alignment of the Whitewater River that cuts diagonally across the valley to Point Happy in La Quinta. Because the riverbed flattens out naturally downstream from La Quinta, a constructed stormwater channel funnels flood waters to the Salton Sea. East of Point Happy, the channel is known as the Coachella Valley Stormwater Channel. The channel was built to withstand a flow of 80,000 cubic feet per second, which is greater than flows generated by a 100-year flood event.41 The Project would introduce impervious surfaces in the project area through the construction of buildings, pedestrian pathways, parking lots, and internal roadways. As explained in the Hydrology and Water Quality Section, the Project site is divided into four drainage areas from which onsite runoff will be conveyed into three existing Desert Willow Golf Course drainage waste areas. These drainage waste areas do not have drain pipes to the Project site currently. Drain pipes will need to be constructed and extended from the Project site in these areas as part of the proposed Project. The drainage pipe extensions are considered off-site improvements, and their impacts discussed separately below. The preliminary hydrology study for the 2019 Project demonstrates that the existing waste areas have capacity to accommodate Project 100-year flows. Therefore, the 2019 Project will not result in a need to construct additional drainage facilities beyond those envisioned for the Desert Willow project, and impacts will be less than significant. Electricity Southern California Edison (SCE) provides electrical service to the City of Palm Desert and many areas of the Coachella Valley, serving approximately fifteen (15) million people within a service area of approximately 50,000 square miles, including the Coachella Valley. According to the Palm Desert Greenhouse Gas Inventory Update, city-wide electricity usage in Palm Desert in 2013 was 756,834,386 kWh.42 This includes all electricity consumed by municipal buildings, residential, commercial, and industrial land uses, and resorts and golf courses, combined. Operation of the proposed Project would consume approximately 21,711,725 kWh per year of electricity in total43. This represents a 2.87 percent increase in annual City-wide electricity usage. Installation of solar panels would offset the Project’s electrical demand, thereby reducing it to approximately 20,011,725 kWh per year, which represents approximately 2.64 percent of the City’s total electricity demand. The Project will connect to the existing nearest SCE underground distribution lines located east of the site. Construction of the Project will comply with applicable SCE guidelines regarding installation, extensions, and connections to limit impacts to electricity infrastructure and avoid service interruptions. No new SCE electric power facilities will need to be constructed or relocated. Impacts will be less than significant. 41 Ibid. 42 Palm Desert Greenhouse Gas Inventory 2013 Update. 43 See Section 2.6 Energy for detailed discussion. Annual kWh were estimated in CalEEMod using historical energy data for similar land use/building types, and Project-specific engineering estimates for the surf lagoon. Page 549 101 Natural Gas Natural gas is provided to the City of Palm Desert by the Southern California Gas Company (SoCalGas). According to the Palm Desert Greenhouse Gas Inventory Update, city-wide natural gas consumption totaled 17,532,930 therms in 2013.44 This includes natural gas consumed by residential, commercial, and industrial land uses, and resorts and golf courses. Operation of the proposed Project would consume approximately 331,811 therms per year45 of natural gas in total, which is equivalent to a 1.89 percent increase in annual City-wide natural gas usage (City-wide usage is approximately 17,532,930 therms per year, according to the Palm Desert Greenhouse Gas Inventory 2013 Update). The Project site would connect to the existing SoCalGas distribution lines located at the perimeter of the Desert Willow traffic circle. Prior to ground disturbance, Project contractors would notify and coordinate with SoCalGas to identify the locations and depths of all existing gas lines and avoid disruption of gas service. No additional natural gas facilities will need to be constructed or relocated. Impacts will be less than significant. Telecommunications Landline phone services in the City are mainly provided by Frontier Communications Corporation. It is the fourth largest provider of digital subscriber lines (based on coverage area) in the County. The project site will connect to the existing telecommunication lines located adjacent to the site in Desert Willow Drive. Lines currently in place are sufficient to supply the Project, and no new lines are expected to be required. No impact is anticipated. Solid Waste Solid waste disposal services in Palm Desert are provided by the commercial vendor Burrtec. Solid waste collected from residents and businesses is hauled to the Edom Hill Transfer Station in Cathedral City and is then transported to regional landfills. When the EIR was prepared, the remaining capacities for these landfills were as follows: Lamb Canyon Sanitary Landfill Location: Beaumont Remaining Capacity = 19,242,950 Cubic Yards Ceased Op Date = 04/01/2029 Oasis Sanitary Landfill Location: Oasis Remaining Capacity = 433,779 Cubic Yards Ceased Op Date = 09/01/2055 Mecca Landfill II Location: Mecca Remaining Capacity = 6,371 Cubic Yards Ceased Op Date = 01/01/2098 Source: Solid Waste Information System database, CalRecycle. 44 Palm Desert Greenhouse Gas Inventory 2013 Update. 45 See Section 2.6 Energy for detailed discussion. Therms were estimated in CalEEMod using historical energy data for similar land use/building types. Page 550 102 Solid waste from the future development in the City would be disposed of in the Mecca II and Oasis landfills when the Lamb Canyon Sanitary Landfill has reached its capacity. All development is required to comply with the mandatory commercial and multi-family recycling requirements of Assembly Bill 341. The City of Palm Desert has implemented many programs within the community as well as within its own organization to meet AB 341 goals. Construction of the 2019 Project would generate solid waste in the form of sediments, trash and debris, oil and grease, fuels, lubricants, asphalt and concrete waste, and similar materials. Based on the Estimated Solid Waste Generation Rates established by CalRecycle, the Project would dispose of approximately 355 tons of solid waste per year46 at buildout. The Project would be required to achieve 50 percent waste diversion in accordance with Riverside County’s Integrated Waste Management Plan (CIWMP); based on this requirement, the total solid waste generation for the Project will be approximately 212.66 tons per year. Implementation of State and municipal requirements to reuse and recycle construction and operation waste would lessen the amount of solid waste generated by the Project. The 2019 Project would contribute 0.02% to Lamb Canyon’s remaining capacity.47 The EIR determined that less than significant impacts would occur from the Project, and no mitigation will be required. Analysis of the Proposed Project Specific Plan and Precise Plan The Specific Plan amendment would facilitate the same buildout potential of the 2019 Specific Plan, resulting in the same demand for utilities. Therefore, the Specific Plan amendment would not result in any new impacts or increase the severity of a previously identified significant impact as previously analyzed in the EIR. Buildout of the revised Precise Plan has the potential to result in a 27% reduction in commercial space, 71% reduction in restaurant/bar space, 53% reduction is hotel and villa building square footage compared to maximum buildout assumptions analyzed in the EIR. Therefore, it can be assumed that demands for water, wastewater, telecommunication facilities, energy infrastructure, and solid waste disposal would be less than those previously analyzed in the EIR under maximum buildout conditions. Utility demands of the surf lagoon would remain less than significant under either buildout scenario (2019 or proposed Project). To calculate water demands for the Precise Plan, the same water demand factors used in the EIR were used to calculate Project-specific water demands. The following water demand factors were used: • Hotel: 115 gal per room per day. Precise Plan proposes 92 rooms for a daily demand of 10,695 gallons per day, or 11.85 acre-feet per year (AFY); 46 Retail = 0.02 lb/SF/day; Office = 0.006 lb/SF/day; Hotel = 2 lb/room/day; Multi-family = 5.1 lb/unit/day. CalRecycle. 47 Assumes that 1 CY of commercial and residential recyclable solid waste is equivalant to 100 lbs (averaged). “Volume to Weight Conversion Factors,” US EPA Office of Resource Conversion and Recovery. April 2016. Page 551 103 • Surf Center Ancillary Uses/Maintenance/General Retail: 0.19 gallons per square foot per day. Precise Plan proposes 12,323 square feet of surf center and maintenance space resulting in a daily demand of 2,341.37 gallons per day, or 2.62 AFY; • Surf Lagoon: The same assumptions used in the EIR were used for a total demand of 73.04 AFY; • Villas: 117.7 gallons per unit per day. 83 units would generate a water demand of 9,769.1 gallons per day, or 10.94 AFY; • Pools/Landscaping: The same assumptions used in the EIR were used for a total demand of 15.9 AFY. • Turf Reduction Program: The same assumptions used in the EIR were used for a total reduction of 106.75 AFY. Based on the factors above, buildout of the proposed Precise Plan would result in a water demand of 114.35 AFY. If the 106.75 AFY of water saved from the Turf Reduction Program is applied to the proposed Project, the Project’s remaining net domestic water demand would be 7.6 AFY. This represents an 87% reduction in net annual water demand compared to the 2019 Project net water demand of 58.46 AFY. The reduction is primarily due to the significant reduction in hotel rooms, which were originally assumed to total 350. The proposed Precise Plan represents a 74% reduction in hotel rooms. In addition, the reductions associated with less surf center restaurant area, and the minor reduction in the total number of villas, from 88 to 83, contribute to a substantial reduction in water demand for the proposed Project. Therefore, buildout of the Precise Plan would be less intense than what was previously analyzed in the EIR, and impacts to water supply would be substantially reduced, and less than significant. Using the wastewater generation rate of 230 gallons per day per room/unit and 100 gallons per day per 1,000 square feet of commercial, buildout of the Precise Plan would generate approximately 41,782.3 gallons per day of wastewater, which is 119,717.7 gallons per day less (74%) than maximum buildout of the site under the existing and proposed Specific Plan (161,500 gallons per day) analyzed in the EIR. Therefore, buildout of the Precise Plan would be less intense than that previously analyzed in the EIR due to the reduction in residential density and building square footage, and would represent a less than significant impact on sanitary sewer service. Based on the Estimated Solid Waste Generation Rates established by CalRecycle48, the proposed Precise Plan would dispose of approximately 853.76 pounds per day or 155.8 tons of solid waste per year at buildout. This represents a 27% reduction is annual tons of solid waste when compared to maximum buildout of the site under the existing and proposed Specific Plan (212.66 tons per year). Therefore, buildout of the Precise Plan would be less intense than that previously analyzed in the EIR due to the reduction in residential density and building square footage, and impacts would remain less than significant. 48 Retail = 0.02 lb/SF/day; Office = 0.006 lb/SF/day; Hotel = 2 lb/room/day; Multi-family = 5.1 lb/unit/day. CalRecycle. Page 552 104 Summary Both the buildout of the Specific Plan and the proposed Project will be required to comply with General Plan policies, and regulations associated with CVWD water and wastewater use, and solid waste disposal. These standards and conditions will serve to further reduce impacts, when compared to those analyzed in the EIR. Therefore, implementation of the proposed Specific Plan amendment and buildout of the Precise Plan would not result in any new adverse impacts or increase the severity of previously identified significant impacts in the Certified EIR. Page 553 Page 554 Page 555 A QUIFERAQUIFER SURF LA GOONSURF LA GOON Annual lagoon drain and daily use water going back through the drywell and into the aquifer. Water coming up from the aquifer through the well. DSRT Surf is paying to convert 24 acres at Desert Willows golf courses into drought tolerant landscaping which will result in annual water savings of 34.8m gallons. The DSRT Surf lagoon will use 23.8m gallons of water each year through an annual lagoon drainage/refill, daily water filtration, and evaporation. Much of this water will be reclaimed through dry wells which recharge the aquifer effectively recycling our water back into the system. 34.8m 23.8m 11.0m Gallons Saved by Landscape Conversion, paid fot by DSRT Surf Gallons Used by the Surf Lagoon Gallons of Water Saved! Page 556 Page 557 Page 558 Page 559 Page 560 Page 561 Page 562 Page 563 Page 564 Page 565 Page 566 Page 567 Page 568 Page 569 Page 570 Page 571 Page 572 Page 573 Page 574 Page 575 Page 576 Page 577 Page 578 Page 579 Page 580 Page 581 Page 582 Page 583 Page 584 Page 585 Page 586 Page 587 Page 588 Page 589 Page 590 Page 591 Page 592 Page 593 Page 594 Page 595 Page 596 Page 597 Page 598 Page 599 Page 600 Page 601 Page 602 Page 603 Page 604 Page 605 Page 606 Page 607 Page 608 Page 609 Page 610 Page 611 Page 612 Page 613 Page 614 Page 615 Page 616 Page 617 Page 618 Page 619 Page 620 Page 621 Page 622 Page 623 Page 624 Page 625 Page 626 Page 627 Page 628 Page 629 Page 630 Page 631 Page 632 Page 633 Page 634 Page 635 Page 636 Page 637 Page 638 Page 639 Page 640 Page 641 Page 642 Page 643 Page 644 Page 645 Page 646 Page 647 Page 648 Page 649 Page 650 Page 651 Page 652 Page 653 Page 654 Page 655 Page 656 Page 657 Page 658 Page 659 Page 660 Page 661 Page 662 Page 663 Page 664 Page 665 Page 666 Page 667 Page 668 Page 669 Page 670 Page 671 Page 672 Page 673 Page 674 Page 675 Page 676 Page 677 Page 678 Page 679 Page 680 Page 681 Page 682 Page 683 Page 684 Page 685 Page 686 Page 687 Page 688 REVISED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT by and among CITY OF PALM DESERT (“City”) and DESERT WAVE VENTURES, LLC a Delaware limited liability company (“Developer”) DSRT SURF HOTEL, RESIDENTIAL UNITS, SURF CENTER AND LAGOON Page 689 72500.00920\34744746.2 TABLE OF CONTENTS Page -ii- 1. GENERAL PROVISIONS. ......................................................................... 3 1.1 Purpose of this Agreement ................................................................................. 3 1.2 Project Site ............................................................................................................ 3 1.3 Project Existing Approvals .................................................................................. 3 1.4 CEQA Compliance ............................................................................................... 7 2. IDENTITY OF PARTIES. ...................................................................................... 7 2.1 Developer. ............................................................................................................. 7 2.2 City. . .................................................................................................................... 12 2.3 Notices. ................................................................................................................ 12 3. TERM. ................................................................................................................ 13 3.1 Term ..................................................................................................................... 13 4. DESIGN AND DEVELOPMENT OF PROJECT. ................................................. 15 4.1 Design and Development of the Project. ........................................................ 15 4.2 City Infrastructure Improvements .................................................................... 15 4.3 Submission and Approval of Construction Documents and Building Permit and Grading Permit Applications. .................................................................... 15 4.4 Agreement on Total Project Costs. ................................................................. 17 4.5 City Financial Contribution ................................................................................ 18 4.6 [Intentionally left blank] ...................................................................................... 19 4.7 Insurance ............................................................................................................. 19 4.8 Other provisions or requirements .................................................................... 20 4.9 Safety. .................................................................................................................. 23 4.10 Developer’s Indemnity Agreement/Hold Harmless ....................................... 24 4.11 Payment Bonds and Performance Bonds ...................................................... 25 4.12 Completion Guaranty. ........................................................................................ 26 4.13 Prevailing Wages ............................................................................................... 27 4.14 Liens and Claims. ............................................................................................... 28 4.15 Compliance with Law; Enforceability by City. .............................................. 29 5. REQUIREMENTS OF PARTIES; CONDITIONS PRECEDENT TO CLOSE OF ESCROW ........................................................................................................... 29 5.1 Periodic Review; Meet and Confer .................................................................. 29 5.2 Conditions Precedent to Close of Escrow Benefiting the City .................... 30 5.3 Conditions Precedent to Close of Escrow Benefiting Developer ................ 32 5.4 Existing Approvals; Cooperation Between Parties ....................................... 33 Page 690 72500.00920\34744746.2 TABLE OF CONTENTS (continued) Page -iii- 5.5 Physical Condition of the Project Site ............................................................. 34 5.6 Early Entry by Developer .................................................................................. 34 6. SALE OF CITY PROPERTY; CLOSE OF ESCROW. ........................................ 35 6.1 Sale of City Property .......................................................................................... 35 6.2 Execution and Delivery of Documents ............................................................ 35 6.3 Close of Escrow; Title Policies ......................................................................... 35 6.4 Commencement of Construction ..................................................................... 36 6.5 Costs of Escrow; Title Insurance ..................................................................... 36 7. DEFAULTS; REMEDIES. ................................................................................... 37 7.1 General Developer Default ............................................................................... 37 7.2 Default by City..................................................................................................... 38 7.3 Force Majeure ..................................................................................................... 38 7.4 Remedies Exclusive. ......................................................................................... 38 7.5 Dispute Resolution ............................................................................................. 39 8. EVENTS OF TERMINATION; RIGHTS AND OBLIGATIONS OF PARTIES. ..... 39 8.1 Events of Termination ........................................................................................ 39 8.2 Disposition of Deposit. ....................................................................................... 39 8.3 Effect of Termination.......................................................................................... 40 9. MISCELLANEOUS PROVISIONS. ..................................................................... 41 9.1 Real Estate Commissions ................................................................................. 41 9.2 Time of Essence ................................................................................................. 41 9.3 Consent ................................................................................................................ 41 9.4 Entire Agreement. .............................................................................................. 41 9.5 Interpretation ....................................................................................................... 41 9.6 Governing Law.................................................................................................... 42 9.7 Captions ............................................................................................................... 42 9.8 No Third Party Rights ........................................................................................ 42 9.9 Modification or Amendment of Agreement; Operating Memoranda. ......... 42 9.10 Waiver .................................................................................................................. 42 9.11 Severability .......................................................................................................... 42 9.12 Integrated Agreement ........................................................................................ 43 9.13 Certificates........................................................................................................... 43 9.14 Counterparts ....................................................................................................... 43 Page 691 72500.00920\34744746.2 TABLE OF CONTENTS (continued) Page -iv- 9.15 Public Records .................................................................................................... 43 9.16 Incorporation by Reference of Recitals .......................................................... 44 Page 692 72500.00920\34744746.2 -v- ATTACHMENTS Attachment No. 1 Scope of Development Attachment No. 2 Preliminary Plan of Finance Attachment No. 3 Preliminary Project Budget Attachment No. 4 Map of Project Site; Map Showing General Location of Elements of the Project Attachment No. 5 Legal Description of the Project Site Attachment No. 6 Form of City Cost Reimbursement Agreement Attachment No. 7 Form of Acquisition Agreement Attachment No. 8 Form of Transient Occupancy Tax Reimbursement Agreement Attachment No. 9 Schedule of Performance Page 693 72500.00920\34744746.2 -1- REVISED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT DSRT Surf Hotel, Residential Units, Surf Center, and Lagoon Project This Revised and Restated Disposition and Development Agreement (this “Agreement”) is entered into as of__________________, 2022 (the “Execution Date”), by and among the CITY OF PALM DESERT, a chartered municipal corporation (the “City”), and DESERT WAVE VENTURES, LLC, a Delaware limited liability company (the “Developer”). The City and Developer are the sole parties (each, a “Party” and, collectively, the “Parties”) to this Agreement. The “Effective Date” shall be ____________, 2022. RECITALS This Agreement is based upon the following recitals, facts and understandings of the Parties: A. The City and Developer entered into that certain Disposition and Development Agreement, dated December 30, 2019 (the “Original DDA”). The Parties now intend to revise and restate the Original DDA with this Agreement. The provisions of this Agreement shall completely supersede the Original DDA and prevail over any inconsistent provisions in the Original DDA. B. The City and Developer have entered into that certain Purchase Option Agreement dated August 15, 2018 (“City POA”), for the sale of up to 3.03 acres (APNs 620-400-008 & 620-420-024) (the “City Property”) and the Successor Agency to the Redevelopment Agency of the City of Palm Desert and Developer have entered into that certain Purchase Option Agreement dated August 15, 2018, as amended by the First Amendment to Real Estate Option and Purchase and Sale Agreement dated May 22, 2021, 2021 (collectively, the original and amended agreements are referred to as the (“SARDA POA”), for the sale of up to 14.65 acres (APN 620-420-023) (the “SARDA Property”). The City POA and the SARDA POA provide for the sale of approximately 17.68 acres which make up the Project Site as further discussed in Section 1.2 below (the “Project Site”). Developer agrees that the close of escrow on the SARDA Property shall be concurrent with the Close of Escrow as defined herein for the City Property. C. The Developer has completed its due diligence investigations of the Project Site and accepts the conditions of the Project Site. D. On the Project Site, the Developer will construct the following improvements in two phases as set forth in the “Scope of Development” (Attachment No. 1 attached hereto and incorporated herein by reference): An approximately 5.5-acre Surf Lagoon; an approximately 7,000 square foot Surf Center; a 92-key 69,000 square foot Hotel (including restaurant, bar, café, meeting and banquet rooms, 92 parking spaces and outdoor amenities such as pool, spa, and decks); a parking structure and surface parking stalls (for a total of 472 spaces) (“Public Parking”); and 83 private Residential Units and Page 694 72500.00920\34744746.2 -2- private club house. (together all improvements at the Project Site are referred to as the “Project”) E. The City will contribute an amount not to exceed the Public Investment Amount (the “Public Investment”) to be used by the Developer for the development of the Project, as described in the Scope of Development. The payment of the Public Investment is anticipated to be made through up to $20,000,000.00 in bond proceeds, City Property transfer, and up to $16,100,000 in Transient Occupancy Tax (“TOT”) revenue sharing, as described below in Section 4.5. The maximum “Public Investment Amount” equals up to THIRTY-SIX MILLION FIVE HUNDRED AND FIFTY-FOUR THOUSAND NINE HUNDRED DOLLARS ($36,554,900) F. The Public Investment Amount is based on the assumption that the Hotel will be constructed and operated in accordance with the Scope of Development, including that the Hotel will have at least 92 Rooms and not more than 350 Rooms (where “Room” shall mean a separately keyed lodging unit of the Hotel) (the “Hotel”) and that there shall be at least 83 for-sale residential units (combination of villas and stacked flats) with at least 40 keys for unit lock-off (the “Residential Units”). Any Development Costs in excess of the Public Investment Amount shall be the sole obligation of Developer (the “Project Costs”). G. The Project Costs are currently estimated to be $225,000,000 and the Developer expects to fund the Project Costs as set forth in the “Preliminary Plan of Finance” (Attachment No. 2 attached hereto and incorporated herein by reference). Attachment No. 3 is a “Preliminary Project Budget” that includes Project Costs and the Preliminary Plan of Finance. Both the Preliminary Plan of Finance and the Preliminary Project Budget shall be updated by Developer for City review on or prior to the applicable target date set forth in the Schedule of Performance, Attachment No. 9 attached hereto and incorporated herein by this reference. H. The Parties now desire to set forth the terms and conditions upon which the City may sell the Project Site to the Developer for the development, operation and maintenance of the Project. Developer may finance the Project Costs and the Developer’s Improvements Costs. All capitalized terms not defined within this Agreement shall have the meanings described within with the Attachments incorporated hereto as part of this Agreement. AGREEMENTS For valuable consideration, receipt of which is hereby acknowledged, and the mutual obligations of and benefits to the Parties set forth herein, the City and Developer agree as follows: Page 695 72500.00920\34744746.2 -3- 1. GENERAL PROVISIONS. 1.1 Purpose of this Agreement. The intent and purpose of this Agreement is to set forth the obligations of the Parties and conditions precedent to the development and construction of the various elements of the Project, as applicable, and the financing commitments by the City and the financing by the Developer of the Project. Accordingly, this Agreement is intended to provide for the completion of all actions necessary to plan and design the Project, and to obtain all approvals necessary for the sale of the Project Site to the Developer and for commencement of development and construction of the Project, including, but not limited to, the preparation of all construction plans, specifications and cost estimates (to the extent required under this Agreement as a condition to the Close of Escrow) and related documents for the Project, the securing of private and public financing for the various elements of the Project and the negotiation and execution of the sale of land for the Project. This Agreement shall expire and be of no further force or effect upon issuance of Certificate of Occupancy for the Project except for those provisions that expressly survive the expiration or earlier termination of this Agreement, which are set forth in Article 8. 1.2 Project Site. The Project Site and Map Showing General Location of Elements of the Project (“Site Plan”) is shown on Attachment No. 4 and more particularly described in Attachment No. 5 The “Project Site” shall include a Hotel, Residential Units, Surf Center, and Lagoon. The City-owned portion of the Project Site shall be sold to the Developer pursuant to escrow terms with the City, as described in more detail in Section 6.1, and following, for development of the Project. 1.3 Project Existing Approvals; Implementation Actions. The Parties agree that, as of the Execution Date, the following documents have been approved and may be amended from time to time by the City (the “Existing Approvals”): (a) Existing Approvals: (i) DSRT SURF Specific Plan, as amended (Case Nos. SP 18- 0002 Amendment No. 1, PP 21-0002) (ii) Surf Lagoon, Hotel, Surf Center, and Residential Unit Precise Plan (iii) Tentative Parcel Map (amended TTM 36379) and related conditions of approval (“Conditions of Approval”) (iv) Architectural Review Commission recommendation of the Project (v) Environmental Impact Report (“EIR”), Statement of Overriding Considerations, and Mitigation, Monitoring, and Reporting Program (“MMRP”) for the DSRT SURF Project (SCH #2019011044) Page 696 72500.00920\34744746.2 -4- (vi) EIR Addendum, Specific Plan Amendment, Precise Plan, and Tentative Tract Map for the DSRT Surf Project (SCH #2019011044) (vii) Acquisition Agreement attached hereto and incorporated herein as Attachment No. 7, subject to execution concurrent with the Close of Escrow (viii) City Transient Occupancy Tax Reimbursement Agreement attached hereto and incorporated herein as Attachment No. 8, subject to execution concurrent with the Close of Escrow (b) Implementing Actions by City, Government Agencies and Other Parties. The implementation of this Agreement requires certain actions by the City and other governmental agencies with an interest in the Project Site, which actions include, but are not limited to, the following, which have been or shall be completed on or prior to the applicable target date set forth in the Schedule of Performance, Attachment No. 9 attached hereto and incorporated herein by this reference (the “Target Date”) for such respective items (the “Implementing Actions”) Assuming adequate environmental review, the City Manager, in consultation with the City Attorney, is hereby authorized to execute any Implementing Actions requiring City approval without City Council consideration, unless the City Manager or City Attorney determine that the Implementing Action should be considered by the City Council. Upon execution of any Implementing Action the City Manager shall provide notice to the City Council. (i) Utility Related Matters: (1) CVWD Sewer Agreement (2) CVWD and or Riverside County Agreement for Water Well Site Approval, Permitting, Construction and Operation, if development of a private water well on the Project Site is legally and technically feasible. (ii) City and Developer Agreements or Approvals: (1) Master Use and Maintenance Agreement, include water quality discharge plan which would include a 3- day lagoon evacuation agreement with the City and fee schedule for CVWD water use (prior to Water Well site approval and construction) Water Metering schedule (for freshwater intake pass through). (2) Agreement to evidence the Developer’s obligation to fund 12.1% of the cost to install a signal at the intersection of Marketplace and Cook. Page 697 72500.00920\34744746.2 -5- (3) City Well Usage Agreement, if the City determines in its sole discretion that adequate excess water supply exists for existing and foreseeable needs. (4) [Intentionally left blank] (5) City TOT Reimbursement Agreement (6) Master Construction, Access and Parking Easement Agreement Over Desert Willow Golf Resort (7) [Intentionally left blank] (8) Easements required to satisfy the Existing Approvals, e.g. MMRP and other Conditions of Approval (9) [Intentionally left blank] (10) Acquisition Agreement (11) City Cost Recovery Agreement attached hereto and incorporated herein in Attachment No. 6 (to be executed by both Parties on or prior to the applicable Target Date set forth in the Schedule of Performance, Attachment No. 9 attached hereto and incorporated herein by this reference). (12) Offsite Turf Reduction Program Funding and Scheduling Agreement (13) Construction easement(s) from City to the Developer for turf reduction immediately adjacent to the Project Site. (iii) Misc. Required Agreements: (1) Parties: City, Developer, future owner(s): a. An easement and maintenance agreement in favor of developer to cross under Mountain View golf course, and to access 15” underground water line for freshwater supply. b. An easement and maintenance agreement in favor of the Developer for construction of grading, landscaping, and retaining walls around entire Project Site. Page 698 72500.00920\34744746.2 -6- c. The City may, but shall not be required to, enter into an agreement with the Developer whereby the Developer manages, operates and maintains the Parking Facilities (and any other public facilities acquired by the City pursuant to the Acquisition Agreement) so long as such agreement conforms to the requirements of Revenue Procedure 2017-13 and is structured so as not to create “private business use” within the meaning of that term under Section 141(b) of the Internal Revenue Service Code and Section 1.141-3 of the Treasury Regulations. d. City shall amend or terminate the overflow parking agreement with JW Marriott on Lot E. e. Residential Unit CC&R’s, (2) Parties: CVWD, City, Desert Willow Condominium Association, Developer, future owner(s): a. An easement and maintenance agreement in favor of the landowner(s) to provide tie-in access to sewer line at the adjacent Westin Desert Willow Villas property. If not feasible due to design, Developer will tie-in access to the sewer line located along Desert Willow Drive. b. Emergency Access Agreement (3) Parties: City, Embarc and Developer: a. An easement and maintenance agreement under Mountain View golf course, through Embarc property and discharging to City owned circulatory golf irrigation lakes system. (4) Parties: Developer, Hotel Operator a. Hotel Management Agreement b. Hotel Operator Agreement, to include valet parking requirements and identified parking spaces (5) Parties: Developer and Surf Lagoon and Center Operator Page 699 72500.00920\34744746.2 -7- a. Surf Lagoon and Center Operations Agreement (c) Project Naming Rights. (i) The Parties agree and acknowledge that all derivatives, logos, trademarks, service marks, and trade names associated with the Project are valuable property of Developer. (ii) Developer will have the sole discretion to name or re-name the Project and its component parts, subject to approval by the City Council, which approval shall not be unreasonably conditioned, withheld or delayed, prior to the name or re-name designation. (iii) Developer will refrain from using a name that in any way competes with or infringes on the Palm Desert name and brand. For example, the Developer will not include references to other cities, or regions in the name. (iv) Where collateral material, including online materials, and marketing/branding include references to the Project, to the extent practicable all references used and imagery associated shall include Palm Desert or Desert Willow. 1.4 CEQA Compliance. The City prepared and certified, pursuant to the California Environmental Quality Act (“CEQA”) and CEQA Guidelines (California Code of Regulations, Title 14, Section 15000, et seq.), the EIR, Statement of Overriding Considerations, MMRP, and EIR Addendum for the Project, which satisfies CEQA for purposes of this Agreement and the Existing Approvals. While no new or supplemental environmental approvals are contemplated, the Parties shall cooperate with respect to any supplemental environmental documentation or approvals that may be required for the Project. The Developer understands and agrees that the City may require subsequent or supplemental environmental review or other environmental analysis to implement the Project as required by CEQA, and/or by changes in applicable local, state, federal laws, including, without limitation, the applicable codes, ordinances, regulations and policies of the City (collectively, the “Laws”). 2. IDENTITY OF PARTIES. 2.1 Developer. Page 700 72500.00920\34744746.2 -8- (a) The Developer is Desert Wave Ventures, LLC, a Delaware limited liability company. The Developer’s principals are Don Rady, Doug Sheres, and John Luff . It is on the basis of the qualifications and experience of the Developer that the City is entering into this Agreement. Accordingly, the provisions of this Section 2.1 are deemed necessary by the City and are agreed to be reasonable by the Developer to assure the City that the purposes of this Agreement will be achieved. (b) Subject to Section 2.1(c), during the Term: (i) Except for any Permitted Transfers, the Developer shall not voluntarily or involuntarily assign a controlling interest in this Agreement or sell, convey or transfer, or permit a controlling majority of its members, to sell, convey or transfer such controlling interest in the Developer (each, a “Transfer”) without the prior written consent of the City. The City shall not unreasonably withhold, condition or delay their consent to a Transfer proposed by Developer that requires their consent if all of the following conditions are satisfied: (1) Developer shall have disclosed to the City in writing, the verification as required in Section 2.1(b)(i)(4) for each Person who will be a member of the Developer and each Person that will hold, directly or indirectly, any membership interests in the Developer as of the effective date of such proposed Transfer. (2) Developer shall provide documentation reasonably acceptable to the City that following the proposed Transfer, Developer shall have sufficient financial resources for the Developer to perform its obligations under this Agreement and to achieve the Close of Escrow. (3) Developer shall provide documentation reasonably acceptable to the City that following the proposed Transfer, the Developer will continue to have the commercial and real estate experience needed to perform the Developer’s obligations under this Agreement (including, without limitation, the ability to secure and maintain the required Hotel brand and Operator and extensive (not less than 10 years of senior management) experience financing and developing resort hotel and projects of a similar size and quality to the Hotel, Residential Units, Surf Center and Lagoon). Page 701 72500.00920\34744746.2 -9- (4) Developer shall provide the City with an independent third-party verification, subject to the reasonable approval by the City of the independent third-party, that each Unaffiliated Third Party (as defined below) that acquires any membership interests in the Developer is reputable (which shall mean the absence of reputations for dishonesty, criminal conduct or association with criminal elements – “reputable” shall not mean “prestigious”, nor shall the determination of whether one is reputable involve considerations of personal taste or preference), and has no history of, or reputation for, either discriminatory employment practices which violate any Laws or non-compliance with applicable Environmental Laws or listing on the Prohibited Person list described below. (5) Neither the transferee nor any Person with any direct or indirect membership interest in the Developer shall be a Prohibited Person. (6) Developer shall have provided to the City an outline of any change in the proposed corporate structure of the Developer, in writing, in a detailed narrative and a visual organizational flow chart. (ii) The Developer shall not permit or suffer to exist any Change of Control (as hereinafter defined) without the prior written consent of the City, which may be given or withheld in the sole and absolute discretion of the City. (iii) Except for any Permitted Transfers, the Developer shall prohibit each of its members from voluntarily or involuntarily selling, conveying, or transferring any of such member’s direct or indirect membership interest in the Developer to any Person without the prior written consent of the City (which consent shall be given or withheld in the sole and absolute discretion of the City unless such Transfer satisfies the criteria of Section 2.1(b)(i) in which case the City’s consent shall not be unreasonably withheld, conditioned or delayed), and in no event to any Prohibited Person (as hereinafter defined). (iv) Any purported Transfer in violation of this Section 2.1(b) shall be null and void, undone by Developer at Developer’s sole cost and expense, and not binding on the City. (c) Upon written request by the Developer to the City for consent to a Transfer as required under Section 2.1(b), the City shall determine, in its reasonable Page 702 72500.00920\34744746.2 -10- discretion, within thirty (30) days following delivery of the Developer’s request and all information reasonably required by the City to review the request, whether the proposed Transfer as of the effective date of the proposed Transfer, meets the qualifications set forth in Section 2.1(b). (d) The Developer shall deliver to the City all agreements and all certified documents evidencing the formation, existence, and good standing of the Developer (with all information regarding distributions, including any definitions primarily related thereto, redacted), for review by the City for consistency with the provisions of this Agreement. The City may request updates to such documents and/or agreements from time to time during the Term and Developer shall deliver such updates within thirty (30) days of City’s notice to Developer. (e) The Developer represents and warrants to the City that it has disclosed to the City each of its members, each Person that holds, directly or indirectly, at least ten percent (10%) of the membership interests in the Developer, and each Person that Controls the Developer. (f) For purposes of this Section 2.1, the following definitions shall apply: (i) ”Change of Control” means a merger, consolidation, recapitalization or reorganization of the Developer or other transaction or an amendment to any governing document of the Developer that results in any Unaffiliated Third Party having the ability to Control the Developer. (ii) ”Unaffiliated Third Party” means any Person that is not one of the principals or is not Controlled by one of the principals. (iii) “Person” means a natural person, whether acting for himself or herself, or in a representative capacity, a partnership, a corporation, a limited liability company, a governmental authority, a trust, an unincorporated organization or any other legal entity of any kind. (iv) “Control” means with respect to any Person (the “Controlling Person”) the power to both (A) direct or cause the direction of the management or policies of another Person (the “Controlled Person”), whether through the ownership of voting equity, by contract or otherwise; and (B) maintain active and direct control and supervision of the operations of Developer, including without limitation, the day to day operations of the Project; provided, however, that a contractual or other requirement that a Controlling Person obtain the consent or approval of one or more other Persons as a condition to undertaking a Major Decision shall not affect whether such Controlling Person Controls such Controlled Person. Page 703 72500.00920\34744746.2 -11- “Controls”, “Controlled” and “Controlling” shall have correlative meanings to “Control”. (v) “Major Decisions” means, with respect to any Person, any decision that is of the type that requires the consent or approval of such Person’s non-managing members, limited partners or minority shareholders, which may include by way of example, any decision to (A) enter into any financing or incur, assume or guarantee any indebtedness that has not been previously approved in an approved budget or operating plan; (B) enter into or terminate or amend any material agreement; (C) merge, liquidate, sell, restructure, consolidate, recapitalize, reorganize, wind up, or dissolve the Person; (D) authorize or declare voluntary bankruptcy, assignment for benefit of creditors, acceleration of third-party obligations, confession of judgment, reorganization or any other similar insolvency action involving the Person or make any filing in connection therewith; (E) make any material changes to the Project; (F) terminate or amend this Agreement; (G) purchase insurance except as required by this Agreement or the Deed of Sale; (H) sell or transfer any asset of the Person; (I) approve any budget or operating plan; (J) amend any of the organizational documents of the Person; (K) issue, redeem, repurchase or cancel equity or other ownership interests in the Person (or any rights, warrants or options to acquire the foregoing); (L) make changes to the governing body of the Person; (M) declare or pay any distributions; (N) engage in new lines of business; (O) make capital expenditures or similar expenditures except as required in an approved capital budget; (P) make or change tax elections or accounting methodologies; or (Q) undertake an initial public offering of securities. (vi) ”Permitted Transfer” means the following Transfers, provided that there is no Change of Control as a result of such transfer: (A) any Transfer of not more than ten percent (10%) of direct or indirect membership interests in the Developer to any Affiliated Transferee (as defined below) that is not a Prohibited Person; (B) if by a natural person, any Transfer upon the death of such person by will or other instrument taking effect upon such death or by applicable laws of descent and distribution to such person’s estate and executors and then to such person’s heirs; or (C) if by a natural person, any Transfer made in connection with the dissolution of the transferee’s marriage or the legal separation of the transferee and his or her spouse on the account of any settlement of any community property or other marital property rights such Page 704 72500.00920\34744746.2 -12- spouse may have in any membership interests in the Developer. (vii) “Prohibited Person” means any Person (A) named as a “Specifically Designated National and Blocked Person” (“SDN”) on the most current list published by the U.S. Department of the Treasury Office of Foreign Assets Control at its official website or any replacement website or other replacement official publication of such list or (B) that is Controlled by an SDN. (viii) “Affiliated Transferee” means, with respect to any Transfer, any of the following: (A) each sibling of the transferor, the spouse of the transferor, and each parent, child, grandchild or great-grandchild of the transferor (including relatives by marriage); (B) any trust for the benefit of the transferor or any of the foregoing members of his or her family; (C) where the transferor is a trust, any beneficiary of the trust or any of the foregoing family members of a beneficiary of the trust, or any other trust established for the benefit of any of the foregoing; and (D) each Person that Controls, is Controlled by, or is under common Control of, the transferor or any of the foregoing Persons. In addition, for purposes of this Section 2.1, the quantum of a Person’s indirect ownership in any other Person is calculated as the percentage of the proportional ownership interest at each level. As an example, if Person A owns a 50% interest in Person B and Person B owns a 50% interest in Person C, then Person A would be deemed to have a 25% indirect ownership interest in Person C. 2.2 City. The City is the City of Palm Desert, a charter city and municipal corporation. 2.3 Notices. (a) To Developer. Notices to the Developer shall be given or served by (a) recognized national overnight delivery service, or (b) facsimile with a confirmed receipt of such transmittal, provided a copy of such facsimile notice is also sent by mail, as provided below, or (c) first-class mail or certified mail, return receipt requested, addressed as follows, or to such other address(es) as the Developer may from time to time designate by notice to the other Parties: Desert Wave Ventures, LLC Attn: Don Rady 1555 Camino Del Mar, Suite 315C Del Mar, CA 92014 Page 705 72500.00920\34744746.2 -13- With a copy to: Don Rady Value Real Estate 1919 Grand Ave San Diego, CA 92109 With copy to: Coast Law Group, LLP 1140 S. Coast Hwy 101 Encinitas, CA 92024 Attention: Marco Gonzalez (b) To City. Notices to the City shall be given or served by (a) recognized national overnight delivery service, or (b) facsimile with a confirmed receipt of such transmittal, provided a copy of such facsimile notice is also sent by mail, as provided below, or (c) first-class mail or certified mail, return receipt requested, at the following address, or to such other address(es) as the City may from time to time designate by notice to the other Parties: City of Palm Desert Attention: City Manager 73510 Fred Waring Dr. Palm Desert, California 92260 With a copy to: City Attorney City of Palm Desert 73510 Fred Waring Dr. Palm Desert, California 92260 (c) Forms of Delivery. Facsimile notice shall be deemed given on the date set forth in the sender’s confirmation notice; overnight delivery notice shall be deemed given the next business day from when sent; and mailed notice shall be deemed to have been given or served, if mailed by first class mail, on the third business day from when mailed, and, if by certified mail, on the date set forth in the return receipt. 3. TERM. 3.1 Term. The term of this Agreement shall commence on the Execution Date and shall expire on the earlier of issuance of a final certificate of occupancy for the Project on or prior to the applicable Target Date set forth in the Schedule of Performance, Page 706 72500.00920\34744746.2 -14- Attachment No. 9 attached hereto and incorporated herein by this reference (the “Construction Completion”) or the Early Expiration Date (the “Term”). The “Early Expiration Date” will occur on the first anniversary of this Agreement (subject to extensions as provided below). Upon written request from the Developer, City shall administratively extend the Early Expiration Date up to two times (each, an “Extension”), for a period of six (6) months for each such Extension (“Extension Period”), for a total possible Early Expiration Date of two years, in accordance with the obligations of Section 5.1, Section 3.1(d) below, and the following terms: (a) Developer delivers notice to the City no later than sixty (60) days prior to the Early Expiration Date or no later than forty-five (45) days prior to the expiration of an Extension Period, as applicable, of its request to extend the Early Expiration Date, together with written evidence that the following conditions precedent have been satisfied or requesting that some or all of the conditions precedent be waived or the time for satisfying such condition(s) precedent be extended by the City: (i) The Developer shall have obtained Grading Permit approval and submitted Construction Documents as required by this Agreement and shall have obtained, or be diligently working to obtain, approvals of Building Permits in accordance with this Agreement; and (ii) The Developer shall have submitted to the City for their review and approval a current design and construction schedule for the Developer’s Improvements as outlined in the Scope of Development. (b) Administrative staff-level approval of any Extension by the City shall be conditioned upon, and shall be granted if (i) the Parties have completed a Periodic Review, after the Extension request, as provided in Section 5.1, (i) City staff has determined that no Developer Event of Default has occurred and is continuing, (ii) City staff has determined that each of the Parties is diligently proceeding in good faith to complete their respective obligations under this Agreement for development of the Project; and (iii) City staff has determined that any such Extension will allow the Developer to meet its obligations under this Agreement. (c) Upon receipt of notice of Extension in accordance with Section 3.1(a) which requests the waiver of, or an extension of time to satisfy, any of the conditions precedent set forth in Section 3.1(a) to achieve such Extension, the Parties shall meet and confer in good faith to determine (i) if such waiver or extension would still make it feasible or practicable to proceed with the Project; and (ii) how much additional time is required to satisfy the applicable conditions precedent for such Extension. If it is determined by the Parties that it is feasible and practicable to proceed with the Project and if the conditions precedent set forth in Section 3.1(b) have been satisfied, then the City shall extend the time period to satisfy the applicable condition(s) precedent. If it is determined by any Party that it is not feasible or practicable to proceed with the Project, then any Party may terminate this Agreement in accordance with Section 5.1 and Article Page 707 72500.00920\34744746.2 -15- 8. Notwithstanding any such waivers or Extensions granted pursuant to this Section 3.1, this Agreement shall terminate upon an Event of Termination as provided in Section 8.1. (d) The Early Extension Date may be extended by City staff in their sole discretion for one additional 6 (six) month period at the request of the Developer; however the Close of Escrow shall be completed prior to December 31, 2022. 4. DESIGN AND DEVELOPMENT OF PROJECT. 4.1 Design and Development of the Project. (a) The Project shall be designed by the Developer in accordance with the Scope of Development, the Project Existing Approvals and this Agreement. (b) The final designs and plans for the Developer’s Improvements and the Project shall be attached to the Deed of Sale and provide for build out consistent with the DSRT SURF Specific Plan approved for the Project and the Existing Approvals and Implementing Approvals. (c) The Developer shall comply with all Laws applicable to the Project, including, without limitation, the City’s Municipal Code. (d) The Developer shall comply with all Laws applicable to the development and construction of the Developer’s Improvements. (e) The Developer shall pay when due all fees pertaining to the review and approval of the Developer’s Improvements that are lawfully required by any government agency, including, without limitation, the City and by any public utility. The Developer shall endeavor to obtain, prior to the commencement of construction of the Developer’s Improvements, any and all governmental approvals and permits that are required for commencement of such construction and any and all discretionary governmental approvals and permits that are required for completion of the Developer’s Improvements. 4.2 City Infrastructure Improvements. The City shall not be responsible for any infrastructure improvements for the Project. 4.3 Submission and Approval of Construction Documents and Building Permit and Grading Permit Applications. (a) On or before the Target Date set forth in the Schedule of Performance, the Developer shall submit for approval to the City Construction Documents for the Developer’s Improvements and Building Permit and Grading Permit Applications in accordance with clauses (i) and (ii) below, respectively, and to the City, Building Permit and Grading Permit Applications for the Developer’s Improvements in accordance with clause (iii) below. Page 708 72500.00920\34744746.2 -16- (i) Construction Documents: On or before the Target Date set forth in the Schedule of Performance, Developer shall submit to the City “Construction Documents” for development of the Developer’s Improvements (“Construction Documents Set”) demonstrating conformance with the design approvals at 100% Design Development and 100% Construction Documents completion of such construction drawings. Each Construction Documents Set shall be prepared by an architect or an engineer licensed in the State of California. Inspection, review, or comment by the City with respect to any of the Construction Documents shall not in any way affect or reduce the Developer’s obligations under this Agreement or be deemed to be a warranty or acceptance by the City with respect to such Construction Documents; it being understood that the City is relying upon the Developer to design and engineer the Developer’s Improvements. (ii) Building Permit and Grading Permit Applications: On or before the Target Date set forth in the Schedule of Performance, Developer shall submit for review by the City “Grading Permit Application” and “Building Permit Application” for development of the Developer’s Improvements. Grading Permit and Building Permit Applications shall be prepared by an architect or engineer, as appropriate, licensed to do business in the State of California. Inspection, review, approval or comment by the City with respect to any of the Grading Permit or Building Permit Applications shall not in any way affect or reduce the Developer’s obligations under this Agreement or be deemed to be a warranty or acceptance by the City with respect to such Building Permit or Grading Permit Applications; it being understood that the City is relying upon the Developer to design and engineer the Developer’s Improvements in accordance with this Agreement. (iii) Grading Permit and Building Permits: All standard City fees with respect to the issuance of the Grading Permit and Building Permits will apply and shall be paid by the Developer. (b) With each of the two submission of Construction Documents and the Grading Permit and Building Permits Applications pursuant to this Section 4.3, the Developer shall submit to the City Development Cost estimates for such portion of the Developer’s Improvements, prepared by Developer, Developer’s general contractor or a qualified cost estimator in such detail as warranted by the extent of detail and completeness of the Construction Documents and Grading Permit and Building Permits Applications submitted to the City. Such Development Cost estimates shall be prepared in good faith and shall reflect the reasonable judgment of the Developer regarding such estimates. The Parties acknowledge that such estimates are estimates only and that final Page 709 72500.00920\34744746.2 -17- Development Costs may differ from the previously provided estimates. Whenever this Agreement requires the Developer to submit Development Cost estimates for such portion of Developer’s Improvements, a separate Development Cost estimate shall be prepared for each major category of such portion of the Developer’s Improvements, including but not limited to: the Surf Lagoon, the Surf Center and grounds, the Surf Center Parking Lot, the Hotel and hotel parking spaces, and the Residential Units (each, a “Major Component of Developer’s Improvements”). The parties understand and agree Development Cost estimates for the Project will comply with the Construction Specialties Institute divisions for cost estimation. 4.4 Agreement on Total Project Costs. (a) ”Hard Construction Costs” shall mean, with respect to any component of the Project, all costs that the Developer is required to pay to the respective construction contractor for the construction of such component of the Project. (b) Concurrent with the Developer submission of the Building Permit Application, the Developer shall submit final estimates (non-GMP) of the total Development Costs of the Developer’s Improvements, including the items set forth in Section 4.4(d) to review compliance with the Final Plan of Finance and Final Project Budget. (c) Following receipt of the Developer’s final estimates of the Development Costs of the Developer’s Improvements pursuant to Section 4.4(b), the City may review such Development Cost estimates. The final estimates (non-GMP) of the Development Costs for the Developer’s Improvements which are either (i) reviewed by the City as submitted by the Developer in accordance with Section 4.4(b) or (ii) agreed by the City and the Developer, are herein referred to as the “Total Project Costs”. (d) As to each Major Component of Developer’s Improvements such estimates shall include an estimate for all Development Costs in connection with such Major Component of Developer’s Improvements. “Development Costs” shall mean, with respect to any component of the Project, (i) the costs of the entire design, architectural work, engineering work, development work and construction work and (ii) contingency which shall be in an amount equal to at least ten percent (10%) of the sum of the costs set forth in clause (i). (f) The Developer shall submit executed guaranteed maximum price construction contracts or fixed price construction contracts, as applicable, with respect to the Developer’s Improvements, based on signed bids from Developer’s contractors and subcontractors (if applicable), other than bids with respect to the Project, for the construction of the Developer’s Improvements (all of which shall be provided to the City) on or before the Target Date set forth in the Schedule of Performance. The Developer shall provide drafts of such contracts to the City, as applicable, for the City’s review and comment before execution, in which case the City, as applicable, shall promptly provide to the Developer any comments thereto. Page 710 72500.00920\34744746.2 -18- 4.5 City Financial Contribution. Based on the independent consultant report required to justify the City’s Public Investment Amount in the Project as considered as part of the Existing Approvals, the City will financially participate in the Project in the following manner: (a) City Property Transfer. City shall transfer the City Property at the Close of Escrow for Developer’s commitment to build the Project and other consideration as provided in this Agreement and a consideration $100.00. (b) Acquisition of Public Improvements. City shall utilize up to $20,000,000 for acquisition of such public improvements or facilities as set forth in the Form of Acquisition Agreement (Attachment No. 7 attached hereto and incorporated herein by reference) by way of progress payments upon project milestones are met as follows: Draw Public Parking Surf Lagoon and Center Hotel RESIDENTIAL UNITS 1st- $5M 30% construction cost of podium Parking Structure 100% rough grading complete Commence foundation upon fully approved and issued building permits for the entire Hotel 2nd- $5M 60% of construction cost of podium Parking Structure 100% Foundations Complete Completion of 60% of Hotel Parking 3rd- up to $5M 100% completion of all Public Parking and compliance with the Acquisition Agreement 100% of Surf Lagoon floor completed and surf equipment on site Completion of rough framing construction of the Hotel 4th- up to $3M 100% of all other public infrastructure and compliance with the Acquisition Agreement 100% complete certificate of occupancy for Surf Lagoon 100% complete certificate of occupancy for Hotel approved Page 711 72500.00920\34744746.2 -19- and Center approved 5th- up to $2M 4th Payment has been made, and City “look-back” approval of actual Project Costs in Section 4.5(d) and in compliance with the Acquisition Agreement 100% complete Certificate of Occupancy for Residential Units The use, management, operation, maintenance, and existence of the public facilities or improvements acquired by the City pursuant to the Acquisition Agreement shall be within the sole and absolute discretion of the City. Unless specifically directed by the City in writing, the Developer shall have no input whatsoever, directly or indirectly, with respect to any decision, action, or inaction relating to the use, management, operation, maintenance, or existence of such public facilities. Any provision of any agreement to the contrary is or shall be null and void. (c) Transient Occupancy Tax (“TOT”) Reimbursement. Developer shall be entitled to receive up to $16,100,000 for not more than twenty (20) years from the Completion Date, in TOT actually generated by the Project based on a 92 key Hotel and the 83 residential keys as set forth in the Form of TOT Reimbursement Agreement (Attachment No. 8 attached hereto and incorporated herein by reference). The City shall rebate 40% of the TOT from Hotel rooms and 60% of the TOT from the Residential Units. (d) Post-Construction Hard Cost Confirmation (“Look Back”). No later than 90 days after issuance of Certificates of Occupancy for all Residential Units, Developer will provide the City with evidence of actual cost of construction of the Surf Center, Surf Lagoon, Residential Units, Hotel, Parking, and associated infrastructure and amenities (“Project Costs”). If the total Project Costs of the Project, totals less than $185,000,000, Developer will reimburse to the City an amount equal to the difference between $185,000,000, and the Project Costs (the “Public Improvements Refund”). The Public Improvements Refund, if any, will be paid in equal annual installments, without interest, over the first ten years following issuance of the last Certificate of Occupancy. 4.6 Insurance. Without limiting Developer’s indemnification of the City of Palm Desert, and prior to commencement of construction of the Project, herein defined as “Work” for this Article 4 and this Agreement, Developer shall obtain, provide and maintain, or cause to be obtained, provided, and maintained, at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City. Page 712 72500.00920\34744746.2 -20- 4.6.1 General Liability Insurance. Developer or its General Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 4.6.2 Automobile Liability Insurance. Developer or its General Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Developer arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 4.6.3 Umbrella or Excess Liability Insurance. Developer or its General Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Developer or its General Contractor shall obtain and maintain an umbrella or excess liability insurance policy that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions: 4.6.4 Workers’ Compensation Insurance. Developer or its General Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Developer’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Developer or its General Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Developer shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers, agents, employees and volunteers. 4.6.5 Pollution Liability Insurance. Developer or its General Contractor shall maintain Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to Agency providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites. 4.7 Other provisions or requirements: Page 713 72500.00920\34744746.2 -21- 4.7.1 Proof of Insurance. Developer or its General Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 4.7.2 Duration of Coverage. Developer or it General Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Developer, its agents, representatives, employees or subcontractors. Developer or its General Contractor must maintain general liability and umbrella or excess liability insurance for a minimum of three (3) years after project completion. The City of Palm Desert and its officers, officials, employees, and agents shall continue as additional insureds under such policies. 4.7.3 Primary/Noncontributing. Coverage provided by Developer or its General Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City, before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. 4.7.4 Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. 4.7.5 City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary. Any premium paid by City will be promptly reimbursed by Developer or City will withhold amounts sufficient to pay premium from Developer payments. 4.7.6 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance, with an assigned policyholders’ and Financial Size Category Class Page 714 72500.00920\34744746.2 -22- VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. 4.7.7 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, or shall specifically allow Developer or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Developer hereby waives its own right of recovery against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, and shall require similar written express waivers and insurance clauses from each of its subcontractors. 4.7.8 Enforcement of Contract Provisions (non estoppel). Developer acknowledges and agrees that any actual or alleged failure on the part of the City to inform Developer of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 4.7.9 Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. 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 all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Developer maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Developer. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 4.7.10 Notice of Cancellation. Developer agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. 4.7.11 Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City of Palm Desert and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Developers Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10) and completed operations (i.e. ISO Form CG 20 37) of Developer. 4.7.12 Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. Page 715 72500.00920\34744746.2 -23- 4.7.13 Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Developer’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 4.7.14 Pass Through Clause. Developer or its General Contractor agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Developer, shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. Developer or its General Contractor 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. Developer agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review. 4.7.15 City’s Right to Revise Requirements. If commercially reasonable, the City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Developer ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Developer, the City and Developer may renegotiate Developer’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 4.7.16 Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. 4.7.17 Timely Notice of Claims. Developer shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Developer’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. 4.8 Safety. DEVELOPER SHALL EXECUTE AND MAINTAIN ITS WORK SO AS TO AVOID INJURY OR DAMAGE TO ANY PERSON OR PROPERTY. IN CARRYING OUT ITS SERVICES, THE DEVELOPER SHALL AT ALL TIMES BE IN COMPLIANCE WITH ALL APPLICABLE LOCAL, STATE AND FEDERAL LAWS, RULES AND REGULATIONS, AND SHALL EXERCISE ALL NECESSARY PRECAUTIONS FOR THE SAFETY OF EMPLOYEES APPROPRIATE TO THE NATURE OF THE WORK Page 716 72500.00920\34744746.2 -24- AND THE CONDITIONS UNDER WHICH THE WORK IS TO BE PERFORMED. SAFETY PRECAUTIONS, WHERE APPLICABLE, SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO: (A) ADEQUATE LIFE PROTECTION AND LIFESAVING EQUIPMENT AND PROCEDURES; (B) INSTRUCTIONS IN ACCIDENT PREVENTION FOR ALL EMPLOYEES AND SUBCONTRACTORS, SUCH AS SAFE WALKWAYS, SCAFFOLDS, FALL PROTECTION LADDERS, BRIDGES, GANG PLANKS, CONFINED SPACE PROCEDURES, TRENCHING AND SHORING, EQUIPMENT AND OTHER SAFETY DEVICES, EQUIPMENT AND WEARING APPAREL AS ARE NECESSARY OR LAWFULLY REQUIRED TO PREVENT ACCIDENTS OR INJURIES; AND (C) ADEQUATE FACILITIES FOR THE PROPER INSPECTION AND MAINTENANCE OF ALL SAFETY MEASURES. 4.9 Developer’s Indemnity Agreement/Hold Harmless. Except for sole negligence or willful misconduct of an Indemnitee, the Developer hereby assumes liability for and agrees to defend, indemnify, protect and hold harmless the City and its officers, agents, and employees, and the City Engineer from and against all claims, charges, damages, demands, actions, proceeding, losses, stop payment notices, costs, expenses (including counsel fees), judgments, civil fines and penalties, liabilities of any kind or nature whatsoever, which may arise out of or encountered in connection with this Agreement or the performance of the Work including, but not limited to death, or bodily or personal injury to persons, or damage to property, including property owned by or under the care and custody of the City, and for civil fines and penalties, that may arise from or be caused, in whole or in part, by any negligent or other act or omission of Developer, its officers, agents, employees, or Subcontractors including, but not limited to, liability arising from: (a) Any dangerous, hazardous, unsafe or defective condition of, in or on the premises, of any nature whatsoever, which may exist by reason of any act, omission, neglect, or any use or occupation of the premises by the Developer, its officers, agents, employees, or subcontractors; (b) Any operation conducted upon or any use or occupation of the premises by Developer, its officers, agents, employees, or Subcontractors under or pursuant to the provisions of this contract or otherwise; (c) Any act, omission or negligence of Developer, its officers, agents, employees or Subcontractors; (d) Any failure of Developer, its officers, agents or employees to comply with any of the terms or conditions of this Contract or any applicable federal, state, regional, or municipal law, ordinance, rule or regulation, including Prevailing Wage Law as set forth in Section 4.12. The Developer also agrees to indemnify City and pay for all damage or loss suffered by City including, but not limited to damage or loss of City Property, loss of City revenue from any source, caused by or arising out of the conditions, operations, uses, Page 717 72500.00920\34744746.2 -25- occupations, acts, omissions or negligence referred to in Sections 4.9 (a), (b), (c), and (d) above. Developer’s obligations under this Section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop payment notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the City under and provision of this agreement, Developer shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Developer will be for that entire portion or percentage of liability not attributable to the active negligence of City. Developer agrees to obtain executed indemnity agreements with provisions similar to those set forth here in this section from each and every subcontractor or any other person or entity involved by, for, with, or on behalf of Developer in the performance of this agreement. In the event that Developer fails to obtain such indemnity obligations from others as required here, Developer agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Developer and shall survive the termination of this agreement or this section. This Indemnity shall survive termination of the Agreement hereunder. This Indemnity is in addition to any other rights or remedies that the Indemnitees may have under the law or under any other Contract Documents or Agreements. In the event of any claim or demand made against any party which is entitled to be indemnified hereunder, City may, in its sole discretion, reserve, retain or apply any monies to the Developer under this Agreement for the purpose of resolving such claims; provided, however, City may release such funds if the Developer provides City with reasonable assurance of protection of the Indemnitees’ interests. City shall, in its sole discretion, determine whether such assurances are reasonable. 4.10 Payment Bonds and Performance Bonds. (a) Prior to the Close of Escrow the Developer shall furnish the City with the following separate corporate surety bonds from each contractor that is responsible for the construction of a Major Component of Developer’s Improvements, or, in each case, a portion thereof: Page 718 72500.00920\34744746.2 -26- (i) A performance bond (“Performance Bond”) issued by a surety company licensed and admitted to transact business as such in the State of California, in an amount not less than one hundred percent (100%) of the estimated Hard Construction Costs of the applicable Major Component of Developer’s Improvements, or a portion thereof, as applicable. The Performance Bond shall name Developer as principal obligee, the City, each of the Private Construction Lenders and each of the public lenders as co-obligees. The Performance Bond shall assure full completion of the construction by such contractor of such Major Component of Developer’s Improvement, or such portion thereof, as applicable; and (ii) A payment bond (“Payment Bond”) issued by a surety company licensed and admitted to transact business as such in the State of California, in an amount equal to one hundred percent (100%) of the estimated Hard Construction Costs of the applicable Major Component of Developer’s Improvements, or a portion thereof, as applicable, guaranteeing payment for all materials, provisions, supplies and equipment used in, upon, for or about the performance of the construction by such contractor of such Major Component of Developer’s Improvements, or such portion thereof and for labor done thereon and protecting the City from any and all liability, loss or damages arising out of or in connection with any failure to make any such payments. The Payment Bond shall name Developer as principal obligee, the City, each of the Private Construction Lenders and each of the public lenders as co-obligees. (b) The Payment Bonds and Performance Bonds shall be in form and content reasonably satisfactory to the City. 4.11 Completion Guaranty. Developer shall cause the Guarantor under any completion guaranty given to City guaranteeing the lien-free completion of construction of the public improvements outlined in the Acquisition Agreement to execute a completion guaranty in favor of City and in substantially the same form and substance as the completion guaranty provided to Developer’s lender. “Completion Guaranty” shall mean a guaranty, or guaranties, from a Person or multiple Persons (collectively, the “Guarantor”), each of which is not a Prohibited Person, and which, in the aggregate, have a net worth, which shall mean total assets less the amount of total liabilities, determined in accordance with generally accepted accounting principles of at least TWENTY MILLION DOLLARS ($20,000,000) and which are approved by the City, in its reasonable discretion, guaranteeing to the City the completion of the improvements outlined in the Acquisition Agreement. The Parties shall negotiate the form of the Completion Guaranty and any inter-creditor agreements(s) on or before the Target Date set forth in the Page 719 72500.00920\34744746.2 -27- Schedule of Performance. The Parties shall execute and deliver the Completion Guaranty at the Close of Escrow. 4.12 Prevailing Wages. The Developer acknowledges and agrees that: (a) Any construction, alteration, demolition, installation or repair work that the Developer performs, or causes to be performed to complete the Project, or that the Developer is required to perform, under this Agreement (“Developer Construction Work”), constitutes “public work” under California Prevailing Wage Law, including Labor Code Sections 1720 through 1861, et seq. (as such statutes may be amended from time to time, “PWL”), and PWL obligates the Developer to cause such Developer Construction Work to be performed as “public work”, including, but not limited to, the payment of applicable prevailing wages to all Persons subject to the PWL. (b) The Developer shall cause all Persons performing Developer Construction Work to comply with all applicable provisions of the PWL and other applicable wage Laws. (c) The City hereby notifies the Developer and the Developer hereby acknowledges that the PWL includes, without limitation, Labor Code Section 1771.1(b) that provides that the following requirements described in Labor Code Section 1771.1(a) shall be included in all bid invitations and “public work” contracts: A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for “public work”, unless it is currently registered and qualified to perform “public work” pursuant to Section 1725.5. It is not a violation of Section 1771.1 for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code if the contractor is registered to perform “public work” pursuant to Section 1725.5 at the time the contract is awarded. (d) The Developer acknowledges that its obligations under the PWL include, without limitation, ensuring that: (i) pursuant to Labor Code Section 1771.1(b), a bid shall not be accepted nor any contract or subcontract entered into without proof of the contractor or subcontractor’s current registration to perform “public work” pursuant to Section 1725.5; (ii) pursuant to Labor Code Section 1771.4(a)(1), the call for bids and contract documents shall specify that the project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”); (iii) pursuant to Labor Code Section 1771.4(a)(2), it posts or requires the prime contractor to post job site notices, as prescribed by regulation; and Page 720 72500.00920\34744746.2 -28- (iv) pursuant to Labor Code Section 1773.3(a)(1), it provides notice to the DIR of any “public works” contract subject to the requirements of the PWL, within thirty (30) days of the award, but in no event later than the first day in which a contractor has workers employed upon the public work. Pursuant to Labor Code Section 1773.3(a)(2), the notice shall be transmitted electronically in a format specified by the DIR and shall include the name and registration number issued by the DIR pursuant to Section 1725.5 of the contractor, the name and registration number issued by the DIR pursuant to Section 1725.5 of any subcontractor listed on the successful bid, the bid and contract award dates, the contract amount, the estimated start and completion dates, job site location, and any additional information that the DIR specifies that aids in the administration and enforcement of the PWL. PWC-100 is the name of the form currently used by the DIR for providing the notice, but the Developer shall determine and use whatever form the DIR requires. (e) The City shall not be responsible for the Developer’s failure to comply with any applicable provisions of the PWL. (f) The Developer’s violations of the PWL shall constitute a breach of this Agreement. 4.13 Liens and Claims. (a) The Developer agrees that, if any Professional or materialman performing the Work, or furnishing materials in connection therewith, or if anyone claiming directly or indirectly under or through the Developer or any affiliate, professional or materialman shall file or cause to be filed any mechanics lien or other lien or security interest against the Project Site, the Developer’s Improvements, or any portion thereof, or against any assets of or funds appropriated to or by the City or the City, then, within thirty (30) days after the Developer receives notice of filing thereof, the Developer shall cause such lien or security interest to be discharged of record by payment, deposit, bond, order of court of competent jurisdiction or otherwise. If the Developer shall fail to cause such lien or security interest to be discharged of record within the period aforesaid, then, in addition to any other right or remedy, the City or the City may, but shall not be obligated to, discharge the same either by paying the amount claimed to be due from retentions or any progress payment next due to the Developer or by procuring the discharge of record of such lien or security interest. Any amount so paid by the City or the City, including all reasonable costs and expenses incurred by the City or the City in connection therewith, shall be payable by the Developer to the City or the City, as applicable, on demand. Each of the City will endeavor to notify Developer of any lien notices that it receives; provided, Page 721 72500.00920\34744746.2 -29- however, that the failure by City to so notify the Developer shall not affect Developer’s obligations hereunder. (b) Notwithstanding Section 4.13(a), the Developer shall not be required to discharge of record any such lien or security interest if the Developer is in good faith, and consistent with applicable Law, at its own expense, currently and diligently contesting the same; provided that the Developer first records a surety bond sufficient to release such lien or such security interest, as applicable. 4.14 Compliance with Law; Enforceability by City. The City shall provide to the Developer copies of its findings, policies and resolutions which authorize (a) the City to enter into each and every of the Closing Documents to which it is a party and (b) the Person or Persons executing each of such Closing Documents on behalf of the City to do so (collectively, “Compliance Documents”), when they are made available to the public. The Developer shall provide its written comments to the Compliance Documents within a commercially reasonable period of time of the receipt thereof. If the City disagrees with any of the comments provided by the Developer, then the Parties shall meet and confer in accordance with Section 5.1. If disagreements between the Developer and the City are not resolved pursuant to Section 5.1, then the Developer may terminate this Agreement in accordance with Article 8. 5. REQUIREMENTS OF PARTIES; CONDITIONS PRECEDENT TO CLOSE OF ESCROW. 5.1 Periodic Review; Meet and Confer. (a) The City shall have the option, not more frequently than every three (3) months during the Term, to conduct a review (the “Periodic Review”) to evaluate, among other things, the extent to which the Developer is complying with its obligations under this Agreement or the Schedule of Performance, and the Parties’ determinations of whether it is feasible to continue with the development of the Project pursuant to this Agreement (collectively, “Periodic Review Matters”). (b) Meet and Confer. (i) Within thirty (30) days following submittal by the Developer of the information and materials concerning Developer obligations and/ or the Schedule of Performance as reasonably requested by the City and/or the City in accordance with Section 5.1(a) or (ii) within five (5) days following notice of any Event of Default, City staff and the Developer shall meet and confer to seek mutual resolution of areas of concern covered in the Periodic Review or such Event of Default, as applicable, and to come to a mutual agreement whether to take one of the following actions: (i) Pause. To the extent feasible, pause any actions and activities of the Parties pursuant to this Agreement (except, to the extent applicable, insurance, maintenance and indemnification obligations) for a period up to thirty (30) days to enable the Parties to schedule one or more additional meet and confer events to gather additional information and Page 722 72500.00920\34744746.2 -30- continue discussions of the Periodic Review Matters or such Event of Default, as applicable; or (ii) Delay. To the extent feasible, delay for a period up to thirty (30) days any further actions or activities of the Parties under this Agreement to enable the Parties to further investigate their respective positions and whether it is feasible to proceed with the development of the Project as provided for hereunder. If disagreements between the Parties are not resolved pursuant to Section 5.1(b)(i) or (ii), then the Parties shall attempt to resolve such disagreements through mediation in accordance with Section 7.5. If such disagreements are not resolved through mediation within one hundred twenty (120) days after the commencement of mediation, then either Party may terminate this Agreement pursuant to Article 8. (c) If disagreements between the Parties are resolved pursuant to Section 5.1(b), then, if applicable, the Parties shall revise the Schedule of Performance to incorporate the changes agreed to by the Parties pursuant to Section 5.1(b) and such revisions to the Schedule of Performance shall be made without the need for an amendment to this Agreement in accordance with Section 9.9. (d) Notwithstanding any other provision in this Agreement, in the event Schedule of Performance extensions pursuant to Sections 5.1(b)(i) and 5.1(b)(ii) above exceed one hundred and eighty (180) days cumulatively, any Party may elect to terminate this Agreement in accordance with Article 8. 5.2 Conditions Precedent to Close of Escrow Benefiting the City. The City’s obligations in connection with the Close of Escrow are expressly conditioned upon the satisfaction by the City (or waiver by the City in writing) of each of the following conditions of the Project on or prior to the Target Date set forth in the Schedule of Performance but not less than forty-five (45) days prior to Close of Escrow: (a) The City shall have received from the Developer in accordance with this Agreement final Development Cost estimates for the Project as required under Section 4.4(d) on or prior to the applicable Target Date set forth in the Schedule of Performance; (b) The City shall have approved in accordance with this Agreement, on or prior to the applicable Target Date set forth in the Schedule of Performance, the Developer provided independent third-party verification that each Unaffiliated Third Party that acquires any membership interests in the Developer is reputable (which shall mean the absence of reputations for dishonesty, criminal conduct or association with criminal elements – “reputable” shall not mean “prestigious”, nor shall the determination of whether one is reputable involve considerations of personal taste or preference), and has no history of, or reputation for, either discriminatory employment practices which violate Page 723 72500.00920\34744746.2 -31- any Laws or non-compliance with applicable Environmental Laws or listing on the Prohibited Person list (each, an “Equity Investor” and, collectively, “the Equity Investors”); (c) The City shall have received from the Developer and reasonably accepted the terms of (i) the executable versions of the agreements with the Equity Investor(s) evidencing the commitments of such Equity Investors to make contributions for the Developer’s Improvements Costs (the “Equity Investor Contribution”) on or prior to the applicable Target Date set forth in the Schedule of Performance; (d) The City shall have received from the Developer and shall have reviewed on or prior to the applicable Target Date set forth in the Schedule of Performance, the binding final loan documents (“Loan Documents”) to confirm conformance with the Final Plan of Finance and are in an amount not in excess of the Developer’s Debt Contribution where (i) “Developer’s Debt Contribution” shall mean the Developer’s Contribution (as hereinafter defined) less the amount of the Equity Investor Contribution; and (ii) “Developer’s Contribution” shall mean the budgeted amount for the Development Costs of the Project (which is currently estimated to be $225,000,000, including all furnishings, fixtures and equipment); (e) The City shall be prepared to issue upon payment of required fees the required grading permits, Building Permits and all other permits that are required for the commencement and completion of construction of the Project ; (f) The City shall have reviewed and provided comments, on or prior to the applicable Target Date set forth in the Schedule of Performance, regarding the terms of the Developer construction contracts with any contractor for the Developer’s Improvements, including guaranteed maximum price construction contracts or fixed price construction contracts for all Major Components of Developer’s Improvements; (g) The City shall have reviewed and approved the form of Completion Guaranty under Section 4.11; (h) The City shall have received from the Developer evidence reasonably satisfactory to the City that all discretionary permits and other approvals that are required to complete construction of the Developer’s Improvements have been obtained from any and all governmental agencies having jurisdiction over the Project Site and other parties as set forth in Section 1.3; (i) The City shall have received from the Developer certificates of insurance for each of the policies of insurance required under this Agreement evidencing that such policies meet the respective insurance requirements and will be effective as of the Close of Escrow; Page 724 72500.00920\34744746.2 -32- (j) The City shall have received from the Developer reasonably satisfactory evidence that the Payment Bonds and the Performance Bonds have been issued in accordance with Section 4.10; (k) No Developer Event of Default shall have occurred and be continuing; (l) The Developer shall have executed the Deed of Sale to which it is a party, with the effectiveness thereof subject only to the consummation of the Close of Escrow; (m) City shall have considered and approved items set forth in Section 1.3; (n) Developer shall have obtained commitments for all financing that is necessary to satisfy their respective obligations under the Final Plan of Finance and Final Project Budget, with such financing to close concurrently with the Close of Escrow; (o) The City shall have prepared the City TOT Reimbursement Agreement for execution by Developer; (p) The City shall have received and reviewed the final, executed versions of the Loan Documents that evidence the commitments for the Developer’s Debt Contribution and the disbursement conditions therefor; (q) The City shall confirm with Developer that the closing under the SARDA POA is ready to take place concurrently with the Close of Escrow and includes a purchase option by the City in the event that the Project has not obtained required building permits within fifteen (15) months of the Close of Escrow or not commenced construction within eighteen (18) months from the Close of Escrow and the City exercised its repurchase option on the City Property; (r) Developer shall provide documentation reasonably acceptable to the City that the required Hotel Operator and Hotel Management Agreement, including dedicated parking requirements, as set forth in the Scope of Development has been agreed to by all parties; (s) City shall have amended or terminated the overflow parking agreement with JW Marriott on Lot E; (t) Developer shall have terminated the CITY POA, on or prior to the applicable Target Date set forth in the Schedule of Performance, Attachment No. 9 attached hereto and incorporated herein by this reference; and (u) City shall have approved the City Well Usage Agreement. 5.3 Conditions Precedent to Close of Escrow Benefiting Developer. The Developer’s obligations in connection with the Close of Escrow are expressly conditioned Page 725 72500.00920\34744746.2 -33- upon the City, satisfying, or causing the satisfaction, of each of the following conditions (or waiver by the Developer in writing of any of the following conditions): (a) The Title Company shall be irrevocably committed to issue to the Developer, simultaneously with the Close of Escrow, a policy or policies of title insurance in such form and amounts and with such special endorsements as may be reasonably required by the Developer and the Private Construction Lender, subject only to the Approved Title Exceptions; (b) The Developer shall have received notice from the City approved or disapproved, the Developer’s submittals required under this Agreement; (c) The Developer shall have approved each of the Compliance Documents in accordance with Section 4.14 or the Developer, the City shall have reached an agreement regarding each of the Compliance Documents pursuant to Section 4.14; (d) The Developer shall have received its Grading Permit and Building Permits; (e) The Hotel Management Agreement shall have been agreed to and executed by all of the parties thereto, with the effectiveness thereof subject only to the consummation of the Close of Escrow; (f) The Developer shall have received all discretionary permits and approvals that are required to complete the construction of the Developer’s Improvements from any and all non-City governmental agencies having jurisdiction over the Project Site and all such discretionary permits and approvals shall be final beyond any applicable appealable periods; (g) The Loan Documents shall have been executed, with the effectiveness thereof subject only to the consummation of the Close of Escrow, in an amount sufficient to pay the Developer’s Debt Contribution; (h) Developer shall have considered and approved items set forth in Section 1.3; (i) The Developer shall have received evidence that the City has received required approvals from any and all third parties; (j) The City shall have amended or terminated the overflow parking agreement with JW Marriott on Lot E; and (k) Developer shall have approved the City Well Usage Agreement. 5.4 Existing Approvals; Cooperation Between Parties. (a) All approvals required by the City and Developer under this Agreement shall not be unreasonably withheld or denied (except where such actions are Page 726 72500.00920\34744746.2 -34- specifically said to be in the sole and absolute discretion of a Party) and, where specifically referenced in this Agreement or in the Schedule of Performance, shall be given within the times set forth in this Agreement or in the Schedule of Performance. (b) The City and Developer shall, to the extent reasonably necessary, cooperate with each other to enable each Party to perform its obligations under this Agreement; provided, however, that in the event that any Party is asked to provide cooperation, assurance, assistance, documentation, or investigation and such Party determines that complying with such request will be unlawful, unreasonably burdensome, unreasonably expensive, or unreasonably time consuming, such Party may refuse to cooperate, without liability to that Party, by providing notice to the Party requesting the cooperation. Notwithstanding this provision, this Section 5.4(b) does not limit City’s discretionary actions and City reserve the right to exercise discretionary actions, each in in its sole authority and in its sole and absolute discretion. (c) From and after the Execution Date, the City shall not use the Project Site for any uses other than legally permitted uses that would not reasonably be expected to materially and adversely affect the development or use of the Project. (d) Any Party, at its sole election, may in writing waive satisfaction of any of the conditions by another Party set forth in Section 5.2 or Section 5.3 that is to the benefit of such waiving Party only, or if it is to the benefit of two of the Parties, then upon the agreement between such Parties. Any such condition waived by a Party or two Parties, as applicable, shall be deemed to be “satisfied” for purposes of Section 5.2 or Section 5.3, as applicable. Any such waiver shall be set out in an Operating Memorandum in accordance with Section 9.9. 5.5 Physical Condition of the Project Site. The Developer agrees to unconditionally accept the Project Site SUBJECT TO ALL FAULTS AND CONDITION, “AS-IS”, “WHERE IS”, WITHOUT ANY WARRANTY AS TO QUALITY, CHARACTER, PERFORMANCE OR CONDITION and with full knowledge of the physical condition of the Project Site, all Laws applicable to the Project Site, the Approved Title Exceptions and of any and all conditions, restrictions, encumbrances and all matters of record relating to the Project Site. The Developer’s acceptance of the Project Site shall constitute the Developer’s representation and warranty to the City that the Developer is relying solely on its own investigation of the Project Site and has received assurances acceptable to the Developer by means independent of the City or any employee, official, consultant or agent of the City of the truth of all facts material to the Developer’s purchase of the Project Site pursuant to this Agreement, the Deed of Sale , and that the Project Site are being purchased by the Developer as a result of its own knowledge, inspection and investigation of the Project Site and not as a result of any representation(s) made by the City or City, or any employee, official, consultant or agent of the City or City relating to the condition of the Project Site. The City hereby expressly and specifically disclaim any express or implied warranties regarding the Project Site, except as expressly set forth in this Agreement. 5.6 Early Entry by Developer Page 727 72500.00920\34744746.2 -35- (a) The City shall provide Developer right of entry agreements, as required, by and between the Developer (collectively, the “Right of Entry Agreement”). 6. SALE OF CITY PROPERTY; CLOSE OF ESCROW. 6.1 Sale of City Property. City and Developer entered into the City POA, but agreed to transfer the deposit and terminate the City POA and replace it with a prior version of this Agreement. The City POA terms shall upon the execution of this Agreement inure to this Agreement and thereby shall provide for the sale of the City Property. The City Property shall be sold to the Developer pursuant to the Deed of Sale. On or before the Target Date set forth in the Schedule of Performance, the City and the Developer shall negotiate and agree on the form of Deed of Sale which shall include a right of repurchase by the City in the event that the Project has not obtained required building permits within fifteen (15) months of the Close of Escrow or not commenced construction within eighteen (18) months from the Close of Escrow. (a) Opening of Escrow; Updated Preliminary Title Reports. The Parties shall open an escrow with Foresite Escrow, or such other escrow company as the Parties may mutually select (the “Escrow Agent”) to consummate the Close of Escrow as herein provided. Within sixty (60) days of the Execution Date (“Delivery Date”), the Developer shall deliver to the City a preliminary title report (“Preliminary Title Report”) for the City Property prepared by Lawyers Title Insurance Company (the “Title Company”). (b) Developer has reviewed the Preliminary Title Report and has no objections to the items of record. 6.2 Execution and Delivery of Documents. The applicable Parties shall complete, execute and deliver the Closing Documents as set forth in Section 6.3(a). 6.3 Close of Escrow; Title Policies. Provided that each of the conditions in Sections 5.2 and 5.3 has been satisfied, or waived in writing by the Party or the Parties, as applicable, to whose benefit such condition exists, the Parties shall close the transaction contemplated by this Agreement (“Close of Escrow”) on or before the Target Date set forth in the Schedule of Performance (the “Closing Date”), but in no event earlier than the following conditions have been satisfied: (a) Escrow Agent and Title Company shall have received fully executed originals of all of the following documents (the “Closing Documents”), all of which Closing Documents shall be delivered not later than one (1) business day prior to the Closing Date: (i) Two (2) originals of the Deed of Sale, executed by the City and Developer; (ii) One (1) notarized original of the Memorandum of Deed of Sale, executed by the City and Developer, in recordable form; (iii) One (1) original Closing Statement, executed by the City; Page 728 72500.00920\34744746.2 -36- (iv) One (1) original Closing Statement, executed by the Developer; (v) As to each of the lenders involved in the Close of Escrow, one (1) original executed Closing Statement; and (vi) Such other customary and reasonable title and escrow documents reasonably required by the Title Company and Escrow Company for the Close of Escrow in a form and with terms reasonably acceptable to the Parties executing such documents and supplemental escrow instructions as may be reasonably required for the Close of Escrow. (b) The Title Company is irrevocably committed to issue to the Developer a policy or policies of title insurance related to the City Property in such form and amounts and with such special endorsements as may be reasonably required by the Developer and the Private Construction Lender, subject only to the Approved Title Exceptions; (c) The Title Company is irrevocably committed to issue to the City policies of title insurance related to the City Property in such form and amounts and with such special endorsements as may be reasonably required by the City, as applicable, subject only to the Approved Title Exceptions; (d) Escrow Agent shall have received from the Developer evidence that the Title Company is irrevocably committed to issue to the Private Construction Lender a lender’s policy of title insurance in the amount of the first lien mortgage, subject only to the Approved Title Exceptions, and with special endorsements as may be required by the Private Construction Lender; (e) Escrow Agent shall have received from the City and/or City evidence that the Title Company is irrevocably committed to issue to any public lender a lender’s policy of title insurance in the amount of the financing, subject only to the Approved Title Exceptions, and with special endorsements as may be required by the public lenders; (f) The Developer and the Escrow Agent shall have received from the City certification in writing that all conditions to Close of Escrow set forth in Section 5.2 have either been satisfied or waived; and (g) The City, the City and the Escrow Agent shall have received from the Developer certification in writing that all conditions to Close of Escrow set forth in Section 5.3 have either been satisfied or waived. 6.4 Commencement of Construction. Developer shall commence grading and construction of the Project only after the Close of Escrow. Construction shall be completed as in the Schedule of Performance. 6.5 Costs of Escrow; Title Insurance. Page 729 72500.00920\34744746.2 -37- (a) The Developer shall pay in escrow to the Escrow Agent the following fees, charges and costs promptly after the Escrow Agent has notified the Developer of the amount of such fees, charges and costs, but not earlier than ten (10) days prior to the Closing Date: (i) The escrow fee; (ii) All premiums for title insurance policies and special endorsements issued by the Title Company to the Developer and the Private Construction Lenders pursuant to Sections 6.3(b) and 6.3(d); (iii) Ad valorem taxes and assessments, including possessory interest taxes, upon the City Property accruing on and after the Closing Date; (iv) Any transfer taxes required to be paid at the Close of Escrow; (v) Any fees payable for the recordation of any of the Closing Documents in the Official Records of the County of Riverside; and (vi) One-half (1/2) of all other fees, charges and costs of escrow. (b) The City shall pay in escrow to the Escrow Agent the following fees, charges and costs promptly after the Escrow Agent has notified the City of the amount of such fees, charges and costs, and City has approved the same, but not earlier than ten (10) days prior to the Closing Date: (i) All premiums for title insurance policies and special endorsements issued by the Title Company to the City and the any public lender pursuant to Sections 6.3(c) and 6.3(e); (ii) The cost of any endorsements that are required to remove any Title Exception that the City has agreed to remove; and (iii) One-half (1/2) of all other fees, charges and costs of escrow. Except as otherwise set forth in this Agreement, each of the Parties shall be responsible for the costs of its own due diligence investigations or activities, including, without limitation, the costs of its own consultants and legal counsel. 7. DEFAULTS; REMEDIES. 7.1 General Developer Default. If, prior to the Close of Escrow and delivery of the City Property to Developer, the Developer shall fail to perform or fulfill any obligation required of it under this Agreement and/or under the Right of Entry Agreement and shall not have cured or commenced to cure such failure within thirty (30) days following written Page 730 72500.00920\34744746.2 -38- notice thereof from the City and/or the City (or has commenced to cure such failure, but is not diligently proceeding to cure such failure), then the Developer shall be in default under this Agreement (each such event or occurrence, a “Developer Event of Default”). In the event of a Developer Event of Default, the City may, each in its sole discretion, (a) extend the time for the Developer to perform the applicable obligation(s) hereunder for a period of time acceptable to the City beyond the cure period set forth in this Section 7.1, or (b) terminate this Agreement by giving written notice (as required under Section 2.4) of such termination to the other Parties. Upon termination, the rights and obligations of the Parties shall be as set forth in Section 8.3 and Article 8. 7.2 Default by City. If, prior to the Close of Escrow, the City shall fail to perform or fulfill any obligation required of such Party under this Agreement and/or under the Right of Entry Agreement and shall not have cured or commenced to cure such failure within thirty (30) days following written notice thereof from the Developer (or has commenced to cure such failure, but is not diligently proceeding to cure such failure), then the City or the City, as applicable, shall be in default under this Agreement (each such event or occurrence, a “Public Entities Event of Default” and, together with a Developer Event of Default, any “Event of Default”). In the event of a Public Entities Event of Default, the Developer may, in its sole discretion, (a) extend the time for the City or the Developer, as applicable, to perform the applicable obligation(s) hereunder for a period of time acceptable to the Developer beyond the cure period set forth in this Section 7.2, or (b) terminate this Agreement by giving written notice (as required under Section 2.3) of such termination to the other Parties. Upon termination, the rights and obligations of the Parties shall be as set forth in Section 7.4 and Article 8. 7.3 Force Majeure. Notwithstanding anything to contrary contained herein, neither Party shall be held liable or responsible to the other Party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement to the extent, and for so long as, such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party limited to the following events that actually directly impact and cause delay the Project: fire, floods, seismic events, embargoes, war, acts of war (whether war be declared or not), acts of terrorism, insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, pandemics, or other acts of God. 7.4 Remedies Exclusive. (a) Because of the nature of this Agreement, the Parties agree that remedies expressly set forth in this Agreement are the only remedies available to the Parties. (b) The Developer shall not have any remedy for money damages against the City except for return of the Deposit in accordance with Article 8. Page 731 72500.00920\34744746.2 -39- (c) The City shall not have any remedy for money damages against the Developer, except for retention of the Deposit in accordance with Article 8. (d) The City, and the Developer, as applicable, shall be entitled to compel specific performance of the other Party’s(ies’) obligation to meet and confer in accordance with Section 5.1. (e) Except as set forth in Section 7.4(d), the Parties shall not have any remedy for specific performance against any other Party. 7.5 Dispute Resolution. The Parties shall, before the commencement of any lawsuit or court action against any other Party relating to this Agreement or the Project, attempt in good faith to settle their dispute by third-party mediation. 8. EVENTS OF TERMINATION; RIGHTS AND OBLIGATIONS OF PARTIES. 8.1 Events of Termination. This Agreement shall automatically terminate if any of the following events (an “Event of Termination”) occur prior to Close of Escrow: (a) The Early Expiration Date or expiration of any Extension Period without an approved Extension or expiration of the final Extension Period; (b) Termination of this Agreement by any Party pursuant to Section 3.1(c); (c) Termination of this Agreement by the Developer pursuant to Section 4.14; (d) Termination of this Agreement by any Party pursuant to Section 5.1(b); (e) Termination of this Agreement by any Party pursuant to Section 5.1(d); (f) Termination of this Agreement by the Developer by reason of a Public Entities Event of Default or by the City or the City by reason of a Developer Event of Default, in each case, pursuant to Article 7; and (g) The failure to otherwise satisfy, by the Closing Date, the conditions set forth in Sections 5.2, 5.3 and 6.5, unless said failure is waived by the Party or Parties which the condition benefits. 8.1.1 Notwithstanding any of the foregoing, this Agreement will terminate upon the issuance of the final certificate of completion of all Improvements in the Project, if not earlier terminated. 8.2 Disposition of Deposit. Page 732 72500.00920\34744746.2 -40- (a) IF THIS AGREEMENT IS TERMINATED BY THE CITY PURSUANT TO SECTION 8.1(g), THE DEVELOPER ACKNOWLEDGES AND AGREES THAT THE DEPOSIT MAY BE RETAINED BY THE CITY AND CITY AS LIQUIDATED DAMAGES AND AS THEIR PROPERTY WITHOUT ANY DEDUCTION, OFFSET OR RECOUPMENT WHATSOEVER BY THE DEVELOPER. IF THE DEVELOPER SHOULD DEFAULT UPON ITS OBLIGATIONS HEREUNDER, ANY SUCH TERMINATION OF THIS AGREEMENT WOULD RESULT IN IMMEASURABLE DAMAGE AND LOSS TO THE CITY. IT IS IMPRACTICABLE AND EXTREMELY DIFFICULT TO FIX THE AMOUNT OF SUCH DAMAGES TO THE CITY, BUT THE PARTIES ARE OF THE OPINION, UPON THE BASIS OF ALL INFORMATION AVAILABLE TO THEM, THAT SUCH DAMAGES WOULD APPROXIMATELY EQUAL THE AMOUNT OF THE DEPOSIT, AND THE AMOUNT OF SUCH DEPOSIT SHALL BE PAID TO THE CITY UPON ANY SUCH OCCURRENCE AS THE TOTAL OF ALL LIQUIDATED DAMAGES FOR ANY AND ALL SUCH DEVELOPER EVENTS OF DEFAULT AND NOT AS A PENALTY. THE DEVELOPER AND THE CITY SPECIFICALLY ACKNOWLEDGE THIS LIQUIDATED DAMAGES PROVISION BY THEIR SIGNATURES HERE: CITY: By: DEVELOPER: By: (b) If this Agreement is terminated by reason of a Developer Event of Default, then the City shall promptly return or release the Deposit then held by the City to the Developer as the Developer’s sole remedy hereunder. 8.3 Effect of Termination. (a) Following the Close of Escrow, the provisions of this Agreement shall be governed by Article 8, and the rights and obligations of the parties under the Deed of Sale and shall be governed by those documents. (b) If this Agreement is terminated or expires, then the City shall have the absolute right to enter into agreements relating to the Project, Project Site, Developer’s Improvements and the City Property with any developer or operator and brand of its choosing. The City shall not have the right to discuss any aspect of the Project with any prospective or subsequent developer, operator, or brand absent full and final termination of this Agreement. (c) Except as otherwise expressly provided in this Article 8 and in subsection (d) below, upon an Event of Termination none of the Parties shall have any further rights, obligations or remedies to or against any other Party pursuant to this Agreement. Page 733 72500.00920\34744746.2 -41- (d) Notwithstanding termination of this Agreement, the Parties agree that the following provisions shall survive such termination to the extent and for such period as necessary to give them full force and effect under the circumstances giving rise to termination of this Agreement: (i) Section 1.3(c); (ii) Section 4.6; (iii) Section 4.10; (iv) Section 8.2; and (v) this Section 8.3. 9. MISCELLANEOUS PROVISIONS. 9.1 Real Estate Commissions. Neither Party shall be liable for any real estate commission or brokerage fees which may arise from this Agreement. Each Party represents that it has engaged no broker, agent or finder in connection with this Agreement, and each Party agrees to hold the other Party or Parties harmless from any claim by any broker, agent or finder retained by such Party. 9.2 Time of Essence. Time is of the essence in the performance of the respective obligations of the Parties under this Agreement. 9.3 Consent. The City shall reasonably cooperate with the Developer in the preparation and submittal of any governmental applications the Developer must submit in the furtherance of this Agreement. The City further agree to reasonably cooperate with the Developer in the timely processing of any such applications. 9.4 Entire Agreement. This Agreement consists of forty-six (46) pages together with Attachment Nos. 1 through 9, inclusive, which are attached hereto and incorporated herein by this reference, which constitute the entire agreement between the Parties. 9.5 Interpretation. This Agreement has been negotiated at arm’s length and between Persons sophisticated and knowledgeable in the matters dealt with herein. In addition, each Party has been represented by experienced and knowledgeable legal counsel. Accordingly, any rule of law (including California Civil Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the Party that has drafted it, is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purposes of this Agreement. Page 734 72500.00920\34744746.2 -42- 9.6 Governing Law. This Agreement shall be governed by the laws of the State of California. 9.7 Captions. The captions used herein are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or the intent of any Section hereof. 9.8 No Third Party Rights. Nothing in this Agreement shall create or shall give to third parties any claim or right of action against the City, the City or the Developer beyond such as may legally exist, irrespective of this Agreement. 9.9 Modification or Amendment of Agreement; Operating Memoranda. (a) No change in, modification to, termination or discharge of this Agreement in any form whatsoever shall be valid or enforceable unless it is in writing and signed by the Party to be charged therewith or its duly authorized representative. (b) The Parties acknowledge that the provisions of this Agreement require a close degree of cooperation, and that new information and future events may make appropriate changes with respect to the details of performance of the Parties under this Agreement. If, as a result of a Periodic Review provided for in Section 5.1, or otherwise from time to time prior to the Early Expiration Date or during any Extension Period, the Parties find that non-substantive refinements or adjustments that do not require any public review or approval and that concern details of performance of the Parties hereunder, are necessary or appropriate, they may effectuate such refinements or adjustments through a memorandum (individually, “Operating Memorandum”, and collectively, “Operating Memoranda”) approved by the Parties which, after execution, shall be attached to this Agreement as addenda and become a part hereof. Operating Memoranda must be executed on behalf of the City by its City Manager or designee, and on behalf of the Developer by its authorized representative. Operating Memoranda shall not require prior notice or approval by the City Council, and shall not constitute an amendment to this Agreement. (c) Any substantive or significant modifications to the terms and conditions set forth in this Agreement, such as an increase of the Public Investment Amount, reduction in insurance or indemnity requirements, or waiver of any discretionary approval requirement, shall be processed as an amendment of this Agreement, and must be approved by the Developer, and City Council. 9.10 Waiver. No waiver or any breach of any of the terms, covenants, agreements, restrictions or conditions of this Agreement shall be construed to be a waiver of any succeeding breach of the same or other terms, covenants, agreements, restrictions and conditions hereof. 9.11 Severability. If any term, covenant or condition of this Agreement or the application thereof to any Person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement or the application of such term, covenant Page 735 72500.00920\34744746.2 -43- or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by Law. 9.12 Integrated Agreement. This Agreement, including the attached exhibits, contains the entire agreement of the parties and supersedes all prior and contemporaneous agreements and understandings, oral or otherwise, among the parties with respect to the matters contained in this Agreement and may not be modified or amended except as set forth in this Agreement. 9.13 Certificates. (a) On or before the Target Date set forth in the Schedule of Performance, the Developer shall provide to the City an incumbency certificate, in form and substance reasonably satisfactory to the City and signed by a duly authorized officer of the Developer, certifying that Doug Sheres, John Luff and Don Rady are duly authorized to execute this Agreement on behalf of the Developer, and attaching a copy of the Limited Liability Company Agreement of Desert Wave Ventures, LLC and any applicable resolutions. (b) On or before the Target Date set forth in the Schedule of Performance, the City shall provide to the Developer a copy of the resolution duly adopted by the City Council, evidencing that the City Manager is authorized to execute this Agreement on behalf of the City. (c) On or before the Target Date set forth in the Schedule of Performance, the City shall provide to the Developer a copy of the ordinance duly passed and adopted by the City Council, evidencing that the Mayor of the City is duly authorized to execute this Agreement on behalf of the City. 9.14 Counterparts. This Agreement may be executed in counterparts which taken together shall constitute one agreement. 9.15 Public Records. (a) The City is subject to the provisions of the California Public Records Act (Cal. Gov. Code § 6250, et seq.), (the “Act”). The City’s use and disclosure of public records are governed by the Act. (b) In the event that any lawsuit, action, or other legal proceeding is brought against City by any person(s) or entity(ies) seeking the disclosure of the information Developer has provided to City under any theory (collectively the “Actions”), Developer hereby agrees to release City from any such liability and to defend, indemnify and hold harmless City from any such Actions. Developer agrees and acknowledges that City has the sole and exclusive right to choose its legal counsel in its defense of the Actions, and Developer agrees to fully and promptly reimburse all legal fees and costs incurred by City in the defense of the Actions no later than thirty (30) days after Developer’s receipt of a reimbursement invoice with supporting documentation. Developer further agrees that any award of monetary damages, fees and costs, or Page 736 72500.00920\34744746.2 -44- otherwise that may be legally imposed upon City in the Actions, relating to the information Developer has articulated as being exempt from disclosure under the Act or any other relevant laws, shall be fully and promptly paid by Developer to the Court, plaintiff(s) in the Actions, or any other third party as may be required by any such award no later than thirty (30) days after Developer’s receipt of City’s written demand for such payment unless earlier ordered by the Court. 9.16 Incorporation by Reference of Recitals. The Recitals are hereby incorporated into this Agreement by reference as if set forth herein in full. [Signatures on Following Pages] Page 737 72500.00920\34744746.2 -45- DISPOSITION AND DEVELOPMENT AGREEMENT DSRT Surf Hotel, Residential Units, Surf Center & Lagoon Project Signatory Page CITY: Date: _____________, 2022 CITY OF PALM DESERT, a charter city and municipal corporation By: _____________________, Mayor APPROVED AS TO FORM: By: ROBERT HARGREAVES City Attorney Page 738 72500.00920\34744746.2 -46- DISPOSITION AND DEVELOPMENT AGREEMENT DSRT Surf Hotel, Residential Units, Surf Center & Lagoon Project Signatory Page DEVELOPER: Date: ___________2022 DESERT WAVE VENTURES, LLC, a Delaware limited liability company By: FS VENTURES, LLC, a Delaware corporation, Its Manager By: Don Rady Its: Managing Member APPROVED AS TO FORM: By: Marco A. Gonzalez, Counsel Page 739 72500.00920\34744746.2 -47- CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT State of California ) ) SS. County of ) On , 20 , before me, , a Notary Public, personally appeared ___________________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature _____________________________ A notary public or other office completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. Page 740 72500.00920\34744746.2 A1-1 ATTACHMENT NO. 1 SCOPE OF DEVELOPMENT I. GENERAL The Project and all related public improvements shall be designed and constructed substantially in accordance with the provisions of this Agreement, including without limitation the Laws, and all specifications, drawings, plans, data, reports, maps, permit applications, land use applications, zoning applications, environmental review and disclosure documents and design review documents (collectively, “Plans and Specifications”) and related documents to be approved by the City pursuant hereto. The City staff, the City’s engineers, the Developer and the Developer’s architects, engineers, General Contractor and subcontractors shall coordinate with respect to the overall design, architecture and nature of the improvements on the Project Site. In the event of any conflict between the contents of this Scope of Development and the Agreement, the provisions of the Agreement shall prevail. II. DEVELOPER’S IMPROVEMENTS Subject to the terms and conditions of this Agreement, including all attachments hereto, the Developer shall be responsible for the design and construction of all of the following improvements (collectively, the “Developer’s Improvements”): A. Approximately 17.68 acre Surf Lagoon Resort and Amenities comprised of: 1. Minimum 5.0 acre Surf Lagoon with wave generating equipment. 2. Surf Center Building a minimum of 6,000 sq. ft. and maximum of 15,000 sq. ft., to include surf welcome area, ticketing, wetsuit rental/drying, board rental, office space, training area, flex space, and retail facility. 3. Developer to construct a hotel and residential unit project pursuant to the amended Specific Plan and Precise Plan that allows up to 350 hotel rooms in one hotel and complies with the following requirements: a. Project shall include a minimum of 175 keys: the Hotel shall have a minimum of 92 hotel room keys and the residential component shall have a minimum of 83 Residential Units including at least 40 keys (lock off units). b. Hotel and related facilities shall include multiple restaurants, spa facilities, pool facilities and group meeting space commensurate with hotel/villa upper upscale brand, size and needs. Page 741 72500.00920\34744746.2 A1-2 c. Hotel shall be designed to meet the standards of an AAA 4 Diamond rating d. Hotel shall be an independent boutique or shall carry the flag of a major hotel brand (Marriott, Hilton, Hyatt). AAA 4 Diamond rating requirements shall dictate investment requirements for the hotel amenity and room packages, including the desired mix of rooms, suites and Residential Units. However, any “extended stay” or “time share” hotel shall not be permitted without prior written approval by the City. e. Evidence and consent of a market based commercially reasonable Hotel Developer/Operator agreement with a partner that has a minimum of 10 years’ experience operating Upper Upscale or Luxury hotels or resorts. 4. Proprietary wave producing machinery and accompanying surf lagoon control building. 5. All ancillary Support Facilities to support wave operations in accordance with Specific Plan including maintenance, guest service, F&B, parking and common area. 6. Private Water Well approval, permitting, construction and operation on Project Site, if development of a private water well on the Project Site is legally and technically feasible. 7. Circular roadway around project perimeter for fire and residential ownership access. 8. Landscape, Open Space, and Swimming Pools equating to a minimum of 20% of the Project Site. 9. Parking – Not less than: a. 151 parking structure stalls for Surf Center parking and Desert Willow overflow parking; b. 96 on-site surface parking stalls for Surf Center and Desert Willow overflow parking; c. Hotel parking as required by the Existing Approvals to include 30 on-site parking stalls and 62 off-site parking stalls; and d. 226 surface stalls of off-site parking to meet mitigation requirements of the Existing Approvals Page 742 72500.00920\34744746.2 A1-3 B. Misc. Items: 1. Construct freshwater intake line from City owned 15” extant water line to west boundary line of SARDA Parcel B consistent with Existing Approvals or in substantial conformance with the Improvement objective. 2. Construct on-site and accompanying off-site storm-water discharge system draining to dry wells and waste areas on the Mountain View golf course or in substantial conformance with the Improvement objective. 3. Construct evacuation line to dry wells and golf course irrigation lake system (through Embarc property) consistent with Existing Approvals or in substantial conformance with the Improvement objective. 4. Construct tie-in sewer line to CVWD owned extant line west of the site adjacent to Westin Desert Willow Villas consistent with Existing Approvals or in substantial conformance with the Improvement objective. 5. Provide emergency gate access point for emergency vehicles at northerly and westerly corner of site adjacent to Westin Desert Willow Villas consistent with Existing Approvals, as required by Palm Desert Fire Department. 6. Provide funding consistent with the Turf Reduction Program Funding Agreement. 7. Construct improvements for overflow parking needs of the Desert Willow Golf Resort. 8. Construction of all utility connections to support the project. C. All Conditions of Approval identified in the Existing Approvals. D. All Mitigation Measures identified in the Existing Approvals. III. ARCHITECTURE AND DESIGN The Developer’s Improvements shall be of high architectural quality and be sufficiently landscaped, as approved by the Architectural Review Committee. The Construction Documents and the Building Permit Application shall describe the architectural character intended for the Developer’s Improvements. Page 743 72500.00920\34744746.2 A5-1 ATTACHMENT NO. 2 PRELIMINARY PLAN OF FINANCE Debt—Debt capital is available in the market via debt funds, hybrid funds, traditional lending institutions, and other public and private capital providers. We are currently working with a number of groups to underwrite different components of the project (residential, hotel, and surf destination). Equity—Equity is available in the market via different fund structures, larger institutions, smaller family office providers, and individual investors. To date, DSRT is funded by a handful of individuals with one substantial individual investor—our Managing Member-- anchoring the project. This investor is committed to seeing the project through and has already committed more than $10 mln to date. Incentive dollars—The project will utilize up to $20 mln of Redevelopment Agency bond dollars for construction. Given that the project will have a substantial amount of public parking, there is ample opportunity to utilize these funds. Exhibit A DSRT Surf Consolidated Lagoon Hotel Resi Flats Resi Villas (in 000’s) (in 000’s) (in 000’s) (in 000’s) (in 000’s) Total Project $ 225,853 $ 72,482 $ 80,169 $ 36,532 $ 36,670 GP $ 12,598 $ 3,497 $ 3,617 $ 2,717 $ 2,767 LP $ 95,722 $ 31,470 $ 32,553 $ 15,794 $ 15,906 Total Equity $ 108,358 $ 34,966 $ 36,170 $ 18,549 $ 18,673 RDA subsidy $ 20,000 $ 10,000 $ 10,000 $ 0 $ 0 Construct loan $ 97,532 $ 27,516 $ 33,999 $ 18,020 $ 17,997 Sources Uses $ 225,853 $ 72,482 $ 80,169 $ 36,532 $ 36,670 Page 744 72500.00920\34744746.2 A5-2 ATTACHMENT NO. 3 FORM OF PROJECT BUDGET DEVELOPMENT COSTS ($) % of Total Hard Costs (Inc. Contingency) $171,620,948 75% Soft Costs (Inc. Contingency) $54,232,219 24% Total Development Costs* $225,853,167 100.0% *Non-Inclusive of Financing Costs Page 745 72500.00920\34744746.2 A5-3 ATTACHMENT NO. 4 MAP OF PROJECT SITE; MAP SHOWING GENERAL LOCATION OF ELEMENTS OF THE PROJECT Page 746 72500.00920\34744746.2 A5-4 ATTACHMENT NO. 5 LEGAL DESCRIPTION OF PROJECT SITE For SARDA Property All that certain real property situated in the County of Riverside, State of California, described as follows: Lot 8 of Tract No. 28450, in the City of Palm Desert, County of Riverside, State of California, as shown by map on file in Book 264, Pages 4 through 15 of Maps, Records of Riverside County. Excepting therefrom all oil, gas and other mineral deposits, together with the right to prospect for, mine, and remove the same, according to the provisions of the Act of Congress approved June 1, 1938 (52 Stat. 609) as reserved in the Patent recorded February 4, 1960 as Instrument No. 9510, of Official Records of Riverside County, California; Also excepting therefrom one half of all crude oil, petroleum, gas brea, asphaltum, and all kindred substances and other minerals, as reserved in deed from Henry A. Dustin and Pearl M. Dustin, husband and wife recorded January 11, 1956 as Instrument No. 1901 of Official Records of Riverside County, California; Also excepting therefrom one half of all crude oil, petroleum, gas brea, asphaltum, and all kindred substances and other minerals, as reserved in deed from Henry A. Dustin and Pearl M. Dustin, husband and wife recorded January 11, 1956 as Instrument No. 1895 in Book 1845, Page 474 of Official Records of Riverside County, California; Also excepting one half of all crude oil, petroleum, gas, brea, asphaltum and all kindred substances and other minerals under and in said land, without right of surface entry and with the obligation of grantor herein and any transfers thereof to repair any damage to said land and/or any improvements now or hereafter constructed thereon resulting from the extraction of said minerals by deed recorded February 8, 1985 as Instrument No. 27280 of Official Records of Riverside County, California; Also excepting therefrom one half of all crude oil, petroleum, gas, brea, asphaltum and all kindred substances and other minerals under and in said land without the right of surface entry and with the obligation of grantor herein and any transferee thereof to repair any damage to said land and/r any improvements now or hereafter constructed thereon resulting from the extraction of said minerals, as reserved by deed recorded January 31, 1991 as Instrument No. 36436 of Official Records of Riverside County, California; said mineral rights interests now purportedly vest in Lois A. Taylor, Jacqueline Y. Schaper, Jeanelle N. Stehly, Chadwick J. Mc Donald, Kevin O. Mc Donald, as to an undivided 1/5 Page 747 72500.00920\34744746.2 A5-5 interest each as evidenced by Quitclaim Mineral Deed recorded June 1, 1993 as Instrument No. 204127 of Official Records of Riverside County, California; Also excepting therefrom all oil, gas and other hydrocarbon substances and minerals in and under said land, as set forth in the deed from John J. Kovacevich and Beverly Ellen Kovacevich, husband and wife recorded January 20, 1959 as Instrument No. 5010 of Official Records of Riverside County, California, without right of surface entry to a depth of 500 feet; Except one half of all oil and mineral rights as reserved by Lucille Sleeper in Document recorded March 20, 1956 in Book 1883, Page 571 of Official Records of Riverside County, California; Also excepting therefrom one half of all oil and minerals, as reserved by Lucille Sleeper by deed recorded December 14, 1961 as Instrument No. 107309 of Official Records of Riverside County, California. Also excepting therefrom one half of all crude oil, petroleum, gas brea, asphaltum, and all kindred substances and other minerals, as reserved in deed from Henry A. Dustin and Pearl M. Dustin, husband and wife recorded January 11, 1956 as Instrument No. 1897 of Official Records of Riverside County, California. Also except therefrom that portion of said land conveyed to the City of Palm Desert, a Municipal Corporation, as set forth and described in that certain document recorded November 6, 2014 as Instrument No. 2014-0428272 of Official Records. APN: 620-420-023 For City Property: All that certain real property situated in the County of Riverside, State of California, described as follows: That portion of Lot 8 of Tract No. 28450, in the City of Palm Desert, County of Riverside, State of California, as per map filed in Book 264, Pages 4 through 15, inclusive, of Maps, in the Office of the County Recorder of said County, described as follows: Beginning at the Westerly terminus of that certain course in the Northerly line of said Lot 8 shown as “N 89°46’41” W 293.56’” on said map; Thence along said Northerly line S 89°46’41” E 293.56 feet to the West line of Desert Willow Drive, and to the beginning of a non-tangent curve concave to the East having a radius of 137.00 feet and to which beginning a radial line bears S 88°57’01” W; Thence along said Wet line Southeasterly 170.74 feet along said curve through a central angle of 71°24’21” to the beginning of a reverse curve concave to the Southwest having Page 748 72500.00920\34744746.2 A5-6 a radius of 65.00 feet, a radial line through said beginning of reverse curve bears N 17°32’40” E; Thence continuing along said West line Southeasterly 51.87 feet along said curve through a central angle of 45°43’21” to the beginning of a compound curve concave to the Southwest having a radius of 526.00 feet; Thence continuing along said West line Southeasterly 36.97 feet along said curve through a central angle of 4°01’37”; Thence leaving said West line S 46°18’47” W 347.14 feet; Thence N 43°41’13” W 394.66 feet to the Northerly line of said Lot 8; Thence along said Northerly line N 54°05’23” E 97.66 feet; Thence continuing along said Northerly line N 0°50’56” E 92.68 feet to the point of beginning. APN: 620-400-008; 620-420-024 Page 749 72500.00920\34744746.2 A6-1 ATTACHMENT NO. 6 FORM OF CITY COST REIMBURSEMENT AGREEMENT Page 750 72500.00920\34744746.2 A7-2 REIMBURSEMENT AGREEMENT Between CITY OF PALM DESERT a California municipal corporation and DESERT WAVE VENTURES, LLC, a Delaware limited liability company Page 751 72500.00920\34744746.2 A6-3 REIMBURSEMENT AGREEMENT This Reimbursement Agreement ("Agreement") is made this ___ day of ________, 20__, by and between the City of Palm Desert, a California municipal corporation (the "City"), and Desert Wave Ventures, LLC, a Delaware limited liability company registered to do business in the State of California (the "Applicant"). RECITALS This Agreement is made with respect to the following facts. A. The Applicant is in contract to purchase of that certain real property ("Property") located within the City of Palm Desert, County of Riverside, California. The Property is more particularly described in attached Exhibit A. B. The Applicant is contemplating a development described as the 17.68 acre DSRT Surf project described in Environmental Impact Report Project SCH #2019011044 and its Addendum, consisting of a 5.5 acre surf lagoon and surf center facility to include restaurant, bar, retail and similar facilities, a minimum of 92 and a maximum of 350 hotel rooms and up to 83 for-sale residential units which is referred to as the "Project." C. To provide the City with the planning, environmental and legal services, and other expertise and information necessary to the City's review process concerning the development of the Property, it is necessary for the City to access the services of various consultants for the Project beyond those whose fees are paid through traditional permit and application fees ("Consultants"). D. As a condition to the City's completion of the review process, the Applicant has agreed to reimburse the City for the Consultants’ costs and expenses related to the City's review process in the manner and amounts set forth in this Agreement. The Applicant's reimbursement of City under this Agreement will ensure that the City has the necessary resources to diligently and efficiently process the Applicant's Project. AGREEMENT NOW, THEREFORE, in consideration of the following mutual promises and agreements, City and Applicant agree as follows: 1 Incorporation of Recitals. The parties agree that the Recitals constitute the factual basis upon which the City and the Applicant have entered into this Agreement. The City and the Applicant each acknowledge the accuracy of the Recitals and agree that the Recitals are incorporated into this Agreement as though fully set forth at length. 2. City to Retain Consultants. As a necessary and indispensable part of its fact-finding process relating to the review and processing of the Applicant's Page 752 72500.00920\34744746.2 A6-4 proposed uses of the Property and Project, the City shall retain the services of Consultants as the City may deem necessary in its reasonable and sole discretion. The Applicant agrees that, notwithstanding the Applicant's reimbursement obligations under this Agreement, Consultants shall be the contractors exclusively of the City and not of the Applicant. Except for those disclosures required by law including, without limitation, the California Public Records Act, all conversations, notes, memoranda, correspondence and other forms of communication by and between the City and its Consultants shall be, to the extent permissible by law, privileged and confidential and not subject to disclosure to the Applicant. The Applicant agrees that it shall have no claim to, nor shall it assert any right in any reports, correspondence, plans, maps, drawings, news releases or any and all other documents or work product produced by the Consultants. 3. Applicant to Cooperate with Consultants. The Applicant agrees to cooperate in good faith with the Consultants and City. The Applicant agrees that it will instruct its agents, employees, consultants, contractors and attorneys to reasonably cooperate with the Consultants and to provide all necessary documents or information reasonably requested of them by the City and/or the Consultants; provided, however, that the foregoing shall not require the disclosure of any documents or information of the Applicant which by law is privileged, proprietary, confidential, and exempt from disclosure under the Public Records Act. 4. Applicant's Reimbursement of Costs and Expenditures. The Applicant shall reimburse the City for one hundred percent (100%) only of the actual costs and expenditures incurred after November 14, 2019 by the City relative to the Consultant costs ("Costs".) The City has preliminarily reviewed the scope of work required and has estimated the Costs to be approximately Fifty Thousand Dollars ($50,000) (“Estimated Costs"). Within ten (10) calendar days of the execution of this Agreement, the Applicant shall submit the initial deposit in the amount of $50,000 to cover 100% of the consultant costs The City shall provide copies of monthly invoices prepared by consultants, with confidential information removed, and the applicant shall make additional deposits to adequately cover the anticipated consultant costs. 5. Applicant's Approval of Excess Costs and Expenditures. City shall not exceed the Estimated Consultants Costs without the Applicants prior written approval. The City may incur aggregate Costs up to the Estimated Costs, subject to the reasonable approval of the Applicant. The City shall use reasonable good faith efforts to consult with the Applicant incurring Costs that exceed the Estimated Costs ("Excess Costs"). The Applicant's obligation to reimburse the City for Excess Costs which exceed the Estimated Costs shall be contingent upon, the City's providing the Applicant with written notice of the amendment of the “Estimated Costs” to be performed by Consultants and the estimated Excess Costs prior to the commencement of work. The City shall not incur Excess Costs without the prior written approval of the Applicant; however in the event that Applicant does not approve of Excess Costs, City shall not be required to continue processing of the Project. Page 753 72500.00920\34744746.2 A6-5 For purposes of this Section, the City shall be deemed to have consulted with the Applicant when the City has provided written notice to the Applicant that the City reasonably anticipates that it will incur, or has incurred, Excess Costs. If, after consultation, the Applicant disagrees with the City's incurring of Excess Costs, then the Applicant's may terminate this Agreement pursuant to Section 9 of this Agreement, subject to the Applicant's obligation to reimburse the City for all Costs incurred by the City prior to the date of termination, whether or not yet paid by the City to the Consultants. 6. Evidence of Payment of Consultant Costs Immediately following the City's disbursement of funds to Consultant pursuant to an approved Professional Services Agreement or similar retainer agreement with the Consultant(s), the City shall provide the Applicant with such reasonable documentation as the Applicant may request to substantiate any demands for payment by Consultant(s). 7. Applicant understands and agrees that City reserves complete discretion and authority regarding the (a) outcome of the Project, (b) contents, scope, analysis and conclusions of the Consultant(s) and Consultant documents, including plans, staff reports, ordinances, resolutions, maps, conditions, mitigation measures, and environmental review documents and findings, (c) and City determinations and decisions on the Project. Nothing in this Agreement shall in any way commit or obligate City to approve any particular development project application or to support the development of any part of it. 8. Term. The term of this Agreement shall commence on the date that this Agreement is approved by the City and fully executed by the parties and shall terminate when all work required been completed to the City's reasonable satisfaction and the Applicant has satisfied all of its obligations under this Agreement including, without limitation, the obligation to reimburse the City for Estimated Costs and Excess Costs, whether or not paid by the City to Consultant(s) prior to the date of termination. The Applicant's obligation to reimburse the City as provided in this Agreement shall survive the termination of this Agreement pursuant to Section 9. 9. Early Termination. The City may terminate this Agreement prior to the term set forth in Section 8 above, without cost or liability to the City, upon thirty (30) days prior written notice to the Applicant. The Applicant may in its reasonable and sole discretion terminate this Agreement prior to the end of the term set forth in Section 8 above upon thirty (30) days' prior written notice to the City; provided, however, that the Applicant has satisfied all of its obligations under this Agreement to the date of termination regarding reimbursement to the City of both Estimated Costs and Excess Costs and, furthermore, that the Applicant has given City written notice withdrawing its application(s) for the Project. Within two (2) City working days following either the City's decision to terminate this Agreement or the City's receipt of written notice indicating the Applicant's decision to terminate this Agreement, the City shall notify the Consultant(s) and instruct Page 754 72500.00920\34744746.2 A6-6 them to cease work. Consultant(s) shall be instructed to bill the City for any work completed prior to the date of termination. 10. Assignability. This Agreement may not be assigned by either party without the prior and express written consent of the other party, which consent shall not be unreasonably withheld. In determining whether to approve a request by the Applicant to assign this Agreement, the City may consider, among other things, the proposed assignee's financial status and commitment to the Project. Any attempted assignment of this Agreement not in compliance with the terms of this Agreement shall be null and void and shall confer no rights or benefits upon the assignee. 11. No Oral Modifications. This Agreement represents the entire understanding of the City and the Applicant and supersedes all other prior or contemporaneous written or oral agreements pertaining to the subject matter of this Agreement. This Agreement may be modified, only by a writing signed by both the authorized representatives of both the City and the Applicant. 12. Binding Upon Successors. This Agreement and each of its terms shall be binding upon the City, the Applicant and their respective officers, elected officials, employees, agents, contractors, and permitted successors and assigns. 13. Legal Challenges. Nothing herein shall be construed to require City to defend any third party claims and suits challenging any action taken by the City with regard to any procedural or substantive aspect of the City’s approval of development of the Property, the environmental process, or the proposed uses of the Property. The Applicant may, however, in its sole and absolute discretion appear as real party in interest in any such third party action or proceeding, and in such event, it and the City shall defend such action or proceeding and the Applicant shall be responsible and reimburse the City for whatever legal fees and costs, in their entirety, including actual attorneys' fees, which may be incurred by the City in defense of such action or proceeding. This City shall have the absolute right to retain such legal counsel as the City deems necessary and appropriate and the Applicant shall reimburse the City for any and all attorneys' fees and costs incurred by the City as a result of such third party action or proceeding; provided, however, Applicant may, at any time, notify City in writing of its decision to terminate such reimbursement obligation and, thereafter, in the event that the City decides to continue the defense of such third party action or proceeding, Applicant shall have no further obligation to reimburse City for its attorney fees and costs. 14. Attorneys' Fees. In the event that any action or proceeding, including arbitration, is commenced by either the City or the Applicant against the other to establish the validity of this Agreement or to enforce any one or more of its terms, the prevailing party in any such action or proceeding shall be entitled to recover from the other, in addition to all other legal and equitable remedies available to it, its actual attorneys' fees and costs of litigation, including, without limitation, filing fees, service fees, deposition costs, arbitration costs and expert witness fees, including actual costs and attorneys' fees on appeal. Page 755 72500.00920\34744746.2 A6-7 15. Jurisdiction and Venue. This Agreement is executed and is to be performed in the City of Palm Desert, Riverside County, California, and any action or proceeding brought relative to this Agreement shall be heard in the appropriate court in the County of Riverside, California. The City and the Applicant each consent to the jurisdiction of the Court in any such action or proceeding. 16. Severability. If any term or provision of this Agreement is found to be invalid or unenforceable, the City and the Applicant both agree that they would have executed this Agreement notwithstanding the invalidity of such term or provision. The invalid term or provision may be severed from the Agreement and the remainder of the Agreement may be enforced in its entirety. 17. Headings. The headings of each Section of this Agreement are for the purposes of convenience only and shall not be construed to either expand or limit the express terms and language of each Section. 18. Representations of Authority. Each party signing this Agreement on behalf of a party which is not a natural person hereby represents and warrants to the other party that all necessary legal prerequisites to that party's execution of this Agreement have been satisfied and that he or she has been authorized to sign this Agreement and bind the party on whose behalf he or she signs. 19. Notices. Notices required under this Agreement shall be sent to the following: If to the City: City Manager City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 If to the Applicant: Desert Wave Ventures, LLC Attn: Don Rady 1555 Camino Del Mar Del Mar, CA 92014 Notices given pursuant to this Agreement shall be deemed received as follows: (1) If sent by United States Mail - five (5) calendar days after deposit into the United States Mail, first class postage prepaid. (2) If by facsimile - upon transmission and actual receipt by the receiving party. (3) If by express courier service or hand delivery - on the date of receipt by the receiving party. Page 756 72500.00920\34744746.2 A6-8 The addresses for notices set forth in this Section 19 may be changed upon written notice of such change to either the City or the Applicant, as appropriate. Dated: ________________________ CITY OF PALM DESERT a California municipal corporation By: ______________________________ ___________, Mayor ATTEST: By: ______________________________ Norma I. Alley, MMC, City Clerk APPROVED AS TO FORM: By: ______________________________ Robert W. Hargreaves, City Attorney Dated: _________________________ APPLICANT: ___________________________________ By: ___________________________________ Name/Title Dated: _________________________ APPROVED AS TO FORM: By: __________________________ Applicant’s Counsel Dated: _________________________ Page 757 72500.00920\34744746.2 A7-9 CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT State of California ) ) SS. County of ) On , 20 , before me, , a Notary Public, personally appeared ___________________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature _____________________________ A notary public or other office completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. Page 758 72500.00920\34744746.2 A6-10 Exhibit "A" Description of the Property Approximately 17.68 acres known as APN 620400008, 620420024 and 620420023 in the City of Palm Desert, County of Riverside, California. Page 759 72500.00920\34744746.2 A7-1 ATTACHMENT NO. 7 FORM OF ACQUISITION AGREEMENT Page 760 72500.00920\34744746.2 A7-2 THIS ACQUISITION AGREEMENT (the “Acquisition Agreement”), dated as of ___________________, 202_, is by and between the City of Palm Desert, a charter city existing under the laws and Constitution of the State of California (the “City”), and Desert Wave Ventures, LLC, a Delaware limited liability company registered to do business in the State of California (the “Developer”). ARTICLE I DEFINITIONS Section 1.1. Definitions. The following terms shall have the meanings ascribed to them in this Section 1.1 for purposes of this Acquisition Agreement. “Acceptable Title” means title to a Facility or land, in form acceptable to the City Manager, free and clear of all liens, taxes, assessments, leases, easements and encumbrances, whether or not recorded, and, with respect to land, as evidenced by such title guaranty or title insurance as the City Manager may require, but subject to any exceptions determined by the City Manager as not interfering with the actual or intended use of the land. “Acceptance Date” means the date the City Council takes final action to accept dedication of or transfer of title to a Facility. “Acquisition Agreement” means this Acquisition Agreement, together with any Supplement hereto. “Actual Cost” means the substantiated cost of a Facility, which costs may include: (i) the costs incurred by the Developer for the construction of such Facility (evidenced by payments to parties unrelated to the Developer), (ii) the documented costs incurred by the Developer in preparing the Plans for such Facility, (iii) the fees paid to governmental agencies for obtaining permits, licenses or other governmental approvals for such Facility, (iv) documented professional costs incurred by the Developer associated with such Facility, such as engineering, legal, accounting, inspection, construction staking, materials testing and similar professional services; and (v) costs directly related to the construction and/or acquisition of a Facility, such as costs of payment, performance and/or maintenance bonds, and insurance costs (including costs of any title insurance required hereunder). Actual Cost may include (a) an amount not in excess of 7.0% of the cost described in clause (i) of the preceding sentence in respect of any construction management or project management or other similar fee payable to the Developer or any party related thereto, and (b) any financing fees, costs or charges, or any interest, cost of carry or other similar charges. “Affiliate” means any entity with respect to which 50 percent or more of the ownership or voting power is held individually or collectively by any of the Developer and any other entity owned, controlled or under common ownership or control by or with, the Developer or its managing member(s), general partner(s), or majority shareholder, as applicable, and includes all general partners of any entity which is a partnership. Control Page 761 72500.00920\34744746.2 A7-3 shall mean ownership of 50 percent or more of the voting power of or ownership interest in the respective entity. “City” means the City of Palm Desert, California. “City Manager” means the City Manager of the City or or the written designee of such officer acting as such under this Acquisition Agreement. “Civil Code” means the Civil Code of the State of California. “County” means the County of Riverside, California. “Development Agreement” means the Disposition and Development Agreement, dated as of ______________, 2022 by and between the City and the Developer relating to the development of the Project, as it may be amended from time to time. “Developer” means Desert Wave Ventures, LLC, and its successors and assigns to the extent permitted under Section 9.7 hereof. “Facilities” means the public facilities which are described in Exhibit A hereto. “Finance Director” means the Finance Director of the City, or the written designee of such officer acting as such under this Acquisition Agreement. “Government Code” means the Government Code of the State of California. “Hotel” means the primary and accessory structures associated with a minimum of 92 and a maximum of 350 overnight accommodation rooms, grounds and parking facilities associated therewith, described in the Environmental Impact Report for DSRT Surf, Project SCH #2019011044 and its Addendum. “Labor Code” means the Labor Code of the State of California. “Payment Request” means a document, substantially in the form of Exhibit C hereto, to be used by the Developer in requesting payment of a Purchase Price. “Plans” means the plans, specifications, schedules and related construction contracts for the design and construction of any Facility approved by the City or other entity that will own, operate or maintain such Facility when completed and acquired. “Progress Payment” means the amount paid by the City upon the attainment of certain Project Milestones, each as set forth on Exhibit B hereto. “Project” means that 17.68 acre DSRT Surf project described in Environmental Impact Report Project SCH #2019011044 and its Addendum, located on Lot B of Desert Willow Golf Course consisting of a 5.5 acre surf lagoon and surf center facility to include restaurant, bar, retail and similar facilities, a minimum of 92 and a maximum of 350 hotel rooms, and a minimum of 83 for-sale residential units. Page 762 72500.00920\34744746.2 A7-4 “Project Milestone” means the applicable conditions required to be completed or attained prior to each Progress Payment, as set forth on Exhibit B hereto. “Public Contract Code” means the Public Contract Code of the State of California. “Purchase Price” means the amount paid by the City for a Facility determined in accordance with Article IV hereof, being an amount equal to the Actual Cost of such Facility, but subject to any applicable limitations and reductions provided for in Article IV. “Residential Units” means the portion of the Project consisting of for-sale residential units, of which there shall be a minimum of 83 such units as defined in the Development Agreement. “Risk Manager” shall mean the person acting in the capacity of Risk Manager for the City. “RDA Bond Proceeds” shall mean the proceeds of bonds previously issued (specifically, the Palm Desert Financing Authority Tax Allocation Revenue Bonds (Project Area No. 2), 2006 Series A, B, C, and D, and the Palm Desert Financing Authority Tax Allocation Revenue Bonds (Project Area No. 3), 2006 Series A, B, and C) and transferred to the City pursuant to bond proceeds funding agreements previously approved by the California Department of Finance. “State” means the State of California. “Surf Center and Surf Lagoon” means that portion of the Project that includes a structure to be used for administration of surfing and recreational activities constructed at no less than 6,000 sq. ft. and no more than 15,000 sq. ft, and including restaurant, bar, cafe, and retail uses; a 5.5 acre surf lagoon with wave generating equipment; and, the grounds surrounding the Surf Center and Surf Lagoon providing pools, additional restaurants, surf schools, lockers, and other amenities available to patrons of the Surf Center and Surf Lagoon. “Supplement” means a written document amending, supplementing or otherwise modifying this Acquisition Agreement or any exhibit hereto. ARTICLE II RECITALS Section 2.1. The Development. The Developer is developing the Project within the City. Section 2.2. The Facilities. The Facilities are required as a condition of regulatory approval by the City, and the City and the Developer will benefit from a coordinated plan of design, engineering, and construction of the Facilities and the development of the Project. The Facilities, which pursuant to the Development Agreement are the subject of acquisition by the City from the Developer under this Acquisition Agreement or with respect to Facilities to be owned by a governmental entity Page 763 72500.00920\34744746.2 A7-5 other than the City, contribution by the City toward the Actual Costs thereof from RDA Bond Proceeds, are only the Facilities listed in Exhibit A hereto. Section 2.3. No Advantage to City Construction. The City, by its approval of this Acquisition Agreement, has determined that it will obtain no advantage from undertaking the construction by the City directly of the Facilities. The Developer agrees to undertake construction of the Facilities in accordance with the requirements of, and subject to the terms and conditions of, this Acquisition Agreement. The Developer hereby represents that it has experience in the supervision of the construction of public facilities of the character of the Facilities. Section 2.4. Agreements. In consideration of the mutual promises and covenants set forth herein, and for other valuable consideration the receipt and sufficiency of which are hereby acknowledged, the City and the Developer agree that the foregoing recitals, as applicable to each, are true and correct and further make the agreements set forth herein. ARTICLE III CONSTRUCTION OF FACILITIES Section 3.1. Plans. The Developer shall cause Plans to be prepared for the Facilities and shall obtain the written approval of the Plans in accordance with applicable ordinances and regulations of the City or the governmental entity or utility that will own and operate the Facilities. Copies of all Plans shall be provided by the Developer to the City Manager upon request therefor, and, in any event, as built drawings and a written assignment of the Plans for any Facility shall be provided to the City prior to its acceptance of the Facility. Section 3.2. Duty of Developer to Construct. All Facilities to be acquired hereunder shall be constructed by or at the direction of the Developer in accordance with the approved Plans. The Developer hereby represents it has performed, and shall continue to perform, all of its obligations hereunder and has conducted, and shall continue to conduct, all operations with respect to the construction of the Facilities in a good, workmanlike and commercially reasonable manner, with the standard of diligence and care normally employed by duly qualified persons utilizing their best efforts in the performance of comparable work and in accordance with generally accepted practices appropriate to the activities undertaken. The Developer has employed, and shall continue to employ, at all times adequate staff or consultants with the requisite experience necessary to administer and coordinate all work related to the design, engineering, acquisition, construction and installation of the Facilities to be acquired by the City from the Developer hereunder. The Developer shall be obligated: (i) to construct and cause to be conveyed to the City, or other applicable governmental entity or utility, all Facilities as a condition of and pursuant to the terms of any applicable development agreement, improvement agreement, subdivision map, or regulatory approval, and (ii) to use its own funds to pay all costs thereof in excess of the Purchase Prices thereof to be paid therefor hereunder. Page 764 72500.00920\34744746.2 A7-6 The Developer shall not be relieved of its obligation to construct each Facility and convey each such Facility to the City in accordance with the terms hereof, even if because of the limitations imposed by Section 4.6 hereof, the Purchase Price for such Facility is less than the Actual Cost, or cost to the Developer, of such Facility. Section 3.3. Labor Code Provisions. Pursuant to Section 1781 of the Labor Code, the City hereby states, and the Developer hereby acknowledges, that the construction of the Facilities, the Project, and any portion thereof by the Developer, which will be paid in part out of public funds, is “public work” (as defined in Section 1720 of the Labor Code) to which Section 1771 of the Labor Code applies, and the Developer hereby agrees that it shall cause the construction of the Facilities, the Project, and any portion thereof, to be performed as “public work” as required by Section 1781 of the Labor Code. Without limiting the foregoing, the Developer agrees to comply with the provisions of Sections 1720 et seq. of the Labor Code with respect to prevailing wages with respect to the construction of the Facilities, the Project, and any portion thereof, and to provide to the City payment bonds meeting the requirements of Section 3.6 herein with respect to all such construction. Section 3.4. Relationship to Public Works; Qualified Contractors; Project Scheduling. The following shall apply to all contracts applicable to the Facilities and any portion thereof which will be the subject of a Payment Request hereunder: A. General. This Acquisition Agreement is for the acquisition by the City of the Facilities and is not intended to be a public works contract. The City and the Developer agree that the Facilities are of local, and not state-wide concern, and that the provisions of the Public Contract Code shall not apply to the construction of the Facilities. The City and the Developer agree that (i) the Developer shall award, or has awarded, all contracts for the construction of the Facilities and the portions thereof, (ii) this Acquisition Agreement is necessary to assure the timely and satisfactory completion of the Facilities, and (iii) compliance with the Public Contract Code with respect to the Facilities or portions thereof would work an incongruity and would not produce an advantage to the City. B. Selection of Qualified Contractors. The Developer represents and warrants it shall evaluate, or has evaluated, criteria such as experience, ability to perform on schedule, and financial ability, and such other criteria as recommended by the City Manager to determine qualified contractors for any contract for construction of a Facility or any portion thereof. Such contractors shall comply with any applicable City laws, rules, and regulations. C. Scheduling. At the request of the City Manager, the Developer shall develop, or cause to be developed, and shall maintain a project schedule, providing for all major project elements included in the construction of the Facilities to be acquired hereunder, so that the whole project is scheduled in an efficient manner. If a schedule is requested, the Developer shall provide the City Manager with complete copies of the schedule and each update to the schedule for the Director’s review. Page 765 72500.00920\34744746.2 A7-7 D. Periodic Meetings. From time to time at the request of the City Manager, representatives of the Developer shall meet and confer with City staff, consultants and contractors regarding matters arising hereunder with respect to the Facilities, and the progress in constructing and acquiring the same, and as to any other matter related to the Facilities or this Acquisition Agreement. The Developer shall advise the City Manager in advance of any coordination and scheduling meetings to be held with contractors relating to the Facilities in the ordinary course of performance of an individual contract. The City Manager shall have the right to be present at such meetings, and to meet and confer with individual contractors if deemed advisable by the City Manager to resolve disputes or ensure the proper completion of the Facilities and any portions thereof. Section 3.5. Independent Contractor. In performing its obligations under this Acquisition Agreement, the Developer is an independent contractor and not the agent or employee of the City. The City shall not be responsible for making any payments directly or otherwise to any contractor, subcontractor, agent, consultant, employee or supplier of the Developer. Section 3.6. Performance and Payment Bonds. The Developer shall comply with all performance and payment bonding requirements of the City and other applicable public entities and public utilities with respect to the construction of the Facilities. As to the City, the Developer shall provide to the City payment bonds and performance bonds, which bonds shall meet the following requirements: A. Payment Bonds. Prior to commencement of construction under each construction contract relating to the construction of any Facility, the Project, or the Hotel, or any portion thereof, the Developer shall provide to the City a payment bond that (I) shall be in conformity with the requirements of the State Civil Code, Sections 9550 and 9554; (II) shall secure with respect to such contract the payment of claims of laborers (including but not limited to the payment of prevailing wages as required by Section 3.3 of this Acquisition Agreement), mechanics, material suppliers, and other persons as provided by law; and (III) otherwise shall be substantially in the form as set forth in Exhibit D. Provided that (a) 15 days have passed after the later of (i) the expiration of the applicable statutory period in which any person may bring suit against the surety(ies) on a payment bond as set forth in Sections 8609 or 9558 of the Civil Code or (ii) the expiration of the applicable statutory period in which any person may record a lien pursuant to Sections 8412 or 8414 of the Civil Code and (b) no such suit or lien has been filed at such time, at the applicable Developer’s written request submitted to the Risk Manager, the City shall provide such Developer with a letter confirming that the City no longer requires the applicable payment bond to be maintained in full force and effect. In the event a contractor to whom a Developer awards a contract for the construction of a Facility provides a payment bond meeting the requirements hereof, such contractor’s payment bond shall be deemed as the provision by such Developer of a payment bond hereunder. B. Performance Bonds. Prior to the commencement of construction on a Facility, the Developer shall require any contractor to whom a contract is awarded for the Page 766 72500.00920\34744746.2 A7-8 construction of such Facility to provide a performance bond for the benefit of the City, in substantially the form attached hereto as Exhibit E, securing such contractor’s obligations under such contract. Any performance bond provided hereunder shall be in form and substance satisfactory to the City Manager and, if applicable, meet the requirements of Government Code Sections 66499 through 66499.10 of the Subdivision Map Act. Section 3.7. Contracts and Change Orders. The Developer shall be responsible for entering into all contracts and any supplemental agreements, including change orders, required for the construction of the Facilities, the Project, or any portion thereof. All such contracts and supplemental agreements relating to construction of any Facility shall be submitted to the City Manager or, as to any such contracts and supplemental agreements entered into prior to the date of this Acquisition Agreement, the Developer represents and warrants they have been submitted to the City Manager. Prior approval of supplemental agreements by the City Manager shall only be required for such change orders which in any way materially alter the quality or character of the subject Facilities, provided, as to any such change orders meeting the thresholds set forth in the foregoing and entered into prior to the date of this Acquisition Agreement, the Developer represents and warrants it has obtained the prior approval of the City Manager. The City expects that such contracts and supplemental agreements needing prior approval by the City Manager will be approved or denied (any such denial to be in writing, stating the reasons for denial and the actions, if any, that can be taken to obtain later approval) within five (5) business days of receipt thereof by the City Manager. ARTICLE IV ACQUISITION AND PAYMENT Section 4.1. Inspection. Inspection relating to the applicable Project Milestones shall have been made in connection with each requested Progress Payment, as further set forth in Section 4.3 below. Progress Payments Nos. 3, 4 and 5 shall not be made by the City to the Developer until any and all Facilities required to be completed by the applicable Project Milestones for each such Progress Payment, as set forth on Exhibit B, have been inspected and found to be completed in accordance with the approved Plans by the City or other applicable governmental entity or utility. The City may make periodic site inspections of the Facilities to be acquired by the City hereunder; provided that in no event shall the City incur any liability for any delay in the inspection of any Facilities. For Facilities to be acquired by other public entities or utilities, the Developer shall be responsible for obtaining such inspections and providing written evidence thereof to the City Manager. The Developer agrees to pay all inspection, permit and other similar fees of the City applicable to construction of the Facilities, subject to reimbursement therefor as an Actual Cost of the related Facility. Section 4.2. Agreement to Sell and Purchase Facilities. A. The Developer hereby agrees to sell the Facilities to the City or other applicable governmental entity or utility that will own a Facility, and the City hereby agrees to pay the Purchase Price thereof to the Developer, subject to the terms and conditions hereof. Except for payment of Progress Payments as provided in paragraph B. below, Page 767 72500.00920\34744746.2 A7-9 the City shall not be obligated to pay for the purchase of any Facility until the Facility is completed and the Acceptance Date for such Facility has occurred. B. The City has identified the Project Milestones to be completed or attained for any Progress Payment which may be the subject of a Payment Request prior to completion of the Facilities relating thereto, and paid pursuant to the terms of this Acquisition Agreement prior to completion of such entire Facility or Facilities, and such Project Milestones are set forth on Exhibit B. The parties hereto acknowledge a Facility does not have to be accepted by the City, or other applicable governmental entity or utility that will own a Facility, as a condition precedent to the payment of any Progress Payment relating thereto, but in no event shall any such payment be made until the requirements of the first paragraph of this Section 4.2.B. have been met. The Developer acknowledges that the Progress Payments, and the Project Milestones relating thereto, have been identified for payment purposes only, and that the City is not obligated to accept a Facility until the entire Facility has been completed, although at the sole discretion of the City Manager, the City may accept a portion of a Facility prior to completion of the entire Facility. C. In any event, the City shall not be obligated to pay any Progress Payment or the Purchase Price for any Facility except from RDA Bond Proceeds. The City hereby represents and warrants to the Developer that it has reserved and allocated RDA Bond Proceeds in the amount of up to $20,000,000.00 for the purpose of paying the Purchase Prices of the Facilities hereunder, and the Progress Payments toward such Purchase Prices, pursuant to the terms of this Acquisition Agreement. Section 4.3. Payment Requests. In order to receive a Progress Payment, inspection relating to the applicable Project Milestones shall have been made, and the Developer shall deliver to the City Manager: (a) a Payment Request in the form of Exhibit C hereto for such Progress Payment, together with all attachments and exhibits required by Exhibit C and this Section 4.3 to be included therewith (including, but not limited to, Attachment 1 to Exhibit C), and (b) if payment is requested for a Progress Payment for which one or more completed Facilities is required as a Project Milestone, (i) if the property on which the Facility is located is not owned by the City (or other applicable governmental entity or utility that will own the Facility) at the time of the request, a copy of the recorded documents conveying to the City (or other applicable governmental entity or utility that will own the Facility) Acceptable Title to the real property on, in or over which such Facility is located, as described in Section 5.1 hereof, (ii) a copy of the recorded notice of completion of such Facility (meeting the requirements specified in Section 4.6), (iii) an assignment to the City of any reimbursements that may be payable with respect to the Facility, such as public or private utility reimbursements, and (iv) an assignment of the warranties and guaranties for such Facility, as described in Section 5.5 hereof, in a form acceptable to the City. In connection with each Progress Payment, the Developer shall submit such evidence satisfactory to the City Manager and the Finance Director that the Developer has completed or attained the applicable Project Milestones for such Progress Payment. Page 768 72500.00920\34744746.2 A7-10 Section 4.4. Processing Payment Requests. Upon receipt of a Payment Request for any Progress Payment and all accompanying documentation, the City Manager shall conduct a review in order to confirm that such request is complete, that the construction work relating to any Facility required to be completed by a Project Milestone for the applicable Progress Payment has been accomplished in accordance with the Plans therefor, and as to Progress Payments to verify and approve the Actual Cost of all Facilities, as described in Exhibit A, for purposes of adjustment of the aggregate Purchase Prices therefor pursuant to Section 4.6 herein. The City Manager, and a construction estimator retained by the City, shall also conduct such review as is required in the City Manager’ discretion to confirm the matters certified in the Payment Request. The Developer agrees to cooperate with the City Manager, and City’s construction estimator, in conducting each such review and to provide the City Manager with such additional information and documentation as is reasonably necessary for the City Manager to conclude each such review. Within ten business days of receipt of any Payment Request, the City Manager will begin to review the request for completeness and notify the Developer whether such Payment Request is complete, and, if not, what additional documentation must be provided. If such Payment Request is complete, the City Manager will provide a written approval, or denial specifying the reason for any denial, of the request within 60 days of its submittal. Each Payment is subject to review and approval by the City Manager as to the amount and allocation, if any, of other project costs allocated to the costs of the Facilities. Section 4.5. Payment. Upon approval of the Payment Request by the City Manager, the City Manager shall sign the Payment Request and forward the same to the City’s Finance Director. Upon receipt of the reviewed and fully signed Payment Request, the City’s Finance Director shall, within the then current City financial accounting payment cycle but in any event within 60 business days of receipt of the approved Payment Request, cause the same to be paid but solely from RDA Bond Proceeds. The Purchase Price paid hereunder for any Facility shall constitute payment in full for such Facility, including, without limitation, payment for all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of such Facility, as specified in the Plans. Section 4.6. Restrictions on Payments. Notwithstanding any other provisions of this Acquisition Agreement, the following restrictions shall apply to any payments made to the Developer under Sections 4.2 and 4.5 hereof: A. Amounts of Payments. Subject to the following paragraphs of this Section 4.6, Progress Payments shall be applied toward the Purchase Prices of the Facilities listed on Exhibit A. If the Actual Cost of all Facilities, in the aggregate, is less than $20,000,000.00, then Progress Payment No. 4 and 5 shall be reduced accordingly such that the total of all Progress Payments paid hereunder does not exceed the aggregate Actual Cost of all Facilities acquired, or paid from RDA Bond Proceeds, by the City hereunder; provided, further, if the aggregate Actual Cost of all Facilities exceeds Page 769 72500.00920\34744746.2 A7-11 $20,000,000.00, the aggregate Purchase Price paid under this Acquisition Agreement for all Facilities shall be reduced and limited up to $20,000,000.00. Nothing herein shall require the City in any event to pay more than the Actual Cost of a Facility. The parties hereto acknowledge and agree that all payments to the Developer for the Purchase Prices of Facilities are intended to be reimbursements to the Developer for monies already expended or, if made pursuant to Section 4.6.B. or 4.6.C. hereof, for immediate payment by the Developer (or directly by the City) to third parties in respect of such Facilities. B. Joint or Third Party Payments. The City may make any payment jointly to the Developer and any mortgagee or trust deed beneficiary, contractor or supplier of materials, as their interests may appear, or solely to any such third party, if the Developer so requests the same in writing or as the City otherwise determines such joint or third party payment is necessary to obtain lien releases. C. Withholding Payments. The City shall withhold payment for Progress Payment Nos. 4 & 5 until Acceptable Title to land on which any Facility required by the applicable Project Milestones to be completed in connection with such Progress Payment is conveyed to the City, as described in Article V hereof. The City shall withhold any payment hereunder for Progress Payment Nos. 4 & 5 until the City is satisfied that any and all claims for labor and materials have been paid by the Developer for any Facility required by the applicable Project Milestones to be completed in connection with such Progress Payment, or conditional lien releases in accordance with Section 8122 et seq. of the Civil Code have been provided by the Developer for such Facility. The City may waive this limitation upon the provision by the Developer of sureties, undertakings, securities and/or bonds of the Developer or appropriate contractors or subcontractors and deemed satisfactory by the Director of Public Works to assure payment of such claims. The City shall withhold Progress Payment Nos. 4 & 5 until: (i) the City Manager determines that the Facilities are ready for their intended use, (ii) the Acceptance Date for the Facilities has occurred and the requirements of Section 5.1, if applicable to any Facility, has been satisfied, (iii) a notice of completion executed by the Developer as an owner pursuant to Section 8182 of the Civil Code, reciting the name and address of the City as an owner of an interest as a vendee under a contract of purchase pursuant to Section 8182 of the Civil Code, and in a form acceptable to the Director or Public Works, has been recorded for the Facility, and (iv) general lien releases in accordance with Section 8122 et seq. of the Civil Code, conditioned solely upon payment to be used to acquire such Facility, has been submitted to the City Manager. The City shall withhold Progress Payment Nos. 4 & 5 until the Developer provides the City Manager with evidence that for any Facility to be owned by other governmental entities the governmental entity or utility has accepted dedication of, or title to, the Facility. If the City Manager determines that a Facility is not ready for intended use under (i) above, the City Manager shall so notify the Developer as soon as reasonably practicable in writing specifying the reason(s) therefor. Page 770 72500.00920\34744746.2 A7-12 Pending transfer of title of any Facility to the City, Developer will not use or permit the use of any such Facility. The Developer shall transfer title to the City of each Facility prior to any use of such Facility. D. Retention. With respect to Progress Payment No. 5, the City shall withhold an amount up to $2,000,000. Such retention will be released to the Developer upon (i) final completion and acceptance of the related Facilities required by the applicable Project Milestones to be completed in connection with such Progress Payment, (ii) the expiration thereafter of a maintenance/warranty period (or in lieu thereof, posting of a maintenance or warranty bond to remain in effect for such warranty period) consistent with applicable City policy and Section 5.5 hereof, (iii) the issuance of certificates of occupancy for 100% the Residential Units; and (iv) after review and approval by the City of the total aggregate Actual Costs of the Facilities and the allocation of other related project costs to the Facilities. No retention shall apply if the Developer proves to the City Manager’ satisfaction that the Developer’s contracts for the Facilities provide for the same retention as herein provided, so that the Purchase Price paid for the Facility or portion thereof is at all times net of the required retention. E. Frequency. No more than one Payment Request shall be submitted by the Developer in any calendar month. Section 4.7. Defective or Nonconforming Work. If any of the work done or materials furnished for a Facility are found by the City Manager to be defective or not in accordance with the applicable Plans: (i) and such finding is made prior to payment of the Progress Payment for which a percentage or all of the construction of such Facility is required pursuant to the Project Milestones relating to such Progress Payment, the City may withhold payment therefor until such defect or nonconformance is corrected to the satisfaction of the City Manager, or (ii) and such finding is made after payment of the Purchase Price of such Facility or portion thereof, but prior to the expiration of the applicable warranty period, the City and the Developer shall act in accordance with Section 5.5 hereof. ARTICLE V OWNERSHIP AND TRANSFER OF FACILITIES Section 5.1. Facilities to be Owned by the City – Conveyance of Land and Easements to City. Acceptable Title to all property on, in or over which each Facility to be acquired by the City will be located, shall be deeded over to the City by way of grant deed, quitclaim, or dedication of such property. The Developer shall assist the City in obtaining such documents as are required to obtain Acceptable Title with respect to such property on, in, or over which each Facility will be located. Completion of the transfer of title to land shall be accomplished prior to the payment of the Purchase Price for a Facility and shall be evidenced by recordation of the acceptance thereof by the City Council or the designee thereof. Page 771 72500.00920\34744746.2 A7-13 Section 5.2. Facilities to be Owned by the City – Title Evidence. Upon the request of the City Manager, the Developer shall furnish to the City a preliminary title report for land with respect to Facilities to be acquired by the City and not previously dedicated or otherwise conveyed to the City, for review and approval at least 15 calendar days prior to the transfer of Acceptable Title to a Facility to the City. In the event the City Manager does not approve the preliminary title report, the City shall not be obligated to accept title to such Facility, and the City shall not be obligated to pay the Purchase Price for such Facility until the Developer has cured all objections to title to the satisfaction of the City. Section 5.3. Facilities Constructed on Private Lands. If any Facilities to be acquired are located on privately-owned land, the owner thereof shall retain title to the land and the completed Facilities until acquisition of the Facilities under Article IV hereof. Pending the completion of such transfer of title to land, the Developer shall not be entitled to receive the Progress Payment for the final Purchase Price of any such Facility (e.g., Progress Payment No. 3 with respect to Facilities Nos. 1 and 2, or Progress Payment No. 4 with respect to Facilities Nos. 3, 4, 5 or 6). Section 5.4. Facilities Constructed on City Land. If the Facilities to be acquired are on land owned by the City, the City shall grant to the Developer a license to enter upon such land for purposes related to the construction, and maintenance pending acquisition, of the Facilities. The provisions for inspection and acceptance of such Facilities otherwise provided herein shall apply. Section 5.5. Maintenance and Warranties. The Developer shall maintain each Facility in good and safe condition until the Acceptance Date of the Facility. Prior to the Acceptance Date, the Developer shall be responsible for performing any required maintenance on any completed Facility. On or before the Acceptance Date of the Facility, the Developer shall assign to the City all of the Developer’s rights in any warranties, guarantees, maintenance obligations or other evidence of contingent obligations of third persons with respect to such Facility. The Developer shall maintain or cause to be maintained each Facility to be owned by the City, including the repair or replacement thereof, for a period of one year from the Acceptance Date thereof, or, alternatively, shall provide a bond reasonably acceptable in form and substance to the City Manager for such period and for such purpose, to insure that defects, which appear within said period will be repaired, replaced, or corrected by the Developer, at its own cost and expense, to the satisfaction of the City Manager. The Developer shall commence to repair, replace or correct any such defects within 30 days after written notice thereof by the City to the Developer, and shall complete such repairs, replacement or correction as soon as practicable. After such one-year period, the City shall be responsible for maintaining such Facility. Any warranties, guarantees or other evidences of contingent obligations of third persons with respect to the Facilities to be acquired by the City shall be delivered to the City Manager as part of the transfer of title. Page 772 72500.00920\34744746.2 A7-14 ARTICLE VI INSURANCE; RESPONSIBILITY FOR DAMAGE Section 6.1. Liability Insurance Requirements. The Developer shall procure and maintain insurance policies and provide to the City Manager evidence of insurance and endorsements thereto on forms acceptable to the Risk Manager as provided below. A. Time for Compliance. The Developer shall not commence any physical work on the Facilities until it has provided evidence satisfactory to the Risk Manager that it has secured all insurance required under this Section 6.1. In addition, the Developer shall not allow any contractor or subcontractor to commence work on any contract or subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this Section 6.1. B. Minimum Requirements. At its expense (but subject to reimbursement to the extent permitted as an Actual Cost), the Developer or its General Contractor shall procure and maintain, until acceptance pursuant to the terms of this Acquisition Agreement of all Facilities, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work covered by this Acquisition Agreement, its agents, representatives, employees or subcontractors. The Developer shall also require all of its contractors and subcontractors to procure and maintain the same insurance until acceptance (pursuant to the terms of this Acquisition Agreement) of all Facilities. Such insurance shall meet at least the following minimum levels of coverage: 1. Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (a) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (b) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); (c) Workers’ Compensation and Employers’ Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance; and (d) Builders’/All Risk: Builders’/All Risk insurance covering for all risks of loss, including explosion, collapse, underground excavation and removal of lateral support (and including earthquakes and floods if requested by the City). 2. Minimum Limits of Insurance. Developer or its General Contractor shall maintain limits no less than: (a) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply separately to each construction contract for a Facility thereof that is separately bid and shall be Page 773 72500.00920\34744746.2 A7-15 $4,000,000. If multiple Facilities are aggregated under one construction contract, the Risk Manager may in its sole discretion require a higher general aggregate limit; (b) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; (c) Workers’ Compensation and Employer’s Liability: Workers’ compensation limits as required by the Labor Code of the State of California. Employers Liability limits of $1,000,000 per accident for bodily injury or disease; and (d) Builders’/All Risk: Completed value of the project. (e) Umbrella or Excess Liability Insurance per Section 4.6.3 of Development Agreement (f) Pollution Liability Insurance: per Section 4.6.5 of Development Agreement 3. Requirements Not Limiting per Section 4.7.9 of Development Agreement C. Insurance Endorsements. The insurance policies shall contain the following provisions, or each Developer or its General Contractor shall provide endorsements on forms supplied or approved by the Risk Manager to add the following provisions to its insurance policies: 1. General Liability. (a) The City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers shall be covered as additional insureds with respect to the construction of the Facilities or operations performed by or on behalf of the Developer, including materials, parts or equipment furnished in connection with such work; (b) the insurance coverage shall be primary and non- contributing insurance as respects the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Developer’s or its General Contractor’s scheduled underlying coverage; and (c) any failure to comply with reporting provisions of the policy shall not affect coverage provided to the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers. Any insurance or self- insurance maintained by the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers shall be excess of the Developer’s or its General Contractor’s insurance and shall not be called upon to contribute with it. 2. Automobile Liability. (a) The City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Developer or for which the Developer is responsible; (b) the insurance coverage shall be primary insurance as respects the City Page 774 72500.00920\34744746.2 A7-16 and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Developer’s or its General Contractor’s scheduled underlying coverage; and (c) any failure to comply with reporting provisions of the policy shall not affect coverage provided to the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers. Any insurance or self-insurance maintained by the City, its officers, employees, consultants, agents’ attorneys, and volunteers shall be excess of the Developer’s insurance and shall not be called upon to contribute with it in any way. 3. Waiver of Subrogation for All Coverage. The insurer shall agree to waive all rights of subrogation against the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers for losses paid under the terms of all insurance policies which arise from work performed by the Developer. 4. All Coverages. Each insurance policy required by this Acquisition Agreement shall be endorsed to state that: (a) coverage shall not be suspended, voided, reduced (in coverage or in limits) or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the Risk Manager; and (b) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers. Liability coverage shall not be limited to the vicarious liability or supervising role of any additional insured nor shall there be any limitation with the severability clause. Coverage shall contain no limitation endorsements and there shall be no endorsement or modification limiting the scope of coverage for liability arising from pollution, explosion, collapse, underground property damage or employment related practices. All liability insurance shall be on an occurrence basis. Insurance on a claims made basis will be rejected. There shall be no cross policy exclusion. E. Separation of Insureds; No Special Limitations. All insurance required by this Section 6.1 shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers. F. Professional Liability Insurance. All architects, engineers, consultants or design professionals retained by the Developer shall also procure and maintain, for a period of five years following acceptance (pursuant to the terms of this Acquisition Agreement) of all Facilities for which such Developer is responsible, errors and omissions liability insurance with a limit of not less than $1,000,000 per occurrence. G. Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Risk Manager. The Developer shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers; or (2) the Developer Page 775 72500.00920\34744746.2 A7-17 shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. H. Acceptability of Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance with an assigned policyholders’ and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. I. Verification of Coverage. The Developer shall furnish the City with certificates of insurance and endorsements, duly authenticated, evidencing coverage required by this Acquisition Agreement on forms satisfactory to the Risk Manager and with other evidence of coverage as may be reasonably required by the Risk Manager. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms supplied or approved by the Risk Manager. All certificates and endorsements must be received and approved by the Risk Manager before work commences. The Risk Manager reserves the right to require complete, certified copies of all required insurance policies, at any time. J. Reduction, Cancellation, Void or Suspended Policy. In the event that any required insurance is reduced in coverage, canceled for any reason, voided or suspended, the Developer or its General Contractor agrees that the City may arrange for insurance coverage as specified, and the Developer or its General Contractor further agrees that administrative and premium costs may be deducted from any deposits or bonds the City may have. A reduction or cancellation will be grounds for termination of this Acquisition Agreement and will cause a halt to payment for any Facilities, or Progress Payments toward the Purchase Prices thereof, until the insurance is reestablished. K. Subcontractors. All subcontractors shall meet the requirements of subsections (a) though (d) of this Section 6.1 before commencing any physical work on the Facilities; provided, that minimum general liability coverage shall be $1,000,000 per occurrence for bodily injury, personal injury and property damage, and the general aggregate limit shall apply separately to each construction contract for a Facility that is separately bid and shall be $2,000,000. In addition, the Developer or its General Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor, in form and substance acceptable to the Risk Manager, prior to the subcontractor entering the job site. All coverages for subcontractors shall be subject to all of the requirements stated herein. The Developer or its General Contractor may furnish insurance that meets all the specifications of this Section 6.1 to all of its subcontractors though use of an “Owner Controlled Insurance Program”, “Contractor Controlled Insurance Program” or “Wrap-up” program, subject to approval by the Risk Manager. Section 6.2. Responsibility for Damage and Claims. The Developer or its General Contractor shall take and assume all responsibility for the work performed as part of the Facilities constructed pursuant to this Acquisition Agreement. The Developer Page 776 72500.00920\34744746.2 A7-18 shall bear all losses and damages directly or indirectly resulting to it, to the City, and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers, or to others on account of the performance or character of the work, unforeseen difficulties, accidents or any other causes whatsoever. The Developer and its successors and assigns shall assume the defense of, indemnify, protect and save harmless the City and its Councilmembers, officers, employees, consultants, agents, attorneys, and volunteers (each an “Indemnified Party”), and each and every one of them (including independent contractors who serve as the City’s officers or officials), from and against all actions, demands, damages, injuries, claims, losses, causes of action, liabilities or expenses of every type and description to which they may be subjected or put, whether known or unknown, existing or potential, anticipated or unanticipated, in law or equity, to property or persons, including wrongful death, by reason of, or resulting or in any manner arising from or incident to, the performance by the Developer (or any of its officers, agents, servants, employees, subcontractors, materialmen, or suppliers) of its obligations under this Acquisition Agreement, the construction of the Facilities (including, but not limited to, failure of such Developer to pay any amount due to any contractor hired by the Developer for the construction of any Facility and any fines or penalties arising therefrom, and all damages to property or personal injury received by reason of, or in the course of, performing work, which may be caused by any willful or negligent act or omission by the Developer or any of the Developer’s employees, or any subcontractor), the nature or physical condition of the Facilities, the presence of any hazardous materials on or in any land conveyed to the City hereunder (but excluding hazardous materials which are introduced in or on such land by an Indemnified Party or after the expiration of the period for which the Developer is responsible for maintenance of the related Facility pursuant to Section 5.5. hereof), including without limitation the payment of all consequential damages and attorneys’ fees and other related costs and expenses. No provision of this Acquisition Agreement shall in any way limit the extent of the Developer’s responsibility for payment of damages resulting from the operations of the Developer and its contractors. The Developer shall defend, at the Developer’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City or its Councilmembers, officers, employees, consultants, agents attorneys, or volunteers. The Developer shall pay and satisfy any judgment, award or decree that may be rendered against the City or its Councilmembers, officers, employees, consultants, agents, attorneys, or volunteers, in any such suit, action or other legal proceeding. The Developer shall reimburse City and its Councilmembers, officers, employees, consultants, agent’s attorneys, and volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The City does not, and shall not, waive any rights against the Developer which either may have by reason of the aforesaid hold harmless agreements because of the acceptance by the City, or deposit with the City by the Developer of any insurance policies described in Section 6.1. The aforesaid hold harmless agreement by the Developer shall apply to all damages and claims for damages of every kind suffered, or alleged to have Page 777 72500.00920\34744746.2 A7-19 been suffered by reasons of any of the aforesaid operations of the Developer, or any subcontractor, regardless of whether or not such insurance policies are determined to be applicable to any of such damages or claims for damages. No act by the City or its representatives in processing or accepting any plans, in releasing any bond, in inspecting or accepting any work, or of any other nature, shall in any respect relieve the Developer or anyone else from any legal responsibility, obligation or liability it might otherwise have. The indemnification and hold harmless provisions of this Section 6.2 shall survive the termination of this Acquisition Agreement, the completion of construction of the Facilities, and the conveyance of title thereto to the City. Page 778 72500.00920\34744746.2 A7-20 ARTICLE VII REPRESENTATIONS, WARRANTIES AND COVENANTS Section 7.1. Representations, Covenants and Warranties of the Developer. The Developer represents and warrants for the benefit of the City as follows: A. Organization. The Developer is a Limited Liability Company duly organized and validly existing under the laws of the State of Delaware, is qualified to do business in and is in compliance with all applicable laws of the State of California, and has the power and authority to own its properties and assets and to carry on its business as now being conducted and as now contemplated. B. Authority. The Developer has the power and authority to enter into this Acquisition Agreement, and has taken all action necessary to cause this Acquisition Agreement to be executed and delivered, and this Acquisition Agreement has been duly and validly executed and delivered by the Developer. C. Binding Obligation. This Acquisition Agreement is a legal, valid and binding obligation of the Developer, enforceable against the Developer in accordance with its terms, subject to bankruptcy and other equitable principles. D. Compliance with Laws. The Developer shall not commit, suffer or permit any act to be done in, upon or to the lands of the Developer, the City or the Facilities in violation of any law, ordinance, rule, regulation or order of any governmental authority or any covenant, condition or restriction now or hereafter affecting the lands in the City or the Facilities. E. Requests for Payment. The Developer represents and warrants that (i) it will not request payment from the City for the acquisition of any improvements that are not part of the Facilities, and (ii) it will diligently follow all procedures set forth in this Acquisition Agreement with respect to the Payment Requests. F. Financial Records. Until the date which is one year following the final acceptance of the Facilities, the Developer covenants to maintain proper books of record and account for the construction of the Facilities and all costs related thereto. Such accounting books shall be maintained in accordance with generally accepted accounting principles, and shall be available for inspection by the City or its officers, employees, consultants, or agents at any reasonable time during regular business hours. G. Prevailing Wages. The Developer covenants that, with respect to any contracts or subcontracts for the construction of the Facilities to be acquired from the Developer hereunder, it will assure complete compliance with any applicable law or regulation for the payment of prevailing wages. Without limiting the foregoing, the Developer further covenants that it will assure compliance with Section 3.3 hereof regarding the payment of prevailing wages with respect to the construction of the Facilities and the Project. Page 779 72500.00920\34744746.2 A7-21 H. Plans. The Developer represents that it has obtained or will obtain approval of the Plans for the Facilities to be acquired from the Developer hereunder from all appropriate departments of the City and from any other governmental entity or utility from which such approval must be obtained. The Developer further agrees that the Facilities to be acquired from the Developer hereunder have been or will be constructed in full compliance with such approved plans and specifications and any supplemental agreements and change orders thereto, as approved in the same manner. ARTICLE VIII TERMINATION Section 8.1. Mutual Consent. This Acquisition Agreement may be terminated by the mutual, written consent of the City and the Developer, in which event the City may let contracts for any remaining work related to the Facilities not theretofore acquired from the Developer hereunder, and the Developer shall have no claim or right to any further payments for the Purchase Price of Facilities or Progress Payments toward the Purchase Prices thereof, except as otherwise may be provided in such written consent. Section 8.2. City Election for Cause. The following events shall constitute grounds for the City to terminate this Acquisition Agreement, without the consent of the Developer: A. The Developer voluntarily files for reorganization or other relief under any Federal or state bankruptcy or insolvency law. B. The Developer has any involuntary bankruptcy or insolvency action filed against it, or shall suffer a trustee in bankruptcy or insolvency or receiver to take possession of the assets of the Developer, or has suffered an attachment or levy of execution to be made against the property it owns within the City unless, in any of such cases, such circumstance shall have been terminated or released within 30 days thereafter. C. The Developer abandons construction of the Facilities. Failure for a period of 60 consecutive days to undertake substantial work related to the construction of the Facilities, other than for a reason specified in Section 8.3 hereof, shall constitute such abandonment. D. The Developer breaches any material covenant or default in the performance of any material obligation hereunder. E. The Developer transfers any of its rights or obligations under this Acquisition Agreement in violation of the terms and conditions of this Acquisition Agreement. If any such event occurs, the City shall give written notice of its knowledge thereof to the Developer, and the Developer shall meet and confer with the City Manager and other appropriate City staff and consultants within five days of receipt of such notice as to options available to assure timely completion of the Facilities. Such options may include, but not be limited to the termination of this Acquisition Agreement by the City. If Page 780 72500.00920\34744746.2 A7-22 the City elects to terminate this Acquisition Agreement, the City shall first notify the Developer of the grounds for such termination and allow the Developer 60 days to eliminate or mitigate to the satisfaction of the City Manager the grounds for such termination. Such period may be extended, at the sole discretion of the City, if the Developer to the satisfaction of the City is proceeding with diligence to eliminate or mitigate such grounds for termination. If at the end of such period (and any extension thereof), as determined solely by the City, the Developer has not eliminated or completely mitigated such grounds to the satisfaction of the City, the City may then terminate this Acquisition Agreement. Notwithstanding the foregoing, so long as any event listed in any of clauses A. through and including E. above has occurred, notice of which has been given by the City to the Developer, and such event has not been cured or otherwise eliminated by the Developer, the City may in its discretion cease making payments for the Purchase Price of Facilities or Progress Payments toward the Purchase Prices thereof under Article III or Article IV hereof. Section 8.3. Force Majeure. Whenever performance is required of a party hereunder, that party shall use all due diligence and take all necessary measures in good faith to perform, but if completion of performance is actually delayed by reasons of floods, earthquakes or other acts of God, war, civil commotion, riots, strikes, picketing, or other labor disputes, pandemics, damage to work in progress by casualty, or by other cause beyond the reasonable control of the party (financial inability excepted), then the specified time for performance shall be extended by the amount of the delay actually so caused. ARTICLE IX MISCELLANEOUS Section 9.1. Limited Liability of City. No member of the City Council or City official, employee, consultant, agent, attorney, or volunteer shall incur any liability hereunder to the Developer or any other party in their individual capacities by reason of their actions hereunder or execution hereof. Section 9.2. Excess Costs. The Developer shall pay all costs of the Facilities that it is obligated to construct (pursuant to Section 3.2 or otherwise) in excess of the aggregate Purchase Price to be paid by the City therefor pursuant to the terms and conditions of this Acquisition Agreement (including but not limited to Section 4.6). Section 9.3. Audit. The City Manager and the City’s Finance Director may, with 72 hours advanced notice, review all books and records of the Developer pertaining to costs and expenses incurred by the Developer into any of the Facilities, and any bids taken or received for the construction thereof or materials therefor. Section 9.4. Attorney’s Fees. In the event that any action or suit is instituted by either party against the other arising out of this Acquisition Agreement, the party in whose favor final judgment shall be entered shall be entitled to recover from the other party all costs and expenses of suit, including reasonable attorneys’ fees. Page 781 72500.00920\34744746.2 A7-23 Section 9.5. Notices. Any notice, payment or instrument required or permitted by this Acquisition Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered, or transmitted by telecopy or facsimile transmission (which shall be immediately confirmed by telephone and shall be followed by mailing an original of the same within 24 hours after such transmission), or 72 hours following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows: City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: City Manager Developer: Desert Wave Ventures, LLC 1555 Camino Del Mar, Suite 315C Del Mar, CA 92014 Attn: Don Rady Each party may change its address or addresses for delivery of notice by delivering ten calendar days’ prior written notice of such change of address to the other party. Section 9.6. Severability. If any part of this Acquisition Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Acquisition Agreement shall be given effect to the fullest extent possible. Section 9.7. Successors and Assigns. This Acquisition Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. This Acquisition Agreement shall not be assigned by the Developer without the prior written consent of the City shall release the Developer from its obligations and liabilities under this Acquisition Agreement. Section 9.8. Other Agreements. Nothing herein shall be construed as affecting the Developer’s duties to perform its respective obligations, under other agreements, use regulations or requirements relating to the development. This Acquisition Agreement shall not confer any additional rights to, or waive any duties of, the Developer under the Development Agreement or other agreement to which the Developer is a party. Section 9.9. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Acquisition Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Acquisition Agreement thereafter. Section 9.10. Merger; Entire Agreement. No other agreement, statement or promise made by any party or any employee, officer or agent of any party with respect to any matters covered hereby that is not in writing and signed by all the parties to this Acquisition Agreement shall be binding. Page 782 72500.00920\34744746.2 A7-24 Section 9.11. Parties in Interest. Nothing in this Acquisition Agreement, expressed or implied, is intended to or shall be construed to confer upon or to give to any person or entity other than the City and the Developer any rights, remedies or claims under or by reason of this Acquisition Agreement or any covenants, conditions or stipulations hereof; and all covenants, conditions, promises, and agreements in this Acquisition Agreement contained by or on behalf of the City or the Developer shall be for the sole and exclusive benefit of the City and the Developer. Section 9.12. Amendment. This Acquisition Amendment may be amended, from time to time, by written Supplement hereto and executed by the City and the Developer. Section 9.13. Counterparts. This Acquisition Agreement may be executed in counterparts, each of which shall be deemed an original. IN WITNESS WHEREOF, the parties have executed this Acquisition Agreement as of the day and year first-above written. CITY OF PALM DESERT By: ____ ___________ Mayor [DEVELOPER] DESERT WAVE VENTURES, LLC a Delaware limited liability company By: FS Ventures, LLC a Delaware corporation, Its Manager By: Name: Its: Page 783 72500.00920\34744746.2 A7-25 ACQUISITION AGREEMENT EXHIBIT A Facilities a. 151 parking structure stalls for Surf Center parking and Desert Willow overflow parking; b.96 on-site surface parking stalls for Surf Center and Desert Willow overflow parking; and d.226 surface stalls of off-site parking to meet mitigation requirements of the Existing Approvals 473 Public Parking stalls as outlined above are the Facilities 92 Hotel Spaces (30 surface onsite and 62 surface offsite) are not Facilities [ADDITIONAL PAGES TO BE INSERTED] Page 784 Page 785 Page 786 72500.00920\34744746.2 A7-26 ACQUISITION AGREEMENT EXHIBIT B SCHEDULE OF PROGRESS PAYMENTS Draw Public Parking Surf Lagoon and Center Hotel RESIDENTIAL UNITS 1st- $5M 30% construction cost of podium Parking Structure 100% rough grading complete Commence foundation upon fully approved and issued building permits for the entire Hotel 2nd- $5M 60% of construction cost of podium Parking Structure 100% Foundations Complete Completion of 60% of Hotel Parking 3rd- up to $5M 100% completion of all Public Parking and compliance with the Acquisition Agreement 100% of Surf Lagoon floor completed and surf equipment on site Completion of rough framing construction of the Hotel 4th- up to $3M 100% of all other public infrastructure and compliance with the Acquisition Agreement 100% complete certificate of occupancy for Surf Lagoon and Center approved 100% complete certificate of occupancy for Hotel approved 5th- up to $2M 4th Payment has been made, and City “look-back” approval of actual Project Costs in Section 4.5(d) of the Development Agreement and in compliance with the Acquisition Agreement 100% complete Certificate of Occupancy for Residential Units Page 787 72500.00920\34744746.2 A7-27 ACQUISITION AGREEMENT EXHIBIT C FORM OF PAYMENT REQUEST PAYMENT REQUEST NO. _____ The undersigned (the “Developer”) hereby requests payment in the total amount of $_____________ for Progress Payment No. ____, as more fully described in Attachment 1 hereto. Capitalized terms used but not defined herein shall have the respective meanings ascribed thereto in the Acquisition Agreement, dated as of _____________, 20___, between the City of Palm Desert (the “City”), and the Developer. In connection with this Payment Request, the undersigned hereby represents and warrants to the City as follows: 1. The Undersigned is a duly authorized officer of the Developer, qualified to execute this Payment Request for payment on behalf of the Developer and is knowledgeable as to the matters set forth herein. 2. To the extent that this payment request is with respect to a Progress Payment for which the applicable Project Milestones require one or more completed Facilities, the Developer has submitted or submits herewith to the City as-built drawings or similar plans and specifications for the items to be paid for as listed in Attachment 1 hereto with respect to any such completed Facility, and such drawings or plans and specifications, as applicable, are true, correct and complete. To the extent that this payment request is for a Progress Payment for which the applicable Project Milestones require a percentage (less than completion) of one or more Facilities, the Developer has in the Developer’s construction office a marked set of drawings or similar plans and specifications for the subject Facility(ies) as listed in Attachment 1 hereto, which drawings or plans and specifications, as applicable, are current and show all changes or modifications which have been made to date. 3. All costs of the Facilities or portions thereof for which payment is requested hereby are Actual Costs (as defined in the Acquisition Agreement) and have not been inflated in any respect. The items for which payment is requested have not been the subject of any prior payment request submitted to the City. 4. Supporting documentation (such as third party invoices) is attached with respect to each cost for which payment is requested. 5. There has been compliance with applicable laws relating to prevailing wages for the work to construct the Facilities or portions thereof for which payment is requested. 6. The Facilities or portions thereof for which payment is requested were constructed in accordance with all applicable City or other governmental standards, and Page 788 72500.00920\34744746.2 A7-28 in accordance with the as-built drawings or plans and specifications, as applicable, referenced in paragraph 2 above. 7. The Developer is in compliance with the terms and provisions of the Acquisition Agreement, and no portion of the amount being requested to be paid was previously paid. 8. The Purchase Price for each Facility or portion thereof for which a Progress Payment is requested hereby (a detailed calculation of which is shown in an Attachment 1 hereto for each such Facility or portion thereof), has been calculated in conformance with the terms of Section 4.6 of the Acquisition Agreement. I hereby declare and certify that the above representations and warranties are true and correct. DEVELOPER: By:___________________________ Name: Its: ___________________________ Date: CITY: Payment Request Approved for Submission to the Finance Director of the City of Palm Desert By: City Manager Date: Page 789 72500.00920\34744746.2 A7-29 EXHIBIT C ATTACHMENT 1 CALCULATION OF PURCHASE PRICE. [Use a separate sheet for each Facility for which a Progress Payment is being requested] 1. Description (by reference to Exhibit A to the Acquisition Agreement) of the Facility 2. Actual Cost (list here total of supporting invoices and/or other documentation supporting determination of Actual Cost): $_________ 3. Subtractions from Purchase Price: A. Holdback for Lien releases (see Section 4.6.C. of the Acquisition Agreement) $_________ B. Retention (see Section 4.6.D. of the Acquisition Agreement) $_________ 4. Total disbursement requested (amount listed in 2, less amounts, if any, listed in 3) $_________ Page 790 72500.00920\34744746.2 A7-30 ACQUISITION AGREEMENT EXHIBIT D FORM OF PAYMENT BOND Bond No. PAYMENT BOND (LABOR AND MATERIALS) CITY OF PALM DESERT KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS [name of developer] (“Developer”) has awarded to (Name, address, and telephone number of Contractor) (“Principal”), a contract (the “Contract”) for the work described as follows: WHEREAS, Principal is required under the terms of the Contract and the California Civil Code to secure the payment of claims of laborers, mechanics, materialmen, and other persons as provided by law. NOW, THEREFORE, we, the undersigned Principal, and , (Name, address, and telephone number of Surety) (“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto Developer and the City of Palm Desert in the penal sum of Dollars ($ ), this amount being not less than 100 percent of the total contract price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, or subcontractors shall fail to pay any of the persons named in Section 9100 of the California Civil Code, or any amounts due under the Unemployment Insurance Code with respect to work or labor performed under the Page 791 72500.00920\34744746.2 A7-31 Contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Principal and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, with respect to work or labor performed under the Contract, the Surety will pay for the same in an amount not exceeding the penal sum specified in this bond; otherwise, this obligation shall become null and void. This bond shall inure to the benefit of any of the persons named in Section 9100 of the California Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon the bond. In case suit is brought upon this bond, Surety further agrees to pay all court costs and reasonable attorneys’ fees in an amount fixed by the court. FURTHER, the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, addition or modification to the terms of the Contract, or of the work to be performed thereunder, or the specifications for the same, shall in any way affect its obligations under this bond, and it does hereby waive notice of any such change, extension of time, alteration, addition, or modification to the terms of the Contract or to the work or to the specifications thereunder. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. IN WITNESS WHEREOF, two identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body. Dated: “Principal” By: Its By: Its (Seal) “Surety” By: Its By: Its (Seal) Note: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. Page 792 72500.00920\34744746.2 A7-32 ACQUISITION AGREEMENT EXHIBIT E FORM OF CONTRACTOR PERFORMANCE BOND Bond No. CONTRACTOR PERFORMANCE BOND CITY OF PALM DESERT KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS [name of developer] (“Developer”) has awarded to (Name, address, and telephone number of Contractor) (“Principal”), a contract (the “Contract”) for the work described as follows: WHEREAS, Principal is required under the terms of the Contract to furnish a bond for the faithful performance of the Contract. NOW, THEREFORE, we, the undersigned Principal, and , (Name, address, and telephone number of Surety) (“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto Developer and the City of Palm Desert (the “City”) in the penal sum of Dollars ($ ), this amount being not less than the total contract price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform all the undertakings, terms, covenants, conditions and agreements in the Contract and any alteration thereof made as therein provided, on the Principal’s part to be kept and performed, all within the time and in the manner therein specified, Page 793 72500.00920\34744746.2 A7-33 and in all respects according to their true intent and meaning, and shall indemnify and hold harmless the City and their respective Councilmembers, officers, employees, agents, attorneys, and volunteers, and others as therein provided, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. In case suit is brought upon this bond, Surety further agrees to pay all court costs and reasonable attorneys’ fees in an amount fixed by the court. FURTHER, the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, addition or modification to the terms of the Contract, or of the work to be performed thereunder, or the specifications for the same, shall in any way affect its obligations under this bond, and it does hereby waive notice of any such change, extension of time, alteration, addition, or modification to the terms of the Contract or to the work or to the specifications thereunder. Surety hereby waives the provisions of California Civil Code §§ 2845 and 2849. The City is a principal beneficiary of this bond and has all rights of a party thereto. IN WITNESS WHEREOF, two identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body. Dated: “Principal” By: Its By: Its (Seal) “Surety” By: Its By: Its (Seal) Note: This bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. Page 794 72500.00920\34744746.2 A8-1 ATTACHMENT NO. 8 FORM OF TRANSIENT OCCUPANCY TAX REIMBURSEMENT AGREEMENT Page 795 72500.00920\34744746.2 A8-2 [NOTE: The Parties shall execute this Agreement concurrent with the Close of Escrow as such term is defined in the DDA. The Form is subject to minor confirming and clarifying changes to implement the provisions of the DDA] FORM OF CITY OF PALM DESERT/DESERT WAVE VENTURES TOT REIMBURSEMENT AGREEMENT THIS AGREEMENT (“Agreement”) is entered into as of _____________, 20___, by and between THE CITY OF PALM DESERT, a California municipal corporation, (the “City”), and Desert Wave Ventures, LLC, a Delaware limited liability company registered to do business in the State of California (“Owner”). RECITALS A. Owner intends to purchase certain real property in the City of Palm Desert, as more fully described in Exhibit “A” (the “Property”), on which Owner intends to develop and operate at least a 92-room hotel and 83 for-sale residential units (the “Project”). Owner anticipates that the Project, once occupied, will generate transient occupancy taxes (“TOT”) to the City in an amount estimated by Owner to exceed ______ dollars ($_________) during the first twenty (20) years of the Project’s operation, in addition to increased sales taxes generated by the anticipated increased visitation to the City. B. The City wishes to provide Owner an incentive to operate the Project in order that increased visitation will generate additional TOT and sales tax to the City, and to provide certain emergency services to City residents. C. City and Owner have entered into that certain Revised and Restated Disposition and Development Agreement, dated ______________ (the “DDA”) AGREEMENT NOW, THEREFORE, THE CITY AND OWNER AGREE AS FOLLOWS: Section 1. Reimbursement Commitment. A. In consideration for Owner’s operating the Project on the Property and the other conditions and covenants provided for herein, if and when the Project is built and operated on the Property, the City shall reimburse to Owner based off the City’s current (11%) TOT, as defined in Section 3.28.030 of the Palm Desert Municipal Code as of the date of this Agreement, collected from the Project in an amount not to exceed $_____________ (“Reimbursement TOT”). Page 796 72500.00920\34744746.2 A8-3 B. The City will reimburse to Owner of the Project up to a maximum of $_____________ in the following manner: 1. Forty Percent (40%) of the TOT generated by the hotel component of the Project; and 2. Sixty percent (60%) of the TOT generated by the for-sale residential component of the Project. C. Payment of Reimbursement TOT by City to Owner shall commence for the first full quarter during which commercial operation of the Project commenced and shall continue until the earlier of (1) $_____________has been reimbursed by the City; or (2) twenty years from the date of commencement of commercial operation as defined in Section 2(A) below (“Reimbursement Termination Date”). TOT collected prior to the Reimbursement Termination Date is subject to reimbursement pursuant to this Agreement; TOT collected after the Reimbursement Termination Date is not subject to reimbursement. D. Owner shall at all times remit to City full payment of TOT as required by the City’s Municipal Code. Distributions of Reimbursement TOT by City to Owner shall be made within thirty (30) days of the receipt by the City of the full amount of TOT from the Property for each quarter. Section 2. Conditions to Reimbursement. As a condition precedent to payment of any Reimbursement TOT, Owner shall: A. Commence commercial operation of the Project by _____________. If Owner fails to commence commercial operation prior to that date, then the City, in its sole discretion, may terminate this Agreement by delivering written notice of such termination to Owner. Following such termination, neither party shall have any further rights, duties or obligations hereunder, and the City shall have no obligation to pay Reimbursement TOT, provided however that if this Agreement is not so terminated and Owner subsequently commences operation, the terms of this Agreement shall apply and the City’s right to terminate shall be void; and B. Be at all times operated as a AAA 4 Diamond property as required by the DDA and the Grant Deed dated______________ between the City of Palm Desert and ___________________, recorded in the Official Records of the County of Riverside, California as Document No.____________. C. Owner shall quarterly certify to the City that the Hotel continues to meet the AAA 4 Diamond rating. Page 797 72500.00920\34744746.2 A8-4 D. Should the Project’s AAA 4 Diamond rating lapse, The 40% TOT rebate due the developer from the City shall be reduced to 20%. If Owner successfully reinstates its AAA 4 Diamond rating at any point within a 9-month cure period following loss of the rating, the TOT reimbursement will revert back to 40%. Should the owner fail to cure the rating loss for a continuous 9 months, the TOT reimbursement will be eliminated (0%). If owner successfully reinstates the AAA 4 Diamond rating at any time prior to the Reimbursement Termination Date, the TOT reimbursement will be restored to 40%. Section 3. No Obligation to Build or Operate. Both parties acknowledge that the Project is currently in the proposal stages, and Owner shall have no liability to City for failure to build or operate the Project as intended by the parties herein. Section 4. Indemnification. Owner shall defend, assume all responsibility for and hold the City, its council members, officers and employees, harmless from all demands, claims, actions and damages, of whatever type or nature, including all costs of defense and attorneys’ fees, to any person or property arising out of or caused by any of Owner’s activities under this Agreement, whether such activities or performance thereof be by Owner or anyone directly or indirectly employed or contracted with by Owner and whether such damage shall accrue or be discovered before or after commencement of operation of the Project. Section 5. Default. A. Any one or all of the following events shall constitute a default by Owner: 1. Any misleading statement, misrepresentation or warranty of Owner herein or in any other writing at any time furnished by Owner to City that materially harms the City or materially diminishes the benefit of the Agreement to the City; 2. Nonperformance when due of any of the obligations described herein, or failure to perform any obligation or covenant contained herein; 3. The filing by or against Owner of a petition for relief under the Bankruptcy Reform Act of 1978 or any bankruptcy or debtor relief law; 4. A general assignment by Owner for the benefit of creditors or the appointment of any receiver or trustee of all or any portion of the assets of Owner; and Page 798 72500.00920\34744746.2 A8-5 5. The transfer or assignment of this Agreement without approval by the City as set forth in the DDA B. Remedies. Upon the occurrence of a default, consistent with the provisions of the DDA, the City will notify the Owner and, may at its option, declare this Agreement to be in default and, in such event, the City shall have all of the rights and remedies prescribed at law or in equity. Following an uncured event of default, the City shall have no further obligation to disburse all or any portion of Reimbursement TOT. C. No Liability of City Member. No city council member, official or employee of the City shall be personally liable to Owner, or any successor in interest, in the event of any default or breach by City under this Agreement or for any amount which may become due to Owner or any successor or on any obligations under the terms of this Agreement. Section 6. Compliance With Governmental Regulations. Owner shall, at its sole cost and expense, comply with all applicable municipal, county, state and federal laws, rules, regulations and ordinances now in force, or which may hereafter be in force, pertaining to its activities contemplated under this Agreement, including, but not limited to: issuance of building and use permits and compliance with all federal and state labor laws (collectively, “Laws”). Supplementing the indemnity set forth in Section 4 above, Owner shall defend, indemnify and hold the City, its elected officials, officers, members, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure of Owner to comply with such Laws relating to this Agreement Specifically, by its execution of this Agreement, Owner certifies that it is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the project being performed is an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Owner agrees to fully comply with such Prevailing Wage Laws. If required, Owner shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the work on the project available to interested parties upon request, and shall post copies at the Owner’s principal place of business and the project site. Section 7. Miscellaneous Provisions. A. Transfer or Assignment. Owner shall not transfer or assign this Agreement without prior written approval by the City. Approval of any such transfer or Page 799 72500.00920\34744746.2 A8-6 assignment shall be at the sole discretion of the City, provided that, as the parties acknowledge that Owner will likely monetize this Agreement as part of its project financing, City shall not unreasonably withhold, condition or delay its consent to a pledge or assignment of this Agreement (or rights under this Agreement) as part of the capital financing for the Project. Such financing approval may be granted by the City Manager without further action of the City Council. B. Interest of Members of City. No member of the City Council of City and no other officer, employee or agent of the City who exercises any functions or responsibilities in connection with the carrying out of the City’s work shall have any personal interest, direct or indirect, in this Agreement. C. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, to the jurisdiction of which the parties hereto submit. D. Time of the Essence. Time is of the essence of each and every provision of this agreement. E. Notices. Notices or other communications given under this Agreement shall be in writing and shall be served personally or transmitted by first class mail, postage prepaid. Notices shall be deemed received either at the time of actual receipt or, if mailed in accordance herewith, on the third (3rd) business day after mailing, whichever occurs first. Notices shall be directed to the parties at the following addresses or at such other addresses as the parties may indicate by notice: City: The City of Palm Desert Palm Desert Civic Center 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: City Manager Owner: Desert Wave Ventures, LLC Attn: Don Rady 1555 Camino Del Mar, Suite 315C Del Mar, CA 92014 F. Headings. The titles and headings of the various sections of this Agreement are intended solely for reference and are not intended to explain, modify or place any interpretation upon any provision of this Agreement. Page 800 72500.00920\34744746.2 A8-7 G. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such or the remaining provisions of this Agreement. H. Waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executing in writing by the party making the waiver. I. Number and Gender. As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural number, shall each include the others whenever the context so indicates or requires. J. Further Assurances. The parties shall execute, acknowledge, file or record such other instruments and statements and shall take such additional action as may be necessary to carry out the purpose and intent of this Agreement. K. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties’ respective heirs, legal representatives, successors and assigns. L. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous agreements, representations, warranties and understandings of the parties concerning the subject matter contained herein, written or oral. No change, modification, addendum or amendment to any provision of this Agreement shall be valid unless executed in writing by each party hereto. M. Attorneys’ Fees. In the event of any litigation arising out of this Agreement, the prevailing party in such action, or the non-dismissing party where the dismissal occurs other than by reason of a settlement, shall be entitled to recover its reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees and costs paid or incurred in good faith. The “prevailing party,” for purposes of this Agreement, shall be deemed to be that party who obtains substantially the result sought, whether by settlement, dismissal or judgment. N. Amendment. This Agreement may be amended only by a written instrument signed by both City and Owner. IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the day and year first above written. Page 801 72500.00920\34744746.2 A8-8 CITY: CITY OF PALM DESERT, a California municipal corporation By: ________ Mayor ATTEST: APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP Rachelle Klassen, City Clerk Robert W. Hargreaves, City Attorney OWNER: DESERT WAVE VENTURES, LLC a Delaware limited liability company By: Its: EXHIBIT A Approximately 17.68 acres known as APN 620400008, 620420024 and 620420023 in the City of Palm Desert, County of Riverside, California. Page 802 72500.00920\34744746.2 A9-1 ATTACHMENT NO. 9 SCHEDULE OF PERFORMANCE In the event of any conflict between the contents of the Schedule of Performance and the Agreement, the provisions of the Agreement shall prevail. ACTION TARGET DATE 1. Execution of Agreement and City Cost Reimbursement Agreement by Developer. Developer shall execute and deliver Agreement and City Cost Reimbursement Agreement to City. Completed 2. Execution of Agreement and City Cost Reimbursement Agreement by City. City shall hold public hearings to consider and approve or disapprove Agreement and City Cost Reimbursement Agreement. If approved, City shall execute Agreement. Completed 3. Submission of all Implementing Actions. Developer shall submit all agreements pertaining to the Implementing Actions to City for final review and approval. (§1.3(b), §5.2(a)) Not later than 45 days prior to the Close of Escrow. 4. Submission of 100% Design Development Drawings and Preliminary Cost Estimate. Developer shall prepare and submit to the City 100% Design Development Drawings and documents for the Surf Lagoon, Surf Center and Hotel; and preliminary costs associated. December 31, 2021 5. Submission of 100% Rough Grading Plans. The Developer shall submit to the City 100% Rough Grading Plans, Rough Grading Permit Application and associated fees. January 31, 2022 6. Approval – 100% Rough Grading Plans. The City shall approve or disapprove the 100% Rough Grading Plans for the entire site. April 30, 2022. 7. Submission of 100% Construction Drawings. Developer shall prepare and submit to the City 100% Construction Drawings and documents for the Surf Lagoon, Surf Center and Hotel. March 31, 2022 8. Submit Building Permit Application. Developer shall submit to City Building Permit Application for the Surf Lagoon, Surf Center and Hotel with 100% construction documents. (§4.3(a)(ii)) March 31, 2022 Page 803 72500.00920\34744746.2 A9-2 ACTION TARGET DATE 9. City acceptance of complete Construction Documents and Building Permits. (§4.3) Prior to close of escrow. 10. Submission -- Equity Investors. Developer shall submit to City identity of Equity Investors and written binding agreements with the Equity Investors. (§5.2(b) and (c)) Not later than 45 days prior to Prior to close of escrow. 11. Submission of Final Detailed Cost Estimates (Non- GMP)- Surf Lagoon and Center and Hotel. Developer shall prepare and submit to the City final detailed cost estimates for the design and construction of the Surf Lagoon and Center and Hotel. (§4.4(b)) July 31, 2022 12. Review -- Final Cost Estimates - Surf Lagoon and Center and Hotel. The City shall review final detailed cost estimates for the Surf Lagoon and Center and Hotel. (§4.4(b)) Prior to close of escrow. 13. Submittal of Final Project Budget and Final Project Plan of Finance. (§4.4(e)) Not later than 45 days prior to the Close of Escrow. 14. Submission of Loan Documents. Developer shall submit to City binding Loan Documents from Private Construction Lender for construction financing. (§5.2(d)) Not later than 45 days prior to the Close of Escrow. 15. Submission of Operating Agreement for the Hotel Developer shall submit to City for review of the Operating Agreement. (§5.2(r), Scope of Development at II.A.3(e)) Not later than 45 days prior to the Close of Escrow. 16. Submission of Construction Contracts. Developer shall submit to the City construction contracts and executed guaranteed maximum price construction contracts or fixed price construction contracts, as applicable, with respect to the Developer’s Improvements, based on signed bids from Developer’s contractors (§4.4(f) for the construction of the Surf Lagoon and Center and Hotel. (§5.2(f)) August 31, 2022 17. City Review of Items 13-16 above. Prior to close of escrow. 18. Submission of Completion Guarantee if required, Certificates, Insurance, Payment Bonds and Performance Bonds. (§4.7.1, §4.11) Not later than 45 days prior to the Close of Escrow. 19. City Review Completion Guarantee , Certificates, Insurance, Payment Bonds and Performance Bonds Prior to close of escrow. 20. Open Escrow Account. The City and Developer shall open an escrow with the Escrow Agent. (§6.1) Already completed. Page 804 72500.00920\34744746.2 A9-3 ACTION TARGET DATE 21. Execution and Delivery of SARDA Property, Property Title, etc. The City and Developer shall complete, execute and deliver into escrow the SARDA Property Title (including memorandum relating thereto), together with all documents and supplemental escrow instructions required to close escrow for conveyance of SARDA Property Title from the SARDA to Developer. (§6.5) Prior to close of escrow. 22. Escrow Fees, Charges. The City and Developer shall pay their respective fees, charges and other costs into escrow. (§6.4) Prior to close of escrow. 23. Close of Escrow. The City shall convey to the Developer title to the City Property and SARDA Property. (§6.3) October 31, 2022 24. Commencement of Construction Mobilization of Surf Lagoon and Center and Hotel. The Developer shall commence construction of the Surf Lagoon and Center and Hotel improvements. (§6.3.2) Within 60 days following close of escrow. 25. Completion of Construction of Project. The Developer shall complete construction of the Project. (§6.4) Within 24 months following commencement of construction. 26. Termination of Agreement. This Agreement shall automatically terminate if any of the events listed occur. (§8.1; §8.1.1) Upon completion and issuance of certificate of occupancy and/or certificate of completion of all improvements for the Surf Lagoon and Center, Residential Units Hotel, and Parking. Page 805 ARCHITECTURAL REVIEW COMMISSION NOTICE OF ACTION May 5, 2021 Desert Wave Ventures PO Box 147 Solano Beach, CA 92075 Subject: Consideration of a recommendation to approve a Specific Plan Amendment and a Precise Plan application for DSRT SURF, a Resort Development inclusive of a Surf Lagoon and Surf Center Facility (Restaurant, Bar, Retail, and Support Facilities), a Four-Story 92 Room Hotel, and 83 Residential Villas on a vacant 17.69-acre site. The Architectural Review Commission of the City of Palm Desert considered your request and took the following action at its meeting of April 27, 2021: By Minute Motion, the Architectural Review Commission approved Case No. SP/PP21- 0002, subject to the following: 1) Consider comments made by the Commission; 2) Applicant should refrain from the use of composite wood material that appears monochromatic and sensitive to extreme weather; 3) Considering its large size, the material for the stone veneer located on the south elevation should be scaled appropriately; 4) The hotel service utility doors should be screened; 5) Applicant should be mindful of the surf wall surrounding the lagoon and its proximity to the walkway and consider providing an additional illustration which better demonstrates what is being proposed for this area; 6) Consider variation for the garages on the stacked flats; 7) Applicant should be conscientious about the scale of the exterior material for the Surf Center; 8) Applicant should consider roof-top A/C units for the condos. The motion carried by a 5-0 vote with Commission Vuksic ABSENT. Any appeal of the above action may be made in writing to the City Clerk of the City of Palm Desert within 15 days of the date of the decision. If you have any questions, please contact Associate Planner Kevin Swartz at (760) 346-0611, Extension 485 or kswartz@cityofpalmdesert.org. Sincerely, ERIC CEJA, SECRETARY ARCHITECTURAL REVIEW COMMISSION cc: File Page 806 CITY OF PALM DESERT PALM DESERT PLANNING COMMISSION PRELIMINARY MINUTES TUESDAY, DECEMBER 21, 2021 – 6:00 P.M. ZOOM VIRTUAL MEETING I. CALL TO ORDER Chair John Greenwood called the meeting to order at 6:00 p.m. II. ROLL CALL Present: Chair John Greenwood Vice-Chair Nancy DeLuna Commissioner Ron Gregory Commissioner Lindsay Holt Commissioner Joseph Pradetto Also Present: Craig Hayes, Assistant City Attorney Martín Alvarez, Director of Development Services Eric Ceja, Deputy Director of Development Services/Economic Development Rosie Lua, Principal Planner Nick Melloni, Associate Planner Kevin Swartz, Associate Planner Monica O’Reilly, Management Specialist II III. PLEDGE OF ALLEGIANCE Commissioner Joseph Pradetto led the Pledge of Allegiance. IV. SUMMARY OF COUNCIL ACTIONS Director of Development Services Martín Alvarez summarized pertinent City Council actions from the meeting of December 16, 2021. V. ORAL COMMUNICATIONS None Page 807 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 21, 2021 2 VI. CONSENT CALENDAR A. MINUTES of the Regular Planning Commission meeting of November 2, 2021. Rec: Approve as presented. B. REQUEST FOR CONSIDERATION to approve a Parcel Map Waiver application to adjust two parcels at 890 and 892 Crescent Falls (APNs 652-310-017 and 652-310- 018). Case No. PMW 21-0008 (PAR Development, Palm Desert, California). Rec: By Minute Motion, approve Case No. PMW 21-0008. Upon a motion by Commissioner Pradetto, seconded by Vice-Chair DeLuna, and a 5- 0 vote of the Planning Commission, the Consent Calendar was approved as presented (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). VII. CONSENT ITEMS HELD OVER None VIII. NEW BUSINESS None IX. CONTINUED BUSINESS None X. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION to adopt a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approval of a Precise Plan (PP) and a Conditional Use Permit (CUP) to demolish the former Pizza Hut building and construct a new 7,500-square-foot retail and restaurant building located at 72310 Highway 111. Case No. PP/CUP 20-0002 (Nadel Architects, Inc, Los Angeles, California, Applicant). Note, the staff report(s) and Zoom video of the meeting are available on the City’s website. Click on the following link to access: www.planning-commission- information-center. Associate Planner Kevin Swartz presented the staff report and offered to answer any questions. The Commission had no questions for staff. Chair Greenwood declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. Page 808 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 21, 2021 3 Mr. Ralph Deppisch, the applicant’s representative, Los Angeles, California, stated that they worked with City staff and the Architectural Review Commission to improve the project. He hoped that the Planning Commission would support the recommendation and offered to answer any questions. Mr. David Anderson, the architect, commented that he did not have anything to add. He also offered to answer questions. Commissioner Ron Gregory listed his concerns and recommendations regarding the landscape plan. With no further testimony offered, Chair Greenwood declared the public hearing closed. Commissioner Pradetto moved for approval and then withdrew his motion to let Commissioner Gregory craft the motion with the recommendations to the landscape plan. Commissioner Gregory moved to waive further reading and adopt Planning Commission Resolution No. 2801, adopting a Notice of Exemption and approving Case No. PP/CUP 20- 0002, subject to the findings and conditions of approval. Following are additional conditions added to the landscape plan: 1) The San Diego Red Bougainvillea should not be planted as a shrub. The La Jolla Bougainvillea should be considered for a larger shrub, and the Oo-La- La Bougainvillea should be considered for a smaller shrub; 2) The Bougainvilleas should be a minimum size of five gallons; 3) Replace the Bear Grass with Desert Spoon or Giant Hesperaloe; 4) Replace the Aloe Variegata with a different Aloe or plant; and 5) For a commercial setting, change the Dalea Capitata and Lantana to five gallons. The motion was seconded by Vice-Chair DeLuna and carried by a 5-0 vote (AYES: DeLuna, Greenwood, Gregory, Holt, and Pradetto; NOES: None). B. REQUEST FOR CONSIDERATION of a recommendation to the City Council for approval of Amendment No. 1 to the Specific Plan (SP 18-0002), Precise Plan (PP 18- 0009), and Tentative Tract Map 36379 for DSRT SURF inclusive of a surf lagoon and surf center, a four-story hotel, and residential units on a 17.69-acre site located within Desert Willow Golf Resort. Case Nos. SP 18-0002/PP 18-0009/TTM 37639 Amendments No. 1 (Desert Wave Ventures, LLC, California, Applicant). Chair Greenwood disclosed that he works for Prest Vuksic Architects, and the firm has provided consulting services for this project; therefore, he recused himself from this item. He asked Vice-Chair DeLuna to proceed with the meeting. Commissioner Gregory also disclosed that he works for MSA Consulting, and the firm has provided consulting services for this project and recused himself. Principle Planner Rosie Lua gave a PowerPoint presentation reviewing the staff report in detail. She recommended approval to the City Council and noted that the applicant also has a PowerPoint presentation. Page 809 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 21, 2021 4 Vice-Chair DeLuna declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. Mr. Doug Sheres, the applicant, Solana Beach, California, said they have been working on this project for nearly five years and believed it is better and more compelling than ever. Mr. Bruce Greenfield, the architect, Orange, California, provided a PowerPoint presentation on the project’s architecture. Mr. John O, Palm Desert, California, supported the project. He is a lifetime surfer and the thought to ride waves in his zip code is a dream come true. With no further testimony offered, Vice-Chair DeLuna declared the public hearing closed. Commissioner Lindsay Holt stated that it is a great project and appreciated the work done on the revised specific plan and had no concerns. She thanked the staff and applicant for the presentations. Commissioner Pradetto moved to waive further reading and adopt Planning Commission Resolution No. 2802, recommending approval to the City Council for Case Nos. SP 18-0002/PP 18-0009/TTM 37639 Amendments No. 1, subject to findings and conditions of approval. The motion was seconded by Commissioner Holt and carried by a 3-0 vote (AYES: DeLuna, Holt, and Pradetto; NOES: None; ABSENT: Greenwood and Gregory). C. REQUEST FOR CONSIDERATION of a recommendation to the City Council for a Zoning Ordinance Amendment to modify Palm Desert Municipal Code Section 25.60.60 (Public Hearing and Public Notice), add Section 25.60.160 “Community Engagement,” and adding Section 5.11 “Disclosures Upon Transfer of Residential Property” for said project regulating the public engagement process, and apply said regulations. Case No. ZOA 21-0002 (City of Palm Desert, Palm Desert, California, Applicant). Chair Greenwood proceeded with the meeting. Ms. Lua reviewed the staff report and recommended approval of the Zoning Ordinance Amendment. Commissioner Greenwood suggested that it is of value to have public participation meetings digitally and recorded. Chair Greenwood declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no testimony offered, Vice-Chair DeLuna declared the public hearing closed. Page 810 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION DECEMBER 21, 2021 5 Commissioner Pradetto moved to waive further reading and adopt Planning Commission Resolution No. 2803, recommending approval to the City Council for Case No. 21-0002, with added language to clarify Title 5 in which the new language only applies to new developments. Motion carried by a 4-0 vote (AYES: DeLuna, Greenwood, Holt, and Pradetto; NOES: None; ABSENT: Gregory). XI. MISCELLANEOUS None XII. COMMITTEE MEETING UPDATES A. CULTURAL ARTS COMMITTEE Commissioner Holt reported that the Committee discussed the San Pablo Corridor Art Plan and the Public Art budget. B. PARKS & RECREATION COMMISSION None XIII. REPORTS AND REMARKS City staff thanked the Planning Commission for their time and dedication to the City of Palm Desert. XIV. ADJOURNMENT With the Planning Commission concurrence, Chair Greenwood adjourned the meeting at 7:49 p.m. JOHN GREENWOOD, CHAIR ATTEST: MARTĺN ALVAREZ, SECRETARY MONICA O’REILLY, RECORDING SECRETARY Page 811 PLANNING COMMISSION RESOLUTION NO. 2802 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY COUNCIL TO AMEND THE DSRT SURF SPECIFIC PLAN, PRECISE PLAN, AND TENTATIVE TRACT MAP CASE NOS. SP 18-0002/PP 18-0009/TTM 36379 AMENDMENTS NO. 1 WHEREAS, on February 4, 2021, Desert Wave Ventures, LLC, submitted an application for the DSRT SURF Project ("DSRT SURF" or "Project") for the development of a 5. 5-acre surf lagoon and surf center facilities, 92 hotel rooms, 83 residential units, circulation, parking, and landscaping constructed on 17.69 acres of vacant land within the Desert Willow Golf Resort, and an off-site parking location in close proximity, inclusive of amendments to the approved Specific Plan (SP 18-0002), Precise Plan (PP 18-0002), and Tentative Tract Map 36379; and WHEREAS, the Project site has an existing General Plan designation of Resort and Entertainment to the Palm Desert General Plan and a current zoning designation of DSRT SURF Specific Plan (DSSP) pursuant to the adopted Specific Plan 18-0002 approved by City Council on November 14, 2019, by Resolution No. 2019-82; and WHEREAS, under Section 21067 of the Public Resources Code, Section 15367 of the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), and the City of Palm Desert's ("City's") Local CEQA Guidelines, the City is the lead agency for the proposed Project; and WHEREAS, pursuant to the requirements of the California Environmental Quality Act CEQA), the State Guidelines for Implementation of CEQA (State CEQA Guidelines) and the City of Palm Desert CEQA Implementation Requirements, an Environmental Impact Report EIR), SCH# 2019011044 (EA 18-0002) and an accompanying Mitigation Monitoring and Reporting Program (MMRP), were previously adopted by City Council on November 14, 2019, for the DSSP by Resolution No. 2019-83; and, WHEREAS, in 2021, an addendum to the EIR was provided and determined that the required findings on the Project did not prompt an update to the EIR pursuant to CEQA Guidelines Section 15164; and WHEREAS, on April 27, 2021, the Architectural Review Commission (ARC) of the City of Palm Desert, California, held a meeting to consider the Project and approved by recommendation to the Planning Commission, the architecture, landscape, and site plan with conditions by minute motion; and WHEREAS, as contained herein, the Planning Commission has endeavored in good faith to set forth the basis for its recommendation on the Project; and WHEREAS, all of the findings, recommendations, and conclusions made by the Planning Commission pursuant to this Resolution are based upon the oral and written evidence presented to it as a whole and not based solely on the information provided in this Resolution; and Page 812 PLANNING COMMISSION RESOLUTION NO. 2802 WHEREAS, on December 21, 2021, the Planning Commission conducted a duly noticed public hearing on this Resolution, at which time all persons wishing to testify were heard, and DSRT SURF was fully considered; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: SECTION 1. The Planning Commission hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. State CEQA Guidelines section 15164 requires lead agencies to prepare an addendum to a previously certified EIR if some changes or additions to the Project are necessary, but none of the conditions requiring preparation of a subsequent EIR are present. The Planning Commission has reviewed and considered the 2019 EIR and the 2021 Addendum and finds that these documents taken together contain a complete and accurate reporting of all the potential environmental impacts associated with the DSRT SURF Project. The Planning Commission further finds that the 2021 Addendum has been completed in compliance with CEQA and the State CEQA Guidelines. The Planning Commission further finds and determines that the Addendum reflects the City's independent judgment. SECTION 3. Based on the substantial evidence set forth in the record, including but not limited to the 2019 EIR and the 2021 Addendum, the Planning Commission finds that an addendum is an appropriate document for disclosing the changes to the DSRT SURF Project and that none of the conditions identified in Public Resources Code section 21166 and State CEQA Guidelines section 15162 requiring subsequent environmental review have occurred, because: 1. The amended DSRT SURF Project does not constitute a substantial change that would require major revisions of the 2019 EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. 2. There is not a substantial change with respect to the circumstances under which the DSRT SURF Project will be developed that would require major revisions of the 2019 EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects. 3. New information of substantial importance has not been presented that was not known and could not have been known with the exercise of reasonable diligence at the time the 2019 EIR was certified or adopted, showing any of the following: (i) that the modifications would have one or more significant effects not discussed in the earlier environmental documentation; (ii) that significant effects previously examined would be substantially more severe than shown in the earlier environmental documentation; (iii) that mitigation measures or alternatives previously found not to be feasible would, in fact, be feasible and would substantially reduce one or more significant effects, but the applicant declined to adopt such measures; or (iv) that 2 Page 813 PLANNING COMMISSION RESOLUTION NO. 2802 mitigation measures or alternatives considerably different from those analyzed previously would substantially reduce one or more significant effects on the environment, but which the applicant declined to adopt. SECTION 4. The Planning Commission recommends that the City Council readopt those mitigation measures identified in the 2019 EIR applicable to the DSRT SURF Project and as detailed specifically in the Mitigation Monitoring and Reporting Program ("MMRP") prepared for the Addendum, attached to the Addendum at Appendix A, and attached hereto as Exhibit A. SECTION 5. The Planning Commission recommends that the City Council approve and adopt the Addendum, attached hereto as Exhibit B. SECTION 6. The 2019 EIR and the 2021 Addendum, and any other documents and materials that constitute the record of proceedings upon which these findings have been based are on file and available for public review at Palm Desert City Hall, 73510 Fred Waring Drive, Palm Desert, California 92260. The custodian of these records is Norma I Alley, the City Clerk of the City. SECTION 7. Findings for Recommended Approval of Specific Plan. 1. The DSRT SURF Specific Plan, as proposed, is consistent with the goals and policies of the Palm Desert General Plan, including that the Project provides a unique resort destination and sports facility consistent with the intent of the Resort and Entertainment District. On November 14, 2019, the City Council approved DSRT SURF Specific Plan (SP 18-0002) by Resolution 2019-82 governing the land uses, development standards, and design guidelines for the site and determining that the specific plan demonstrated compatibility of the applicable goals, policies and programs contained in the General Plan. The General Plan land use designation of Resort and Entertainment District allows development for entertainment and resort destination uses, drawing visitors to the site. The amendment to the specific plan includes operational function changes and revisions to the development standards, none of which increases the density or intensity of the Project. The compatibility of the General Plan established in the original approval of the Project remains unchanged. 2. The proposed DSRT SURF Specific Plan is not detrimental to the health, safety, or general welfare, or will be materially injurious to the surrounding properties or improvements in the City of Palm Desert. The amendment to the DSRT SURF Specific Plan is suitable and appropriate for the location, access, and topography for development because the intent of Desert Willow is to provide resort-style development. The site has been previously mass graded and identified for future resort-style development, all infrastructure to support the Project is nearby and improvements to infrastructure to support the Project are feasible, and access to the site has been studied and is deemed sufficient to support the Project. 3. The amendments to the DSRT SURF Specific Plan are compatible with the zoning of adjacent properties and ensures development of desirable character is harmonious with surrounding properties because the intent of Desert Willow is to provide a resort-style development. The Project was approved with a density of 15 3 Page 814 PLANNING COMMISSION RESOLUTION NO. 2802 dwelling units per acre (maximum 88 residential units), the amendment to the DSRT SURF Specific Plan does not change the density nor the intensity of the Project. In fact, the construction of the Project will only contain 83 residential units, which is under the maximum allowed. In addition, the approved specific plan allows for a 350-room hotel, and the Project will construct only a 92-room hotel. The new structures incorporate compatible and integrated architecture, materials and colors, and are not visually obstructive or disharmonious with surrounding areas, or harm major views from adjacent properties. The grading design would not result in any manufactured slopes or pads that create any significant adverse visual or compatibility impacts with adjacent lots, nor block any significant views. The Project is supported by adequate public facilities and transportation systems and is a compatible use, type, and intensity with the surrounding areas. SECTION 8. Findings for Recommended Approval of Tentative Map. 1. That the density of the proposed subdivision is consistent with applicable general and specific plans. The amendment to the Project is consistent with the goals, objectives, and policies of the Palm Desert General Plan ("General Plan"). The General Plan land use designation is Resort and Entertain District that allows development for entertainment and resort destination uses, drawing visitors to the site. General Plan Land Use Policy 4.1 encourages unique resort complexes within the city. The Project is a resort destination attraction of a surf lagoon with residential ownership units that complement the Project. The subdivision includes 17.69 acres into five 5) parcels, each to accommodate its respective uses, including the surf lagoon, hotel and surf center, stack flats including the clubhouse, and villas that are consistent with the General Plan. 2. That the design or improvement of the proposed subdivision is consistent with applicable general and specific plans. The amendment to the Project and its design and improvements are consistent with the General Plan and comply with the development standards of the Specific Plan. In addition, the lots accommodate the building pads, internal and external streets, drainage, utilities, and adequate access from Desert Willow. 3. That the site is physically suitable for the type of development. The site is physically suitable for the type of development for the Project. The Project is a resort development that is physically suitable for the site and is consistent with the intent of the specific plan and compatible with the surrounding uses, which include a golf course, amenities as well as existing resort-style residential units. The Project site is a 17.69-acre site; the parcel is adequate to accommodate the 5.5-acre surf lagoon, surf center and facilities, hotel, and residential units with adequate access and roadways, infrastructure, utilities, and drainage facilities. 4 Page 815 PLANNING COMMISSION RESOLUTION NO. 2802 4. That the site is physically suitable for the proposed density of development. The site is physically suitable for the density allowance of 15 units per acre as specified in the DSRT SURF Specific Plan resulting in 88 residential units. The Project amendments include 83 units which are less than the maximum density and comply with the applicable development standards of the specific plan making it suitable for the site. 5. That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and unavoidably injure fish or wildlife or their habitat. The amended design of the subdivision or the improvements contemplated for the Project are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat. The certified Environmental Impact Report (EIR), SCH# 2019011044, addresses the environmental impacts associated with the Project, including those impacts that could cause substantial environmental damage. There are no known fish, wildlife habitats, or other endangered species on the subject site. No environmental impacts are identified which substantially and avoidably injure fish, wildlife, or their habitat. 6. That the design of the subdivision or type of improvements is not likely to cause serious public health problems. The amended design of the subdivision or type of improvements for the Project are not likely to cause serious public health problems. The conditions of approval ensure all common area structures, landscaping, sidewalks, parking lot surfacing, and all other improvements within the Project must be continually maintained in good condition and repair, all dead or dying landscape material must be replaced with new landscape material, and a security construction plan must be submitted. Compliance with these conditions will prevent the subdivision and its improvements from causing any public health problems for those that enter the development. Storm drainage, sanitary sewer, water, streets, and all utilities are available to the site and have the capacity to accommodate the Project. The subdivision has been designed so the parcels have the necessary infrastructure to adequately serve the development, and all uses as allowed by the zoning ordinances that regulate the Project. 7. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the planned subdivision. The amended design or type of improvements will not conflict with easements acquired by the public at large for access through or use of the property within the subdivision. Public utilities for electricity, water, sewer, telecommunications, and gas service have all been assessed for availability. The access points to the Project have been reviewed and approved by the Fire Department and Public Works as part of the overall Project includes easements for roadways, drainage facilities, and utilities that will be recorded in the final map. There are no known 5 Page 816 PLANNING COMMISSION RESOLUTION NO. 2802 public easements traversing the subject site that would be adversely affected by the Project. SECTION 9. Findings for Recommended Approval of Design Review(Palm Desert Municipal Code Section 25.68.040. 1. That the proposed development conforms to any legally adopted development standards. The DSRT SURF Specific Plan has land use allowances inclusive of a maximum of the six-acre lagoon, 35,000 square feet surf center, 350 rooms for a hotel, 88 residential units, a clubhouse of 3,125 square feet, and 15,000 square feet for maintenance and equipment buildings. The amendment to the DSRT SURF Specific Plan includes height maximums of 50 feet for buildings and an additional 15 feet to accommodate architectural features and related roof equipment and apparatus. The Project includes a 5. 5-acre lagoon, a 7,263-square-foot surf center 26 feet in height), a four-story, 92-room hotel (55 feet in height), 83 residential units (ranging from 26 feet and 6 inches to 37 feet and 9 inches), 1,494-square- foot clubhouse (24 feet 6 inches in height), and 4,909 square feet of maintenance buildings (15 feet in height). The land uses and heights specified above are all within the allowances of the DSRT SURF Specific Plan. The building lot coverage maximum is 50 percent; the project site proposes 19.9 percent, which is within the required allowance. The setback requirements for the commercial component and residential components meet the minimum setback requirements of the DSRT SURF Specific Plan. The Desert Mid-Century Modern architecture theme is continuous throughout the site with varying architectural elements and high-quality materials, including the incorporation of indoor and outdoor spaces that meets the architecture characteristics required by the DSRT SURF Specific Plan. The on-site parking, including the podium parking within the hotel and integrated garages for the residential units, provides for the 443 required parking spaces. In addition, Lot E will be improved to include approximately 288 parking spaces, which will have valet services to the Project. The Project proposes all landscape remain as low water usage desert landscaping for the entirety of the Project, including the perimeter. The Project uses conforms to all the requirements of the DSRT SURF Specific Plan and all other applicable requirements as conditioned. 2. That the design and location of the proposed development and its relationship to neighboring existing or proposed developments and traffic is such that it will not impair the desirability of investment or occupation in the neighborhood; and that it will not unreasonably interfere with the use and enjoyment of neighboring existing or proposed developments and that it will not create traffic hazards or congestion. The amended Project has been designed as a destination point, including a surf lagoon, surf center and amenities, hotel, and residential units, which are compatible uses within a resort development. The proposed Project is located within the Desert Willow Golf Resort, which features a mix of resort development and existing residential units, including a mixture of timeshares and multifamily units. The Project includes a DSRT SURF Specific Plan, which regulates land uses 6 Page 817 PLANNING COMMISSION RESOLUTION NO. 2802 and provides development standards to ensure there is continuity of architectural style and regulation of density and heights of buildings; therefore, does not impair the desirability of investment. The Environmental Impact Report for the Project provided a Traffic Impact Analysis that reviewed the traffic impact, including circulation, traffic hazards, and congestion of the uses and operation of the site, which resulted in mitigation measures less than significant. No environmental or traffic concerns were identified that would indicate that development in this area would be unsuitable. The Project has also implemented a condition of approval for a parking management plan and improvements to an offsite parking location within proximity to the site to respond to overflow parking needs. 3. That the design and location of the proposed development is in keeping with the character of the surrounding neighborhood and is not detrimental to the harmonious, orderly, and attractive development contemplated by this title and the General Plan of the City. The design and location of the amended Project is in keeping with the character of the surrounding neighborhood and will serve as an additional attraction of the existing resort development. The Project consists of approximately 18-acres within an undeveloped area, with connectivity to the Desert Willow Clubhouse that is adjoining the Project site. The property is designated Resort and Entertainment in the General Plan, which allows development for a range of entertainment and resort destination uses for the purpose of drawing visitors to the site, such as theme parks and sports facilities. The Project includes the high-quality architectural style, amenities, and more importantly, offers unique opportunities for residential resort lifestyle and entertainment destinations inclusive of a surf lagoon and hotel, which will attract visitors and investors to the City. 4. That the design and location of the proposed development would provide a desirable environment for its occupants, as well as for its neighbors and that it is aesthetically of good composition, materials, textures, and colors. The design is a Desert Mid-Century Modern architectural theme, with sustainable building materials incorporating the natural environment and mid-century styles. The architectural elements include horizontal and vertical planes, varying rooflines, shading elements, intuitive and organic wayfinding designs, natural materials, and blurring lines between indoor and outdoor spaces. The design utilizes high-quality finishes and materials, including natural elements that provide shade and create shadow lines, such as building projections, covered walkways, arcades, and other human-scale elements to reduce the impact of building mass and create visual interest. The Project includes wave structures at the entry point to create a sense of arrival. The enclosure of courtyards and balconies are visually permeable where appropriate and step back on upper floors is utilized to further reduce the visual impact of building mass and maximize view corridors and viewsheds of the mountain. The Project site includes the thoughtful creation of public gathering space to encourage interaction between guests and residents is achieved by both passive and intentional design. Landscaping utilizes functional seating design elements throughout the site by the use of low-rise block and/or stone walls that serve to define landscaped areas while also providing casual seating throughout 7 Page 818 PLANNING COMMISSION RESOLUTION NO. 2802 the property. Open lawn and sandy beach areas in proximity to the lagoon and pools to encourage guests to create gathering space, reminiscent of an authentic beach experience. More intentional components of the Project include restaurants and bars, cabanas, lounge chairs, fire pits, and recreational activity space. The combination of designed gathering throughout the site and amenities creating intentional spaces promotes a destination resort atmosphere envisioned for the Project. 5. That the proposed use conforms to all the requirements of the zone in which it is located and all other applicable requirements. The Project uses conforms to all the requirements of the DSRT SURF Specific Plan and all other applicable requirements. The Project use considers the need for dedication and improvement of necessary streets and sidewalks, including the avoidance of traffic congestion, and is designed considering topographical and drainage conditions, including the need for dedication and improvements of necessary structures as a part thereof. The Project's environmental assessment and reviews of City departments and outside city agencies have included appropriate mitigation measures and conditions of approval. 6. That the overall development of the land shall be designed to ensure the protection of the public health, safety, and general welfare. The overall development of the land is designed to ensure Project is consistent with the General Plan and as analyzed in the DSRT SURF Specific Plan. The establishment, maintenance, or operation of the Project does not appear to have any adverse effects that are detrimental or injurious to property and improvements within the Desert Willow Golf Resort or the general welfare of the City. Therefore, the overall building design and the requirements imposed ensures the protection of public health, safety, and general welfare. SECTION 10. Project Recommendation. The Planning Commission hereby recommends approval of SP 18-0002 Amendment No. 1, PP 18-0009 Amendment No. 1, TTM 36379 Amendment No. 1, subject to the conditions of approval. SECTION 11. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at City Hall at 73510 Fred Waring Drive, Palm Desert, CA 92260. Norma I Alley, the City Clerk, is the custodian of the record of proceedings. SECTION 12. Execution of Resolution. The Chairperson of the Planning Commission will sign this Resolution, and the Secretary to the Commission shall attest and certify to the passage and adoption thereof. 8 Page 819 PLANNING COMMISSION RESOLUTION NO. 2802 PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 21st day of December 2021 by the following vote, to wit: AYES: DE LUNA, HOLT, and PRADETTO NOES: NONE ABSENT: GREENWOOD and GREGORY ABSTAIN: NONE Jj GR NWOO C IR ATTEST: MARTIN ALVAREZ, SECRETARY PALM DESERT PLANNING COMMISSION 9 Page 820 PLANNING COMMISSION RESOLUTION NO. 2802 CONDITIONS OF APPROVAL CASE NOS. SP 18-0002/PP 18-0009/TTM 36379 AMENDMENTS NO. 1 GENERAL 1. The Applicant shall comply with all terms and conditions as outlined in the amended Disposition and Development Agreement (DDA) approved by the City Council. 2. Any references to the "Specific Plan" in the Conditions of Approval of Resolution No. 2019-82 shall be replaced with "Amended Specific Plan," and such the amended specific plan in this resolution shall replace the previous approval. 3. Conditions of Approval approved in Resolution No. 2019-82 by City Council on November 14, 2019, shall remain effective and enforceable unless otherwise stated in this resolution. 4. Mitigation Measures in Exhibit A of Resolution No. 2019-82 shall remain effective and enforceable unless otherwise stated in this resolution. SPECIFIC PLAN 5. Applicant shall obtain permission from the Development Services Director to schedule all turf removal activities in coordination with season operations of the golf course. In addition, the Applicant is responsible for obtaining approvals from the City for soil stabilization and any required permits/agreements associated with such activity. 6. Condition of Approval No. 12 of Resolution No. 2019-82 shall be revised to state: All parcels shall develop in a manner consistent with the development standards contained in the amended Specific Plan. All other development standards not addressed in the Specific Plan shall comply with the Palm Desert Municipal Code (PDMC). 7. Condition of Approval No. 19 of Resolution No. 2019-82 shall be revised to state: Special events, which exceed 1,500 spectators, shall not exceed a maximum site capacity of 5,000 spectators. 8. The Applicant shall complete all improvements for Lot E (off-site parking), which includes approximately 288 parking spaces, and shall finalize a Parking Management Plan identifying all traffic control and off-site parking strategies with the Director of Development Services prior to the Certificate of Occupancy of the hotel building. TENTATIVE TRACT MAP 9. The Applicant shall record all easements related to Final Map, including but not limited to reciprocal access easements, shared parking agreements, and maintenance agreements for all common areas prior to the approval of the Final Map. 10. The Applicant or successor in interest shall submit Covenants, Conditions, and Restrictions (CC&Rs) in a form acceptable to the City Attorney, for the proposed subdivision prior to the recordation of the Final Map. 10 Page 821 PLANNING COMMISSION RESOLUTION NO. 2802 11. The Applicant shall include the following: street names, Subdivision Improvement Agreement, and improvement bonds prior to the approval of the Final Map. 12. The Applicant shall form a property owners association for the maintenance of the following: 1) all interior and common areas, including landscaping; and 2) maintenance of all frontage landscaping. PRECISE PLAN 13. Condition of Approval No. 13 of Resolution No. 2019-82 shall be revised to state: All development within the amended Specific Plan shall conform to the architectural renderings provided in the amended Specific Plan and Precise Plan 21-0002 approvals. Building design deviations are permitted as described in the amended Specific Plan, which shall conform to the architectural guidelines and colors and materials specified in the amended Specific Plan. 14. Condition of Approval No. 14 of Resolution No. 2019-82 shall be revised to state: The development of the property and all buildings pads within the Specific Plan boundaries shall conform substantially with exhibits approved by the Architectural Review Commission and its conditions set forth by minute motion on April 27, 2021, held on file with the Department of Development Services, and as modified by the conditions herein. 15. Condition of Approval No. 47 of Resolution No. 2019-82 is no longer valid since the Project does not include a gated entry unless the gates are for emergency access. If a future gate is installed for the Project, the applicant shall secure secondary access onto Willow Ridge Drive via a gate with Knox locks. 16. The Applicant shall comply with the conditions in the Notice of Action as specified in the Architectural Review Commission meeting of April 27, 2021. END OF CONDITIONS OF APPROVAL 11 Page 822 Page 823 1 Rosie Lua From:Eric Ceja Sent:Wednesday, January 12, 2022 8:24 AM To:Monica O'Reilly; Rosie Lua Cc:Martin Alvarez Subject:FW: DSRT SURF Letter of support for DSRT Surf staff report.       Eric Ceja Deputy Director of Development Services Ph: 760.346.0611 Direct: 760.776.6384 eceja@cityofpalmdesert.org   From: cj hobgood <cjgoods@gmail.com>   Sent: Wednesday, January 12, 2022 7:15 AM  To: Eric Ceja <eceja@cityofpalmdesert.org>  Subject: DSRT SURF      Good morning Erica and everyone in Palm Desert     To whom it may concern and in regard to the DSRT Surf agenda item ,, i; 3; i ., l„"...  My name is CJ Hobgood I' m a world champion surfer and competed on the World Surf  League ( WSL) tour for 17 years — winning the title in 2001.  I would like to thank you for allowing me to continue to live my dreams through potentially  having a beautiful destination my whole family can enjoy while also getting to surf really fain  waves in the process.  Beyond that, the story that has me so hopeful is allowing Surfers and our culture to meet and  celebrate your community in Palm Desert. Allowing the kids to have a healthy lifestyle in  surfing. A lifestyle they can make there own through surfing pools and create hope and  positivity that will prosper and enhance their lives like it did mine.  Beyond thrilled for you guys to see just how many people will use this facility!!   As always stoked  Have a great day     CJ Hobgood   ቓቔቕ  Page 824 From; David Hilts Founder, Coachella Valley Surf Club A non-profit organization To, Mr. Eric Ceja Deputy Director Development Services Dear Director Ceja, I am writing this letter on behalf of myself and our club members of the Coachella Valley Surf Club in favor of the DSRT Surf project in Palm Desert. Our club’s goal is to help our valley youth who are interested in learning surfing but may not have the means to afford the equipment. We assist in raising funds and acquire equipment for them. As a life long surfer and a resident of Palm Desert I am excited that we will have a wave basin right here in Palm Desert and be able to surf in our back yard. I have many friends in coastal communities and after speaking with them and hearing how excited they are about our new wave pool I know Palm Desert will become a mecca for costal surfers and their families and it will attract lots of visitors to our city. When I first met Doug and John at one of the early Planning Commission meetings, they were enthusiastic about our club goals and it is clear to me that they are as committed to allowing access to students we have identified as financially unable to afford to surf. We are looking forward to your and the city final approval of this great project. Regards, David Hilts CVSC Founder Cell 951.347.0728 Website; Coachellavalleysurfclub.org 73-336 Salt Cedar St Palm Desert, Ca. 92260 Page 825 Page 826 Page 827 Page 828 Page 829 Page 830 Page 831 Page 832 Page 833 Page 834 Page 835 Page 836 Page 837 Page 838 Page 839 Page 840 Page 841 Page 842 Page 843 Page 844 Page 845 Page 846 Page 847 Page 848 Page 849 Page 850 Page 851 Page 852 Page 853 Page 854 Page 855 Page 856 Page 857 Page 858 Page 859 Page 860 Page 861 Page 862 Page 863 Page 864 Page 865 Page 866 Page 867 Page 868 Page 869 Page 870 Page 871 Page 872 Page 873 Page 874 Page 875 Page 876 Page 877 Page 878 Page 879 Page 880 Page 881 Page 882 Page 883 Page 884 Page 885 Page 886 Page 887 Page 888 Page 889 Page 890 Page 891 Page 892 Page 893 Page 894 Page 895 Page 896 Page 897 Page 898 Page 899 Page 900 Page 901 Page 902 Page 903 Page 904 Page 905 Page 906 Page 907 Page 908 Page 909 Page 910 Page 911 Page 912 Page 913 Page 914 Page 915 Page 916 Page 917 Page 918 Page 919 Page 920 Page 921 Page 922 Page 923 Page 924 Page 925 Page 926 Page 927 Page 928 Page 929 Page 930 Page 931 Page 932 Page 933 Page 934 Page 935 Page 936 Page 937 Page 938 Page 939 Page 940 Page 941 Page 942 Page 943 Page 944 Page 945 Page 946 Page 947 Page 948 Page 949 Page 950 Page 951 Page 952 Page 953 Page 954 Page 955 Page 956 Page 957 Page 958